0001005699 2015-01-01 2015-12-31 0001005699 2014-12-31 0001005699 2015-12-31 0001005699 2013-12-31 0001005699 us-gaap:CommonStockMember 2013-12-31 0001005699 us-gaap:CommonStockMember 2014-12-31 0001005699 us-gaap:CommonStockMember 2015-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2013-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2013-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2013-12-31 0001005699 us-gaap:TreasuryStockMember 2014-12-31 0001005699 us-gaap:TreasuryStockMember 2015-12-31 0001005699 us-gaap:RetainedEarningsMember 2013-12-31 0001005699 us-gaap:RetainedEarningsMember 2014-12-31 0001005699 us-gaap:RetainedEarningsMember 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2014-12-31 0001005699 us-gaap:TreasuryStockMember 2013-12-31 0001005699 CALL:MagicjackProductLineMember 2015-12-31 0001005699 us-gaap:SoftwareLicenseArrangementMember 2015-12-31 0001005699 us-gaap:UpFrontPaymentArrangementMember 2015-12-31 0001005699 country:US 2015-12-31 0001005699 country:IL 2015-12-31 0001005699 2014-01-01 2014-12-31 0001005699 2015-01-01 2015-03-31 0001005699 2015-04-01 2015-06-30 0001005699 2015-10-01 2015-12-31 0001005699 2015-07-01 2015-09-30 0001005699 2014-10-01 2014-12-31 0001005699 us-gaap:RetainedEarningsMember 2014-01-01 2014-12-31 0001005699 us-gaap:RetainedEarningsMember 2015-01-01 2015-12-31 0001005699 country:IL 2015-01-01 2015-12-31 0001005699 country:IL 2014-01-01 2014-12-31 0001005699 CALL:AdvertisingMediaBuysMember 2014-01-01 2014-12-31 0001005699 CALL:MarketingPersonnelRelatedMember 2014-01-01 2014-12-31 0001005699 CALL:OtherMarketingProjectsMember 2014-01-01 2014-12-31 0001005699 CALL:OtherMarketingProjectsMember 2015-01-01 2015-12-31 0001005699 CALL:MarketingPersonnelRelatedMember 2015-01-01 2015-12-31 0001005699 CALL:AdvertisingMediaBuysMember 2015-01-01 2015-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2014-01-01 2014-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2015-01-01 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2015-01-01 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2015-01-01 2015-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-01-01 2014-12-31 0001005699 us-gaap:CommonStockMember 2014-01-01 2014-12-31 0001005699 us-gaap:CommonStockMember 2015-01-01 2015-12-31 0001005699 us-gaap:TreasuryStockMember 2014-01-01 2014-12-31 0001005699 2011-05-01 2011-05-31 0001005699 2012-05-01 2012-05-31 0001005699 2013-05-01 2013-05-31 0001005699 2014-05-01 2014-05-31 0001005699 2015-05-01 2015-05-31 0001005699 country:US 2014-12-31 0001005699 us-gaap:AccountsReceivableMember CALL:TelecommunicationsCarrierOneMember 2015-01-01 2015-12-31 0001005699 us-gaap:DebtSecuritiesMember 2015-12-31 0001005699 us-gaap:TechnologyEquipmentMember 2015-12-31 0001005699 us-gaap:ComputerEquipmentMember 2015-12-31 0001005699 us-gaap:FurnitureAndFixturesMember 2015-12-31 0001005699 us-gaap:LeaseholdImprovementsMember 2015-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember 2015-12-31 0001005699 CALL:IntellectualPropertyRightsMember 2015-12-31 0001005699 us-gaap:ContractualRightsMember 2015-12-31 0001005699 us-gaap:TradeNamesMember 2015-12-31 0001005699 us-gaap:CustomerRelationshipsMember 2015-12-31 0001005699 us-gaap:OrderOrProductionBacklogMember 2015-12-31 0001005699 us-gaap:OtherIntangibleAssetsMember 2015-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember 2015-01-01 2015-12-31 0001005699 CALL:IntellectualPropertyRightsMember 2015-01-01 2015-12-31 0001005699 us-gaap:ContractualRightsMember 2015-01-01 2015-12-31 0001005699 us-gaap:OtherIntangibleAssetsMember 2015-01-01 2015-12-31 0001005699 CALL:FounderMember 2014-10-01 2014-12-31 0001005699 2015-02-02 2015-02-03 0001005699 us-gaap:TreasuryStockMember 2014-01-01 2014-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2015-01-01 2015-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2015-01-01 2015-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2014-01-01 2014-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2014-01-01 2014-12-31 0001005699 country:IL 2014-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2014-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2015-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2014-01-01 2014-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2014-01-01 2014-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2015-01-01 2015-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2015-01-01 2015-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2015-01-01 2015-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2014-01-01 2014-12-31 0001005699 us-gaap:ResearchAndDevelopmentExpenseMember 2014-01-01 2014-12-31 0001005699 us-gaap:GeneralAndAdministrativeExpenseMember 2014-01-01 2014-12-31 0001005699 CALL:MarketingCostMember 2014-01-01 2014-12-31 0001005699 us-gaap:CostOfSalesMember 2014-01-01 2014-12-31 0001005699 us-gaap:GeneralAndAdministrativeExpenseMember 2015-01-01 2015-12-31 0001005699 CALL:MarketingCostMember 2015-01-01 2015-12-31 0001005699 us-gaap:ResearchAndDevelopmentExpenseMember 2015-01-01 2015-12-31 0001005699 us-gaap:CostOfSalesMember 2015-01-01 2015-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2015-06-01 2015-06-30 0001005699 CALL:ConsultantsMember 2015-05-01 2015-05-30 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2015-04-01 2015-04-30 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2015-03-01 2015-03-31 0001005699 2015-06-01 2015-06-30 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2014-03-01 2014-03-31 0001005699 us-gaap:ExecutiveOfficerMember 2015-01-01 2015-12-31 0001005699 2015-12-01 2015-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2015-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2015-06-30 0001005699 us-gaap:ExecutiveOfficerMember 2014-12-31 0001005699 CALL:ConsultantsMember 2015-05-30 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2015-04-30 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2015-03-31 0001005699 us-gaap:BoardOfDirectorsChairmanMember 2014-03-31 0001005699 2015-03-16 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2014-12-31 0001005699 us-gaap:MaximumMember 2014-01-01 2014-12-31 0001005699 us-gaap:MinimumMember 2014-01-01 2014-12-31 0001005699 2016-06-30 0001005699 2016-01-01 2016-12-31 0001005699 2016-12-31 0001005699 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0001005699 us-gaap:CommonStockMember 2016-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0001005699 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001005699 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0001005699 us-gaap:TreasuryStockMember 2016-12-31 0001005699 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0001005699 us-gaap:RetainedEarningsMember 2016-12-31 0001005699 country:US 2016-12-31 0001005699 us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:AccountsReceivableMember CALL:TelecommunicationsCarrierOneMember 2016-01-01 2016-12-31 0001005699 CALL:SingleFinancialInstitutionConcentrationRiskMember 2016-12-31 0001005699 country:IL 2016-12-31 0001005699 2016-10-01 2016-12-31 0001005699 2016-07-01 2016-09-30 0001005699 2016-04-01 2016-06-30 0001005699 2016-01-01 2016-03-31 0001005699 CALL:AdvertisingMediaBuysMember 2016-01-01 2016-12-31 0001005699 CALL:MarketingPersonnelRelatedMember 2016-01-01 2016-12-31 0001005699 CALL:OtherMarketingProjectsMember 2016-01-01 2016-12-31 0001005699 us-gaap:DebtSecuritiesMember 2016-12-31 0001005699 us-gaap:TechnologyEquipmentMember 2016-12-31 0001005699 us-gaap:TechnologyEquipmentMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:TechnologyEquipmentMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:ComputerEquipmentMember 2016-01-01 2016-12-31 0001005699 us-gaap:ComputerEquipmentMember 2016-12-31 0001005699 us-gaap:FurnitureAndFixturesMember 2016-12-31 0001005699 us-gaap:LeaseholdImprovementsMember 2016-12-31 0001005699 us-gaap:NoncompeteAgreementsMember 2016-01-01 2016-12-31 0001005699 CALL:IntellectualPropertyRightsMember 2016-01-01 2016-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember 2016-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember 2016-01-01 2016-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:DevelopedTechnologyRightsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 CALL:IntellectualPropertyRightsMember 2016-12-31 0001005699 CALL:IntellectualPropertyRightsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 CALL:IntellectualPropertyRightsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:ContractualRightsMember 2016-12-31 0001005699 us-gaap:ContractualRightsMember 2016-01-01 2016-12-31 0001005699 us-gaap:ContractualRightsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:ContractualRightsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:OtherIntangibleAssetsMember 2016-12-31 0001005699 us-gaap:OtherIntangibleAssetsMember 2016-01-01 2016-12-31 0001005699 us-gaap:TradeNamesMember 2016-12-31 0001005699 us-gaap:TradeNamesMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:TradeNamesMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:CustomerRelationshipsMember 2016-12-31 0001005699 us-gaap:CustomerRelationshipsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:CustomerRelationshipsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:OrderOrProductionBacklogMember 2016-01-01 2016-12-31 0001005699 us-gaap:OrderOrProductionBacklogMember 2016-12-31 0001005699 CALL:MagicjackProductLineMember 2016-12-31 0001005699 us-gaap:SoftwareLicenseArrangementMember 2016-12-31 0001005699 us-gaap:UpFrontPaymentArrangementMember 2016-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2016-01-01 2016-12-31 0001005699 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0001005699 us-gaap:TreasuryStockMember 2016-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2016-12-31 0001005699 us-gaap:EmployeeStockOptionMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:EmployeeStockOptionMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2016-01-01 2016-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2016-01-01 2016-12-31 0001005699 CALL:OrdinaryShareOptionsAndRestrictedStockUnitsMember 2016-12-31 0001005699 us-gaap:ResearchAndDevelopmentExpenseMember 2016-01-01 2016-12-31 0001005699 us-gaap:GeneralAndAdministrativeExpenseMember 2016-01-01 2016-12-31 0001005699 CALL:MarketingCostMember 2016-01-01 2016-12-31 0001005699 us-gaap:CostOfSalesMember 2016-01-01 2016-12-31 0001005699 country:IL 2016-01-01 2016-12-31 0001005699 country:US 2016-01-01 2016-12-31 0001005699 us-gaap:RestrictedStockUnitsRSUMember 2016-01-01 2016-12-31 0001005699 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-12-31 0001005699 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-01-01 2015-12-31 0001005699 us-gaap:TradeNamesMember 2016-01-01 2016-12-31 0001005699 us-gaap:CustomerRelationshipsMember 2016-01-01 2016-12-31 0001005699 us-gaap:CollectibilityOfReceivablesMember us-gaap:MinimumMember 2016-12-31 0001005699 us-gaap:CollectibilityOfReceivablesMember us-gaap:MaximumMember 2016-12-31 0001005699 2017-02-28 0001005699 us-gaap:NoncontrollingInterestMember 2014-01-01 2014-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2015-01-01 2015-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2016-01-01 2016-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2013-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2014-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2015-12-31 0001005699 us-gaap:NoncontrollingInterestMember 2016-12-31 0001005699 CALL:SMBMember 2016-01-01 2016-12-31 0001005699 2016-01-01 2016-09-30 0001005699 CALL:ForeignMember 2016-12-31 0001005699 us-gaap:AccountsReceivableMember CALL:ThreeCustomersMember 2016-01-01 2016-12-31 0001005699 us-gaap:AccountsReceivableMember CALL:OneCustomersMember 2015-01-01 2015-12-31 0001005699 us-gaap:AccountsReceivableMember CALL:TwoCustomersMember 2015-01-01 2015-12-31 0001005699 us-gaap:FurnitureAndFixturesMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001005699 us-gaap:FurnitureAndFixturesMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001005699 us-gaap:CorporateMember 2016-01-01 2016-12-31 0001005699 us-gaap:ConsumerPortfolioSegmentMember 2016-01-01 2016-12-31 0001005699 CALL:SMBMember 2016-01-01 2016-12-31 0001005699 us-gaap:SoftwareDevelopmentMember 2016-01-01 2016-12-31 0001005699 CALL:ProcessKnowHowMember 2016-01-01 2016-12-31 0001005699 us-gaap:SoftwareDevelopmentMember 2016-12-31 0001005699 CALL:ProcessKnowHowMember 2016-12-31 0001005699 us-gaap:SoftwareDevelopmentMember 2015-12-31 0001005699 CALL:ProcessKnowHowMember 2015-12-31 0001005699 CALL:DomainMember 2016-12-31 0001005699 CALL:DomainMember 2015-12-31 0001005699 us-gaap:ConsumerPortfolioSegmentMember 2016-12-31 0001005699 us-gaap:CorporateMember 2016-12-31 0001005699 CALL:SMBMember 2016-12-31 0001005699 us-gaap:ConsumerPortfolioSegmentMember 2015-12-31 0001005699 us-gaap:CorporateMember 2015-12-31 0001005699 CALL:SMBMember 2015-12-31 0001005699 CALL:OtherMember 2016-12-31 0001005699 CALL:OtherMember 2015-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2016-10-01 2016-10-31 0001005699 us-gaap:DirectorMember 2016-08-01 2016-08-31 0001005699 us-gaap:DirectorMember 2016-04-01 2016-04-30 0001005699 us-gaap:DirectorMember 2016-03-01 2016-03-31 0001005699 us-gaap:DirectorMember CALL:BroadsmartMember 2016-03-01 2016-03-17 0001005699 us-gaap:ExecutiveOfficerMember 2016-12-01 2016-12-31 0001005699 us-gaap:ExecutiveOfficerMember 2014-12-30 2014-12-31 0001005699 CALL:BroadsmartMember 2016-12-31 0001005699 us-gaap:ScenarioForecastMember 2017-01-01 2017-12-31 0001005699 us-gaap:ScenarioForecastMember 2018-01-01 2018-12-31 0001005699 us-gaap:StateAndLocalJurisdictionMember country:IL 2014-01-01 2014-12-31 0001005699 us-gaap:StateAndLocalJurisdictionMember country:IL 2014-12-31 0001005699 us-gaap:StateAndLocalJurisdictionMember country:IL 2015-12-31 0001005699 us-gaap:StateAndLocalJurisdictionMember country:IL 2016-12-31 0001005699 2016-03-01 2016-03-15 0001005699 us-gaap:OtherIntangibleAssetsMember 2014-09-01 2014-09-30 0001005699 2016-03-17 0001005699 2016-03-15 0001005699 us-gaap:SoftwareDevelopmentMember CALL:BroadsmartMember 2016-01-01 2016-12-31 0001005699 CALL:ProcessKnowHowMember CALL:BroadsmartMember 2016-01-01 2016-12-31 0001005699 us-gaap:ContractualRightsMember CALL:BroadsmartMember 2016-01-01 2016-12-31 0001005699 us-gaap:CustomerRelationshipsMember CALL:BroadsmartMember 2016-01-01 2016-12-31 0001005699 CALL:BroadsmartMember 2016-03-01 2016-03-17 0001005699 CALL:BroadsmartMember 2016-03-17 0001005699 us-gaap:CustomerRelationshipsMember 2016-03-17 0001005699 us-gaap:NoncompeteAgreementsMember 2016-03-17 0001005699 CALL:TradenameMember 2016-03-17 0001005699 CALL:ProcessKnowHowMember 2016-03-17 0001005699 us-gaap:SoftwareLicenseArrangementMember 2016-03-17 0001005699 CALL:BroadsmartMember 2016-01-01 2016-12-31 0001005699 CALL:BroadsmartMember 2015-01-01 2015-12-31 0001005699 us-gaap:IntersegmentEliminationMember 2016-01-01 2016-12-31 0001005699 us-gaap:IntersegmentEliminationMember 2016-12-31 0001005699 CALL:OtherSegmentsMember 2016-01-01 2016-12-31 0001005699 us-gaap:TradeNamesMember CALL:BroadsmartMember 2016-12-31 0001005699 us-gaap:TradeNamesMember CALL:BroadsmartMember 2016-10-01 2016-12-31 0001005699 us-gaap:AllOtherSegmentsMember 2016-01-01 2016-12-31 0001005699 us-gaap:AllOtherSegmentsMember 2016-12-31 0001005699 us-gaap:AllOtherSegmentsMember 2015-12-31 0001005699 CALL:JointVentureMember 2016-12-31 0001005699 CALL:JointVentureMember us-gaap:SubsequentEventMember 2017-03-16 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure iso4217:USD CALL:Minute MAGICJACK VOCALTEC LTD 0001005699 10-K 2016-12-31 false --12-31 No No No Accelerated Filer FY 2016 168836000 174517000 49086000 47668000 37442000 111744000 111771000 111773000 3692000 10414000 14573000 -642000 -108151000 -107683000 -126772000 30799000 34584000 48094000 58200000 111783000 13567000 -120300000 53785000 -635000 48094000 53785000 126772000 126772000 107683000 108151000 120300000 120300000 14573000 13567000 121168000 116317000 11098000 10866000 50146000 44201000 59924000 61250000 52554000 9352000 40677000 2525000 48507000 7962000 37323000 2851000 371000 6284000 8426000 1527000 1086000 2790000 168836000 174517000 142870000 40839000 -9447000 255000 751000 836000 30689000 26568000 32304000 47185000 32304000 14881000 32304000 14881000 6687000 28854000 249000 249000 1700000 3302000 3805000 95103000 67269000 2655000 1970000 2097000 2319000 5723000 4441000 2925000 3171000 367000 447000 75945000 78589000 45997000 52394000 51800000 1900000 600000 1171000 455000 3912000 402000 9426000 9426399 7164260 7202242 8988000 8987820 0.79 0.21 0.07 0.39 0.15 0.20 0.35 -0.08 0.21 0.18 0.05 0.80 0.21 0.07 0.39 0.12 0.20 0.36 -0.08 0.21 0.18 0.05 13510000 3785000 5691000 25343000 13564000 4433000 6429000 7028000 7453000 13755000 -113000 5428000 4206000 4234000 -2224000 28554000 -10986000 -1589000 41477000 60217000 46909000 4043000 30511000 10912000 -78000 1521000 27547000 33912000 34325000 3641000 23584000 6102000 -78000 1076000 9409000 20434000 13922000 2663000 3849000 1224000 1487000 6698000 9085000 5139000 2037000 1909000 380000 4768000 3497000 440000 440000 66820000 73781000 16045000 16741000 16850000 17184000 60664000 14648000 15063000 15463000 15490000 1819000 59065000 -74000 -78000 -68000 34142000 42541000 36734000 7224000 29250000 179000 81000 100962000 116322000 25512000 25410000 24631000 25409000 97398000 23826000 24572000 25301000 23699000 9043000 88315000 105000 -78000 13000 13510000 4427000 5691000 25029 25032 25036 -7202 -7164 -9426 25039 -8988 5268000 7190000 7190000 5268000 4220000 4220000 1676000 2352 2329003 62 20198000 20198000 20000000 430000 430000 642000 642000 2000 27000 27000 2000 10000 10000 90 38 267 4250 3820 2500 -21696000 -1473000 -420000 1500000 1500000 2000 27000 10000 -1024000 6396000 -41025000 1024000 2213000 605000 -897000 721000 -118000 9094000 -75000 -271000 -214000 6000 174000 -12000 787000 2836000 255000 1400000 1400000 P15Y P3Y P3Y P5Y P7Y P1Y P17Y P3Y P17Y P3Y P17Y P2Y P5Y P3Y P6Y P5Y P10Y P1Y P10Y P5Y P51M P10Y P5Y P4Y P16Y 367000 447000 37000 -642000 1498000 1455000 4225000 2986000 499000 499000 8606000 2707000 257000 701000 9699000 2866000 269000 893000 8969000 9922000 800000 600000 1191000 155000 994000 40000 2000 23267000 4930000 14161000 2085000 321000 500000 800000 470000 45295000 3110000 14162000 2185000 131000 22600000 800000 1207000 1100000 2200000 5477000 433000 4538000 174000 332000 26193000 256000 3368000 78000 20351000 1127000 1013000 P4Y9M29D P5Y4M10D P5M1D P3M P4Y10M13D P4Y8M16D P3Y2M1D P0Y P0Y P0Y P9Y2M16D P8Y P6Y29D 1210000 900000 2661000 2600000 61000 310000 2800000 4200000 3542000 1938000 1604000 2500000 2500000 500000 500000 2500000 500000 500000 102700000 92708000 48507000 18361000 12023000 7399000 3467000 2951000 15400000 19700000 12300000 1156000 924000 582000 85000 2860000 800000 900000 900000 0.0007 0.03 23150 62726 -90014 -37982 -267903 -198000 -430000 1109000 468000 3293000 10000 350000 17790000 4497000 9632000 1911000 321000 500000 800000 138000 19102000 2854000 10794000 2107000 131000 2249000 800000 80000 87000 2 68 37 249 443102 2524927 147264 2037107 299137 2402427 18343000 -4510000 8513000 6969000 18040000 5262000 8951000 3666000 76000 2000 949000 9027000 2000 4615000 7203000 -1774000 -637000 604000 -165000 -59000 5056000 -2484000 5114000 0.0518 0.0316 0.0100 0.0000 0.4501 0.0000 0.0139 0.1884 0.0000 -0.0108 -0.2708 -0.0565 0.0200 0.4760 -0.0579 -0.0266 0.0063 0.0036 0.0507 -0.1136 -0.0889 1925000 1043000 803000 1214000 36662000 30103000 3467000 5343000 59000 91000 2593000 2914000 1644000 1413000 50020000 45877000 130600000 16200000 17500000 16300000 953000 2079000 834000 911000 1787000 2990000 16230000 17544000 16319000 30689000 700000 2500000 26568000 5200000 0.0273 0.0000 0.0116 1792000 4200000 4700000 2198000 5700000 1075000 1558000 18860000 9929000 5677000 9136000 5000 6205000 79000 81000 444000 203000 5268000 7190000 1118000 7200000 4108000 5300000 1160000 6072000 965000 4166000 1594000 465000 4194000 551000 447000 76000 4220000 2138000 2082000 4200000 243000 3755000 146000 76000 3585000 4823000 4733000 2464000 998000 -10088000 14166000 -314000 12863000 -4423000 4418000 57000 192000 88000 1145000 -1584000 -668000 -1897000 222000 -2125000 933000 -2366000 8000 50000 -11000 -1782000 651000 1522000 -873000 1527000 -679000 -287000 966000 -8527000 -3265000 -10164000 56000 274000 -71000 25364000 25025000 15250000 11000 182000 5213000 279000 1495000 2644000 29948000 -26195000 500000 188000 6000 64000 14000 94000 42000 300000 9.45 7.70 7.09 6.87 6.99 7.70 20.71 12.32 9.45 12.32 12.32 12.33 12.31 12.24 15.46 6.85 8.12 24410 834 9336 2015 2015 53419 203618 50600 2333 9336 2016 233402 62726 35967 4000 301000 10000 115000 25000 24000 700000 2500000 623000 29000 115000 25000 3600000 430000 400000 12.32 12.32 12.32 12.32 12.32 6.99 12.24 100000000 20000000 20000000 91300000 8700000 6143731 12161 10989 2329003000 94000 104000 3600000 1000000 P5Y P37M P24M 14000 42000 7000 3100000 2100000 2000000 P2Y2M9D P1Y2M19D 3.60 6.22 2.75 385852 30500 320305 1600000 1800000 2200000 2043857 2527427 1285207 3488059 998614 762500 1107040 1258817 1310482 1258817 1310482 14.87 12.98 14.95 11.13 9.33 14.71 7.09 0.57 7.33 3.96 15.54 15.54 P2Y7M10D P2Y7M10D P2Y7M10D P2Y7M10D P3Y6M P3Y6M P3Y2M12D P3Y6M 0.0000 0.0000 0.0000 0.518 0.588 0.572 0.522 0.525 0.0129 0.0164 0.0107 0.0095 0.0113 0.2000 0.0000 0.0000 147264 443102 154746 482085 14022 15.05 10.20 14.08 7.70 9.33 19.15 6.07 13.13 14.42 8.11 7.40 247257 34740 90014 37982 267300 263537 30 109168 63013209 111773000 111783000 14.42 8.83 12.67 147.55 13.57 5300000 6100000 4200000 20000000 198000 430000 P3Y7M10D P3Y9M18D P3Y7M10D 794000 2085000 889000 15915000 24564000 12775000 7000 14000 122000 65761000 65542000 58513000 4289000 7006000 5435000 8243000 10083000 5677000 5953000 7028000 5021000 3 4 3 3885000 3456000 3198000 2872000 2538000 10244000 16050687 85000 28000 3500000 4500000 3600000 4521000 5871000 5199000 1300000 22000 3859000 1313000 5000 800000 2800000 300000 250000 26000 49700000 0.11 0.11 0.34 0.14 0.29 485000 1500000 1500000 1500000 1500000 1500000 321000 100000 0 0 0 15400000 85200000 6800000 900000 11802000 9745000 11800000 9700000 8719000 8700000 4500000 8600000 8600000 5000000 4800000 4700000 500000 6400000 800000 6400000 5300000 3700000 1200000 0.4663 0.7203 0.265 0.289 0.6330 0.23 0.3400 0.3400 0.265 0.265 0.3400 0.250 0.34 0.24 0.23 1314000 -1339000 1300000 -1225000 -1200000 7500000 11400000 10800000 10400000 2747000 527000 30300000 22300000 1600000 700000 2100000 900000 2600000 5600000 0 2500000 2000000 47668000 58835000 1700000 2000000 1700000 13510000 3785000 1308000 6952000 1939000 3311000 3785000 13510000 5056000 5691000 -1415000 3222000 2515000 734000 -635000 233 1676000 -1933000 3609000 80000 0.90 0.90 0.87 0.60 1600000 -635000 2000000 2000000 15600000 15600000 2500000 998000 0.10 24477000 47956000 1210000 900000 2661000 2600000 61000 310000 -17790000 -19102000 6687000 28854000 14881000 14881000 -233402 -3609000 0.0000 0.0000 0.0157 0.0000 0.0000 0.0216 0.0000 0.0000 0.0525 0.0000 0.0000 0.3813 7906000 516000 800000 13700000 30100000 51200000 38000000 1800000 100000 200000 2000000 3000000 400000 3000000 7500000 233402 1700000 500000 800000 1000000 567000 302000 143000 1012000 355000 26385000 96000 27848000 900000 172000 1072000 62000 1134000 26714000 41595000 26385000 22100000 100000 2200000 1100000 885000 99938000 113525000 5407000 13305000 26000 26000 6000 6000 1185000 431000 511000 220000 23000 0.0000 0.3877 0.0000 3542000 1938000 1604000 100000000 100000000 0 0 25036000 25039000 37000 26000 117000 26000 57000 192000 4000 -6000 -31000 -34000 20000 25312000 13530000 13775000 -2224000 28574000 -10986000 -1589000 -635000 16975 17831 15815 17045 17868 16064 5691000 -1261000 3399000 2819000 734000 -635000 -1030000 6978000 -356000 13510000 4427000 5056000 -468000 -1109000 1109000 468000 -3293000 3293000 40019000 8966000 0.35 2.27 198593 12500000 9200000 8300000 0.60 0.36 1789000 -14166000 315000 <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Use of Estimates</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The preparation of financial statements in conformity with GAAP 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 revenue and expenses during the reporting period. Such estimates and judgments are revised periodically as required. Actual results could differ from those estimates. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income taxes, income tax valuation allowance, uncertain tax liabilities, the value of ordinary shares issued in asset acquisitions, business combinations or underlying the Company&#8217;s ordinary share options, the expected forfeitures of ordinary share options and estimates of likely outcomes related to certain contingent liabilities.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company evaluates its estimates on an ongoing basis. The Company's estimates and assumptions are based on factors such as historical experience, trends within the Company and the telecommunications industry, general economic conditions and on various other assumptions that it believes to be reasonable under the circumstances. The results of such assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily available. Actual results may differ from the Company's estimates and assumptions as a result of varying market and economic conditions, and may result in lower revenues and lower net income.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Net Revenues</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Net revenues consist of revenue from sales of magicJack devices<sup style="font-weight: bold; font-style: italic">&#160;</sup>to retailers, wholesalers or directly to customers, access right renewal fees, fees charged for shipping magicJack devices, usage of domestic and international prepaid minutes, access charges to other carriers recurring sales of the Company&#8217;s hosted UCaaS voice services, non-recurring sales of equipment related to its UCaaS services and other miscellaneous charges. The Company typically enters into multi-year agreements, with durations of three to five years, to provide the hosted voice and other services. The Company earns revenue from the sale of the hardware and network equipment necessary to operate its UCaaS services directly to its customers. All revenues are recorded net of sales returns and allowances.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The following table presents a breakdown of the Company&#8217;s net revenues by source for the periods indicated (in thousands).</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1f5c3731df7046caa90164cec4428a90" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Sale of magicJack devices</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,915</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,564</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access right renewals</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">58,513</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,761</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,542</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Shipping and handling</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">889</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">794</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">magicJack-related products</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,435</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,289</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,006</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Prepaid minutes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,243</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,083</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access and wholesale charges</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,021</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,953</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,028</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">UCaaS</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,966</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">122</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total net revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">100,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">116,322</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Revenue Recognition</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognizes revenue in accordance with ASC Topic 605, "Revenue Recognition" (&#8220;ASC 605&#8221;), which provides authoritative guidance on revenue recognition. For arrangements that include more than one product or service (deliverables), the Company applies Section 25 of ASC 605, &#8220;Multiple-Element Arrangements&#8221;. ASC 605-25 establishes criteria for separating deliverables into different units of accounting and allocating consideration to those units of accounting.