13.	New Accounting Standards and Updates from the Securities Exchange Commission (“SEC”)

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments - Credit Losses (Topic

326

The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. The Company does

not

expect the adoption of ASU

2016

to have a material impact on its consolidated financial statements.

August 2018

the SEC issued the final rule on Disclosures About Changes in Stockholders’ Equity For filings on Form

-Q, which extends to interim periods the annual requirement in SEC Regulation S-

Rule

to disclose (

) changes in stockholders’ equity and (

) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required). Pursuant to the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date [interim] periods, with subtotals for each interim period,” i.e., a reconciliation covering each period for which an income statement is presented. Rule

permits the disclosure of changes in stockholders’ equity (including dividend-per-share amounts) to be made either in a separate financial statement or in the notes to the financial statements. The final rule is effective for all filings made on or after

November 5, 2018.

The staff of the SEC has indicated it would

not

object if the filer’s

first

presentation of the changes in shareholders’ equity is included in its Form

-Q for the quarter that begins after the effective date of the amendments. The Company adopted the final rule in its Form

10Q

for the quarter ending

March 30, 2019.

There was

material effect on the consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU

2016

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU

2016

is effective for fiscal years beginning after

December 15, 2018 (

including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU

2016

in the

first

quarter of

2019.

A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity

may

choose to use either (

) its effective date or (

) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the

second

option, the transition requirements for existing leases also apply to leases entered between the date of initial application and the effective date. The Company adopted the new standard on

December 30, 2018

and chose the effective date of initial application. Consequently, financial information will

not

be updated, and the disclosures required under the new standard will

not

be provided for dates and periods before

December 30, 2018.

Please refer to footnote

17;

Leases for additional disclosure details.