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<div style="text-align: justify;"> NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL Industrial Services of America, Inc. (herein “ISA,” the “Company,” or other similar terms) is a Louisville, Kentucky-based company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities and buys used autos in order to sell used auto parts. The Company purchases, processes and sells ferrous and non-ferrous scrap metal to steel mini-mills, integrated steel makers, foundries, refineries and processors. The Company purchases ferrous and non-ferrous scrap metal primarily from industrial and commercial generators of steel, aluminum, copper, brass, stainless steel and other metals as well as from scrap dealers and retail customers who deliver these materials directly to ISA facilities. The Company processes scrap metal through sorting, cutting, baling, and shredding operations. The shredding operations were restarted in May 2017, which had previously been idled in May 2015. The non-ferrous scrap recycling operations consist primarily of collecting, sorting and processing various grades of copper, aluminum, stainless steel and brass. The used automobile yard primarily purchases automobiles so that retail customers can locate and remove used parts for purchase. </div> The Company's core business is now focused on the metal recycling industry. During 2016, the Company announced that the Company formed a special committee of independent board members to evaluate various growth and strategic options. During the first quarter of 2017, the special committee concluded its work and reported to the Board. The Board accepted the special committee's recommendation to focus on returning the core recycling business to profitability. The Company intends to do this by increasing efficiencies and productivity, which included the commercial restart of the Company's auto shredder in the second quarter of 2017. The Company operates the auto shredder in the normal course of business subject to market conditions and operating needs. ISA will also evaluate other various options and remain alert for possible strategic partnerships, joint ventures and mergers/acquisitions. On March 26, 2018, the Board appointed Todd L. Phillips as Chief Executive Officer. See Note 7 – Share-Based Compensation and Other Compensation Agreements. Mr. Phillips has been the Company's Chief Financial Officer since December 31, 2014 and President since September 30, 2016 and will continue to serve in these roles. <div style="text-align: justify;"> <div style="border-left: none; border-right: none;"> Liquidity During the first quarter of 2017, the Company amended and extended its working capital line of credit which extended the contractual maturity date to February 28, 2020 and increased the borrowing availability. See Note 3 – Long-Term Debt and Notes Payable to Bank for discussion of loan arrangements with MidCap Business Credit LLC ("MidCap"). The Company expects operating cash flow and borrowings under its working capital line of credit to be sufficient to meet its ongoing obligations. The borrowings under the working capital line of credit are classified as short-term obligations under GAAP as the agreement with the lender contains a subjective acceleration clause and requires the Company to maintain a lockbox arrangement with the lender. However, the contractual maturity date of the revolver is February 28, 2020. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article <span class=" FactMarked" id="fs_IWLCRVNGW000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The Accounting Standards Codification ("ASC") as produced by the Financial Accounting Standards Board ("FASB") is the sole source of authoritative GAAP. In the opinion of management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position at March 31, 2018, and the results of operations and changes in cash flows for the quarters ended March 31, 2018 and 2017. Results of operations for the period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the entire year. Additional information, including the audited December 31, 2017 consolidated financial statements and the Summary of Significant Accounting Policies, is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, on file with the Securities and Exchange Commission. </div> <div class="pageBreak"> </div> <div style="border-left: none; border-right: none;"> Estimates In preparing the consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, management must make estimates and assumptions. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues and expenses, as well as affecting the disclosures provided. Examples of estimates include the allowance for doubtful accounts, estimates of deferred income tax assets and liabilities, estimates of inventory balances, and estimates of stock option and warrant values. The Company also uses estimates when assessing fair values of assets and liabilities acquired in business acquisitions as well as any fair value and any related impairment charges related to the carrying value of inventory and machinery and equipment and other long-lived assets. Despite the Company’s intention to establish accurate estimates and use reasonable assumptions, actual results may differ from these estimates. </div> Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts, transactions and profits have been eliminated. Reclassifications The Company has reclassified certain items within the accompanying Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements for the prior year in order to be comparable with the current presentation. These reclassifications had no effect on previously reported net income (loss) or shareholders' equity. Revenue Recognition The Company's revenue is primarily generated from contracts with customers. The Company notes there have been no credit losses recorded on any receivables or contract assets arising from contracts with customers for the three month periods ended March 31, 2018 and 2017. The Company elects to use the practical expedient as it relates to significant financing components as the Company expects, at the contract inception, that the period between when the Company transfers a promised good and when the customer pays for that good will be one year or less. Ferrous and nonferrous revenue Ferrous and non-ferrous contracts contain one performance obligation which consists of the shipment of a stated quantity of a stated product to be delivered within a stated time frame. Ferrous and non-ferrous revenue contracts are primarily short term contracts, typically completed within 30 days. Ferrous and non-ferrous transaction prices are stated in the contract with no variable considerations present. As ferrous and non-ferrous contracts contain one performance obligation, the total transaction price is allocated to the shipment of materials. When multiple loads are included in one contract, the stated price per gross tons is applied to the shipment weight in order to determine transaction price. Ferrous and non-ferrous revenue is recognized when the Company satisfies the shipment of materials per the contract. The shipment and delivery of material typically occurs on the same day. No contract assets or contract liabilities were recognized for the three month periods ended March 31, 2018 and 2017. Revenue from auto parts operations and other revenue Revenue from auto parts primarily consists of individual transactions by customers who enter the Company’s premises and purchase auto parts by cash or credit card. Related to these sales, a customer may be charged a core charge. The customer has 30 days to return the core and receive a refund of the core charge. Additionally, customers have the option to separately purchase a warranty related to certain goods purchased. Total core charges and warranty sales are immaterial in aggregate accounting for less than 1% of revenue from auto parts operations and other revenue. Sale prices, core charges and warranties are tracked separately and recognized as revenue when the purchase is completed. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">No contract assets or contract liabilities were recognized for the three month periods ended March 31, 2018 and 2017. Fair Value The Company carries certain of its financial assets and liabilities at fair value on a recurring basis. These financial assets and liabilities are composed of cash and cash equivalents. Long-term debt is carried at cost, and the fair value is disclosed herein. In addition, the Company measures certain assets, such as long-lived assets, at fair value on a non-recurring basis to evaluate those assets for potential impairment. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with applicable accounting standards, the Company categorizes its financial assets and liabilities into the following fair value hierarchy: Level <span class=" FactMarked" id="fs_2PZOO63HKG00000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">1 – Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Examples of Level <span class=" FactMarked" id="fs_12GMLL93K000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">1 financial instruments include active exchange-traded securities. Level <span class=" FactMarked" id="fs_BY6ZSHZD0000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2 – Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Examples of Level <span class=" FactMarked" id="fs_G3UVWA804W00000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2 financial instruments include various types of interest-rate and commodity-based derivative instruments, and various types of fixed-income investment securities. Pricing models are utilized to estimate fair value for certain financial assets and liabilities categorized in Level <span class=" FactMarked" id="fs_TCW2DJLXZ400000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2. Level 3 – Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall fair value measurement. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the asset or liability, and are based on the best available information, some of which is internally developed. When determining the fair value measurements for financial assets and liabilities carried at fair value on a recurring basis, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, ISA looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. Nevertheless, certain assets and liabilities are not actively traded in observable markets, and the Company uses alternative valuation techniques to derive fair value measurements. The Company uses the fair value methodology outlined in the related accounting standards to value the assets and liabilities for cash and debt. All of our cash is defined as Level 1 and all our debt is defined as Level 2. <div style="border-left: none; border-right: none;"> <div> <div style="border-left: none; border-right: none;"> In accordance with this guidance, the following table represents our fair value hierarchy for Level 1 and Level 2 financial instruments at March 31, 2018 and December 31, 2017 (in thousands): <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> March 31, 2018: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div> </div> </div> <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> December 31, 2017: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div> </div> <div> </div> The Company had no transfers in or out of Levels 1 or 2 fair value measurements, and no activity in Level 3 fair value measurements for the three month periods ended March 31, 2018 or 2017. <div style="border-right: none; border-left: none;"> Common Stock and Share-based Compensation Arrangements The Company has a Long Term Incentive Plan adopted in <span class=" FactMarked" id="fs_Q1MCF231W000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2009 ("LTIP") under which it may grant equity awards for up to 2.4 million shares of common stock, which are reserved by the Board of Directors for issuance of equity awards. The Company provides compensation benefits by granting stock options and other share-based awards to employees and directors. The exercise price of each option is equal to the market price of the Company's stock on the date of grant. The maximum term of the option is five years. The plan is accounted for based on FASB’s authoritative guidance titled "ASC <span class=" FactMarked" id="fs_FCZSXI0D6800000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">718 - Compensation - Stock Compensation." The Company recognizes share-based compensation expense for the fair value of the awards, on the date granted, on a straight-line basis over their vesting term (service period). Compensation expense is recognized only for share-based payments expected to vest. The Company estimates forfeitures at the date of grant based on the Company's historical experience and future expectations. The Company uses the grant date stock price to value the Company's restricted stock units. The fair value of each restricted stock unit is estimated on the date of grant. The Company uses the Modified Black-Scholes-Merton option-pricing model to value the Company's stock options for each employee stock option award. See Note 7 – Share-Based Compensation and Other Compensation Agreements. Using these option pricing models, the fair value of each stock option award is estimated on the date of grant. There are <span class=" FactMarked" id="fs_OT3XCTSS8000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">two significant inputs into the stock option pricing models: expected volatility and expected term. The Company estimates expected volatility based on traded option volatility of the Company's stock over a term equal to the expected term of the option granted. The expected term of stock option awards granted is derived from historical exercise experience under the Company's stock option plans and represents the period of time that stock option awards granted are expected to be outstanding. The expected term assumption incorporates the contractual term of an option grant, as well as the vesting period of an award. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the expected term of the option granted. The assumptions used in calculating the fair value of stock-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if factors change and different assumptions are used, stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate, and only recognize expense for those shares expected to vest. If the actual forfeiture rate is materially different from the estimate, the stock-based compensation expense could be significantly different from what was recorded in the current period. Treasury shares or new shares are issued for exercised options. The Company does not expect to repurchase any additional shares within the following annual period to accommodate the exercise of outstanding stock options. Under the LTIP, the Company may grant any of these types of awards: non-qualified and incentive stock options; stock appreciation rights; and other stock awards including stock units, restricted stock units, performance shares, performance units and restricted stock. The performance goals that the Company may use for such awards will be based on any one or more of the following performance measures: cash flow; earnings; earnings per share; market value added or economic value added; profits; return on assets; return on equity; return on investment; revenues; stock price; or total shareholder return. The LTIP is administered by a committee selected by the Board consisting of two or more outside members of the Board. The Committee may grant one or more awards to our employees, including our officers, our directors and consultants, and will determine the specific employees who will receive awards under the plan and the type and amount of any such awards. A participant who receives shares of stock awarded under the plan must hold those shares for six months before the participant may dispose of such shares. </div> Subsequent Events The Company has evaluated the period from March 31, 2018 through the date the financial statements herein were issued for subsequent events requiring recognition or disclosure in the financial statements and identified the following: The Company filed an insurance claim related to roofs on certain of its buildings due to weather related damage and received an initial payment in the third quarter of 2016. Subsequent to March 31, 2018, the Company received an additional payment from its insurance company for $659.9 thousand. This amount is gross of certain related fees and expenses. The Company will record the gain in the second quarter of 2018. <div class="pageBreak"> </div> Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">On January 1, 2018, the Company adopted ASU 2014-09 using the retrospective approach. The Company noted no financial impact on the Condensed Consolidated Financial Statements as a result of the adoption of this amended guidance. In addition, the adoption of this new accounting standard resulted in increased disclosure, including qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. See the Revenue Recognition section of Note 1 – Summary of Significant Accounting Policies and General<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> for additional information. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities be classified as noncurrent on the consolidated balance sheet. ASU 2015-17 was effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Upon adoption, ASU 2015-17 may be applied either prospectively or retrospectively. The Company adopted the standard in the first quarter of 2017 and noted no material impact from the adoption on the Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU simplify the accounting for sale and leaseback transactions. This ASU leaves the accounting for the organizations that own the leased assets largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is evaluating the potential impact of ASU 2016-02 on the Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which provides guidance to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is evaluating the potential impact of ASU 2016-13 on the Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight specific cash flow issues. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Upon adoption, ASU 2016-15 should be applied retrospectively. The Company is evaluating the potential impact of ASU 2016-15 on the Condensed Consolidated Financial Statements, but does not expect a material impact from the adoption of ASU 2016-15 on the Condensed Consolidated Financial Statements. No other new accounting pronouncements issued or effective during the reporting period had, or is expected to have, a material impact on our Condensed Consolidated Financial Statements. </div>