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Core Consumer Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">magicJack Devices Revenue and Renewal Access Revenue</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160;magicJack devices include an initial access right, which qualify as multiple deliverables per ASC 605-25.&#160; Since the device and initial access right are interdependent and not sold separately, they are accounted for as a combined unit of accounting. Direct sales of devices include shipping charges and 30 days to return the device and cancel the service.&#160; For retail sales of devices, there is a delay between shipment to the retailer and the ultimate sale to a customer (end-user). Based on sales and inventory data provided by retail partners, the Company&#8217;s estimate of the delay for the year ended December 31, 2016 was 90 days. The Company defers revenue recognition on direct sales for the 30 day return period and on retail sales for the delay period, after which the Company recognizes the revenue from device sales ratably over the remaining initial access right period.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Customers may renew access rights for periods ranging from one month to five years. The revenue associated with access right renewals is deferred and recognized ratably over the extended access right period. Revenue from the sales of magicApp and magicJack Connect App access rights is recognized ratably over the access right period.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Sales Return Policy</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company offers some of its direct sales customers a 30-day free trial before they have to pay for their magicJack device. The Company does not recognize revenue until the 30-day trial period has expired and a customer&#8217;s credit card has been charged.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Returns from retailers are accepted on an authorized basis for devices deemed defective. The Company may offer certain retailers the limited right to return any unsold merchandise from their initial stocking orders. The Company also accepts returns of battery powerbanks for mobile devices within 30 days of sale. The Company estimates potential returns under these arrangements at point of sale and re-estimates potential returns on a quarterly basis. For the years ended December 31, 2016, 2015 and 2014, the Company&#8217;s estimates of returns and actual returns from initial stocking orders have not been materially different.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Other magicJack-Related Products</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company offers customers other optional products related to their magicJack devices and services, such as insurance, custom or vanity phone numbers, Canadian phone numbers, the ability to either change their existing phone numbers or port them to a magicJack device, and battery powerbanks for mobile devices. These revenues are recognized at the time of sale, with the exception of sales of the battery powerbank which are recognized when shipped.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Prepaid Minutes and Access and Wholesale Charges</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company generates revenues from the sales of prepaid international minutes to customers, fees for origination of calls to 800-numbers, and access fees charged to other telecommunication carriers on a per-minute basis for Interexchange Carriers (&#8220;IXC&#8221;) calls terminated on the Company&#8217;s servers. Revenues from access fee charges to other telecommunication carriers are recorded based on rates set forth in the respective state and federal tariffs or negotiated contract rates, less a provision for billing adjustments. Revenues from prepaid minutes and access and wholesale charges are recognized as minutes are used.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Enterprise Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">UCaaS services and equipment sales related to the Broadsmart subsidiary qualify as multiple deliverables per ASC 605-25.&#160; Since the equipment and services are sold separately and can be used with other products and services, they are accounted for as separate units of accounting. The Company recognizes revenues from sales of its hosted services in the period the services are provided over the term of the respective customer agreements. Customers are billed monthly in advance for these recurring services and in arrears for one time service charges and other certain usage charges.&#160; Revenues from sales of hardware and network equipment are recognized in the period that the equipment is delivered. Revenue from the sale of equipment purchased but not yet delivered and installed is deferred and recognized in the period that the hardware or equipment is put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">SMB Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">SMB provides phone equipment and services that are interdependent and not sold separately. As such they are accounted for as a combined unit of accounting under ASC 605-25.&#160; Some agreements include a refund period or a promotion for free introductory service.&#160; Revenue recognition is deferred for either period, after which the Company recognizes the revenue for the combined unit ratably over the remaining service period.&#160; Revenue from this segment was not significant for the year ended December 31, 2016.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Deferred Revenues</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues for the Core Consumer segment consist primarily of billings and payments for magicJack devices and access rights renewals received in advance of revenue recognition. The Company bills and collects in advance for magicJack devices, which include an initial access right period, and access right renewals.&#160; The Company recognizes revenue from device sales and access right renewals ratably over the access right period, as described above.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Enterprise segment, deferred revenue consists of hardware or equipment purchased but not yet delivered and installed.&#160; The Company recognizes revenue from UCaaS hardware or equipment sales in the period they are put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the SMB segment, deferred revenue consists of billings and payments for phone equipment and services received in advance of revenue recognition.&#160; Customers are billed in advance on a monthly or annual basis.&#160; The Company recognizes revenue from SMB phone equipment and services ratably over the service period.&#160; Deferred revenue from this segment was not significant for the year ended December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues to be recognized over the next twelve months are classified as current and included in deferred revenue, current portion in the Company&#8217;s consolidated balance sheets. The remaining amounts are classified as non-current in the consolidated balance sheets and included in deferred revenue, net of current portion.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Cost of Revenues</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Core Consumer Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues for the Core Consumer segment include direct costs of operation of the Company&#8217;s servers, which are expensed as incurred. These costs include the Company&#8217;s internal operating costs, depreciation and amortization expense, access and interconnection charges to terminate domestic and international telephone calls on the public switched telephone network and related taxes. Direct costs also include regulatory costs, server maintenance, and costs to co-locate the Company&#8217;s equipment in other telephone companies&#8217; facilities. Direct costs of producing magicJack devices are deferred on shipment and charged to cost of sales ratably over the initial access right period. Deferred costs are included in current assets in the Company&#8217;s consolidated balance sheets.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Costs incurred for shipping and handling and credit card charges are included in cost of revenues and are expensed as incurred. Costs for shipping and handling and credit card charges were $3.6 million, $3.5 million and $4.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Enterprise Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues related to the Company&#8217;s UCaaS services include direct costs of providing the services, which are expensed as incurred. These costs include charges for access to the public switched telephone network, internet service for its customers, maintenance costs for its software, commissions, credit card charges, contract labor for installation and depreciation and amortization. The Company also incurs costs for hardware and equipment sold to customers, along with related shipping and installation costs, which are recognized in the period they are put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">SMB Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues for the SMB segment include direct costs of providing the services, which are expensed as incurred, and costs for phone equipment, which are recognized ratably over the service period.&#160; Cost of revenues from this segment were not significant for the year ended December 31, 2016.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Marketing Expenses</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Marketing expenses of $9.1 million, $9.4 million and $20.4 million for the years ended December 31, 2016, 2015 and 2014, respectively, consist primarily of advertising media buys for television commercials, Internet advertising and print advertising, as well as marketing related personnel costs and other marketing projects including sponsorships. Marketing costs are expensed when incurred.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">A break-down of marketing expenses by category is as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zb9620ffd293a4f50ba39fe5c1d75b203" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Advertising media buys</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,139</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,698</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,922</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing personnel related</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,037</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,487</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,663</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other marketing projects</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,909</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,849</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total marketing expenses</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,409</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,434</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Marketing expense for the year ended December 31, 2016 by segment is as follows (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z5e0fc9bd0b1841b8b12180dbe67683af" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">For the Year ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing expense</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,768</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">380</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">440</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> </div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Research and Development Expenses</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s research and development activities consist primarily of the design and development of its proprietary software used in the magicJack devices, magicJack App and its servers, as well as the development of new products and applications for use in its broadband service offerings. The Company accounts for research and development costs in accordance with applicable accounting pronouncements. These pronouncements specify that costs incurred internally in researching and developing a product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all costs should be capitalized until the product is available for general release to customers. The Company has determined that technological feasibility for its products is reached after all high-risk development issues have been resolved through internal and customer base testing. Generally, new products offered to customers and improvements to the Company&#8217;s servers are placed in service on attainment of technological feasibility. The Company has not capitalized any of its research and development costs.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Research and development expenses were $5.2 million, $4.5 million and $5.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.&#160; During the year ended December 31, 2016, $1.3 million of research and development expense was related to the SMB segment.&#160; The balance of research and development expense was related to the Core Consumer segment.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Earnings per Common Share</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Net income per share attributable to the Company&#8217;s shareholders &#8211; basic, is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during each period, including redeemable ordinary shares (if applicable). Net income per share attributable to the Company&#8217;s shareholders &#8211; diluted, is computed using the weighted average number of common and potentially dilutive common share equivalents outstanding during the period, including redeemable common shares (if applicable). Potentially dilutive common share equivalents consist of shares issuable upon the exercise or settlement of options to purchase common shares or restricted stock units.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Cash and Cash Equivalents</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company considers all highly liquid financial instruments with a maturity at acquisition of three months or less to be cash equivalents.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Allowance for Doubtful Accounts and Billing Adjustments</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company maintains an allowance for doubtful accounts and billing adjustments based on the expected collectability of its accounts receivables. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer&#8217;s trade accounts receivable. The allowance includes estimates of billing adjustments, which are negotiated with other telecommunication carriers and are common in the telecommunication industry. The changes in allowance for doubtful accounts and billing adjustments for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zd1f74154d9a04af899d28e57951958f0" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,912</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for doubtful accounts</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">214</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">75</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">271</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for billing adjustments</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(12</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Recoveries</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(350</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Write-offs</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(255</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(787</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,836</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">402</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="clear: both; line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify">The Company settled certain&#160;carrier receivable disputes during the years ended December 31, 2016, 2015 and 2014, which resulted in the write-offs of approximately $0.3 million, $0.8 million and $2.8 million, respectively, of accounts receivables the Company had previously reserved.</div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Certain Risks and Concentrations</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. Cash equivalents generally consist of money market instruments and U.S. government notes.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company places its cash and cash equivalents in high quality financial institutions and management believes that the Company is not exposed to any significant risk on its cash accounts. The Company maintains accounts with various banks and brokerage organizations and constantly monitors the creditworthiness of these institutions. Cash accounts at each U.S. bank are insured by the FDIC up to $250 thousand in the aggregate and may exceed federally insured limits. Cash accounts at each Israeli bank are not insured. The Company has never experienced any losses related to these balances. At December 31, 2016, the Company had cash and cash equivalents totaling $52.4 million, which included (i) $51.8 million in U.S. banks, and (ii) $0.6 million in foreign financial institutions.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s non-interest bearing cash balances in U.S. banks, which included $1.9 million in one individual financial institution, were fully insured, except for $26 thousand that exceeded insurance limits at December 31, 2016. The Company had money market accounts with financial institutions with balances totaling approximately $49.7 million.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Core Consumer segment, no telecommunication carriers accounted for more than 10% of the segment&#8217;s gross accounts receivable at December 31, 2016.&#160; One telecommunication carrier accounted for approximately 11% of the segment&#8217;s gross accounts receivable at December 31, 2015. For the years ended December 31, 2016, 2015 and 2014, no telecommunication carrier accounted for more than 10% of the segment&#8217;s total operating revenue.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Core Consumer segment, three customers accounted for approximately 34% of the segment&#8217;s gross accounts receivable at December 31, 2016. One customer accounted for approximately 14% of the segment&#8217;s gross accounts receivable at December 31, 2015. For the years ended December 31, 2016, 2015 and 2014, no retailer accounted for more than 10% of the segment&#8217;s total operating revenues.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Enterprise segment, no customer accounted for more than 10% of gross accounts receivable at December 31, 2016.&#160; For the year ended December 31, 2016, two customers accounted for approximately 29% of the segment&#8217;s total operating revenues.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the SMB segment, accounts receivable and revenues were not significant for the year ended December 31, 2016.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Interest and Dividend Income</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Interest and dividends earned on the Company&#8217;s investments are accrued as income when earned.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Fair Value</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company accounts for financial instruments in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures " (&#8220;ASC 820&#8221;), which provides a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company&#8217;s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The hierarchy is broken down into three levels based on the reliability of inputs as follows:</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 1 &#8211; Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 2 &#8211; Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 3 &#8211; Valuation based on inputs that are unobservable and significant to the overall fair value measurement.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">When available, the Company uses quoted market prices to determine fair value, and it classifies such measurements within Level 1. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. Fair value includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or the Company) will not be fulfilled. For the Company's financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. The Company&#8217;s assets and liabilities measured on a recurring basis at fair value may include marketable securities and time deposits. As of December 31, 2016 and 2015, all of them are Level 1 instruments, except for debt securities, which are Level 2 instruments. The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The carrying amounts of the Company&#8217;s financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are expected to approximate fair value because of their immediate availability, near term maturities or potential interest payments at settlement.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In connection with the Company&#8217;s purchase of certain intangible assets during June 2011, the Company made payments of $1.5 million in May of 2011, 2012, 2013, 2014 and 2015, respectively. The liability for such payments was discounted at a rate of 10% to a total fair value of $1.4 million at December 31, 2014, with $1.4 million included in accrued expenses and other current liabilities at December 31, 2014 in the Company&#8217;s consolidated balance sheets. The Company believes that the $1.4 million carrying value approximated fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.1 million unamortized discount at December 31, 2014 was amortized using the effective interest method and recorded as interest expense in the Company&#8217;s consolidated statements of operations.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Inventories</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Inventories are stated at the lower of cost or market, with cost primarily determined using the first-in first-out cost method. Inventory is written off at the point it is determined to be obsolete.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Property, Equipment and Depreciation Expense</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Property and equipment are accounted for under ASC 350 and consist primarily of servers, computer hardware, furniture, and leasehold improvements. Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives, which range from three to fifteen years. Leasehold improvements are depreciated over the shorter of the term of the lease or useful life of the assets. The cost of substantial improvements is capitalized while the cost of maintenance and repairs are charged to operating expenses as incurred.&#160; Refer to Note 5, &#8220;Property and Equipment&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company reviews property and equipment for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. <font style="font: 10pt Times New Roman, Times, serif">Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss is based on the fair value of the asset compared to its carrying value. P</font>roperty and equipment <font style="font: 10pt Times New Roman, Times, serif">to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s hardware consists of routers, gateways and servers that enable the Company&#8217;s telephony services. Some of these assets may be subject to technological risks and rapid market changes due to the introduction of new technology, products and services and changing customer demand. These changes may result in future adjustments to the estimated useful lives and the carrying value of these assets. Changes in estimated useful lives are accounted on a prospective basis starting with the period in which the change in estimate is made in accordance with ASC Subtopic 250-10, &#8220;Accounting Changes and Error.&#8221;</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Intangible Assets</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Identifiable intangible assets are stated at cost and accounted based on whether the useful life of the asset is definite or indefinite. Identified intangible assets with definite useful lives are amortized using the accelerated and straight-line methods over their estimated useful lives, which range from one to seventeen years. Intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or more frequently if there is an indicator of impairment.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company reviews definite lived intangible assets subject to amortization for possible impairment using a three-step approach.&#160; Under the first step, management determines whether an indicator of impairment is present (a &#8220;Triggering Event&#8221;). If a Triggering Event has occurred, the second step is to test for recoverability based on a comparison of the asset&#8217;s carrying amount with the sum of the undiscounted cash flows expected to result from the use of the asset <font style="font: 10pt Times New Roman, Times, serif">and its eventual disposition</font>. If the sum of the undiscounted cash flows is less than the carrying amount of the asset, the third step is to recognize an<font style="font: 10pt Times New Roman, Times, serif">&#160;</font>impairment loss for the excess of the asset&#8217;s carrying amount over its fair value. <font style="font: 10pt Times New Roman, Times, serif">Intangible assets subject to amortization to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognized impairment charges of $1.0 million on intangible assets during the year ended December 31, 2016. In the year ended December 31, 2015, there were no deemed impairments of assets. In the year ended December 31, 2014, the Company recorded an impairment charge of $2.5 million in intangible assets. Refer to Note 6, &#8220;Intangible Assets&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The costs of developing the Company&#8217;s intellectual property rights, intellectual property right applications and technology are charged to research and development expense as incurred.