(

)

Basis of Presentation

The interim condensed consolidated financial statements of UFP Technologies, Inc. (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form

-Q and do

not

include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended

December 31, 2017,

included in the Company's

2017

Annual Report on Form

-K, as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of

June 30, 2018,

the condensed consolidated statements of income for the

three

- and

six

-month periods ended

June 30, 2018

and

2017,

and the condensed consolidated statements of cash flows for the

six

-month periods ended

June 30, 2018

and

2017

are unaudited but, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results for these interim periods. The condensed consolidated balance sheet as of

December 31, 2017

has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm, but does

not

include all of the information and footnotes required for complete annual financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The results of operations for the

three

- and

six

-month periods ended

June 30, 2018,

are

not

necessarily indicative of the results to be expected for the entire fiscal year ending

December

31,

2018.

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

No.

2014

09,

Revenue from Contracts with Customers

, which was subsequently updated (“ASC

606”

). The Company adopted ASC

606

January 1, 2018.

See Note

for further details.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases.

The guidance in this ASU supersedes the leasing guidance in Topic

840,

Leases

. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The amendments in ASU

No.

2016

are effective for annual reporting periods beginning after

December

15,

2018,

including interim periods within that reporting period with early adoption permitted. The Company is evaluating the impact of adopting this ASU on its consolidated financial position and results of operations.

Revisions

Certain revisions have been made to the

December 31, 2017

Condensed Consolidated Balance Sheet to conform to the current year presentation relating to a reclassification of deferred revenue. The reclassification resulted in an increase in deferred revenue and a decrease in accrued expenses in the amount of approximately

$297,000.

In addition, certain revisions have been made to the Condensed Consolidated Statements of Cash Flows for the

six

months ended

June 30, 2017,

also due to a reclassification of deferred

revenue. The reclassification resulted in an increase to the change in deferred revenue and a decrease in the change in accrued expenses in the amount of approximately

$67,000.

These revisions had

impact on previously reported net income and are deemed immaterial to the previously issued financial statements.