Liquidity During the first quarter of 2017, the Company amended and extended its working capital line of credit which extended the contractual maturity date to February 28, 2020 and increased the borrowing availability. See Note 3 – Long-Term Debt and Notes Payable to Bank for discussion of loan arrangements with MidCap Business Credit LLC ("MidCap"). The Company expects operating cash flow and borrowings under its working capital line of credit to be sufficient to meet its ongoing obligations. The borrowings under the working capital line of credit are classified as short-term obligations under GAAP as the agreement with the lender contains a subjective acceleration clause and requires the Company to maintain a lockbox arrangement with the lender. However, the contractual maturity date of the revolver is February 28, 2020.

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article <span class=" FactMarked" id="fs_IWLCRVNGW000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The Accounting Standards Codification ("ASC") as produced by the Financial Accounting Standards Board ("FASB") is the sole source of authoritative GAAP. In the opinion of management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position at March 31, 2018, and the results of operations and changes in cash flows for the quarters ended March 31, 2018 and 2017. Results of operations for the period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the entire year. Additional information, including the audited December 31, 2017 consolidated financial statements and the Summary of Significant Accounting Policies, is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, on file with the Securities and Exchange Commission.

Estimates In preparing the consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, management must make estimates and assumptions. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues and expenses, as well as affecting the disclosures provided. Examples of estimates include the allowance for doubtful accounts, estimates of deferred income tax assets and liabilities, estimates of inventory balances, and estimates of stock option and warrant values. The Company also uses estimates when assessing fair values of assets and liabilities acquired in business acquisitions as well as any fair value and any related impairment charges related to the carrying value of inventory and machinery and equipment and other long-lived assets. Despite the Company’s intention to establish accurate estimates and use reasonable assumptions, actual results may differ from these estimates.

Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts, transactions and profits have been eliminated.

Reclassifications The Company has reclassified certain items within the accompanying Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements for the prior year in order to be comparable with the current presentation. These reclassifications had no effect on previously reported net income (loss) or shareholders' equity.

Revenue Recognition The Company's revenue is primarily generated from contracts with customers. The Company notes there have been no credit losses recorded on any receivables or contract assets arising from contracts with customers for the three month periods ended March 31, 2018 and 2017. The Company elects to use the practical expedient as it relates to significant financing components as the Company expects, at the contract inception, that the period between when the Company transfers a promised good and when the customer pays for that good will be one year or less. Ferrous and nonferrous revenue Ferrous and non-ferrous contracts contain one performance obligation which consists of the shipment of a stated quantity of a stated product to be delivered within a stated time frame. Ferrous and non-ferrous revenue contracts are primarily short term contracts, typically completed within 30 days. Ferrous and non-ferrous transaction prices are stated in the contract with no variable considerations present. As ferrous and non-ferrous contracts contain one performance obligation, the total transaction price is allocated to the shipment of materials. When multiple loads are included in one contract, the stated price per gross tons is applied to the shipment weight in order to determine transaction price. Ferrous and non-ferrous revenue is recognized when the Company satisfies the shipment of materials per the contract. The shipment and delivery of material typically occurs on the same day. No contract assets or contract liabilities were recognized for the three month periods ended March 31, 2018 and 2017. Revenue from auto parts operations and other revenue Revenue from auto parts primarily consists of individual transactions by customers who enter the Company’s premises and purchase auto parts by cash or credit card. Related to these sales, a customer may be charged a core charge. The customer has 30 days to return the core and receive a refund of the core charge. Additionally, customers have the option to separately purchase a warranty related to certain goods purchased. Total core charges and warranty sales are immaterial in aggregate accounting for less than 1% of revenue from auto parts operations and other revenue. Sale prices, core charges and warranties are tracked separately and recognized as revenue when the purchase is completed. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">No contract assets or contract liabilities were recognized for the three month periods ended March 31, 2018 and 2017.

Fair Value The Company carries certain of its financial assets and liabilities at fair value on a recurring basis. These financial assets and liabilities are composed of cash and cash equivalents. Long-term debt is carried at cost, and the fair value is disclosed herein. In addition, the Company measures certain assets, such as long-lived assets, at fair value on a non-recurring basis to evaluate those assets for potential impairment. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with applicable accounting standards, the Company categorizes its financial assets and liabilities into the following fair value hierarchy: Level <span class=" FactMarked" id="fs_2PZOO63HKG00000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">1 – Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Examples of Level <span class=" FactMarked" id="fs_12GMLL93K000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">1 financial instruments include active exchange-traded securities. Level <span class=" FactMarked" id="fs_BY6ZSHZD0000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2 – Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Examples of Level <span class=" FactMarked" id="fs_G3UVWA804W00000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2 financial instruments include various types of interest-rate and commodity-based derivative instruments, and various types of fixed-income investment securities. Pricing models are utilized to estimate fair value for certain financial assets and liabilities categorized in Level <span class=" FactMarked" id="fs_TCW2DJLXZ400000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2. Level 3 – Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall fair value measurement. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the asset or liability, and are based on the best available information, some of which is internally developed. When determining the fair value measurements for financial assets and liabilities carried at fair value on a recurring basis, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, ISA looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. Nevertheless, certain assets and liabilities are not actively traded in observable markets, and the Company uses alternative valuation techniques to derive fair value measurements. The Company uses the fair value methodology outlined in the related accounting standards to value the assets and liabilities for cash and debt. All of our cash is defined as Level 1 and all our debt is defined as Level 2. <div style="border-left: none; border-right: none;"> <div> <div style="border-left: none; border-right: none;"> In accordance with this guidance, the following table represents our fair value hierarchy for Level 1 and Level 2 financial instruments at March 31, 2018 and December 31, 2017 (in thousands): <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> March 31, 2018: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div> </div> </div> <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> December 31, 2017: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div> </div>

<div> <div style="border-left: none; border-right: none;"> In accordance with this guidance, the following table represents our fair value hierarchy for Level 1 and Level 2 financial instruments at March 31, 2018 and December 31, 2017 (in thousands): <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> March 31, 2018: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 880 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,874 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,335 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div> </div> </div> <div> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99%; margin-left: 0.1px;" width="100%"> <tbody> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: middle;"> Fair Value at Reporting Date Using </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 1.5pt; vertical-align: bottom;"> December 31, 2017: </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: middle;"> Quoted Prices in Active Markets for Identical Assets </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: middle;"> Significant Other Observable Inputs </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Assets: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 1 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Level 2 </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Total </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom; width: 31%;"> Cash and cash equivalents </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 27%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 23%;"> — </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 10%;"> 841 </td> <td style="vertical-align: bottom; width: 1%; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Liabilities: </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr style="/* background-image: linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(to right, gray 33%, rgba(255, 255, 255, 0) 0%), linear-gradient(gray 33%, rgba(255, 255, 255, 0) 0%) !important; */background-position: center bottom, right center, center top, left center !important; background-size: 3px 1px, 1px 3px, 3px 1px, 1px 3px !important; background-repeat: repeat-x, repeat-y, repeat-x, repeat-y !important;"> <td style="padding: 0px 2px; vertical-align: bottom;"> Current maturities of long-term debt </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">) </td> <td style="padding: 0px 2px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (5,018 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> Long-term debt, related parties </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> <td style="padding: 0px 2px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (1,331 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;">)</td> </tr> </tbody> </table> </div> </div>

880000

5874000

1335000

841000

5018000

1331000

Common Stock and Share-based Compensation Arrangements The Company has a Long Term Incentive Plan adopted in <span class=" FactMarked" id="fs_Q1MCF231W000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">2009 ("LTIP") under which it may grant equity awards for up to 2.4 million shares of common stock, which are reserved by the Board of Directors for issuance of equity awards. The Company provides compensation benefits by granting stock options and other share-based awards to employees and directors. The exercise price of each option is equal to the market price of the Company's stock on the date of grant. The maximum term of the option is five years. The plan is accounted for based on FASB’s authoritative guidance titled "ASC <span class=" FactMarked" id="fs_FCZSXI0D6800000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">718 - Compensation - Stock Compensation." The Company recognizes share-based compensation expense for the fair value of the awards, on the date granted, on a straight-line basis over their vesting term (service period). Compensation expense is recognized only for share-based payments expected to vest. The Company estimates forfeitures at the date of grant based on the Company's historical experience and future expectations. The Company uses the grant date stock price to value the Company's restricted stock units. The fair value of each restricted stock unit is estimated on the date of grant. The Company uses the Modified Black-Scholes-Merton option-pricing model to value the Company's stock options for each employee stock option award. See Note 7 – Share-Based Compensation and Other Compensation Agreements. Using these option pricing models, the fair value of each stock option award is estimated on the date of grant. There are <span class=" FactMarked" id="fs_OT3XCTSS8000000000000000000000" style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; cursor: pointer;">two significant inputs into the stock option pricing models: expected volatility and expected term. The Company estimates expected volatility based on traded option volatility of the Company's stock over a term equal to the expected term of the option granted. The expected term of stock option awards granted is derived from historical exercise experience under the Company's stock option plans and represents the period of time that stock option awards granted are expected to be outstanding. The expected term assumption incorporates the contractual term of an option grant, as well as the vesting period of an award. The risk-free interest rate is based on the implied yield on a U.S. Treasury constant maturity with a remaining term equal to the expected term of the option granted. The assumptions used in calculating the fair value of stock-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if factors change and different assumptions are used, stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate, and only recognize expense for those shares expected to vest. If the actual forfeiture rate is materially different from the estimate, the stock-based compensation expense could be significantly different from what was recorded in the current period. Treasury shares or new shares are issued for exercised options. The Company does not expect to repurchase any additional shares within the following annual period to accommodate the exercise of outstanding stock options. Under the LTIP, the Company may grant any of these types of awards: non-qualified and incentive stock options; stock appreciation rights; and other stock awards including stock units, restricted stock units, performance shares, performance units and restricted stock. The performance goals that the Company may use for such awards will be based on any one or more of the following performance measures: cash flow; earnings; earnings per share; market value added or economic value added; profits; return on assets; return on equity; return on investment; revenues; stock price; or total shareholder return. The LTIP is administered by a committee selected by the Board consisting of two or more outside members of the Board. The Committee may grant one or more awards to our employees, including our officers, our directors and consultants, and will determine the specific employees who will receive awards under the plan and the type and amount of any such awards. A participant who receives shares of stock awarded under the plan must hold those shares for six months before the participant may dispose of such shares.