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Goodwill</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. Goodwill is not amortized to operations, but instead is reviewed for impairment at least annually, or more frequently if there is an indicator of impairment. Indicators include, but are not limited to: sustained operating losses or a trend of poor operating performance and a decrease in the Company&#8217;s market capitalization below its book value. The Company&#8217;s valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, the Company may record impairment charges in the future. With the acquisition of Broadsmart in March 2016 and the founding of the SMB business during the first quarter of 2016, management began evaluating each of these new business lines separately and has allocated goodwill between the three reporting units that correspond to the reportable segments &#8211; &#8220;Consumer,&#8221; &#8220;Enterprise&#8221; and &#8220;SMB&#8221;. Refer to Note 7, &#8220;Goodwill&#8221; and Note 16, &#8220;Segment Reporting&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company may utilize a qualitative assessment to determine if it is "more-likely-than-not" that the fair value of the reporting unit is less than its carrying value. If so, the two-step goodwill impairment test is required to be performed. If not, no further testing is required and the Company documents the relevant qualitative factors that support the strength in its fair value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">If the two-step goodwill impairment test is required to be performed, under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit is less than its carrying value, the Company proceeds to step two of the goodwill impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit&#8217;s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. An impairment loss shall be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In connection with the Company&#8217;s annual goodwill impairment analysis performed as of October 1, the annual measurement date, there is no impairment of such assets as of and for the years ended December 31, 2016, 2015 and 2014. Refer to Note 7, &#8220;Goodwill&#8221; for further details.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Share-based Compensation</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">Share-based compensation generally consists of option grants or ordinary share and restricted stock units awards to directors, officers, employees or consultants that</font> are measured at grant date, based on the fair value of the award, and are recognized as an expense over the requisite service period.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Income Taxes</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their book basis using enacted tax rates. Any changes in enacted rates or tax laws are included in the provision for income taxes in the year of enactment. The Company&#8217;s net deferred tax assets consist primarily of foreign net operating loss carryforwards and timing differences between recognition of income for book and tax purposes. The Company records a valuation allowance to reduce the net deferred tax assets to the amount that it estimates is more-likely-than-not to be realized. The Company periodically reviews the composition of its deferred tax assets and related valuation allowances and will make adjustments if available evidence indicates that it is more-likely-than-not a change in the carrying amounts is required.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Comprehensive Income</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Comprehensive income attributable to common shareholders, as defined, includes all changes in equity (net assets) during a period from non-owner sources. The differences between net income and comprehensive income attributable to common shareholders are due to reclassification of unrealized gain or loss on marketable securities to realized gain or loss on investments and losses attributable to noncontrolling interest.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Treasury Stock</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">The Company presents the cost of repurchasing treasury shares as a reduction in capital equity.</font></div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Recent Accounting Pronouncements</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In May 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) 2014-09, &#8220;Revenue from Contracts with Customers.&#8221; The standard requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. On July 9, 2015, the FASB deferred the effective dates of the standard by one year. As a result, the standard will be effective for annual and interim periods beginning after December 15, 2017. Companies may adopt the standard as early as the original effective date (i.e. annual reporting periods beginning after December 15, 2016). Early adoption prior to that date is not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or a modified retrospective adoption, meaning the standard is applied only to the most current period presented. In March 2016, the FASB issued ASU 2016-08 to provide clarification regarding the application of the principal-versus-agent guidance. In April 2016, the FASB issued ASU 2016-10 to clarify the guidance for identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB also issued ASU 2016-12, which provides narrow scope improvements and technical expedients on assessing collectibility, presentation of sales taxes, evaluating contract modifications and completed contracts at transition and the disclosure requirement for the effect of the accounting change for the period of adoption. In December 2016, the FASB issued ASU 2016-20 which makes minor corrections and improvements to certain narrow aspects of the guidance. The Company has internally performed a preliminary review of the new guidance and plan to engage consultants to document the appropriate revenue recognition for its various products and services.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory". This ASU applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LILO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim and annual reporting period. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;. ASU 2016-02 requires that long-term lease arrangements be recognized on the balance sheet. The standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In March 2016, the FASB issued ASU 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting&#8221;. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016 for both interim and annual reporting periods. The Company will adopt ASU 2016-09 on a prospective basis in the first quarter of 2017. Prior periods were not retrospectively adjusted.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In August 2016, the FASB issued ASU 2016-15, &#8220;Classification of Certain Cash Receipts and Cash Payments&#8221;. ASU 2016-15 reduces the diversity of how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted.&#160; The ASU should be applied retrospectively to all periods presented. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In October 2016, the FASB issued ASU 2016-16, &#8220;Intra-Entity Transfers of Assets Other than Inventory&#8221;. ASU 2016-16 requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted.&#160; The ASU should be applied retrospectively as an adjustment to retained earnings. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Business Combinations</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company accounts for business combinations under ASC 805, using the acquisition method of accounting. The acquisition method of accounting requires that the purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company&#8217;s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period and final determination of the values of assets acquired or liabilities assumed, any subsequent adjustments are recorded to the consolidated statements of operations. The Company includes the results of all acquisitions in its Consolidated Financial Statements from the date of acquisition. Acquisition related transaction costs, such as banking, legal, accounting and other costs incurred in connection with an acquisition, are expensed as incurred in general and administrative expense.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Acquisition-related integration costs which do not meet the criteria of discontinued operations include: (i) costs associated with exit or disposal activities, (ii) costs for employee, lease and contract terminations, (iii) facility closing costs, and other costs associated with exit activities. Acquisition-related integration costs also include expenses directly related to integrating and reorganizing acquired businesses, employee retention costs, recruiting costs, certain moving costs, certain duplicative costs during integration and asset impairments. These costs are expensed as incurred in general and administrative expense.</font></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1f5c3731df7046caa90164cec4428a90" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Sale of magicJack devices</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,915</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,564</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access right renewals</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">58,513</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,761</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,542</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Shipping and handling</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">889</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">794</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">magicJack-related products</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,435</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,289</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,006</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Prepaid minutes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,243</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,083</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access and wholesale charges</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,021</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,953</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,028</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">UCaaS</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,966</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">122</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total net revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">100,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">116,322</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zb9620ffd293a4f50ba39fe5c1d75b203" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Advertising media buys</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,139</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,698</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,922</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing personnel related</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,037</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,487</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,663</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other marketing projects</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,909</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,849</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total marketing expenses</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,409</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,434</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z5e0fc9bd0b1841b8b12180dbe67683af" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">For the Year ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing expense</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,768</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">380</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">440</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zd1f74154d9a04af899d28e57951958f0" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,912</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for doubtful accounts</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">214</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">75</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">271</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for billing adjustments</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(12</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Recoveries</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(350</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Write-offs</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(255</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(787</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,836</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">402</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="clear: both; line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z00f68445ecec4e9b8066fe0413d816b9" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Raw materials</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,498</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Finished goods</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,986</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,225</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,441</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,723</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z10745766af5a47c4aa3aaaffc64b93df" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Useful Lives</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Switches</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,699</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,606</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Computers</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,866</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,707</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Furniture</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5 - 7</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">269</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">257</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Leasehold-improvements</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">*</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">893</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">701</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Accumulated depreciation</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(9,922</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(8,969</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,805</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,302</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <table id="z12b22be6c06d4eef91f2ef33552d0f11" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="14" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="14" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31, 2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Useful Lives</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Gross Carrying</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Accumulated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Gross Carrying</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Accumulated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Net</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Life</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Net</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Life</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Technology</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,110</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,854</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">256</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.71</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,930</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">433</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.83</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Intellectual property rights</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,162</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,794</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,368</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,161</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(9,623</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,538</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td rowspan="2" style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div>Covenants not-to </div> <div>&#160;compete and </div> <div>&#160;not-to sue</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2 - 5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,107</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,911</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Tradename</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">131</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(131</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">321</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(321</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Customer relationships</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5 - 10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">22,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,249</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,351</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Backlog</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">1</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Software license</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,207</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,127</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Process know how</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,100</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,013</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">470</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(138</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">332</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div>Intangible&#160;assets&#160;</div> <div>&#160;subject to </div> <div>&#160;amortization</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45,295</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(19,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,193</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,267</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,790</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,477</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Tradename</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">900</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">900</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Domain names</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">310</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">310</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div>Intangible assets </div> <div>&#160;not subject </div> <div>&#160;to amortization</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,661</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,661</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,210</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,210</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total intangible </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;assets</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47,956</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(19,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28,854</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,477</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,790</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,687</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z066a06fc85ea4ac89b8b860a9f412b1e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Expense</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,885</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,456</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,872</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,538</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,244</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,193</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zb6b70b3a05a740b1912e2290cd47c881" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Goodwill acquired with</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 40%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Broadsmart acquisition</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zff6bcf53a0af4b48b0a8b001f33c30cd" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 70%"> <tr style="height: 16px"> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Recognition of </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Deferred Revenues</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">48,507</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,361</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,023</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,467</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,951</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">92,708</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zf54a9af4eef04c1ba548895a8b643377" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 70%"> <tr> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated Rent</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Payments</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,156</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">924</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">582</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">85</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">85</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z9e0c8701a941422b8106d0fa83b3b78c" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="22" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,426,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">126,772</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,164,260</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">107,683</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,202,242</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">108,151</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued for</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;Broadsmart acquisition</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(233,402</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,609</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares purchased through</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;the stock repurchase program</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,329,003</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,000</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued to settle</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;withholding liability</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">62,726</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">430</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,150</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued due to</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;vesting of restricted stock units</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(267,903</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,293</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(90,014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,109</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(37,982</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(468</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,987,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">120,300</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,426,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">126,772</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,164,260</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">107,683</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z3247fd05b619466bbcfe284b66565c5c" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary share options</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,138</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,108</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,072</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Restricted stock units</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,082</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,160</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,118</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,220</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,268</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,190</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="text-align: justify; line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z452daa0681bf4e13ae9a9b4403f1406e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Cost of revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">465</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">146</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">551</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,594</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">General and administrative</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,755</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,194</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,166</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Research and development</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">243</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">447</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">965</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,220</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,268</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,190</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="line-height: 1.25"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z3b36cbe74433421393f7bfa4da6c6adc" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expected term (in years)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.2 - 3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Dividend yield</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expected volatility</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">52.2% to 52.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">51.8</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">57.2% to 58.8</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Risk free interest rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">0.95% to 1.