2400000

P5Y P6M

Subsequent Events The Company has evaluated the period from March 31, 2018 through the date the financial statements herein were issued for subsequent events requiring recognition or disclosure in the financial statements and identified the following: The Company filed an insurance claim related to roofs on certain of its buildings due to weather related damage and received an initial payment in the third quarter of 2016. Subsequent to March 31, 2018, the Company received an additional payment from its insurance company for $659.9 thousand. This amount is gross of certain related fees and expenses. The Company will record the gain in the second quarter of 2018.

659900

Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2014-09 affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">On January 1, 2018, the Company adopted ASU 2014-09 using the retrospective approach. The Company noted no financial impact on the Condensed Consolidated Financial Statements as a result of the adoption of this amended guidance. In addition, the adoption of this new accounting standard resulted in increased disclosure, including qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. See the Revenue Recognition section of Note 1 – Summary of Significant Accounting Policies and General<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> for additional information. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities be classified as noncurrent on the consolidated balance sheet. ASU 2015-17 was effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Upon adoption, ASU 2015-17 may be applied either prospectively or retrospectively. The Company adopted the standard in the first quarter of 2017 and noted no material impact from the adoption on the Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU simplify the accounting for sale and leaseback transactions. This ASU leaves the accounting for the organizations that own the leased assets largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is evaluating the potential impact of ASU 2016-02 on the Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which provides guidance to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is evaluating the potential impact of ASU 2016-13 on the Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight specific cash flow issues. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Upon adoption, ASU 2016-15 should be applied retrospectively. The Company is evaluating the potential impact of ASU 2016-15 on the Condensed Consolidated Financial Statements, but does not expect a material impact from the adoption of ASU 2016-15 on the Condensed Consolidated Financial Statements. No other new accounting pronouncements issued or effective during the reporting period had, or is expected to have, a material impact on our Condensed Consolidated Financial Statements.

NOTE 2 – INVENTORIES <div> <div> <div> The Company's inventories primarily consist of ferrous and non-ferrous scrap metals, and are valued at the lower of average purchased cost or net realizable value ("NRV") based on the specific scrap commodity. Quantities of inventories are determined based on the Company's inventory systems and are subject to periodic physical verification using estimation techniques including observation, weighing and other industry methods. The Company recognizes inventory impairment and related adjustments when the NRV, based upon current market pricing, falls below recorded value or when the estimated volume is less than the recorded volume of the inventory. The Company records the loss in cost of sales in the period during which the loss is identified. </div> </div> </div> Certain assumptions are made regarding future demand and net realizable value in order to assess whether inventory is properly recorded at the lower of cost or NRV. Assumptions are based on historical experience, current market conditions and remaining costs of processing (if any) and disposal. If the anticipated future selling prices of scrap metal and finished steel products should decline, the Company would re-assess the recorded NRV of the inventory and make any adjustments believed necessary in order to reduce the value of the inventory (and increase cost of sales) to the lower of cost or NRV. The Company did not have a lower of cost or NRV inventory write-down in the three month periods ended March 31, 2018 and 2017. Some commodities are in saleable condition at acquisition. The Company purchases these commodities in small amounts until it has a truckload of material available for shipment. Some commodities are not in saleable condition at acquisition. These commodities must be sorted, shredded, cut or baled. ISA does not have work-in-process inventory that needs to be manufactured to become finished goods. The Company includes processing costs in inventory for all commodities by weight. <div> <div> Inventories for ferrous and non-ferrous materials as of March 31, 2018 and December 31, 2017 consist of the following: </div> <div> <table cellpadding="0" style="border-collapse: collapse; width: 99.5%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="vertical-align: bottom; padding: 0px;"> March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"/> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 2px 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> (unaudited) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> December 31, 2017 </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom: 0.75pt solid #000000; padding: 2px 0px; vertical-align: bottom; border-top: 1pt solid #000000;"> (in thousands) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff; width: 65%;"> Raw materials </td> <td style="padding: 2px 0px 2px 2px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 15%;"> 3,713 </td> <td style="vertical-align: bottom; background-color: #cceeff; padding: 0px; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> </td> <td style="padding: 2px 0px 2px 2px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 15%;"> 3,046 </td> <td style="vertical-align: bottom; background-color: #cceeff; padding: 0px; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> <span style="color: #000000; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Finished goods </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> 1,062 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> 1,366 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Processing costs </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 729 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 694 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff; padding: 0px;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Total inventories for sale </td> <td style="border-bottom: 1.5pt solid #000000; padding: 2px 0px 2px 2px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 5,504 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 2px 0px 2px 2px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 5,106 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> </tr> </tbody> </table> </div> </div>

<div> <div> The Company's inventories primarily consist of ferrous and non-ferrous scrap metals, and are valued at the lower of average purchased cost or net realizable value ("NRV") based on the specific scrap commodity. Quantities of inventories are determined based on the Company's inventory systems and are subject to periodic physical verification using estimation techniques including observation, weighing and other industry methods. The Company recognizes inventory impairment and related adjustments when the NRV, based upon current market pricing, falls below recorded value or when the estimated volume is less than the recorded volume of the inventory. The Company records the loss in cost of sales in the period during which the loss is identified. </div> </div>

<div> Inventories for ferrous and non-ferrous materials as of March 31, 2018 and December 31, 2017 consist of the following: </div> <div> <table cellpadding="0" style="border-collapse: collapse; width: 99.5%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> <td style="vertical-align: middle;"> </td> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="vertical-align: bottom; padding: 0px;"> March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"/> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 2px 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> (unaudited) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> December 31, 2017 </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom: 0.75pt solid #000000; padding: 2px 0px; vertical-align: bottom; border-top: 1pt solid #000000;"> (in thousands) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff; width: 65%;"> Raw materials </td> <td style="padding: 2px 0px 2px 2px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 15%;"> 3,713 </td> <td style="vertical-align: bottom; background-color: #cceeff; padding: 0px; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> </td> <td style="padding: 2px 0px 2px 2px; vertical-align: bottom; background-color: #cceeff; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; width: 15%;"> 3,046 </td> <td style="vertical-align: bottom; background-color: #cceeff; padding: 0px; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> <span style="color: #000000; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Finished goods </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> 1,062 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> 1,366 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Processing costs </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 729 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 694 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff; padding: 0px;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Total inventories for sale </td> <td style="border-bottom: 1.5pt solid #000000; padding: 2px 0px 2px 2px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 5,504 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 2px 0px 2px 2px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 5,106 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> </tr> </tbody> </table> </div>