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.29</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">1.07% to 1.64</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Forfeiture rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1bcec4cd2e924507861cc53ae83336d6" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number of</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Fair</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Shares</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Value at Grant Date</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">January 1, 2014</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">154,746</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">19.15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(37,982</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">147,264</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">385,852</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(90,014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2015</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">443,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">320,305</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(267,300</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.11</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(14,022</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.40</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">482,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.70</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z2342daee722e4b8b86019ae6d071fb1e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">United States</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,513</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,262</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,969</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,040</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,312</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,530</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zfd1374c5c2dc4fad86ec6096649d0838" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Current:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,666</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,951</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">State</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">949</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Current provision</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,615</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,027</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(637</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,203</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,774</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">State</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(59</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">604</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(165</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,114</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,056</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,484</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred (benefit) provision</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,418</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,863</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,423</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Uncertain tax positions</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(314</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,088</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,166</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total income tax (benefit) provision</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,719</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">11,802</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,745</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> </div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div></div> <table id="z33dea39ca0bb4f20aaa06b52e2562636" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax assets:</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Deferred revenue, net of deferred costs</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,043</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,925</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Domestic net operating loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,214</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">803</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Foreign net operating loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,103</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">36,662</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in intangible assets</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,467</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Allowance for doubtful accounts</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">91</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">59</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Currently non-deductible expenses and other</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,914</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,593</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Capital loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,413</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,644</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Stock based compensation</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,792</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Foreign tax credit carryforward</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,558</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,075</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total deferred tax assets</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45,877</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">50,020</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax liabilities:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in goodwill</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,079</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(953</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in fixed assets</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(911</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(834</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total deferred tax liabilities</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,990</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,787</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: bottom; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(16,319</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: bottom; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 30pt">Net deferred taxes</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,568</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,689</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1b7cbe09806d419faa80d592baf59638" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Years Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 68%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,230</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Changes to the valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 13%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,225</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 13%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,314</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 68%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,319</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zbb7172cfa95f4e12800b884b0983c680" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Years Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Unrecognized tax benefits, opening balance</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,929</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross increases (decreases) - tax positions in prior periods</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(356</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,030</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,978</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross increases - tax positions in current period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,205</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Settlements</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(516</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(7,906</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Lapse of statute of limitations</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Unrecognized tax benefits, ending balance</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,136</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,929</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zcfef4ca2138a4b4bbc2fce871a6935ba" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Numerator:</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 16px"> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Net income attributable to common shareholders</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,691</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,785</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Denominator:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Denominator for basic net income per share - weighted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">average common shares outstanding</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,815</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,975</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,831</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effect of dilutive options and/or restricted stock units to</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">purchase common shares</div> </td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effect of dilutive options and/or restricted stock units</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">exercised or expired during the year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">249</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">68</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">37</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Denominator for diluted net income per share - weighted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 64%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">average common shares outstanding *</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,064</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,045</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,868</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 15px"> <td style="vertical-align: bottom; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income per common share:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basic</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Diluted</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.35</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">* Options to purchase 2,402,427 ordinary shares and 299,137 restricted stock units outstanding during the year ended December 31, 2016 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,524,927 ordinary shares and 443,102 restricted stock units outstanding during the year ended December 31, 2015 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,037,107 ordinary shares and 147,264 restricted stock units outstanding for the year ended December 31, 2014 were not included in the calculation of diluted earnings per ordinary share because their exercise prices were greater than the average market price of the ordinary shares and their inclusion would have been antidilutive.</font></div></div></div></div> <div style="line-height: 1.25"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z536c4f756b9e47938724c5ef55a32d50" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr style="height: 19px"> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated Fair Value</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 19px"> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Assets</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom"></td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 14px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; background-color: #ffffff; vertical-align: bottom"> <div>Current assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 13px"> <td style="vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Accounts&#160;receivable</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">$</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">567</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Inventories</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>302</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deposits and other current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>143</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,012</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Property&#160;and equipment</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>355</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Intangible&#160;assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>26,385</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deposits and other non-current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>96</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total assets acquired</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>27,848</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; font-weight: bold; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; font-weight: bold; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Current liabilities:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Accrued expenses and other current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>900</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deferred revenue</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>172</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,072</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Other non-current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>62</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total liabilities&#160;assumed</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,134</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 18px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Net identifiable assets acquired</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>26,714</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Goodwill</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>14,881</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 4px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Total purchase price</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>41,595</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 88%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; vertical-align: bottom"> <div>The intangible&#160;assets as of the closing date of the acquisition included:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; font-weight: bold; background-color: #ffffff; vertical-align: bottom"> <div style="text-align: center">Amount</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Customer relations hips</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>22,100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Non-compete agreements</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Tradename</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>2,200</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Process know how</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Software&#160;license</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>885</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 12px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 88%; background-color: #ffffff; vertical-align: bottom"></td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>26,385</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div></div></div> 1500000 <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 1 &#8211; DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Description of Business</div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">magicJack VocalTec Ltd. and its subsidiaries (the &#8220;Company&#8221;) is a cloud communications leader that is the inventor of the magicJack devices and other magicJack products and services. magicJacks weigh about one ounce and plug into the USB port on a computer or into a power adapter and high speed Internet source, provides users with complete phone service for home, enterprise and while traveling. The Company charges customers for the right to access its servers ("access right"), and the Company's customers then continue to have the ability to obtain free telephone services. The Company currently offers the magicJack GO and magicJack EXPRESS, which are updated versions of the magicJack device that have their own CPU and can connect a regular phone directly to the user&#8217;s broadband modem/router and function as a standalone phone without using a computer.&#160; The magicJack mobile apps are applications that allow users to make and receive telephone calls through their smart phones using their magicJack account. Currently, consumers that do not have a magicJack account can purchase and download the magicJack mobile apps to make telephone calls from anywhere in the world into the U.S. or Canada for free.&#160; The mobile apps include the magicApp and the magicJack Connect App, which are available for both iOS and Android. The Company's products and services allow users to make and/or receive free telephone calls to and from anywhere in the world where the customer has broadband access to the Internet,&#160;and allow customers to make free calls back to the United States and Canada from anywhere legally permitted in the world.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">magicJack VocalTec is a vertically integrated group of companies. The Company owns a micro-processor chip design company, an Appserver and session border controller company, a wholesale provider of Voice-over-Internet-Protocol (&#8220;VoIP&#8221;) services, a softphone company, and the developer and provider of the magicJack^&#160;device. The Company also wholesales telephone service to VoIP providers and telecommunication carriers.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company was incorporated in the State of Israel in 1989 and is domiciled in Netanya, Israel, with executive and administrative offices in West Palm Beach, Florida, technology management offices in Franklin, Tennessee, and research and development offices in Plano, Texas, and Sunnyvale, California. In addition, the Company&#8217;s Consumer business has a warehouse and customer care call center in West Palm Beach, Florida.&#160; Broadsmart&#8217;s offices are located in Fort Lauderdale, Florida and the SMB Division&#8217;s offices are in Alpharetta, Georgia.</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In March 2016, the Company acquired substantially all of the assets of North American Telecommunications Corporation (dba &#8220;Broadsmart&#8221;). Broadsmart is a leading hosted Unified Communication as a Service (&#8220;UCaaS&#8221;) provider for medium-to-large multi-location enterprise customers. Broadsmart has a track record of provisioning and delivering complex UCaaS solutions to blue chip corporate customers on a nationwide basis. Broadsmart has expertise in servicing enterprises with hundreds-to-thousands of locations. With the acquisition of Broadsmart, the Company has diversified its operations into UCaaS targeting high end enterprise customers. This acquisition has positioned the Company to compete long-term in the UCaaS market.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">During the first quarter of 2016, the Company created a new subsidiary, magicJack SMB, Inc. (&#8220;SMB&#8221;). Through this subsidiary, the Company provides easy-to-buy, easy to install and simple-to-use VoIP services to small to medium sized businesses at competitive prices. The Company began sales of its SMB product during the third quarter of 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Basis of Presentation</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company's consolidated financial statements are prepared in conformity with United States generally accepted accounting principles (&#8220;GAAP&#8221;). References to authoritative accounting literature in this report, where applicable, are based on the Accounting Standards Codification (&#8220;ASC&#8221;). The Company's functional and reporting currency is the United States Dollar (&#8220;U.S. Dollar&#8221;), which is the currency of the primary economic environment in which the Company's consolidated operations are conducted. Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in currencies other than dollars, including Israeli New Shekel (&#8221;NIS&#8221;), are re-measured in dollars and any gains or losses are recognized in the Company's earnings in the period they occur.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">We have historically prepared our consolidated financial statements on the basis of being a single reporting entity. Beginning in the first quarter of 2016, with the acquisition of Broadsmart and the internal development of our SMB division, we have been reporting the results of operations for these new business lines as separate Reportable Segments.&#160; </font>Approximately 87% of the Company&#8217;s consolidated revenues in the year ended December 31, 2016 and 90% of the Company&#8217;s revenues in the years ended December 31, 2015 and 2014 were from sales to customers located in the United States.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Basis of Consolidation</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s consolidated financial statements include the accounts of magicJack VocalTec Ltd. and its wholly-owned subsidiaries, YMax Corporation, YMax Communications Corp., magicJack Holdings Corporation, magicJack, LP, SJ Labs, Inc., Tiger Jet Network, Inc., VocalTec Communications, LLC (&#8220;VocalTec US&#8221;, formerly Stratus Telecommunications, LLC), Broadsmart Global, Inc. (&#8220;Broadsmart&#8221;), and magicJack SMB, Inc.. The results of Broadsmart Global, Inc. have been included since March 17, 2016.&#160; Refer to Note 15, &#8220;Acquisition of Business,&#8221; for further details. The results of SMB have been included since the first quarter of 2016.&#160; All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior periods consolidated financial statement amounts to conform to the current presentation.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Noncontrolling Interest</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">During the year ended December 31, 2016, the Company formed a new subsidiary and entered into a joint venture with an unrelated third party which resulted in the Company having a 60% controlling interest in the joint venture which began selling a line of high-technology residential consumer products in the fourth quarter of fiscal year 2016. To date the Company has spent approximately $1.6 million funding the operations of this joint venture. The operations of the joint venture for the year ended December 31, 2016 have not been significant to the Company&#8217;s financial statements. The Company&#8217;s consolidated financial statements for the year ended December 31, 2016, include an adjustment to income attributable to magicJack VocalTec Ltd. common shareholders of $635 thousand, to recognize the impact of the noncontrolling interest.&#160; The Company has determined that the joint venture does not meet either the aggregation criteria to be combined with the existing Core Consumer segment or the quantitative thresholds to be treated as a separate reportable segment. As such, it is included in the &#8220;Other&#8221; category of the Company&#8217;s segment reconciliation. Refer to Note 16, &#8220;Segment reporting,&#8221; for further details.</font></div></div> <div style="line-height: 1.25"><div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 2 &#8211; SUMMARY OF ACCOUNTING POLICIES</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">A summary of significant accounting policies used in preparing the Company&#8217;s consolidated financial statements, including a summary of recent accounting pronouncements that may affect its financial statements in the future, follows:</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Use of Estimates</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The preparation of financial statements in conformity with GAAP 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 revenue and expenses during the reporting period. Such estimates and judgments are revised periodically as required. Actual results could differ from those estimates. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income taxes, income tax valuation allowance, uncertain tax liabilities, the value of ordinary shares issued in asset acquisitions, business combinations or underlying the Company&#8217;s ordinary share options, the expected forfeitures of ordinary share options and estimates of likely outcomes related to certain contingent liabilities.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company evaluates its estimates on an ongoing basis. The Company's estimates and assumptions are based on factors such as historical experience, trends within the Company and the telecommunications industry, general economic conditions and on various other assumptions that it believes to be reasonable under the circumstances. The results of such assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily available. Actual results may differ from the Company's estimates and assumptions as a result of varying market and economic conditions, and may result in lower revenues and lower net income.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Net Revenues</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Net revenues consist of revenue from sales of magicJack devices<sup style="font-weight: bold; font-style: italic">&#160;</sup>to retailers, wholesalers or directly to customers, access right renewal fees, fees charged for shipping magicJack devices, usage of domestic and international prepaid minutes, access charges to other carriers recurring sales of the Company&#8217;s hosted UCaaS voice services, non-recurring sales of equipment related to its UCaaS services and other miscellaneous charges. The Company typically enters into multi-year agreements, with durations of three to five years, to provide the hosted voice and other services. The Company earns revenue from the sale of the hardware and network equipment necessary to operate its UCaaS services directly to its customers. All revenues are recorded net of sales returns and allowances.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The following table presents a breakdown of the Company&#8217;s net revenues by source for the periods indicated (in thousands).</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1f5c3731df7046caa90164cec4428a90" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Sale of magicJack devices</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,915</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,564</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access right renewals</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">58,513</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,761</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">65,542</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Shipping and handling</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">889</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">794</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">magicJack-related products</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,435</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,289</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,006</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Prepaid minutes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,243</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,083</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Access and wholesale charges</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,021</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,953</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,028</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">UCaaS</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,966</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">122</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total net revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">100,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">116,322</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Revenue Recognition</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognizes revenue in accordance with ASC Topic 605, "Revenue Recognition" (&#8220;ASC 605&#8221;), which provides authoritative guidance on revenue recognition. For arrangements that include more than one product or service (deliverables), the Company applies Section 25 of ASC 605, &#8220;Multiple-Element Arrangements&#8221;. ASC 605-25 establishes criteria for separating deliverables into different units of accounting and allocating consideration to those units of accounting.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Core Consumer Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">magicJack Devices Revenue and Renewal Access Revenue</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160;magicJack devices include an initial access right, which qualify as multiple deliverables per ASC 605-25.&#160; Since the device and initial access right are interdependent and not sold separately, they are accounted for as a combined unit of accounting. Direct sales of devices include shipping charges and 30 days to return the device and cancel the service.&#160; For retail sales of devices, there is a delay between shipment to the retailer and the ultimate sale to a customer (end-user). Based on sales and inventory data provided by retail partners, the Company&#8217;s estimate of the delay for the year ended December 31, 2016 was 90 days. The Company defers revenue recognition on direct sales for the 30 day return period and on retail sales for the delay period, after which the Company recognizes the revenue from device sales ratably over the remaining initial access right period.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Customers may renew access rights for periods ranging from one month to five years. The revenue associated with access right renewals is deferred and recognized ratably over the extended access right period. Revenue from the sales of magicApp and magicJack Connect App access rights is recognized ratably over the access right period.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Sales Return Policy</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company offers some of its direct sales customers a 30-day free trial before they have to pay for their magicJack device. The Company does not recognize revenue until the 30-day trial period has expired and a customer&#8217;s credit card has been charged.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Returns from retailers are accepted on an authorized basis for devices deemed defective. The Company may offer certain retailers the limited right to return any unsold merchandise from their initial stocking orders. The Company also accepts returns of battery powerbanks for mobile devices within 30 days of sale. The Company estimates potential returns under these arrangements at point of sale and re-estimates potential returns on a quarterly basis. For the years ended December 31, 2016, 2015 and 2014, the Company&#8217;s estimates of returns and actual returns from initial stocking orders have not been materially different.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Other magicJack-Related Products</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company offers customers other optional products related to their magicJack devices and services, such as insurance, custom or vanity phone numbers, Canadian phone numbers, the ability to either change their existing phone numbers or port them to a magicJack device, and battery powerbanks for mobile devices. These revenues are recognized at the time of sale, with the exception of sales of the battery powerbank which are recognized when shipped.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify; text-indent: 36pt">Prepaid Minutes and Access and Wholesale Charges</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company generates revenues from the sales of prepaid international minutes to customers, fees for origination of calls to 800-numbers, and access fees charged to other telecommunication carriers on a per-minute basis for Interexchange Carriers (&#8220;IXC&#8221;) calls terminated on the Company&#8217;s servers. Revenues from access fee charges to other telecommunication carriers are recorded based on rates set forth in the respective state and federal tariffs or negotiated contract rates, less a provision for billing adjustments. Revenues from prepaid minutes and access and wholesale charges are recognized as minutes are used.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Enterprise Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">UCaaS services and equipment sales related to the Broadsmart subsidiary qualify as multiple deliverables per ASC 605-25.&#160; Since the equipment and services are sold separately and can be used with other products and services, they are accounted for as separate units of accounting. The Company recognizes revenues from sales of its hosted services in the period the services are provided over the term of the respective customer agreements. Customers are billed monthly in advance for these recurring services and in arrears for one time service charges and other certain usage charges.&#160; Revenues from sales of hardware and network equipment are recognized in the period that the equipment is delivered. Revenue from the sale of equipment purchased but not yet delivered and installed is deferred and recognized in the period that the hardware or equipment is put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">SMB Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">SMB provides phone equipment and services that are interdependent and not sold separately. As such they are accounted for as a combined unit of accounting under ASC 605-25.&#160; Some agreements include a refund period or a promotion for free introductory service.&#160; Revenue recognition is deferred for either period, after which the Company recognizes the revenue for the combined unit ratably over the remaining service period.&#160; Revenue from this segment was not significant for the year ended December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Deferred Revenues</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues for the Core Consumer segment consist primarily of billings and payments for magicJack devices and access rights renewals received in advance of revenue recognition. The Company bills and collects in advance for magicJack devices, which include an initial access right period, and access right renewals.&#160; The Company recognizes revenue from device sales and access right renewals ratably over the access right period, as described above.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Enterprise segment, deferred revenue consists of hardware or equipment purchased but not yet delivered and installed.&#160; The Company recognizes revenue from UCaaS hardware or equipment sales in the period they are put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the SMB segment, deferred revenue consists of billings and payments for phone equipment and services received in advance of revenue recognition.&#160; Customers are billed in advance on a monthly or annual basis.&#160; The Company recognizes revenue from SMB phone equipment and services ratably over the service period.&#160; Deferred revenue from this segment was not significant for the year ended December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues to be recognized over the next twelve months are classified as current and included in deferred revenue, current portion in the Company&#8217;s consolidated balance sheets. The remaining amounts are classified as non-current in the consolidated balance sheets and included in deferred revenue, net of current portion.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Cost of Revenues</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Core Consumer Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues for the Core Consumer segment include direct costs of operation of the Company&#8217;s servers, which are expensed as incurred. These costs include the Company&#8217;s internal operating costs, depreciation and amortization expense, access and interconnection charges to terminate domestic and international telephone calls on the public switched telephone network and related taxes. Direct costs also include regulatory costs, server maintenance, and costs to co-locate the Company&#8217;s equipment in other telephone companies&#8217; facilities. Direct costs of producing magicJack devices are deferred on shipment and charged to cost of sales ratably over the initial access right period. Deferred costs are included in current assets in the Company&#8217;s consolidated balance sheets.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Costs incurred for shipping and handling and credit card charges are included in cost of revenues and are expensed as incurred. Costs for shipping and handling and credit card charges were $3.6 million, $3.5 million and $4.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Enterprise Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues related to the Company&#8217;s UCaaS services include direct costs of providing the services, which are expensed as incurred. These costs include charges for access to the public switched telephone network, internet service for its customers, maintenance costs for its software, commissions, credit card charges, contract labor for installation and depreciation and amortization. The Company also incurs costs for hardware and equipment sold to customers, along with related shipping and installation costs, which are recognized in the period they are put into service.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">SMB Segment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Cost of revenues for the SMB segment include direct costs of providing the services, which are expensed as incurred, and costs for phone equipment, which are recognized ratably over the service period.&#160; Cost of revenues from this segment were not significant for the year ended December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Marketing Expenses</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Marketing expenses of $9.1 million, $9.4 million and $20.4 million for the years ended December 31, 2016, 2015 and 2014, respectively, consist primarily of advertising media buys for television commercials, Internet advertising and print advertising, as well as marketing related personnel costs and other marketing projects including sponsorships. Marketing costs are expensed when incurred.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">A break-down of marketing expenses by category is as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zb9620ffd293a4f50ba39fe5c1d75b203" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Advertising media buys</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,139</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,698</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,922</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing personnel related</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,037</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,487</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,663</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other marketing projects</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,909</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,849</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total marketing expenses</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,409</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,434</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Marketing expense for the year ended December 31, 2016 by segment is as follows (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z5e0fc9bd0b1841b8b12180dbe67683af" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">For the Year ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing expense</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,768</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">380</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">440</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Research and Development Expenses</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s research and development activities consist primarily of the design and development of its proprietary software used in the magicJack devices, magicJack App and its servers, as well as the development of new products and applications for use in its broadband service offerings. The Company accounts for research and development costs in accordance with applicable accounting pronouncements. These pronouncements specify that costs incurred internally in researching and developing a product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all costs should be capitalized until the product is available for general release to customers. The Company has determined that technological feasibility for its products is reached after all high-risk development issues have been resolved through internal and customer base testing. Generally, new products offered to customers and improvements to the Company&#8217;s servers are placed in service on attainment of technological feasibility. The Company has not capitalized any of its research and development costs.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Research and development expenses were $5.2 million, $4.5 million and $5.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.&#160; During the year ended December 31, 2016, $1.3 million of research and development expense was related to the SMB segment.&#160; The balance of research and development expense was related to the Core Consumer segment.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gain on Mark-to-Market</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The acquisition of Broadsmart in March 2016, described in Note 15, &#8220;Acquisition of Business,&#8221; <font style="font: 10pt Times New Roman, Times, serif">included an additional contingent payment of $2.0 million in cash to Todd A. Correll and Thomas J. Tharrington (Messrs. Correll and Tharrington are collectively referred to as the "Seller Shareholders"), if the acquired assets generate 2016 revenues equal to or exceeding $15.6 million (the "Earnout Payment"). The Earnout Payment will not exceed $2.0 million. The $2.0 million Earnout Payment was paid into escrow at the time of closing</font><font style="font: 10pt Times New Roman, Times, serif">. With the help of a third party valuation firm, the value of this contingent consideration was determined to be $1.7 million</font><font style="font: 10pt Times New Roman, Times, serif">&#160;</font><font style="font: 10pt Times New Roman, Times, serif">which was </font><font style="font: 10pt Times New Roman, Times, serif">included in total consideration of the business acquired</font><font style="font: 10pt Times New Roman, Times, serif">. In the third quarter ended September 30, 2016, management concluded that it was remote that 2016 revenues of the acquired assets would equal or exceed $15.6 million, and accordingly recorded a $2.0 million receivable from earnout escrow in the consolidated balance sheets. Corresponding income of $1.7 million from change in contingent consideration was recorded as a reduction of operating expense labeled gain on mark-to-market in the consolidated statements of operations.</font></font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Earnings per Common Share</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Net income per share attributable to the Company&#8217;s shareholders &#8211; basic, is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during each period, including redeemable ordinary shares (if applicable). Net income per share attributable to the Company&#8217;s shareholders &#8211; diluted, is computed using the weighted average number of common and potentially dilutive common share equivalents outstanding during the period, including redeemable common shares (if applicable). Potentially dilutive common share equivalents consist of shares issuable upon the exercise or settlement of options to purchase common shares or restricted stock units.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Cash and Cash Equivalents</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company considers all highly<font style="font: 10pt Times New Roman, Times, serif">-</font>liquid financial instruments with a maturity at acquisition of three months or less to be cash equivalents.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Allowance for Doubtful Accounts and Billing Adjustments</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company maintains an allowance for doubtful accounts and billing adjustments based on the expected collectability of its accounts receivables. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer&#8217;s trade accounts receivable. The allowance includes estimates of billing adjustments, which are negotiated with other telecommunication carriers and are common in the telecommunication industry. The changes in allowance for doubtful accounts and billing adjustments for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zd1f74154d9a04af899d28e57951958f0" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,912</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for doubtful accounts</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">214</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">75</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">271</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Change in provision for billing adjustments</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(12</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Recoveries</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(350</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Write-offs</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(255</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(787</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,836</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">402</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,171</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="clear: both; line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify">The Company settled certain&#160;carrier receivable disputes during the years ended December 31, 2016, 2015 and 2014, which resulted in the write-offs of approximately $0.3 million, $0.8 million and $2.8 million, respectively, of accounts receivables the Company had previously reserved.</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Interest and Dividend Income</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Interest and dividends earned on the Company&#8217;s investments are accrued as income when earned.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Certain Risks and Concentrations</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. Cash equivalents generally consist of money market instruments and U.S. government notes.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company places its cash and cash equivalents in high quality financial institutions and management believes that the Company is not exposed to any significant risk on its cash accounts. The Company maintains accounts with various banks and brokerage organizations and constantly monitors the creditworthiness of these institutions. Cash accounts at each U.S. bank are insured by the FDIC up to $250 thousand in the aggregate and may exceed federally insured limits. Cash accounts at each Israeli bank are not insured. The Company has never experienced any losses related to these balances. At December 31, 2016, the Company had cash and cash equivalents totaling $52.4 million, which included (i) $51.8 million in U.S. banks, and (ii) $0.6 million in foreign financial institutions.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s non-interest bearing cash balances in U.S. banks, which included $1.9 million in one individual financial institution, were fully insured, except for $26 thousand that exceeded insurance limits at December 31, 2016. The Company had money market accounts with financial institutions with balances totaling approximately $49.7 million.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Core Consumer segment, no telecommunication carriers accounted for more than 10% of the segment&#8217;s gross accounts receivable at December 31, 2016.&#160; One telecommunication carrier accounted for approximately 11% of the segment&#8217;s gross accounts receivable at December 31, 2015. For the years ended December 31, 2016, 2015 and 2014, no telecommunication carrier accounted for more than 10% of the segment&#8217;s total operating revenue.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Core Consumer segment, three customers accounted for approximately 34% of the segment&#8217;s gross accounts receivable at December 31, 2016. One customer accounted for approximately 14% of the segment&#8217;s gross accounts receivable at December 31, 2015. For the years ended December 31, 2016, 2015 and 2014, no retailer accounted for more than 10% of the segment&#8217;s total operating revenues.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the Enterprise segment, no customer accounted for more than 10% of gross accounts receivable at December 31, 2016.&#160; For the year ended December 31, 2016, two customers accounted for approximately 29% of the segment&#8217;s total operating revenues.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the SMB segment, accounts receivable and revenues were not significant for the year ended December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Fair Value</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company accounts for financial instruments in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures " (&#8220;ASC 820&#8221;), which provides a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company&#8217;s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The hierarchy is broken down into three levels based on the reliability of inputs as follows:</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 1 &#8211; Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 2 &#8211; Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify; margin-left: 36pt"><font style="font: normal 10pt Times New Roman, Times, serif">Level 3 &#8211; Valuation based on inputs that are unobservable and significant to the overall fair value measurement.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">When available, the Company uses quoted market prices to determine fair value, and it classifies such measurements within Level 1. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. Fair value includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or the Company) will not be fulfilled. For the Company's financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. The Company&#8217;s assets and liabilities measured on a recurring basis at fair value may include marketable securities and time deposits. As of December 31, 2016 and 2015, all of them are Level 1 instruments, except for debt securities, which are Level 2 instruments. The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The carrying amounts of the Company&#8217;s financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are expected to approximate fair value because of their immediate availability, near term maturities or potential interest payments at settlement.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In connection with the Company&#8217;s purchase of certain intangible assets during June 2011, the Company made payments of $1.5 million in May of 2011, 2012, 2013, 2014 and 2015, respectively. The liability for such payments was discounted at a rate of 10% to a total fair value of $1.4 million at December 31, 2014, with $1.4 million included in accrued expenses and other current liabilities at December 31, 2014 in the Company&#8217;s consolidated balance sheets. The Company believes that the $1.4 million carrying value approximated fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.1 million unamortized discount at December 31, 2014 was amortized using the effective interest method and recorded as interest expense in the Company&#8217;s consolidated statements of operations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Inventories</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Inventories are stated at the lower of cost or market, with cost primarily determined using the first-in first-out cost method. Inventory is written off at the point it is determined to be obsolete.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Property, Equipment and Depreciation Expense</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Property and equipment are accounted for under ASC 350 and consist primarily of servers, computer hardware, furniture, and leasehold improvements. Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives, which range from three to fifteen years. Leasehold improvements are depreciated over the shorter of the term of the lease or useful life of the assets. The cost of substantial improvements is capitalized while the cost of maintenance and repairs are charged to operating expenses as incurred.&#160; Refer to Note 5, &#8220;Property and Equipment&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company reviews property and equipment for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. <font style="font: 10pt Times New Roman, Times, serif">Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss is based on the fair value of the asset compared to its carrying value. P</font>roperty and equipment <font style="font: 10pt Times New Roman, Times, serif">to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s hardware consists of routers, gateways and servers that enable the Company&#8217;s telephony services. Some of these assets may be subject to technological risks and rapid market changes due to the introduction of new technology, products and services and changing customer demand. These changes may result in future adjustments to the estimated useful lives and the carrying value of these assets. Changes in estimated useful lives are accounted on a prospective basis starting with the period in which the change in estimate is made in accordance with ASC Subtopic 250-10, &#8220;Accounting Changes and Error.&#8221;</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Intangible Assets</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Identifiable intangible assets are stated at cost and accounted based on whether the useful life of the asset is definite or indefinite. Identified intangible assets with definite useful lives are amortized using the accelerated and straight-line methods over their estimated useful lives, which range from one to seventeen years. Intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or more frequently if there is an indicator of impairment.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company reviews definite lived intangible assets subject to amortization for possible impairment using a three-step approach.&#160; Under the first step, management determines whether an indicator of impairment is present (a &#8220;Triggering Event&#8221;). If a Triggering Event has occurred, the second step is to test for recoverability based on a comparison of the asset&#8217;s carrying amount with the sum of the undiscounted cash flows expected to result from the use of the asset <font style="font: 10pt Times New Roman, Times, serif">and its eventual disposition</font>. If the sum of the undiscounted cash flows is less than the carrying amount of the asset, the third step is to recognize an<font style="font: 10pt Times New Roman, Times, serif">&#160;</font>impairment loss for the excess of the asset&#8217;s carrying amount over its fair value. <font style="font: 10pt Times New Roman, Times, serif">Intangible assets subject to amortization to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognized impairment charges of $1.0 million on intangible assets during the year ended December 31, 2016. In the year ended December 31, 2015, there were no deemed impairments of assets. In the year ended December 31, 2014, the Company recorded an impairment charge of $2.5 million in intangible assets. Refer to Note 6, &#8220;Intangible Assets&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The costs of developing the Company&#8217;s intellectual property rights, intellectual property right applications and technology are charged to research and development expense as incurred.