3713000

3046000

1062000

1366000

729000 694000

5504000

5106000

NOTE 3 – LONG-TERM DEBT AND NOTES PAYABLE TO BANK Summary: On February 29, 2016, the Company closed on new financings with MidCap and paid off all remaining amounts due to the Company's previous lender Wells Fargo. Additionally, on February 29, 2016, the Company converted certain amounts payable to related parties into unsecured term notes payable to the same related parties as more fully described in Note 6 – Related Party Transactions. On March 31, 2017, the Company entered into an amendment to increase the line of credit, subject to the satisfaction of certain borrowing base restrictions (which have been satisfied), and extend the maturity date more fully described below. On June 23, 2017, in connection with the purchase of equipment to be used in the operation of the Company's business, the Company issued notes totaling $129.0 thousand principal amount due to a related party. See Note 6 – Related Party Transactions. MidCap: On February 29, 2016, the Company entered into the 2016 Loan, which, as initially entered into, provided a $6.0 million senior, secured asset-based line of credit with MidCap. The Company could borrow up to the sum of (a) 85% of the value of its eligible domestic accounts receivable; (b) the lesser of (i) $2.5 million and (ii) 75% of the net orderly liquidation value of eligible inventory; and (c) the lesser of (i) $500,000 and (ii) 40% of appraised net forced liquidation value of eligible fixed assets (the "Equipment Sublimit"). The Equipment Sublimit amortizes monthly on a straight line basis over sixty (60) months with no reduction to the overall line of credit availability. As described below, the 2016 Loan was amended on March 31, 2017. Proceeds from this loan were used to pay transaction expenses, pay off and close the remaining balance on the Wells Fargo revolving line of credit and fund working capital requirements. The interest rate on the 2016 Loan is equal to the prime rate (4.75% as of March 31, 2018) plus 250 basis points (2.50%). In the Event of a Default (as defined in the 2016 Loan Agreement), the interest rate will increase by 300 basis points (3.00%). The 2016 Loan also has a monthly collateral-monitoring fee equal to 27.5 basis points (0.275%) of the average daily balance outstanding, an annual facility fee of 100 basis points (1.00%) and an unused line fee equal to an annual rate of 50 basis points (0.50%) of the average undrawn portion of the 2016 Loan. The 2016 Loan has a maturity date of February 28, 2020 based on the amendment described below. The borrowings under the revolving credit agreement are classified as short-term obligations under GAAP as the agreement with MidCap contains a subjective acceleration clause and requires the Company to maintain a lockbox arrangement with the lender. The Company was subject to a prepayment fee of $120.0 thousand if the 2016 Loan was terminated or prepaid prior to the one year anniversary of the loan. The Company is subject to a prepayment fee of $60.0 thousand if the 2016 Loan is terminated or prepaid subsequent to the one year anniversary of the loan, but prior to the maturity date. Interest and monthly fees under the 2016 Loan are payable monthly in arrears. The 2016 Loan Agreement contains a minimum line availability covenant equal to $350.0 thousand. This covenant may be replaced by a Fixed Charge Coverage Ratio ("FCCR") covenant once the Company has achieved a FCCR of 1.0x on an annualized basis. The Company granted MidCap a first priority security interest in all of the assets of ISA pursuant to the terms of a Security Agreement. The Company is allowed to sell or refinance up to $3.0 million in fair market value of real property provided (i) the proceeds from such refinance or sale remain with the Company; and (ii) no event of default exists at the time of such refinance or sale. On March 31, 2017, the Company and each of its wholly-owned subsidiaries entered into an amendment to the 2016 Loan with MidCap ("First Amendment"). The First Amendment increased the line of credit from $6.0 million to $8.0 million and extended the maturity date to February 28, 2020. As amended, the line of credit permits the Company to borrow an amount under the 2016 Loan equal to the lesser of (A) $8.0 million; and (B)(i) 85% of the value of the Company’s eligible domestic accounts receivable, plus (ii) the lesser of (x) $2.5 million and (y) 75% of the net orderly liquidation value of eligible inventory, plus (iii) the lesser of (x) $400,000 and (y) 40% of appraised net forced liquidation value of eligible fixed assets, plus (iv) the lesser of (x) $1.75 million and (y) 45% of the appraised value of certain properties owned by the Company (subject to MidCap's receipt of any third-party or internal approvals it may require in its discretion), minus (v) any amount which MidCap may require from time to time, pursuant to terms of the agreement, in order to secure amounts owed to MidCap under the agreement. The First Amendment contains a minimum line availability covenant equal to $350.0 thousand, the same as the original 2016 Loan. This covenant may be replaced by a FCCR covenant once the Company has achieved an FCCR of 1.1x on an annualized basis. The Company paid underwriting fees of $20.0 thousand at closing. On April 26, 2017, certain borrowing base restrictions were satisfied with MidCap which resulted in an increase in availability of $1.75 million. The amended 2016 Loan had availability of $1.7 million as of March 31, 2018. Debt as of March 31, 2018 and December 31, 2017 consisted of the following: <div> <table cellpadding="0" style="border-collapse: collapse; margin-left: 0pt; width: 100%;" width="100%"> <tbody> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> March 31, </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> December 31, </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2017 </td> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: middle;"> (unaudited) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> (in thousands) </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 73%;"> Revolving credit facility with MidCap, see above description for additional details </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 5,874 </td> <td style="background-color: #cceeff; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding: 1.5pt; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 5,018 </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; vertical-align: bottom; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> K&R, LLC related party notes (See Note 6 - Related Party Transactions) </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 700 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 716 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 7100 Grade Lane LLC related party note (See Note 6 - Related Party Transactions) </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 884 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 884 </td> <td style="background-color: #cceeff; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 7,458 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 6,618 </td> <td style="border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> Less amounts classified as current maturities </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,938 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,082 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,520 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,536 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> </div> The annual contractual maturities of long-term debt (in thousands) for the next five twelve-month periods and thereafter ending March 31 are as follows: <div> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; width: 86%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 86%;"> 2019 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 64 </td> <td style="background-color: #cceeff; vertical-align: bottom; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2020 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,890 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 2021 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,504 </td> <td style="background-color: #cceeff; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2022 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 2023 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Total </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 7,458 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> </div> The Company paid and capitalized loan fees in the amount of $94.1 thousand during the three month period ended March 31, 2018. Amounts owed to K&R, LLC and 7100 Grade Lane LLC are more fully described in Note 6 – Related Party Transactions.

129000.0

6000000.0

0.85 2500000 0.75 500000 0.40

P60M

0.0475

0.0250

0.0300

0.00275

0.0100

0.0050

120000.0 P1Y 60000.0 P1Y 350000.0 3000000.0

6000000.0

8000000.0

0.85 2500000 0.75 400000 0.40 1750000 0.45 350000.0 1.1

20000.0

1750000

1700000

Debt as of March 31, 2018 and December 31, 2017 consisted of the following: <div> <table cellpadding="0" style="border-collapse: collapse; margin-left: 0pt; width: 100%;" width="100%"> <tbody> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> March 31, </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> December 31, </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2017 </td> </tr> <tr> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: middle;"> (unaudited) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="7" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> (in thousands) </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 73%;"> Revolving credit facility with MidCap, see above description for additional details </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 5,874 </td> <td style="background-color: #cceeff; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding: 1.5pt; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 5,018 </td> <td style="background-color: #cceeff; border-top: 0.75pt solid #000000; vertical-align: bottom; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> K&R, LLC related party notes (See Note 6 - Related Party Transactions) </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 700 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 716 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 7100 Grade Lane LLC related party note (See Note 6 - Related Party Transactions) </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 884 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 884 </td> <td style="background-color: #cceeff; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 7,458 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 6,618 </td> <td style="border-top-color: #000000; border-top-style: solid; border-top-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> Less amounts classified as current maturities </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,938 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,082 </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,520 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,536 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> </div>

5874000

5018000

700000

716000

884000

7458000

6618000

5938000 5082000

1520000

1536000

The annual contractual maturities of long-term debt (in thousands) for the next five twelve-month periods and thereafter ending March 31 are as follows: <div> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; width: 86%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 86%;"> 2019 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom; width: 1%;"> </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%;"> $ </td> <td style="background-color: #cceeff; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 11%;"> 64 </td> <td style="background-color: #cceeff; vertical-align: bottom; width: 1%;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2020 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5,890 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 2021 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,504 </td> <td style="background-color: #cceeff; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2022 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom;"> </td> </tr> <tr> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> 2023 </td> <td style="background-color: #cceeff; padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="background-color: #cceeff; border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; vertical-align: bottom;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Total </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 7,458 </td> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> </div>