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Goodwill</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination. Goodwill is not amortized to operations, but instead is reviewed for impairment at least annually, or more frequently if there is an indicator of impairment. Indicators include, but are not limited to: sustained operating losses or a trend of poor operating performance and a decrease in the Company&#8217;s market capitalization below its book value. The Company&#8217;s valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, the Company may record impairment charges in the future. With the acquisition of Broadsmart in March 2016 and the founding of the SMB business during the first quarter of 2016, management began evaluating each of these new business lines separately and has allocated goodwill between the three reporting units that correspond to the reportable segments &#8211; &#8220;Consumer,&#8221; &#8220;Enterprise&#8221; and &#8220;SMB&#8221;. Refer to Note 7, &#8220;Goodwill&#8221; and Note 16, &#8220;Segment Reporting&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company may utilize a qualitative assessment to determine if it is "more-likely-than-not" that the fair value of the reporting unit is less than its carrying value. If so, the two-step goodwill impairment test is required to be performed. If not, no further testing is required and the Company documents the relevant qualitative factors that support the strength in its fair value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">If the two-step goodwill impairment test is required to be performed, under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit is less than its carrying value, the Company proceeds to step two of the goodwill impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit&#8217;s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. An impairment loss shall be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In connection with the Company&#8217;s annual goodwill impairment analysis performed as of October 1, the annual measurement date, there is no impairment of such assets as of and for the years ended December 31, 2016, 2015 and 2014. Refer to Note 7, &#8220;Goodwill&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Share-based Compensation</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">Share-based compensation generally consists of option grants or ordinary share and restricted stock units awards to directors, officers, employees or consultants that</font> are measured at grant date, based on the fair value of the award, and are recognized as an expense over the requisite service period.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Business Combinations</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company accounts for business combinations under ASC 805, using the acquisition method of accounting. The acquisition method of accounting requires that the purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company&#8217;s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period and final determination of the values of assets acquired or liabilities assumed, any subsequent adjustments are recorded to the consolidated statements of operations. The Company includes the results of all acquisitions in its Consolidated Financial Statements from the date of acquisition. Acquisition related transaction costs, such as banking, legal, accounting and other costs incurred in connection with an acquisition, are expensed as incurred in general and administrative expense.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Acquisition-related integration costs which do not meet the criteria of discontinued operations include: (i) costs associated with exit or disposal activities, (ii) costs for employee, lease and contract terminations, (iii) facility closing costs, and other costs associated with exit activities. Acquisition-related integration costs also include expenses directly related to integrating and reorganizing acquired businesses, employee retention costs, recruiting costs, certain moving costs, certain duplicative costs during integration and asset impairments. These costs are expensed as incurred in general and administrative expense.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Income Taxes</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their book basis using enacted tax rates. Any changes in enacted rates or tax laws are included in the provision for income taxes in the year of enactment. The Company&#8217;s net deferred tax assets consist primarily of foreign net operating loss carryforwards and timing differences between recognition of income for book and tax purposes. The Company records a valuation allowance to reduce the net deferred tax assets to the amount that it estimates is more-likely-than-not to be realized. The Company periodically reviews the composition of its deferred tax assets and related valuation allowances and will make adjustments if available evidence indicates that it is more-likely-than-not a change in the carrying amounts is required.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Comprehensive Income</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Comprehensive income attributable to common shareholders, as defined, includes all changes in equity (net assets) during a period from non-owner sources. The differences between net income and comprehensive income attributable to common shareholders are due to reclassification of unrealized gain or loss on marketable securities to realized gain or loss on investments and losses attributable to noncontrolling interest.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Treasury Stock</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">The Company presents the cost of repurchasing treasury shares as a reduction in capital equity.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Recent Accounting Pronouncements</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In May 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) 2014-09, &#8220;Revenue from Contracts with Customers.&#8221; The standard requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. On July 9, 2015, the FASB deferred the effective dates of the standard by one year. As a result, the standard will be effective for annual and interim periods beginning after December 15, 2017. Companies may adopt the standard as early as the original effective date (i.e. annual reporting periods beginning after December 15, 2016). Early adoption prior to that date is not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or a modified retrospective adoption, meaning the standard is applied only to the most current period presented. In March 2016, the FASB issued ASU 2016-08 to provide clarification regarding the application of the principal-versus-agent guidance. In April 2016, the FASB issued ASU 2016-10 to clarify the guidance for identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB also issued ASU 2016-12, which provides narrow scope improvements and technical expedients on assessing collectibility, presentation of sales taxes, evaluating contract modifications and completed contracts at transition and the disclosure requirement for the effect of the accounting change for the period of adoption. In December 2016, the FASB issued ASU 2016-20 which makes minor corrections and improvements to certain narrow aspects of the guidance. The Company has internally performed a preliminary review of the new guidance and plan to engage consultants to document the appropriate revenue recognition for its various products and services.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory". This ASU applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LILO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim and annual reporting period. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;. ASU 2016-02 requires that long-term lease arrangements be recognized on the balance sheet. The standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In March 2016, the FASB issued ASU 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting&#8221;. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016 for both interim and annual reporting periods. The Company will adopt ASU 2016-09 on a prospective basis in the first quarter of 2017. Prior periods were not retrospectively adjusted.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In August 2016, the FASB issued ASU 2016-15, &#8220;Classification of Certain Cash Receipts and Cash Payments&#8221;. ASU 2016-15 reduces the diversity of how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted.&#160; The ASU should be applied retrospectively to all periods presented. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In October 2016, the FASB issued ASU 2016-16, &#8220;Intra-Entity Transfers of Assets Other than Inventory&#8221;. ASU 2016-16 requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted.&#160; The ASU should be applied retrospectively as an adjustment to retained earnings. The Company is currently evaluating the guidance to determine the potential impact on the Company&#8217;s financial condition, results of operations and cash flows.</font></div></div> <div style="line-height: 1.25"><div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 3 &#8211; INVESTMENTS</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Investments consist of time deposits with maturity dates of greater than 90 days totaling $447 thousand and $367 thousand at December 31, 2016, and 2015, respectively.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The fair value of time deposits at December 31, 2016 and 2015 was determined based on its face value, which approximates its fair value and is a Level 1 input.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">There was no realized gain or loss on investments for the years ended December 31, 2016 and 2015. Gains on investments for the year ended December 31, 2014 were $37 thousand, and included reclassification of unrealized loss on marketable securities from other comprehensive loss to gains on investments of $0.6 million.</font></div></div> <div style="line-height: 1.25"><div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 4 &#8211; INVENTORIES</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Inventories are comprised of the following (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z00f68445ecec4e9b8066fe0413d816b9" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Raw materials</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,455</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,498</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Finished goods</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,986</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,225</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,441</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,723</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Raw materials represent components used in the manufacturing of the magicJack devices, held by the Company or by a Chinese manufacturer on consignment. Finished products are comprised primarily of magicJack devices on hand or in transit to the Company&#8217;s distribution center in the United States and equipment held for sale to customers for the Enterprise segment. The Company wrote-off approximately $499 thousand of obsolete inventory during each of the years ended December 31, 2016 and 2015. Inventory write-offs are reflected in cost of revenues in the accompanying consolidated statements of operations.</font></div></div> <div style="line-height: 1.25"><div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 5 &#8211; PROPERTY AND EQUIPMENT</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Property and equipment are summarized as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z10745766af5a47c4aa3aaaffc64b93df" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Useful Lives</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Switches</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,699</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,606</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Computers</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,866</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,707</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Furniture</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5 - 7</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">269</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">257</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Leasehold-improvements</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">*</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">893</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">701</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55.98%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Accumulated depreciation</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(9,922</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11.95%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(8,969</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55.98%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,805</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11.95%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,302</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: left; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">* The estimated useful life for leasehold improvements is the shorter of the term of the lease or life of the asset.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif">Depreciation expense for years ended December 31, 2016, 2015 and 2014 was $1.2 million, $0.8 million and $0.6 million, respectively.&#160; Refer to Note 16, &#8220;Segment Reporting&#8221; for further details.</font></div></div> <div style="line-height: 1.25"><div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 6 &#8211; INTANGIBLE ASSETS</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">As of December 31, 2016 and 2015, the Company had intangible assets with carrying values of $28.9 million and $6.7 million, respectively. The March 2016 acquisition of Broadsmart included the addition of $26.4 million in intangible assets. Refer to Note 15, &#8220;Acquisition of Business&#8221; for further details. Identified intangible assets consist of the following (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <table id="z12b22be6c06d4eef91f2ef33552d0f11" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="14" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="14" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31, 2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Useful Lives</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Gross Carrying</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Accumulated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Gross Carrying</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Accumulated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Net</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Life</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Net</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Life</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Technology</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,110</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,854</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">256</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.71</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,930</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">433</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.83</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Intellectual property rights</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,162</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,794</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,368</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,161</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(9,623</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,538</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td rowspan="2" style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div>Covenants not-to </div> <div>&#160;compete and </div> <div>&#160;not-to sue</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2 - 5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,107</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.17</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,911</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Tradename</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">3 - 6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">131</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(131</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">321</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(321</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Customer relationships</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5 - 10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">22,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,249</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,351</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Backlog</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">1</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(800</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Software license</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">10</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,207</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,127</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Process know how</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,100</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,013</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">470</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(138</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">332</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div>Intangible&#160;assets&#160;</div> <div>&#160;subject to </div> <div>&#160;amortization</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45,295</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(19,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,193</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,267</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,790</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,477</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Tradename</div> </td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,600</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">900</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">900</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 10.04%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Domain names</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">310</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">310</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">N/A</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: top; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div>Intangible assets </div> <div>&#160;not subject </div> <div>&#160;to amortization</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,661</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,661</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,210</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,210</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 10.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 7.01%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1.04%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 10.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total intangible </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;assets</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47,956</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(19,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28,854</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,477</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,790</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,687</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 7.01%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1.04%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Amortization expense for the years ended December 31, 2016, 2015 and 2014 was $3.5 million, $2.8 million and $4.2 million, respectively. Refer to Note 16, &#8220;Segment Reporting&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s annual impairment testing for indefinite-lived intangible assets, performed as of October 1, 2016 (the &#8220;Measurement Date&#8221;), compared the fair value of the assets to their carrying value.&#160; The Company engaged an independent third party to perform a valuation of certain intangible assets in order to determine if there was potential impairment.</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The fair value of <font style="font: 10pt Times New Roman, Times, serif">indefinite-lived </font>intangible assets was determined based on the relief from royalty method<font style="font: 10pt Times New Roman, Times, serif">,</font> which requires an estimate of a reasonable royalty rate, identification of relevant projected revenues and expenses, and selection of an appropriate discount rate. The third party valuation yielded an estimated fair value of $1.7 million for the Broadsmart tradename. This tradename was recorded as an identifiable intangible asset with an indefinite life at a carrying value of $2.2 million. As a result, an impairment loss of $0.5 million was recognized in General and Administrative expense during the fourth quarter under the Enterprise segment in the statement of operations related to the tradename.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Due to impairment indicators at the Enterprise Segment, as of October 1, 2016 management tested that segment&#8217;s identified intangible assets subject to amortization for impairment.&#160; Management summed the undiscounted cash flows expected to result from the use of these assets and their eventual disposition used in the third party valuation report and noted that the sum exceeded the carrying amount of the assets, indicating no further impairment testing was necessary for these assets as of October 1, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Management continued to monitor the performance of the Enterprise segment (Broadsmart) and updated its impairment analysis of the indefinite lived intangible assets and identified intangible assets subject to amortization as of December 31, 2016.&#160; No further impairment charges were required as a result of this analysis.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Although the acquired Broadsmart business has underperformed compared to our expectations, management believes that the underlying fundamentals of the Broadsmart business and the exhibited market opportunities for growth remain consistent with its understanding and analysis of the business at the time of acquisition.&#160; Subsequent to the year ended December 31, 2016, management implemented steps to improve the operating results and bolster integration efforts for the Broadsmart business.&#160; In February 2017, the Company hired a new Chief Operating Officer for Broadsmart to reduce the administrative and organizational duties of Broadsmart&#8217;s original founders, who continue to be employed by the Company and are integral to its success, so that they can focus on expanding the customer base. The Company has also begun to hire additional sales and marketing personnel dedicated to obtaining new business. Management believes that the Enterprise segment will eventually perform at originally expected levels but more time is needed to give these integration efforts an opportunity to be successful.&#160;If these efforts are not successful, management will need to re-evaluate its forecasts for the Enterprise segment. Further impairments could ensue as a result of Broadsmart&#8217;s continued operating results performing below expectations.</font></div> <div id="DSPFPageFooter"><font style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">In the third quarter ended September 30, 2016</font>, impairment charges of $0.5 million on identified intangible assets were recognized in general and administrative expense under the Core Consumer segment in the consolidated statement of operations.&#160; The impairments were comprised of: (i) a Telecom license included in the &#8220;Other&#8221; category of amortizable intangible assets for $249 thousand (net of accumulated amortization) deemed obsolete, and (ii) domain names not subject to amortization for $249 thousand that were not renewed.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In the year ended December 31, 2014, due to the passing of the Company&#8217;s founder and former CEO in July 2014, the Company recorded an impairment charge of $2.5 million included in general and administrative expense related to the write-off of $2.5 million net carrying value associated with the non-compete agreement with the Company&#8217;s founder and former CEO included in intangible assets.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Based on the carrying value of identified intangible assets subject to amortization recorded at December 31, 2016, and assuming no subsequent impairment of the underlying assets, the amortization expense for the future fiscal years is expected to be as follows (in thousands):</font></div> <font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font> <table id="z066a06fc85ea4ac89b8b860a9f412b1e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amortization</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Expense</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,885</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,456</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,872</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,538</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,244</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,193</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify"></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 7 &#8211; GOODWILL</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">With the acquisition of Broadsmart in March 2016 and the founding of the SMB business during the first quarter of 2016, management began evaluating each of these new business lines separately and has <font style="font: 10pt Times New Roman, Times, serif">assigned </font>goodwill <font style="font: 10pt Times New Roman, Times, serif">to </font>the three reporting units that correspond to the reportable segments &#8211; &#8220;Consumer,&#8221; &#8220;Enterprise&#8221; and &#8220;SMB&#8221;. Refer to Note 15, &#8220;Acquisition of Business&#8221; and Note 16, &#8220;Segment Reporting&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The changes in the carrying amount of goodwill for the year ended December 31, 2016, by reporting unit are as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zb6b70b3a05a740b1912e2290cd47c881" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="18" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Goodwill acquired with</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 40%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Broadsmart acquisition</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">There were no changes in goodwill during the years ended December 31, 2015 and 2014.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In accordance with ASC 350, as of October 1, 2016 (the &#8220;Measurement Date&#8221;), the Company engaged an independent third party to perform a two-step goodwill impairment test for all of its reporting units in order to determine on an individual reporting unit basis if there was potential impairment.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The application of the goodwill impairment test </font>requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgment, and the use of significant estimates and assumptions, is required to estimate the fair value of reporting units, including estimating future cash flows, future market conditions, and determining the appropriate discount rates, growth rates, and operating margins, among others.