64000

5890000

1504000

7458000

94100

NOTE 4 – LEASE COMMITMENTS Operating Leases: The Company leased a portion of its Louisville, Kentucky facility from a related party (see Note 6 - Related Party Transactions) under an operating lease that was due to expire December 31, 2017 (the "7100 Prior Lease"). The lease amount was $53.8 thousand per month. Effective October 1, 2017, the Company entered into a new lease agreement with a related party for the same property (the "7100 Lease") that terminates and replaces the 7100 Prior Lease. The lease is for a period of seven years with rent payments of $37.5 thousand per month for the first five years. For each of the following one year periods, the annual rent increases the lesser of (a) the percentage change in the CPI over the preceding twelve months, or (b) 2% of the previous year's annual rent. The Company has the option to extend the lease for two additional consecutive terms, each such extended term to be for a period of five years. In addition, the Company is responsible for real estate taxes, insurance, utilities and maintenance expense. The Company signed a lease, effective December 1, 2014, to lease a facility in the Seymour, Indiana area. This lease is for a period of three years. The Company has the option to extend the lease for three (3) additional three (3) year periods. Rent is $8.0 thousand per month and increases each year by $0.2 thousand per month. In the event ISA exercises the option to renew the lease for a second three-year term, at the end of the second three-year term, ISA has the option to purchase the property. The Company leased a lot in Louisville, Kentucky for a term that commenced in March 2012 and ended in February 2016. The monthly payment amount from March 2012 through February 2014 was $3.5 thousand. Beginning March 2014, the monthly payment amount increased to $3.8 thousand for the remaining term. As of August 31, 2015, the Company entered into a settlement to abandon the leased property and paid the remaining balance of scheduled payments over a 19 month period, ending March 31, 2017. On April 30, 2015, the Company entered into a lease agreement with LK Property Investments LLC ("LK Property") (see Note 6 - Related Party Transactions), for a portion of the 4.4 acre parcel of real estate located at 6709 Grade Lane, Louisville, Kentucky in the amount of $3.0 thousand per month. The lease terminates on April 14, 2019, but the Company has the right to terminate the lease and vacate the leased premises upon 90 days notice. The Company is required to reimburse the lessor for 40% of the property taxes on the parcel during the term. On March 3, 2018, the Company entered into a lease agreement to lease a piece of equipment for $0.6 thousand per month. The lease is for a period of five years. Future minimum lease payments for operating leases for the next five twelve-month periods ending March 31 of each year and thereafter, in thousands, as of March 31, 2018, reflective of the new lease agreement, are as follows: <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Related Party </td> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Other </td> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Total </td> <td style="vertical-align: middle;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; width: 58%; background-color: #cceeff;"> 2019 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 12%; text-align: right; background-color: #cceeff;"> 486 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff;"> 103 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 12%; background-color: #cceeff;"> 589 </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2020 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 452 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 103 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 555 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2021 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; background-color: #cceeff;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; background-color: #cceeff;"> 79 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 529 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2022 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 7 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">457 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> <span class="selected" style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2023 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 20px; background-color: #cceeff;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 20px; background-color: #cceeff;"> 6 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 456 </td> <td style="vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2024 and thereafter </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: right;"> 675 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: right;"> — </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 675 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Future minimum lease payments </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1.5pt solid #000000; text-align: right; background-color: #cceeff;"> 2,963 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> 298 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 3,261 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> </tbody> </table> </div> Total lease expense for the three months ended March 31, 2018 and 2017 was $153.6 thousand and $206.9 thousand, respectively. Capital Leases: On May 1, 2016, the Company entered into an amended agreement to lease three cranes (the "Crane Lease"). The Crane Lease expires April 30, 2021. Payments are $14.5 thousand per month for the first twelve months following the amendment date, followed by monthly payments of $31.3 thousand thereafter for the remainder of the lease term. There is no bargain purchase option associated with the Crane Lease. Based on the new lease terms, the Company classified the Crane Lease as a capital lease. At inception, the Company recorded a capital lease obligation of $1.3 million. The Company used a weighted average cost of capital of 9.3% to calculate the capital lease obligation. For the three months ended March 31, 2018, the Company recorded $64.2 thousand in depreciation expense and $23.9 thousand in interest expense related to the Crane Lease. The net book value and the related accumulated depreciation of the Crane Lease were $792.3 thousand and $492.5 thousand, respectively, at <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">March 31, 2018. For the three months ended March 31, 2017, the Company recorded $64.2 thousand in depreciation expense and $28.9 thousand in interest expense related to the Crane Lease. The net book value and the related accumulated depreciation of the Crane Lease were $1.0 million and $428.3 thousand, respectively, at December 31, 2017. The Company entered into a capital lease, effective June 2017, to lease two pieces of equipment (the "Forklift Lease"). The lease is for a period of six years and the payments are $1.4 thousand per month. The Company has the option to purchase the equipment for a purchase price of $1.00 per item of equipment upon the expiration of the lease. <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">At inception, the Company recorded a capital lease obligation of $75.2 thousand. The Company used a weighted average cost of capital of 10.0<span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">% to calculate the capital lease obligation. For the <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">three months ended March 31, 2018, the Company has recorded $3.1 thousand in depreciation expense and $1.7 thousand in interest expense related to the Forklift Lease. The net book value and the related accumulated depreciation of the Forklift Lease were $64.8 thousand and $10.5 thousand, respectively, at March 31, 2018. The net book value and the related accumulated depreciation of the Forklift Lease were $67.9 thousand and $7.3 thousand, respectively, at December 31, 2017. Future minimum lease payments for the next five twelve-months periods ending March 31 of each year, in thousands, as of March 31, 2018 are as follows: <div> <div style="border-left: none; border-right: none;"> <table border="0" cellpadding="0" style="font-family: 'times new roman'; font-size: 10pt; border-collapse: collapse; width: 100%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td align="left" style="padding: 0px;" valign="bottom"> </td> <td colspan="2" style="padding: 0px; text-indent: 0px; text-align: center;" valign="bottom"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">Total </div> </td> <td style="padding: 0px; text-align: center;" valign="bottom"> </td> <td colspan="2" style="padding: 0px; text-indent: 0px; text-align: center;" valign="bottom">Principal</td> <td style="padding: 0px; text-align: center;" valign="bottom"> </td> <td colspan="2" style="padding: 0px; text-indent: 0px; text-align: center;" valign="bottom"> Interest</td> </tr> <tr style="background-color: #cceeff;"> <td align="left" style="padding: 0px; text-indent: 0px; background-color: #cceeff; width: 58%;" valign="bottom"> <div style="display: block; margin-right: 0pt;">2019</div> </td> <td style="padding: 0px; text-indent: 0px; text-align: left; background-color: #cceeff; border-top: 1pt solid #000000; width: 1%;" valign="bottom">$</td> <td style="text-align: right; padding: 0px; background-color: #cceeff; border-top: 1pt solid #000000; width: 12%;" valign="bottom">392</td> <td style="text-align: left; padding: 0px; background-color: #cceeff; width: 1%;" valign="bottom"></td> <td style="padding: 0px; text-indent: 0px; background-color: #cceeff; border-top: 1pt solid #000000; width: 1%;" valign="bottom">$</td> <td style="text-align: right; padding: 0px; background-color: #cceeff; border-top: 1pt solid #000000; width: 12%;" valign="bottom">307</td> <td style="text-align: left; padding: 0px; background-color: #cceeff; width: 1%;" valign="bottom"> </td> <td style="padding: 0px; text-indent: 0px; background-color: #cceeff; border-top: 1pt solid #000000; width: 1%;" valign="bottom">$</td> <td style="text-align: right; padding: 0px; background-color: #cceeff; border-top: 1pt solid #000000; width: 13%;" valign="bottom">85</td> </tr> <tr> <td align="left" style="padding: 0px; text-indent: 0px;" valign="bottom"> <div style="display: block; margin-right: 0pt; text-align: left;">2020</div> </td> <td style="text-align: left; padding: 0px; text-indent: 0px;" valign="bottom"/> <td style="text-align: right; padding: 0px;" valign="bottom">392</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td align="left" style="padding: 0px;" valign="bottom"> </td> <td style="text-align: right; padding: 0px;" valign="bottom">337</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td align="left" style="padding: 0px;" valign="bottom"> </td> <td style="text-align: right; padding: 0px;" valign="bottom">55</td> </tr> <tr style="background-color: #cceeff;"> <td align="left" style="padding: 0px; text-indent: 0px; background-color: #cceeff;" valign="bottom"> <div style="display: block; margin-right: 0pt; text-align: left;">2021</div> </td> <td style="text-align: left; padding: 0px; text-indent: 0px; background-color: #cceeff;" valign="bottom"/> <td style="text-align: right; padding: 0px; background-color: #cceeff;" valign="bottom">392</td> <td style="text-align: left; padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td align="right" style="padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td style="text-align: right; padding: 0px; background-color: #cceeff;" valign="bottom">370</td> <td style="text-align: left; padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td align="right" style="padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td style="text-align: right; padding: 0px; background-color: #cceeff;" valign="bottom">22</td> </tr> <tr> <td align="left" style="padding: 0px; text-indent: 0px;" valign="bottom"> <div style="display: block; margin-right: 0pt; text-align: left;">2022</div> </td> <td style="text-align: left; padding: 0px; text-indent: 0px;" valign="bottom"/> <td style="text-align: right; padding: 0px;" valign="bottom">17</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td align="left" style="padding: 0px;" valign="bottom"> </td> <td style="text-align: right; padding: 0px;" valign="bottom">14</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td align="left" style="padding: 0px;" valign="bottom"> </td> <td style="text-align: right; padding: 0px;" valign="bottom">3</td> </tr> <tr style="background-color: #cceeff;"> <td align="left" style="padding: 0px; text-indent: 0px; background-color: #cceeff;" valign="bottom"> <div style="display: block; margin-right: 0pt;">2023</div> </td> <td colspan="2" style="padding: 0px; text-indent: 0px; text-align: right; border-bottom: 1pt solid #000000; background-color: #cceeff;" valign="bottom">20</td> <td style="text-align: left; padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td align="right" colspan="2" style="padding: 0px; border-bottom: 1pt solid #000000; background-color: #cceeff;" valign="bottom"> 19</td> <td style="text-align: left; padding: 0px; background-color: #cceeff;" valign="bottom"> </td> <td align="right" colspan="2" style="padding: 0px; border-bottom: 1pt solid #000000; background-color: #cceeff;" valign="bottom"> 1</td> </tr> <tr> <td align="left" style="padding: 0px;" valign="bottom"> <div style="text-indent: -18pt; display: block; margin-left: 27pt; margin-right: 0pt;"> </div> </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: left;">$</td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: right;">1,213</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: left;">$</td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: right;">1,047</td> <td style="text-align: left; padding: 0px;" valign="bottom"> </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: left;">$</td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; text-align: right;">166</td> </tr> </tbody> </table> </div> </div>

53800

P7Y

37500

For each of the following one year periods, the annual rent increases the lesser of (a) the percentage change in the CPI over the preceding twelve months, or (b) 2% of the previous year's annual rent.

P5Y

P3Y

8000.0 200 3500 3800

P19M

4.4

3000.0

P90D 0.40 600

P5Y

Future minimum lease payments for operating leases for the next five twelve-month periods ending March 31 of each year and thereafter, in thousands, as of March 31, 2018, reflective of the new lease agreement, are as follows: <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Related Party </td> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Other </td> <td style="vertical-align: middle;"> </td> <td colspan="2" style="vertical-align: middle; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> Total </td> <td style="vertical-align: middle;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; width: 58%; background-color: #cceeff;"> 2019 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 12%; text-align: right; background-color: #cceeff;"> 486 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff;"> 103 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 1%; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 12%; background-color: #cceeff;"> 589 </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2020 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 452 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 103 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 555 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2021 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; background-color: #cceeff;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; background-color: #cceeff;"> 79 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 529 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2022 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right;"> 7 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">457 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> <span class="selected" style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2023 </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 20px; background-color: #cceeff;"> 450 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; width: 20px; background-color: #cceeff;"> 6 </td> <td style="padding: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 456 </td> <td style="vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> 2024 and thereafter </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: right;"> 675 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: left;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; text-align: right;"> — </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 675 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Future minimum lease payments </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; border-bottom: 1.5pt solid #000000; text-align: right; background-color: #cceeff;"> 2,963 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: left; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> $ </td> <td style="padding: 1.5pt; vertical-align: bottom; text-align: right; border-bottom: 1.5pt solid #000000; background-color: #cceeff;"> 298 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 3,261 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> </tbody> </table> </div>

486000

103000

589000

452000

103000

555000

450000

79000

529000

450000

7000

457000

450000

6000

456000

675000

2963000

298000

3261000

153600 206900 14500 31300

1300000

0.093 64200

23900

792300

492500

64200

28900

1000000.0

428300

P6Y

1400 1.00

75200

0.100 3100

1700

64800

10500

67900

7300

392000

307000 85000

392000

337000 55000

392000

370000 22000

17000

14000 3000 20000 19000 1000

1213000

1047000 166000

NOTE 5 – PER SHARE DATA The computation for basic and diluted earnings (loss) per share is as follows: Three months ended March 31, 2018 compared to three months ended March 31, 2017: <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99.5%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom;"> 2018 </td> <td style="padding: 0px; vertical-align: bottom; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom;"> 2017 </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="7" style="padding: 0px; vertical-align: bottom;"> (in thousands, except per share information) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Basic income (loss) per share </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; width: 71%;"> Net income (loss) </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 12%;"> 36 </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"/> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 12%;"> (271 </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Weighted average shares outstanding </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,090 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 20px; vertical-align: bottom;"> Basic income (loss) per share </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 0.00 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> (0.03 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Diluted income (loss) per share </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom;"> Net income (loss) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 36 </td> <td style="padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (271 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Weighted average shares outstanding </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,090 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom;"> Add dilutive effect of assumed exercising of stock options, RSUs and warrants </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom;"> 24 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom;"> — </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Diluted weighted average shares outstanding </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,114 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 20px; vertical-align: bottom;"> Diluted income (loss) per share </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 0.00 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> (0.03 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> ) </td> </tr> </tbody> </table> </div>

The computation for basic and diluted earnings (loss) per share is as follows: Three months ended March 31, 2018 compared to three months ended March 31, 2017: <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; width: 99.5%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> <td style="vertical-align: middle; padding: 0px;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom;"> 2018 </td> <td style="padding: 0px; vertical-align: bottom; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 0px; vertical-align: bottom;"> 2017 </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="7" style="padding: 0px; vertical-align: bottom;"> (in thousands, except per share information) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Basic income (loss) per share </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff; border-top-width: 1pt; border-top-style: solid; border-top-color: #000000;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; width: 71%;"> Net income (loss) </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 12%;"> 36 </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"/> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 12%;"> (271 </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Weighted average shares outstanding </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,090 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 20px; vertical-align: bottom;"> Basic income (loss) per share </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 0.00 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> (0.03 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Diluted income (loss) per share </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom;"> Net income (loss) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 36 </td> <td style="padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> (271 </td> <td style="padding: 0px; vertical-align: bottom;"> ) </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Weighted average shares outstanding </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,090 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom;"> Add dilutive effect of assumed exercising of stock options, RSUs and warrants </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom;"> 24 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom;"> — </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px 0px 0px 10px; vertical-align: bottom; background-color: #cceeff;"> Diluted weighted average shares outstanding </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,114 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="border-bottom: 0.75pt solid #000000; padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 8,075 </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px 0px 0px 20px; vertical-align: bottom;"> Diluted income (loss) per share </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> 0.00 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"/> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> $ </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> (0.03 </td> <td style="border-bottom: 1.5pt solid #000000; padding: 0px; vertical-align: bottom;"> ) </td> </tr> </tbody> </table> </div>

36000

-271000

8090000

8075000

0.00

-0.03

36000

-271000

8090000

8075000

24000

8114000

8075000

0.00

-0.03

<div style="border-right: none; border-left: none;"> NOTE 6 – RELATED PARTY TRANSACTIONS During the periods ended March 31, 2018 and 2017, the Company was involved in various transactions with related parties. A summary of transactions and related balances are as follows. The table at the end of this note should be used in referencing all below paragraphs. K&R, LLC ("K&R") and 7100 Grade Lane, LLC ("7100 LLC"): The Company is involved in various transactions with K&R and 7100 LLC, which are wholly-owned by Kletter Holdings LLC, the sole member of which was Harry Kletter, the Company's founder and former Chief Executive Officer. After Mr. Kletter's passing in January 2014, Orson Oliver assumed the roles of executor of Mr. Kletter’s estate and President of Kletter Holdings LLC. Mr. Oliver was the Company's Chairman of the Board and interim Chief Executive Officer from 2014 until his resignation on March 26, 2018. Mr. Oliver continues to be a member of the Company's Board of Directors. As of March 31, 2018, Mr. Kletter’s estate, K&R and the Harry Kletter Family Limited Partnership collectively, beneficially own in excess of 20% of the Company's issued and outstanding shares. The Company leased a portion of the Louisville, Kentucky facility from 7100 LLC (previously from K&R) under an operating lease, <span style="color: #000000; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">the "7100<span style="color: #000000; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;"> Prior Lease," expiring December 2017.<span style="line-height: 115%; color: black; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"> Effective October 1, 2017, the Company entered into a new lease agreement with 7100 LLC for the same property (the "7100 Lease") that terminates and replaces the 7100 Prior Lease. See Note 4 – Lease Commitments for additional information relating to the rent and lease agreements with K&R. During 2015 and continuing into 2017, the Company deferred a portion of these lease payments. A portion of this deferral was converted into a term note during 2016 as described below. The remaining portion of this deferral was converted into a promissory note effective October 1, 2017 as described below. On September 13, 2013, K&R made a $500.0 thousand refundable, non-interest bearing deposit with the Company related to K&R's potential purchase of the Company's formerly owned real property located at 1565 East 4th Street in Seymour, Indiana. The Company was permitted and used the deposited funds for general corporate purposes. K&R did not acquire the property. Under the Company's lending arrangements, a refund of the deposit to K&R would have to be approved by the Company's lenders. This amount was converted into a term note during 2016 as described below. As of March 31, 2018 and 2017, the Company had balances related to K&R and 7100 LLC pertaining to refundable lease and property deposits due to and from the Company, rents payable from the Company, notes payable due from the Company, accrued interest due from the Company, interest expense, and rent expense. On February 29, 2016, K&R assigned its interest in the 7100 Lease to another entity, 7100 LLC, also controlled by Mr. Kletter’s estate. At that time, the total amount due to the estate’s various entities, which amounted to approximately $1.5 million and is inclusive of the $500.0 thousand noted above, became a subordinated, unsecured debt (the "Kletter Notes") owed by the Company. A portion of the amount, approximately $620.3 thousand, is owed to K&R, with the remaining amount, approximating $883.8 thousand, owed to 7100 LLC. Interest will accrue monthly at a per annum rate of 5.0%. Interest accrued until April 30, 2017, at which time interest is paid as due. Until maturity on December 31, 2020, the Kletter Notes are subject to intercreditor agreements between the respective Note holder and MidCap. This amount of $1.5 million represents all net amounts due to Kletter estate entities as of February 29, 2016 with the exception of a $32.0 thousand deposit owed by K&R to the Company. If the Company sells property it owns at 7110 Grade Lane in Louisville, Kentucky, the Company shall make a principal payment to K&R of $500.0 thousand. Otherwise, all remaining principal is due at maturity. On June 23, 2017, the Company entered into two agreements (referred to as the “Handler Agreement” and the “Crane Agreement”) with K&R, each for the purchase of equipment to be used in the operation of the Company’s business. Under the Handler Agreement, the Company purchased a hydraulic scrap handler from K&R for a purchase price of $90.0, thousand, with a $9.0 thousand down payment and a 24-month promissory note ("Handler Note") in the face principal amount of the remaining $81.0 thousand. The Handler Note is interest free and provides for payments in equal monthly installments of $3.4 thousand. Under the Handler Note, payments commenced on July 1, 2017. Upon a default, the Handler Note will bear interest at 1% per annum. Under the Crane Agreement, the Company purchased a 2011 Komatsu crane from K&R for a purchase price of $60.0 thousand, with a $12.0 thousand down payment and a 24-month promissory note ("Crane Note") in the face principal amount of the remaining $48.0 thousand. The Crane Note is interest free and provides for payments in equal monthly installments of $2.0 thousand. Under the Crane Note, payments commenced on July 1, 2017. Upon a default, the Crane Note will bear interest at 1% per annum. The Crane Note and the Handler Note are each secured by a security interest in the subject equipment and proceeds the Company derives from the equipment. The Company entered into an agreement and promissory note (the "Back Rent Agreement"), effective October 1, 2017, to pay 7100 LLC $345.8 thousand for back rent past due and owed under the 7100 Prior Lease with an initial payment of $100.0 thousand paid at the signing of the Back Rent Agreement with six consecutive monthly payments of $41.0 thousand each, beginning November 1, 2017. Board of Directors' fees and consulting fees: The Company pays board and committee fees to non-employee directors. Related to these transactions, the Company has accounts payable balances to the Board of Directors for fees and consulting fees, along with related expense at and as of March 31, 2018 and 2017. LK Property Investments LLC ("LK Property"): On April 30, 2015, the Company entered into a lease agreement with LK Property, for a portion of the 4.4 acre parcel of real estate located at 6709 Grade Lane, Louisville, Kentucky in the amount of $3.0 thousand per month. The lease terminates on April 14, 2019, but the Company has the right to terminate the lease and vacate the leased premises upon 90 days notice. The Company is required to reimburse the lessor for 40% of the property taxes on the parcel during the term. LK Property is an entity principally owned by Daniel M. Rifkin, CEO of MetalX LLC ("MetalX"), a scrap metal recycling company headquartered in Waterloo, Indiana, and the principal owner of Recycling Capital Partners, LLC ("RCP"). MetalX: During 2017, the Company held accounts receivables balances from MetalX related to scrap sales. For additional information regarding MetalX, see Note 9 – Financing and Related Matters. <div style="border-left: none; border-right: none;"> <div style="border-right: none; border-left: none;"> Related party balances as of and for the three months ended March 31, 2018 and 2017 are as follows, in thousands: <div style="border-left: none; border-right: none;"> <div> <table cellpadding="0" style="border-collapse: collapse; width: 100%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; text-align: center; border-bottom: 1pt solid #000000;"> 2018 </td> <td style="padding: 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> </td> <td colspan="3" style="text-align: center; padding: 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> 2017 </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> K&R and 7100 LLC: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom; width: 80%;"> Deposit amounts owed to the Company by related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 6%;"> (1) </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 4%;"> 42 </td> <td style="vertical-align: bottom; padding: 0px; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 2%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 4%;"> 42 </td> <td style="vertical-align: bottom; padding: 0px; width: 1%;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Prepaid expenses to related parties </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">(1) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 43 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Notes payable to related parties </td> <td style="padding: 0px; vertical-align: bottom;"> (3) </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 1,584 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 1,600 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Facility rent payable to related parties </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (2) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 41 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 123 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Facility rent expense to related parties </td> <td style="padding: 0px; vertical-align: bottom;"> (4) </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 113 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 161 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> Interest expense to related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 19 </td> <td style="vertical-align: bottom; width: 20px; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 19 </td> <td style="vertical-align: bottom; width: 20px; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Board of Directors: * </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Accounts payable to the Board of Directors for fees </td> <td style="padding: 0px; vertical-align: bottom;"> (2) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 50 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Board of director fee expense </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 58 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 88 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> LK Property: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Lease deposit to LK Property </td> <td style="padding: 0px; vertical-align: bottom;"> (1) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 3 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 3 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Prepaid expenses to related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">(1) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 3 </td> <td style="vertical-align: bottom; padding: 0px; width: 20px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> Accounts payable to LK Property </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> (2) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> 2 </td> <td style="vertical-align: bottom; padding: 0px; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> — </td> <td style="vertical-align: bottom; padding: 0px; width: 20px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Rent expense to LK Property** </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 9 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 9 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> MetalX: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Accounts receivable from MetalX </td> <td style="padding: 0px; vertical-align: bottom;"> (1) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 1 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Revenue from product sales to MetalX </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 188 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> </tbody> </table> </div> * Excludes insignificant amount of travel reimbursement. </div> **Excludes amounts reimbursed to LK Property for utilities and property tax. (1) Included in receivable and other assets from related parties on the Condensed Consolidated Balance Sheets; balances are as of March 31, 2018 and December 31, 2017. (2) Included in payable and accrued expenses to related parties on the Condensed Consolidated Balance Sheets; balances are as of March 31, 2018 and December 31, 2017. (3) Included in current maturities of long-term debt, related parties and long-term debt, related parties on the Condensed Consolidated Balance Sheets; balance is as of March 31, 2018 and December 31, 2017. (4) Included in the Condensed Consolidated Statements of Operations; amounts are for the three months ended March 31, 2018 and March 31, 2017. </div> </div> </div>