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The discounted cash flow analyses factor in assumptions on revenue and expense growth rates. These estimates are based upon the Company&#8217;s historical experience, best estimates of future activity, and a cost structure necessary to achieve the related revenues.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Additionally, these discounted cash flow analyses factor in expected amounts of working capital and weighted average cost of capital. The Company believes the assumptions are reasonable, however, there can be no assurance that its estimates and assumptions made for purposes of the goodwill impairment testing, at the annual Measurement Date, will prove to be accurate predictions of the future. Changes in these estimates and assumptions as previously noted, could result in the need to conduct additional goodwill impairment tests in the future and could ultimately result in an impairment charge. In addition, a change in the Company&#8217;s reporting units could materially affect the determination of the fair value for each reporting unit, which could trigger impairment in the future. The Company will continue to review its results against forecasts and assess its assumptions to ensure they continue to be appropriate.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Under the first step, the fair value of each reporting unit was compared with its carrying value (including goodwill).&#160; The fair value was estimated based on the Income Approach which utilizes a discounted future cash-flows model. The discount rate used was determined to be commensurate with the risk inherent in the Company&#8217;s current business. A Market Approach was not used given that management does not believe that the near-term performance of the reporting units is indicative of expected long-term performance based on the following:</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"> <div></div> <div style="text-align: justify; line-height: 1.25"> <table id="z2377589e98c6426d939ee9ca43ada437" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="width: 22.5pt"></td> <td style="font: 10pt Symbol, serif; vertical-align: top; width: 18pt">&#183;</td> <td style="vertical-align: top; text-align: justify; width: auto"> <div style="font: 10pt Times New Roman, Times, serif">The Core Consumer segment is expected to <font style="font: 10pt Times New Roman, Times, serif">experience declining revenues </font>throughout the projection period.</div> </td> </tr> </table> </div> </div> <div style="line-height: 1.25">&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="zb4a48e99698246eda0c8e7031edcf3fc" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 40.5pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 22.5pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">The SMB segment is not profitable during the projection period and revenues are too uncertain to apply a meaningful multiple. Given the speculative nature of this start-up reporting unit, it would be difficult to assign a value.&#160; For start-up entities with a speculative forecast, it is not uncommon to utilize a net asset approach.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z1aa7be397c074e7ebe2a8e995cc27c3d" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 40.5pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 22.5pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Company management expects the Enterprise segment to increase in size and revenue over the projection period.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Based on management&#8217;s evaluation and the results of <font style="font: 10pt Times New Roman, Times, serif">S</font>tep <font style="font: 10pt Times New Roman, Times, serif">O</font>ne of the third party testing, the Company determined that:</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="line-height: 1.25"> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="zfbc3bea50a3b43d18020525b79fc8754" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">For the Core Consumer segment, the estimated fair value of the reporting unit exceeded its carrying value by approximately 227% and no further testing was required.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z7a399d28629544318d9d1b8a9582cbba" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">The SMB segment has no goodwill, therefore no further testing was required.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z8fd38c1f8e3d483686c9505402a31c6e" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">For the Enterprise segment, the estimated fair value of the reporting unit did not exceed its carrying value and further testing was required.</div> </td> </tr> </table> </div> <font style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div>&#160;</div> <div> <div></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Under Step Two, the carrying amount of the Enterprise reporting unit&#8217;s goodwill was compared to the implied fair value of that goodwill. The implied fair value of goodwill was determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit&#8217;s goodwill. Fair value of the reporting unit is estimated using a discounted cash flow analysis. As a result of the allocation, less value was attributed to the other identifiable intangible assets and the residual fair value of goodwill exceeded its carrying value by approximately 35% and no goodwill impairment was recognized.</div> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Management continued to monitor the performance of the Enterprise reporting unit (Broadsmart) and updated its goodwill impairment as of December 31, 2016.&#160; No further impairment charges were required as a result of this analysis.</font></div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify">For the years ended December 31, 2015 and 2014, the Company<font style="font: 10pt Times New Roman, Times, serif"> operated as a single segment with a single reporting unit and it</font>&#8217;s market capitalization exceeded its carrying value<font style="font: 10pt Times New Roman, Times, serif">,</font>&#160;<font style="font: 10pt Times New Roman, Times, serif">so </font>no further testing was required.</div></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 8 &#8211; DEFERRED COSTS AND REVENUES</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred costs and revenues to be recognized over the next twelve months are classified as current and included in the Company&#8217;s consolidated balance sheets. The remaining deferred revenue amounts are classified as non-current in the consolidated balance sheets.</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues are comprised of the following at December 31, 2016 and 2015 (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="za41a66b2d94b48398293c23106e0fae7" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 16px"> <td style="vertical-align: top; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">magicJack devices</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,352</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Access right renewals</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">37,323</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">40,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Prepaid minutes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,851</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,525</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">371</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Deferred revenue, current</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">48,507</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">52,554</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred revenue, non-current*</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">44,201</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">50,146</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total deferred revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">92,708</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">102,700</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <div style="clear: both"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z6a9dad1ce7104826adb9ea4520c58f5d" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 76.54%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.</div> </td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Deferred revenues as of December 31, 2016 are expected to be recognized in future years as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zff6bcf53a0af4b48b0a8b001f33c30cd" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 70%"> <tr style="height: 16px"> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Recognition of </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Deferred Revenues</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">48,507</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,361</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,023</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,467</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,951</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">92,708</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Costs necessary to fulfill the Company&#8217;s obligations to provide broadband telephone service to new and existing customers who have purchased magicJack devices or access rights are expensed as incurred. Such costs were approximately $12.3 million, $15.4 million and $19.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.</font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 9 &#8211; OTHER LIABILITIES</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Through May 2015, the Company had an outstanding non-interest bearing indebtedness in connection with an agreement entered into during June 2011 for the purchase of certain intangible assets, which was secured only by such intangible assets. The Company made a final annual payment of $1.5 million in May 2015.&#160; As of December 31, 2016 and December 31, 2015, no amounts were included in the Company&#8217;s consolidated balance sheets.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">As of December 31, 2016 and 2015, the Company had recorded a non-current liability for uncertain tax positions of $10.4 million and $10.8 million, respectively.</font></div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 10 &#8211; COMMITMENTS AND CONTINGENCIES</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Legal Proceedings</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company is subject to various legal proceedings and claims, including intellectual property claims, contractual and commercial disputes, employment claims, state and local tax matters and other matters which arise in the ordinary course of business. The Company&#8217;s policy is to vigorously defend any legal proceedings. Management regularly evaluates the status of legal proceedings in which the Company is involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and to determine if accruals are appropriate. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on the Company&#8217;s business, operating results, financial condition or cash flows. However, an unexpected adverse resolution of one or more of these matters could have a material adverse effect on the Company&#8217;s results of operations in a particular fiscal year or quarter.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On March 11, 2016, a purported class action lawsuit was filed against the Company, its Chief Executive Officer, Gerald Vento ("Mr. Vento"), and its Chief Financial Officer, Jose Gordo ("Mr. Gordo"), in the United States District Court for the Southern District of New York. The complaint alleges that the Company and Messrs. Vento and Gordo made false and misleading statements regarding the financial performance and guidance during the alleged class period of November 12, 2013 to March 12, 2014. The complaint alleges that the Company and Messrs. Vento and Gordo violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The complaint seeks damages, attorneys' fees and costs, and equitable/injunctive relief or such other relief as the court deems proper. The Company intends to vigorously defend itself against it and the Company does not believe that the outcome of this legal proceeding will have a material adverse effect on the Company&#8217;s business, operating results, financial condition or cash flows. The Company cannot estimate the likelihood of liability or the amount of potential damages, if any.</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Tax Contingencies</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company believes that it files all required tax returns and pays all required federal, state and municipal taxes (such as sales, excise, utility, and ad valorem taxes), fees and surcharges. The Company is the subject of inquiries and examinations by various state and municipalities in the normal course of business. In accordance with generally accepted accounting principles, the Company makes a provision for a liability for taxes when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. The Company strongly believes any possible claims are without merit and vigorously defends its rights. However, if a state or municipality were to prevail in any matter, it could have a material adverse effect on the Company&#8217;s financial condition, results of operation and cash flows. In addition, it is at least reasonably possible that a potential loss may exist for tax contingencies in addition to the provisions taken by the Company. For&#160;those potential additional tax contingencies which can be reasonably estimated, that additional potential liability&#160;ranges from $0 to $2.5 million.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Regulation</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The Company provides broadband telephone services using VoIP technology and/or services treated as information services by the FCC. The Company is also licensed as a Competitive Local Exchange Carrier (&#8220;CLEC&#8221;) and is subject to extensive federal and state regulation applicable to CLECs. The FCC has to date asserted limited statutory jurisdiction and regulatory authority over the operations and offerings of certain providers of broadband telephone services, including non-interconnected VoIP. FCC regulations may now, or may in the future, be applied to the Company&#8217;s broadband telephone operations. Other FCC regulations apply to the Company because it operates servers and provides international calling capability. Some of the Company&#8217;s operations are also subject to regulation by state </font>public utility commissions (&#8220;PUCs&#8221;)<font style="font: 10pt Times New Roman, Times, serif">.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Intercarrier Compensation</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>On November 18, 2011, the FCC released a Report and Order (the "FCC Order") and Further Notice of Proposed Rulemaking that comprehensively reforms the system under which regulated service providers compensate each other for terminating interstate and intrastate traffic. Regulated service providers are free to negotiate alternative arrangements, but the FCC Order establishes default rates in the absence of agreements between regulated service providers. The rules adopted by the FCC provide for a multiyear transition to a national bill-and-keep framework as the ultimate end state for all telecommunications traffic terminated by a local exchange carrier. Under bill-and-keep, providers do not charge an originating carrier for terminating traffic and instead recover the costs of termination from their own customers.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Pursuant to the FCC Order, rates are lowered for the most common termination functions performed by regulated service providers when exchanging traffic. The transition period depends on the type of regulated service provider. After the relevant transition is complete, service providers will be required to recoup certain termination costs directly from their customers and not from other service providers. As part of this transition, depending on the particular function performed and the type of regulated service provider, the rate for inter- and intrastate traffic was reduced to $0.0007 per minute effective July 1, 2016 for the most common termination functions performed by price cap regulated service providers and their competitors. Beginning July 1, 2018, these regulated service providers must recover the costs associated with the provision of terminating services from their customers rather than from other service providers.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC Order also establishes new rules concerning traffic exchanged over PSTN facilities that originates or terminates in Internet Protocol format, referred to as &#8220;VoIP-PSTN&#8221; traffic. As with traditional and wireless telecommunications traffic, regulated service providers will ultimately be required to recoup all costs associated with terminating such traffic from their customers. But as part of the transition to that end point, the FCC Order adopts a VoIP-PSTN specific framework for compensation between regulated service providers, establishing two rates for such traffic: toll and local. The toll rate will match the relevant interstate access rate for traditional telecommunications traffic and the local rate will match the reciprocal compensation rate associated with traditional telecommunications traffic. Further, the FCC Order allows regulated service providers to tariff charges associated with handling VoIP-PSTN traffic in a manner consistent with the FCC&#8217;s new rules, which took effect on December 29, 2011.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC Order broadly reformed the system of default rates that apply to payments between regulated service providers going forward, but did not resolve past disputes. While the rates for termination of VoIP-PSTN traffic are ultimately reduced, the FCC's ruling may provide the certainty needed to collect interstate access charges for such traffic during the transition to bill-and-keep. To the extent that another provider were to assert that the traffic we exchange with them is subject to higher levels of compensation than we, or the third parties terminating our traffic to the PSTN, pay today (if any), our termination costs could initially increase, but ultimately will be reduced as the intercarrier compensation system transitions to bill-and-keep.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC clarified in January 2015 that its VoIP symmetry rule does not require a CLEC or its VoIP provider partner to provide the physical last-mile facility to the VoIP provider&#8217;s end user customers in order to provide the functional equivalent of end office switching, and thus for the CLEC to be eligible to assess access charges for this service. The ruling confirms that the VoIP symmetry rule is technology and facilities neutral and applies regardless of whether a CLEC&#8217;s VoIP partner is a facilities-based or over-the-top VoIP provider. However, in November 2016, the U.S. Court of Appeals for the D.C. Circuit vacated the FCC&#8217;s ruling. The Company cannot predict how the D.C Circuit&#8217;s decision will affect the amounts the Company collects and/or pays to other providers in connection with the exchange of its traffic.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">E911 Calling</font><font style="font: 10pt Times New Roman, Times, serif"> - The FCC has required providers of interconnected VoIP services to provide 911 emergency calling capabilities to their customers. While the Company believes it is not an interconnected VoIP provider as currently defined by the FCC and thus is not subject to the FCC&#8217;s 911 rules, it nevertheless provides some 911 capability for its customers. In September 2010, the FCC released a nationwide industry "Notice of Inquiry" seeking additional comments on a number of issues including, but not limited to, whether nomadic interconnected VoIP providers should be required to offer automatic location information of their users without customers providing location information. The FCC also sought comment on how far it can extend E911 obligations to other types of companies including device manufacturers, software developers and others. In July 2011, the FCC released a Second Further Notice of Proposed Rulemaking, seeking comment on various issues including (i) whether to apply the FCC's 911 rules to "outbound-only" interconnected VoIP services (i.e., services that support outbound calls to the PSTN but not inbound voice calling from the PSTN); (ii) whether to develop a framework for ensuring that all covered VoIP providers can provide automatic location information for VoIP 911 calls; and (iii) whether to revise the FCC's definition of interconnected VoIP service to require an "Internet connection" rather than a broadband connection, and to "define connectivity in terms of the ability to terminate calls to all or substantially all United States E.l64 telephone numbers." As part of the same release, the FCC included a Notice of Proposed Rulemaking that sought comment on whether any amendment of the definition of interconnected VoIP service should be limited to 911 purposes, or should apply more broadly to other contexts. In September 2011, the FCC released a Notice of Proposed Rulemaking seeking comment on what role the FCC should play to facilitate the implementation of "next generation" 911 capabilities, including, for example, the short-term implementation of text-to-911 solutions; the prioritization of 911 traffic, especially during times of natural and manmade disasters; long-term implementation of IP-based alternatives for delivering text, photos, videos, and other data to 911; and the path towards integration and standardization of IP-based text-to-91l. At this time, the Company cannot predict the outcome of these proceedings nor can it predict their potential impact on its business. The Company&#8217;s VoIP E911 services are more limited than the 911 services offered by traditional wireline telephone companies. These limitations may cause significant delays, or even failures, in callers' receipt of emergency assistance.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Many state and local governments have sought to impose fees on customers of VoIP providers, or to collect fees from VoIP providers, to support implementation of E911 services in their area. Such fees are often put in terms of a fee placed on monthly bills, or focused on use from a specific location. The application of such fees with respect to magicJack users and the Company is not clear because various statutes and regulation may not cover the Company's services, the Company does not bill its customers monthly, nor does it bill customers at all for telecommunications services. The Company may also not know the end user's location because the magicJack devices and services are nomadic. If fees are owed, they are owed by the end user and not the Company, as most statutes, to the extent they apply, would have the Company act as a billing and collection agent. Should a regulatory authority require payment of money from the Company for such support, magicJack LP may decide to not offer its 911 service in that area or to develop a mechanism to collect fees from its customers, which may or may not be satisfactory to the entity requesting us to be a billing agent. The Company cannot predict whether the collection of such additional fees or limitations on where its services are available would impact customers&#8217; interest in purchasing its products.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In 2013 as a result of settlement of litigation, the Company agreed that it would, at least once a year, issue bills for 911 emergency calling services to all U.S. customers who have access to 911 services through their magicJack services, and who have provided a valid address in a U.S. jurisdiction that provides access to 911 services and which is legally empowered to impose 911 charges on such users in accordance with applicable state and/or local law.&#160;</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Certain E911 regulatory authorities have asserted or may assert in the future that the Company is liable for damages, including end user assessed E911 taxes, surcharges and/or fees, for not having billed and collected E911 fees from its customers in the past or in the future. Although the Company strongly disagrees with these assertions and believes that any such authority&#8217;s claims are without merit, if a jurisdiction were to prevail, the decision could have an adverse effect on the Company&#8217;s financial condition and results of operations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Network Neutrality</font> - On January 14, 2014, the D.C. Circuit Court of Appeals, in Verizon v. FCC, struck down major portions of the FCC&#8217;s 2010 &#8220;net neutrality&#8221; rules governing the operating practices of broadband Internet access providers. The FCC originally designed the rules to ensure an &#8220;open Internet&#8221; and included three key requirements for broadband providers: 1) a prohibition against blocking websites or other online applications; 2) a prohibition against unreasonable discrimination among Internet users or among different websites or other sources of information; and 3) a transparency rule compelling the disclosure of specific information about the broadband service, including network management policies. The Court struck down the first two rules, concluding that they constitute &#8220;common carrier&#8221; restrictions that are not permissible given the FCC&#8217;s earlier decision to classify Internet access as an &#8220;information service,&#8221; rather than a &#8220;telecommunications service.&#8221; The Court upheld the FCC&#8217;s transparency rule.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In response to the D.C. Circuit&#8217;s decision, the FCC released an order in March 2015 adopting new net neutrality rules. In doing so, the FCC reclassified broadband Internet access - the retail broadband service mass-market customers buy from cable, phone, and wireless providers - as a telecommunications service regulated under Title II of the Communications Act of 1934, although the FCC agreed to forbear from many requirements of Title II. Significantly, the new rules will apply equally to fixed and mobile broadband networks.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC adopted three new bright-line rules as follows:</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z604bcbf1c6734921b7a45e3796f814ee" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">No Blocking: Broadband providers may not block access to legal content, applications, services, or non-harmful devices.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z9685488e8d174cdaaf424ab98b8662a7" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">No Throttling: Broadband providers may not impair or degrade lawful Internet traffic on the basis of content, applications, services, or non-harmful devices.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="zc24ae3827d9c4fbb9c6b762d5453117f" class="DSPFListTable" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 36pt"> <div style="font: 10pt/1.25 Symbol, serif; text-align: left; margin-left: 18pt">&#183;</div> </td> <td style="vertical-align: top; width: auto"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">No Paid Prioritization: Broadband providers may not favor some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind - in other words, no &#8220;fast lanes.