0.20

500000.0

1500000

500000.0

620300

883800

0.050

1500000

32000.0

500000.0

90000.0

9000.0

P24M

81000.0

3400 0.01 60000.0

12000.0

P24M

48000.0

2000.0 0.01

345800

100000.0 6 41000.0 4.4

3000.0

0.40

Related party balances as of and for the three months ended March 31, 2018 and 2017 are as follows, in thousands: <div style="border-left: none; border-right: none;"> <div> <table cellpadding="0" style="border-collapse: collapse; width: 100%; margin-left: 0.1px;" width="100%"> <tbody> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 0px; vertical-align: bottom; text-align: center; border-bottom: 1pt solid #000000;"> 2018 </td> <td style="padding: 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> </td> <td colspan="3" style="text-align: center; padding: 0px; vertical-align: bottom; border-bottom: 1pt solid #000000;"> 2017 </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> K&R and 7100 LLC: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom; width: 80%;"> Deposit amounts owed to the Company by related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 6%;"> (1) </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 4%;"> 42 </td> <td style="vertical-align: bottom; padding: 0px; width: 1%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 2%;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 1%;"> $ </td> <td style="padding: 0px; vertical-align: bottom; width: 4%;"> 42 </td> <td style="vertical-align: bottom; padding: 0px; width: 1%;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Prepaid expenses to related parties </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">(1) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 43 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Notes payable to related parties </td> <td style="padding: 0px; vertical-align: bottom;"> (3) </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 1,584 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 1,600 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Facility rent payable to related parties </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (2) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 41 </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 123 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Facility rent expense to related parties </td> <td style="padding: 0px; vertical-align: bottom;"> (4) </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 113 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> 161 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> Interest expense to related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 19 </td> <td style="vertical-align: bottom; width: 20px; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 19 </td> <td style="vertical-align: bottom; width: 20px; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Board of Directors: * </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Accounts payable to the Board of Directors for fees </td> <td style="padding: 0px; vertical-align: bottom;"> (2) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 50 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Board of director fee expense </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 58 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 88 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> LK Property: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"/> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Lease deposit to LK Property </td> <td style="padding: 0px; vertical-align: bottom;"> (1) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 3 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 3 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Prepaid expenses to related parties </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">(1) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px; background-color: #cceeff;"> 3 </td> <td style="vertical-align: bottom; padding: 0px; width: 20px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> Accounts payable to LK Property </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> (2) </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> 2 </td> <td style="vertical-align: bottom; padding: 0px; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> </td> <td style="padding: 0px; vertical-align: bottom; width: 20px;"> — </td> <td style="vertical-align: bottom; padding: 0px; width: 20px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Rent expense to LK Property** </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 9 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 9 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> MetalX: </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 0px; vertical-align: bottom;"> Accounts receivable from MetalX </td> <td style="padding: 0px; vertical-align: bottom;"> (1) </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom; padding: 0px;"> </td> <td style="padding: 0px; vertical-align: bottom;"> </td> <td style="padding: 0px; vertical-align: bottom;"> $ </td> <td style="padding: 0px; vertical-align: bottom;"> 1 </td> <td style="vertical-align: bottom; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> Revenue from product sales to MetalX </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> (4) </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 0px; vertical-align: bottom; background-color: #cceeff;"> 188 </td> <td style="vertical-align: bottom; padding: 0px; background-color: #cceeff;"> </td> </tr> </tbody> </table> </div> * Excludes insignificant amount of travel reimbursement. </div> **Excludes amounts reimbursed to LK Property for utilities and property tax. (1) Included in receivable and other assets from related parties on the Condensed Consolidated Balance Sheets; balances are as of March 31, 2018 and December 31, 2017. (2) Included in payable and accrued expenses to related parties on the Condensed Consolidated Balance Sheets; balances are as of March 31, 2018 and December 31, 2017. (3) Included in current maturities of long-term debt, related parties and long-term debt, related parties on the Condensed Consolidated Balance Sheets; balance is as of March 31, 2018 and December 31, 2017. (4) Included in the Condensed Consolidated Statements of Operations; amounts are for the three months ended March 31, 2018 and March 31, 2017.

42000 42000

43000

1584000

1600000

41000

123000

113000

161000

19000

50000

58000

88000

3000 3000

3000

2000

9000

1000

188000

NOTE 7 – SHARE-BASED COMPENSATION AND OTHER COMPENSATION AGREEMENTS Following is a summary of stock option activity and number of shares reserved for outstanding options: <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; width: 43%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 13%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 12%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> </tr> <tr> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Options </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Number of shares (in thousands) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Exercise Price per Share </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Remaining Contractual Term </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Grant Date Fair Value </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Outstanding at December 30, 2016 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 502 </td> <td style="border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 4.78 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.07 years </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.43 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Cancelled </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> (30 </td> <td style="vertical-align: bottom; padding: 0px 0px 2px;"> ) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5.40 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.85 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Expired </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> (90 </td> <td style="vertical-align: bottom; padding: 0px 0px 2px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">) </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 4.94 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 1.71 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Outstanding at December 31, 2017 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 382 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-top: 1pt solid #000000;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-top: 1pt solid #000000;"> 4.70 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1.41 years </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.57 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Issued </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 31 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; padding: 0px 0px 2px; background-color: #cceeff;"/> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 2.46 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 5.00 years </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 1.61 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Outstanding at March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000;"> 413 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 4.53 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1.45 years </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.49 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Exercisable at March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 382 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 4.70 </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 1.16 years </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.57 </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Securities available for grant at March 31, 2018* </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,694 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> *Securities available for grant include securities available for stock option grants and RSUs. Option Grants: On March 28, 2018, the Company awarded options to purchase 31.0 thousand shares of the Company's common stock to its Chief Executive Officer. These options are scheduled to vest over a three year period, with 1/3 vesting on the first anniversary of the grant date and 1/3 every twelve months thereafter until the three year anniversary of the grant date. The exercise price per share of the options is $2.46, the fair value of the underlying common stock as of the grant date. The options expire March 28, 2023. The weighted average assumptions relating to the valuation of the Company's stock options awarded in 2018 are shown below. <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="padding: 2px;"> </td> <td style="padding: 0px;"> </td> <td style="border-bottom: 1pt solid #000000; padding: 0px;"> </td> <td style="border-bottom: 1pt solid #000000; padding: 0px; text-align: center;">2018</td> <td style="border-bottom: 1pt solid #000000; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; width: 82%; padding: 2px;">Weighted average grant-date fair value of grants per option</td> <td style="background-color: #cceeff; width: 1%; padding: 2px;"/> <td style="background-color: #cceeff; width: 1%; padding: 0px;">$</td> <td style="text-align: right; background-color: #cceeff; width: 15%; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">1.61</td> <td style="background-color: #cceeff; width: 1%; padding: 0px;"/> </tr> <tr> <td style="padding: 2px;">Volatility</td> <td style="padding: 2px;"> </td> <td style="padding: 0px;"> </td> <td style="text-align: right; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">80.40</td> <td style="padding: 0px;">%</td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; padding: 2px;">Risk-free interest rate</td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="text-align: right; background-color: #cceeff; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">2.59</td> <td style="background-color: #cceeff; padding: 0px;">%</td> </tr> <tr> <td style="padding: 2px;">Expected life (in years)</td> <td style="padding: 0px;"> </td> <td style="padding: 0px;"> </td> <td style="text-align: right; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">5.00</td> <td style="padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; padding: 2px;">Expected dividend yield</td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="text-align: right; background-color: #cceeff; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">—</td> <td style="background-color: #cceeff; padding: 0px;">%</td> </tr> </tbody> </table> </div> </div> Restricted Stock Unit Grants: On March 29, 2016, the Compensation Committee granted 11.4 thousand RSUs to an employee under the LTIP pursuant to an RSU agreement. The grant date fair value is based on the Company's closing common stock price on the day immediately prior to the date of grant. The grant date fair value was $32.0 thousand and will be recognized as expense beginning in the second quarter of 2016. Each RSU vested on March 29, 2018 and represented the right to receive one share of the Company's common stock upon the vesting of the RSU, subject to the terms and conditions set forth in the RSU Agreement and the Plan. <div class="pageBreak"> </div> On June 15, 2016, at the Company's annual meeting, the Company's shareholders approved a one-time stock option exchange for the CFO as an alternative to a direct repricing of options previously granted to the CFO. The stock option exchange allowed the Company to cancel 170.0 thousand stock options, including 20.0 thousand granted in January 2015, previously granted to the CFO in exchange for the grant of 90.0 thousand RSUs to the CFO. <span style="color: #000000; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-family: 'Times New Roman';">T<span style="color: #000000; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-family: 'Times New Roman';">he RSUs vest as follows if and to the extent that the CFO remains employed by the Company through each of the following dates: (i) on July 1, 2016, 50.00% (45,000) of the RSUs vest and become nonforfeitable; (ii) on December 31, 2016, 12.50% (11,250) of the RSUs vest and become nonforfeitable; (iii) on June 30, 2017, 12.50% (11,250) of the RSUs vest and become nonforfeitable; (iv) on December 31, 2017, 12.50% (11,250) of the RSUs vest and become nonforfeitable; and (v) on June 15, 2018, 12.50% (11,250) of the RSUs vest and become nonforfeitable. <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; display: inline !important; float: none;">Each RSU represents the right to receive one share of the Company's common stock upon the vesting of the RSU, subject to the terms and conditions set forth in the RSU Agreement and the Plan. The CFO has continued his employment with the Company through March 31, 2018 and the related 67,500 RSUs vested and became nonforfeitable. On March 28, 2018, the Company granted an aggregate of 18.0 thousand RSUs to six employees under the LTIP pursuant to RSU agreements. The grant date fair value is based on the Company's closing common stock price on the date of grant. The grant date fair value was $44.3 thousand and will be recognized as expensed beginning in the second quarter of 2018. Each RSU vests on March 28, 2021 and represents the right to receive one share of the Company's common stock upon the vesting of the RSU, subject to the terms and conditions set forth in the RSU agreements and the LTIP. <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">On March 28, 2018, the Company granted 40.6 thousand RSUs<span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> to the CEO under the LTIP pursuant to an RSU agreement. The grant date fair value is based on the Company's closing common stock price on the date of grant. The grant date fair value was $100.0 thousand and will be recognized as expensed beginning in the second quarter of 2018. Each RSU vests on March 28, 2021 and represents the right to receive one share of the Company's common stock upon the vesting of the RSU, subject to the terms and conditions set forth in the RSU agreement and the LTIP. <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">Following is a summary of RSU activity: <div> <table cellpadding="0" style="font-family: Times New Roman; font-size: 10pt; margin-left: auto; margin-right: auto; width: 100%; border-collapse: collapse; text-align: left;" width="100%"> <tbody> <tr> <td style="width: 43%;"/> <td style="width: 1%;"/> <td style="width: 13%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 11%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 12%;"/> <td style="width: 1%;"/> </tr> <tr> <td style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Restricted Stock Units</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="2" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Number of shares</div> <div style="text-align: center; font-size: 10pt;">(in thousands)</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="2" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Weighted Average Remaining Contractual Term</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="3" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Weighted Average Grant Date Fair Value</div> </td> </tr> <tr style="background-color: #cceeff;"> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">Outstanding at December 31, 2017</div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">22.6</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">0.35 years</td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">$</div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">2.37</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> </tr> <tr> <td style="vertical-align: bottom; padding: 2px;"> <div style="text-align: left; font-size: 10pt;">Granted</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px;"> <div style="text-align: right;">58.6</div> </td> <td style="vertical-align: bottom; padding: 0px 0px 2px;"> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right;"> <div>3.00 years</div> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right;"> <div>2.46</div> </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">Vested</div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;">(11.4</div> </td> <td style="vertical-align: bottom; padding: 0px 0px 2px; background-color: #cceeff;">)</td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"> <div>—</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"> <div>2.63</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="vertical-align: bottom; padding: 2px;"> <div style="text-align: left; font-size: 10pt;">Outstanding at March 31, 2018</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: right;">69.8</div> </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div>2.55 years</div> </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;">$</div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div>2.40</div> </td> <td style="vertical-align: bottom; border-top: 1pt solid #000000; border-bottom: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> </tr> </tbody> </table> </div> <span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: italic; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: underline; display: inline !important; float: none;">Non-Equity Transactions: Under a retention agreement with the Company's CFO dated March 25, 2016, the Company will pay the CFO bonuses of $100.0 thousand and $125.0 thousand on each of December 31, 2016 and December 31, 2017, respectively, as long as he remains employed with the Company on those dates. The December 31, 2016 bonus of $100.0 thousand was paid during the three month period ended March 31, 2017. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">The December 31, 2017 bonus of $125.0<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> thousand was paid during the three<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> month period ended March 31, 2018<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">On September 30, 2016, the Company entered into retention agreements ("Retention Agreements") with certain management employees (individually "Staff Member"). Under the Retention Agreements, if the Staff Member remains continuously employed by the Company through and including the date which is the first to occur of: (a) the date of a change in control of the Company; (b) the date the Staff Member is terminated without cause; and (c) December 31, 2017, the Company will pay the Staff Member a bonus in an amount equal to 25% of the Staff Member's then-current annual base salary. The Company paid the retention amounts of $135.9 thousand during the three month period ended March 31, 2018. On March 26, 2018, the Board appointed Todd L. Phillips as CEO of the Company. In connection with Mr. Phillips’ appointment as CEO, the Company entered into an Amended and Restated Employment Agreement with Mr. Phillips on March 26, 2018 (the “Employment Agreement”). The Employment Agreement is effective as of January 1, 2018, with the one year initial term ending on December 31, 2018. After expiration of the initial term, the term will be automatically extended for additional 12-month periods thereafter if neither party gives written notice to the other within 30 days before expiration of the original 12-month period or any renewal period thereafter of that party’s desire to terminate the Employment Agreement. Pursuant to the Employment Agreement, Mr. Phillips will earn an annual base salary of $300,000, subject to adjustment by the Board. Mr. Phillips will be eligible to receive an annual performance-based bonus that provides him an opportunity to earn a target bonus equal to 50% of his then-current base salary. Pursuant to the Employment Agreement, Mr. Phillips is also entitled to receive annual equity compensation awards, consisting of RSUs and Options. Each award will consist of (A) that number of RSUs equal in Value (as defined in the Employment Agreement) on the date of the grant to 33.33% of Mr. Phillips’ base salary, and (B) that number of Options equal in Value (as defined in the Employment Agreement) on the date of the grant to 16.67% of Mr. Phillips’ base salary. The RSUs will be subject to three year cliff vesting, with the entire award vesting 36 months from the grant date. The Options will vest over a three year period, with 1/3 vesting on each annual anniversary of the grant date. The exercise price per share of the Options will be equal to the fair market value of the Company’s common stock on the grant date.

Following is a summary of stock option activity and number of shares reserved for outstanding options: <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="vertical-align: middle; width: 43%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 13%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 11%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> <td style="vertical-align: middle; width: 12%;"> </td> <td style="vertical-align: middle; width: 1%;"> </td> </tr> <tr> <td style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Options </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Number of shares (in thousands) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Exercise Price per Share </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Remaining Contractual Term </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="border-bottom-color: #000000; border-bottom-style: solid; border-bottom-width: 0.75pt; padding: 1.5pt; vertical-align: bottom;"> Weighted Average Grant Date Fair Value </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Outstanding at December 30, 2016 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 502 </td> <td style="border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 4.78 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.07 years </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.43 </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Cancelled </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> (30 </td> <td style="vertical-align: bottom; padding: 0px 0px 2px;"> ) </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 5.40 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> — </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.85 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Expired </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> (90 </td> <td style="vertical-align: bottom; padding: 0px 0px 2px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">) </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 4.94 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> — </td> <td style="border-bottom: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td colspan="2" style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 1.71 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Outstanding at December 31, 2017 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 382 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-top: 1pt solid #000000;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-top: 1pt solid #000000;"> 4.70 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1.41 years </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.57 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Issued </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 31 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; padding: 0px 0px 2px; background-color: #cceeff;"/> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 2.46 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 5.00 years </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; width: 20px; border-bottom: 1pt solid #000000; background-color: #cceeff;"> 1.61 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Outstanding at March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; border-bottom: 1pt solid #000000;"> 413 </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 4.53 </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1.45 years </td> <td style="vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> $ </td> <td style="padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 2.49 </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> Exercisable at March 31, 2018 </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 382 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 4.70 </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 1.16 years </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="padding: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> $ </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; padding-bottom: 1.5pt; padding-top: 1.5pt; vertical-align: bottom; background-color: #cceeff;"> 2.57 </td> <td style="border-bottom: 0.75pt solid #000000; border-top: 0.75pt solid #000000; vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="padding: 1.5pt; vertical-align: bottom;"> Securities available for grant at March 31, 2018* </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="border-bottom: 1.5pt solid #000000; padding-bottom: 1.5pt; padding-left: 1.5pt; padding-top: 1.5pt; vertical-align: bottom;"> 1,694 </td> <td style="border-bottom: 1.5pt solid #000000; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 1.5pt; vertical-align: bottom;"> </td> <td style="padding: 1.5pt; vertical-align: bottom;"> </td> <td colspan="3" style="padding: 1.5pt; vertical-align: bottom;"> </td> </tr> </tbody> </table> *Securities available for grant include securities available for stock option grants and RSUs.

502000

4.78

P2Y25D

2.43

30000

5.40

2.85

90000

4.94

1.71

382000

4.70

P1Y4M28D

2.57

31000

2.46

P5Y

1.61

413000

4.53

P1Y5M12D

2.49

382000

4.70

P1Y1M28D

2.57

1694000

31000.0

P3Y

2.46

The weighted average assumptions relating to the valuation of the Company's stock options awarded in 2018 are shown below. <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <table cellpadding="0" style="border-collapse: collapse; margin: 0 auto; width: 100%;" width="100%"> <tbody> <tr> <td style="padding: 2px;"> </td> <td style="padding: 0px;"> </td> <td style="border-bottom: 1pt solid #000000; padding: 0px;"> </td> <td style="border-bottom: 1pt solid #000000; padding: 0px; text-align: center;">2018</td> <td style="border-bottom: 1pt solid #000000; padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; width: 82%; padding: 2px;">Weighted average grant-date fair value of grants per option</td> <td style="background-color: #cceeff; width: 1%; padding: 2px;"/> <td style="background-color: #cceeff; width: 1%; padding: 0px;">$</td> <td style="text-align: right; background-color: #cceeff; width: 15%; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">1.61</td> <td style="background-color: #cceeff; width: 1%; padding: 0px;"/> </tr> <tr> <td style="padding: 2px;">Volatility</td> <td style="padding: 2px;"> </td> <td style="padding: 0px;"> </td> <td style="text-align: right; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">80.40</td> <td style="padding: 0px;">%</td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; padding: 2px;">Risk-free interest rate</td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="text-align: right; background-color: #cceeff; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">2.59</td> <td style="background-color: #cceeff; padding: 0px;">%</td> </tr> <tr> <td style="padding: 2px;">Expected life (in years)</td> <td style="padding: 0px;"> </td> <td style="padding: 0px;"> </td> <td style="text-align: right; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">5.00</td> <td style="padding: 0px;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="background-color: #cceeff; padding: 2px;">Expected dividend yield</td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="background-color: #cceeff; padding: 0px;"> </td> <td style="text-align: right; background-color: #cceeff; font-family: 'Times New Roman'; font-size: 10pt; padding: 0px;">—</td> <td style="background-color: #cceeff; padding: 0px;">%</td> </tr> </tbody> </table> </div> </div>

1.61

0.8040

0.0259

P5Y

11400

32000.0 1

170000.0

20000.0

90000.0

0.5000

45000

0.1250

11250

0.1250

11250

0.1250

11250

0.1250

11250

67500

18000.0

6 44300 1

40600

100000.0 1

<span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 16px; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">Following is a summary of RSU activity: <div> <table cellpadding="0" style="font-family: Times New Roman; font-size: 10pt; margin-left: auto; margin-right: auto; width: 100%; border-collapse: collapse; text-align: left;" width="100%"> <tbody> <tr> <td style="width: 43%;"/> <td style="width: 1%;"/> <td style="width: 13%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 11%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 1%;"/> <td style="width: 12%;"/> <td style="width: 1%;"/> </tr> <tr> <td style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Restricted Stock Units</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="2" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Number of shares</div> <div style="text-align: center; font-size: 10pt;">(in thousands)</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="2" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Weighted Average Remaining Contractual Term</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td colspan="3" style="vertical-align: bottom; border-bottom: 1px solid #000000; padding: 2px;"> <div style="text-align: center; font-size: 10pt;">Weighted Average Grant Date Fair Value</div> </td> </tr> <tr style="background-color: #cceeff;"> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">Outstanding at December 31, 2017</div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">22.6</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">0.35 years</td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">$</div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;"><span style="color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; float: none; display: inline !important;">2.37</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> </tr> <tr> <td style="vertical-align: bottom; padding: 2px;"> <div style="text-align: left; font-size: 10pt;">Granted</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px;"> <div style="text-align: right;">58.6</div> </td> <td style="vertical-align: bottom; padding: 0px 0px 2px;"> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right;"> <div>3.00 years</div> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right;"> <div>2.46</div> </td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="background-color: #cceeff;"> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;">Vested</div> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: right;">(11.4</div> </td> <td style="vertical-align: bottom; padding: 0px 0px 2px; background-color: #cceeff;">)</td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"> <div>—</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> <td style="vertical-align: bottom; padding: 2px; background-color: #cceeff;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; background-color: #cceeff;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right; background-color: #cceeff;"> <div>2.63</div> </td> <td style="vertical-align: bottom; background-color: #cceeff;"> </td> </tr> <tr> <td style="vertical-align: bottom; padding: 2px;"> <div style="text-align: left; font-size: 10pt;">Outstanding at March 31, 2018</div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: right;">69.8</div> </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; text-align: right; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div>2.55 years</div> </td> <td style="vertical-align: bottom; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding: 2px;"> <div style="overflow: hidden; font-size: 10pt;"> </div> </td> <td style="vertical-align: bottom; padding-left: 2px; padding-top: 2px; padding-bottom: 2px; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;">$</div> </td> <td style="vertical-align: bottom; padding-top: 2px; padding-bottom: 2px; text-align: right; border-bottom: 1pt solid #000000; border-top: 1pt solid #000000;"> <div>2.40</div> </td> <td style="vertical-align: bottom; border-top: 1pt solid #000000; border-bottom: 1pt solid #000000;"> <div style="text-align: left; font-size: 10pt;"> </div> </td> </tr> </tbody> </table> </div>

22600

P0Y4M6D

2.37

58600

P3Y

2.46

11400

2.63

69800

P2Y6M18D

2.40

100000.0

125000.0

100000.0

125000.0

0.25 135900 P1Y P12M P30D

300000

0.50 0.3333 0.1667

P3Y

P36M

P3Y

857143

3000000.0

P5Y

857143

P6M

5.00

2 1 0.05 Securities available for grant include securities available for stock option grants and RSUs.