&#8221; This rule also bans Internet Service Providers (ISPs) from prioritizing content and services of their affiliates.</div> </td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC also adopted a fourth new rule in the form of a forward-looking standard. This rule is intended to address concerns that may arise with new practices that do not fall within one of the three bright line rules. It will be applied on a case-by-case basis to address questionable practices as they occur that unreasonably interfere with or unreasonably disadvantage the ability of consumers to use or edge providers to make available lawful content, applications, services, or devices.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC also adopted enhanced transparency requirements with which broadband providers must comply.&#160; After the FCC&#8217;s new net neutrality rules went into effect in June 2015, various broadband providers and their trade associations challenged the FCC&#8217;s decision before the U.S. Court of Appeals for the D.C. Circuit.&#160; In June 2016, the D.C. Circuit issued its decision upholding the FCC&#8217;s rules. Various parties have filed petitions seeking rehearing en banc of the D.C. Circuit&#8217;s decision, which remain pending, and the current FCC chairman had expressed his intent to revist the FCC&#8217;s rules. The Company cannot predict the outcome of these proceedings.</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif"><font style="font: normal 10pt Times New Roman, Times, serif">However, a decision by a court or the FCC striking down or narrowing the FCC&#8217;s net neutrality rules could adversely impact the Company&#8217;s business to the extent legal prohibitions against broadband providers blocking, throttling, or otherwise degrading the quality of the Company&#8217;s data packets or attempting to extract additional fees from the Company or its customers are eliminated.&#160; A court or the FCC also could find that the FCC lacks legal authority to regulate broadband services, which could prevent the FCC from adopting new rules to govern the operating practices of broadband providers.</font></font></font></div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: italic bold 10pt Times New Roman, Times, serif">Universal Service Fund (&#8220;USF&#8221;) and Other Funds</font> - The FCC and many PUCs have established USF programs to ensure that affordable telecommunications services are widely available in high cost areas and for low income telephone subscribers and to promote universal availability of modern networks capable of providing voice and broadband service. In addition to USF, the FCC imposes other fees to meet the costs of establishing and maintaining a numbering administration system, to recover the shared costs of long-term number portability, and to contribute to the Telecommunications Relay Services (TRS) Fund. All telecommunications carriers and other providers are required to contribute to these funds, including interconnected VoIP providers. The FCC and many PUCs have for a number of years been considering substantial changes to the USF system including changes in contribution methodology. Some proposals, if adopted, could have a material adverse effect on the Company.</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The FCC has also indicated its intent to reexamine the current USF contribution methodology, which may include requiring contributions based on revenues from broadband and other Internet Protocol-based services.&#160; The Company cannot predict how any changes to the current USF contribution methodology may affect its business at this time.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On February 3, 2015 the FCC released a policy statement for a new methodology for calculating forfeitures for violations of the USF and other federal program payment rules. Under the new treble damages methodology, each violator&#8217;s apparent base forfeiture liability will be three times its delinquent debts to the USF, TRS fund, LNP fund, North American Numbering Plan (NANP) fund, and regulatory fee programs. As before, each single failure to pay a federal program assessment constitutes a separate violation that continues until the assessment is fully paid. The methodology will be used in future enforcement actions, although a group of industry trade associations have petitioned the Commission for review and a stay of this methodology. At this time the Company cannot predict the impact, if any, this policy statement will have on the Company&#8217;s operations in the event the Company is found to have violated the Communications Act or FCC rules.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Customer Privacy and Promotional Activities</font><font style="font: 10pt Times New Roman, Times, serif"> - The Company is subject to various federal and state laws and regulations seeking to protect the privacy of customers&#8217; personal information that restrict the Company&#8217;s ability to use such information for marketing and promotional purposes. The FCC limits telephone companies&#8217; and interconnected VoIP providers&#8217; use of customer proprietary network information (&#8220;CPNI&#8221;) such as telephone calling records without customer approval, and requires those companies to protect CPNI from disclosure. Federal and state laws also limit the Company&#8217;s and other companies&#8217; ability to contact customers and prospective customers by telemarketing, email or fax to advertise services.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Communications Assistance for Law Enforcement Act (&#8220;CALEA&#8221;)</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>In September 2005, the FCC concluded that interconnected VoIP service providers must comply with the CALEA and configure their network and services to support law enforcement activity in the area of wiretaps and call records. The Company provides CALEA-compliant services even though the Company believes it is not an interconnected VoIP provider subject to CALEA.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Services for the Disabled</font> - Interconnected VoIP providers and manufacturers of specially designed equipment used to provide those services must take steps to ensure that individuals with disabilities, including hearing impaired and other disabled persons, have reasonable access to their services, if such access is readily achievable.&#160; The Company believes it is not an interconnected VoIP provider as currently defined by the FCC.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Number Portability</font> - The FCC requires interconnected VoIP providers to comply with LNP rules that allow subscribers remaining in the same geographic area to switch from a wireless, wireline or VoIP provider to any other wireless, wireline or VoIP provider and keep their existing phone numbers.&#160; The Company provides LNP, even though the Company believes it is not an interconnected VoIP service provider subject to the LNP rules.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Outage Reporting</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>In 2012, the FCC adopted a Report and Order requiring interconnected VoIP providers to report significant service outages to the FCC. The Report and Order defines outage reporting for interconnected VoIP service, establishes reporting criteria and thresholds, and discusses how the reporting process should work, what information should be reported, and confidential treatment of the outage reports. The Company believes it is not an interconnected VoIP provider subject to the outage reporting rules.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Discontinuance of Service Reporting</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>The FCC requires interconnected VoIP providers to file an application with the Commission and obtain Commission approval prior to discontinuing, reducing, or impairing service. The Company believes it is not an interconnected VoIP provider subject to the service discontinuance rules.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Annual Traffic and Revenue Reports</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>In January 2013 the FCC extended annual traffic and revenue reporting requirements to non-interconnected VoIP service providers.&#160; Carriers engaged in providing international telecommunications service, and companies engaged in providing VoIP service connected to the PSTN, between the United States and any foreign point are required to file a report with the Commission showing revenues, payouts, and traffic for international telecommunications service and VoIP service connected to the PSTN provided during the preceding calendar year. The FCC is considering eliminating or narrowing its current international traffic reporting requirements. At this time the Company cannot predict the impact, if any, these reporting requirements will have on the Company&#8217;s operations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Broadband and Telephone Competition Reporting</font><font style="font: 10pt Times New Roman, Times, serif"> - </font>Interconnected VoIP service providers, facilities-based providers of broadband connections to end user locations, providers of wired or fixed wireless local exchange telephone service, and facilities-based providers of mobile telephony service are required to submit to the FCC on an annual basis a Broadband and Telephone Competition Report.&#160; Through the report the FCC collects information to analyze the deployment of broadband infrastructure and competition.&#160; The Company believes it is not an interconnected VoIP provider subject to submitting a Broadband and Telephone Competition Report.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Effects of S</font><font style="font: italic bold 10pt Times New Roman, Times, serif">tate Regulations</font><font style="font: 10pt Times New Roman, Times, serif"> - The Company has been, and will continue to be, subject to a number of PUC and other state regulations that govern the terms and conditions of the Company&#8217;s offerings, including billing practices, 911 fees, distribution of telephone numbers, customer disputes and other consumer protection matters. The Company cannot predict the outcome of current or future proceedings, nor can it predict the potential impact on the Company's business.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">Rural Call Completion Reporting </font><font style="font: italic 10pt Times New Roman, Times, serif">-</font><font style="font: italic bold 10pt Times New Roman, Times, serif">&#160;</font><font style="font: 10pt Times New Roman, Times, serif">To the extent a covered provider makes the initial long-distance path choice for more than 100,000 domestic retail subscriber lines, the provider is subject to the FCC&#8217;s record retention and reporting requirements.&#160; Specifically, the provider must record and retain information about call attempts to rural operating company numbers (OCNs) and must submit certified reports for call attempts to both rural and non-rural OCNs. The FCC&#8217;s Wireline Competition Bureau has clarified that: (1) covered providers may not count unanswered call attempts as answered calls under the FCC&#8217;s data retention and reporting rules; and (2) the explanatory notes in Appendix C of the FCC&#8217;s Order that describe &#8220;answered&#8221; calls and &#8220;busy,&#8221; &#8220;ring no answer,&#8221; and &#8220;unassigned number&#8221; call attempts are intended to serve as examples rather than exclusive definitions. As part of their quarterly reports to the FCC, covered providers should explain the method they used to identify these call attempt categories. The Company is currently collecting and reporting the required data. At this time the Company cannot predict the impact, if any, these reporting requirements will have on the Company&#8217;s operations.</font></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: italic bold 10pt Times New Roman, Times, serif">State and Municipal Taxes</font> - The Company believes that it files all required state and municipal tax returns and pays all required state and municipal taxes (such as sales, excise, utility, and ad valorem taxes), fees and surcharges.The Company&#8217;s Enterprise and SMB segments remit state and municipal taxes as required in the states where they are registered to do business. The Company believes that its Core Consumer segment is exempt from certain taxes, fees and surcharges because it does not charge for telephone services or render bills to its customers. <font style="font: 10pt Times New Roman, Times, serif">The Company</font>&#8217;s Core Consumer segment<font style="font: 10pt Times New Roman, Times, serif"> remits sales tax in Florida on sales of magicJack units because of the personnel, property and activities of its magicJack LP subsidiary that are in Florida.</font> Certain states and municipalities may disagree with the Company&#8217;s policies regarding the Core Consumer business and may believe it should be remitting taxes for past or future sales on certain items or services. Although the Company strongly disagrees and believes any possible claims are without merit, if a state or municipality were to prevail, the decision could have an adverse effect on the Company&#8217;s financial condition and results of operation. <font style="font: 10pt Times New Roman, Times, serif">magicJack LP does not have activities or have representation in any other states</font>. However, many states are changing their statutes and interpretations thereof as part of new streamlined sales tax initiatives to collect sales taxes from nonresident vendors that sell merchandise over the Internet to in state customers. <font style="font: 10pt Times New Roman, Times, serif">The Company</font>&#8217;s Core Consumer segment<font style="font: 10pt Times New Roman, Times, serif"> may at some time be required to collect and remit sales taxes to states other than Florida.</font> The Company&#8217;s Core Consumer segment may also become required to pay other taxes, fees and surcharges to a large number of states and municipalities as a result of statutory changes in the basis on which such taxes, fees and surcharges are imposed. <font style="font: 10pt Times New Roman, Times, serif">In the event that the Company</font>&#8217;s Core Consumer segment<font style="font: 10pt Times New Roman, Times, serif"> is required to collect sales taxes or other taxes from direct sales for states other than Florida on the sale of magicJack devices or on the renewal of our service offerings, the Company will bill and collect such taxes from our customers.</font> The Company will examine any future fees and surcharges imposed as a result of statutory changes and determine on a case by case basis whether to bill its customers or increase the initial or access right sales prices to cover the additional fees and surcharges.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Regulatory Environment</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In addition to the foregoing regulations to which the Company may be subject directly, changes to FCC and PUC regulations could affect the services, and the terms and conditions of service, the Company is able to provide. Moreover, changes to any regulations to which the Company is subject directly or indirectly could create uncertainty in the marketplace that could reduce demand for its services, increase the cost of doing business as a result of costs of litigation or increased service delivery cost or could in some other manner have a material adverse effect on the Company&#8217;s business, financial condition or results of operations. Any new legislation or regulation, or the application of laws or regulations from jurisdictions whose laws do not currently apply to the Company&#8217;s business, could have a material adverse effect on its business.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating leases</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Minimum annual commitments under non-cancellable operating leases as of December 31, 2016 are as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zf54a9af4eef04c1ba548895a8b643377" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 70%"> <tr> <td style="vertical-align: top; border-bottom: #000000 2px solid; width: 82%; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fiscal Year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated Rent</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Payments</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2017</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,156</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2018</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">924</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2019</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">582</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2020</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">85</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 82%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">2021</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">85</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 82%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: center">Thereafter</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 82%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Rent expense for the Company&#8217;s real property leases were $0.9 million, $0.8 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively, and are included in general and administrative expense in the accompanying Consolidated Statements of Operations.</font></div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 11 &#8211;TREASURY STOCK</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s Board of Directors authorized a stock repurchase program to enable it to purchase its ordinary shares at such times as management deems appropriate up to a maximum cumulative repurchase authority of $100.0 million as of December 31, 2014. The objective of the Company&#8217;s stock repurchase program was to improve stockholders&#8217; returns. The Company expended $91.3 million under its repurchase program through December 31, 2014, and there was $8.7 million authorized to purchase ordinary shares pursuant to the stock repurchase program. All shares purchased, not yet retired, are recorded as treasury shares. The Company repurchased 6,143,731 ordinary shares under this program through December 31, 2014.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">During the first quarter of 2015, the Company&#8217;s Board of Directors authorized a new share repurchase program under which the Company could repurchase up to $20.0 million of its outstanding common stock from time to time on the open market or in privately negotiated transactions. The remaining $8.7 million remaining under the Company&#8217;s prior $100 million repurchase program was terminated.&#160; During the year ended December 31, 2015, the Company expended the maximum $20.0 million under the newly authorized amount. The Company repurchased 2,329,003 ordinary shares under this program through December 31, 2015.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">During the year ended December 31, 2016, no new share repurchase programs were authorized.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="line-height: 1.25"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In December 2016, the Company issued 203,618 of its ordinary shares held as treasury shares with a cost of $2.5 million, or $12.32 per share, to two of its executive officers and certain other employees as a result of restricted stock units vesting. In October 2016, the Company issued 50,600 of its ordinary shares held as treasury shares with a cost of $<font style="font: 10pt Times New Roman, Times, serif">623 </font>thousand, or $12.32 per share, to certain of its employees as a result of the vesting of restricted stock units and the exercise of options. In August 2016, the Company issued 2,333 of its ordinary shares held as treasury shares with a cost of $29 thousand, or $12.33 per share, to a Board member as a result of vesting. In addition, in April 2016, the Company issued 9,336 of its ordinary shares held as treasury shares with a cost of $115 thousand, or $12.31 per share, to Board members as a result of restricted stock units that were issued in mid-2014, vesting. In March 2016, the Company issued 2,016 of its ordinary shares held as treasury shares with a cost of $25 thousand, or $12.24 per share, to a Board member as a result of restricted stock units, that were issued in mid-2013, vesting. On March 17, 2016, the Company issued 233,402 of its ordinary shares held as treasury stock with a cost of $3.6 million, or $15.46 per shares, as part of the consideration paid for the Broadsmart acquisition. Refer to Note 15, &#8220;Acquisition of Business&#8221; for further details.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In December 2016, the Company purchased 62,726 of its ordinary shares at $6.85 per share, for an aggregate purchase price of approximately $430 thousand, in settlement of the withholding tax liability of certain of its executive officers and other employees on the vesting of restricted stock units.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On December 31, 2015, the Company issued 53,419 of its ordinary shares held as treasury shares with a cost of $0.7 million, $12.32 per share (and fair value of $0.5 million, $9.45 per share), to its executive officers as a result of restricted stock units, that were issued in mid-2013, vesting. In June 2015, the Company issued 24,410 of its ordinary shares held as treasury shares with a cost of $301 thousand, $12.32 per share (and fair value of $188 thousand, $7.70 per share), to a former Executive Officer as a result of restricted stock units, that were issued in late-2013, vesting in accordance with a separation agreement. In May 2015, the Company issued 834 of its ordinary shares held as treasury shares with a cost of $10 thousand, $12.32 per share (and fair value of $6 thousand, $7.09 per share), to a Consultant as a result of restricted stock units, that were issued in mid-2014, vesting. In April 2015, the Company issued 9,336 of its ordinary shares held as treasury shares with a cost of $115 thousand, $12.32 per share (and fair value of $64 thousand, $6.87 per share), to Board members as a result of restricted stock units, that were issued in mid-2014, vesting. In March 2015, the Company issued 2,015 of its ordinary shares held as treasury shares with a cost of $25 thousand, $12.24 per share (and fair value of $14 thousand, $6.99 per share), to a Board member as a result of restricted stock units, that were issued in mid-2013, vesting.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In June 2015, the Company repurchased 12,161 of its ordinary shares at $7.70 per share, for an aggregate purchase price of approximately $94 thousand, and in December 2015 the Company purchased 10,989 of its ordinary shares at $9.45 per share, for an aggregate purchase price of approximately $104 thousand, in settlement of the withholding tax liability of certain of its executive officers on the vesting of restricted stock units.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On December 31, 2014, the Company issued 35,967 of its ordinary shares held as treasury shares with a cost of $0.4 million, $12.32 per share (and fair value of $0.3 million, $8.12 per share), to its executive officers as a result of restricted stock units, that were issued in mid-2013, vesting. In March 2014, the Company issued 2,015 of its ordinary shares held as treasury shares with a cost of $24 thousand, $12.24 per share (and fair value of $42 thousand, $20.71 per share), to a Board member as a result of restricted stock units, that were issued in mid-2013, vesting.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The changes in treasury stock during the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands, except for number of shares):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z9e0c8701a941422b8106d0fa83b3b78c" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="22" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Amount</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,426,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">126,772</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,164,260</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">107,683</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,202,242</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">108,151</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued for</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;Broadsmart acquisition</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(233,402</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,609</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares purchased through</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;the stock repurchase program</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,329,003</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20,000</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued to settle</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;withholding liability</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">62,726</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">430</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,150</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary shares issued due to</div> </td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;vesting of restricted stock units</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(267,903</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,293</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(90,014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,109</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(37,982</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(468</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,987,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">120,300</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,426,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">126,772</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,164,260</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">107,683</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 12 &#8211; SHARE-BASED COMPENSATION</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company has granted ordinary share options, issued restricted stock units and ordinary shares as an alternative or supplement to the compensation of its executives, employees, directors and outside consultants. The Company&#8217;s share-based compensation program is a long-term retention program intended to attract and reward talented executives, employees and outside consultants, and align their interests with shareholders. The Company is currently granting share-based awards under the magicJack Vocaltec Ltd. 2013 Stock Incentive Plan and the magicJack Vocaltec Ltd. 2013 Israeli Stock Incentive Plan (together, the &#8220;2013 Plans&#8221;) which were approved by&#160; shareholders in July 2013 at the annual general meeting of shareholders to allow grants of ordinary share options, restricted stock units and ordinary shares. In April 2014, the shareholders approved amendments to the 2013 Plans increasing the number of share based awards available for grant. As of December 31, 2016, the aggregate number of shares subject to awards under the 2013 Plans is 3,600,000. The Company had previously granted shares under the VocalTec amended Master Stock Plan (the &#8220;2003 Plan&#8221;) which expired in April 2013. During the year ended December 31, 2016, the Company issued 1,000,000 ordinary share options outside of the 2013 Plans as an inducement for the two founders of Broadsmart to become employed by the Company. As of December 31, 2016, there are 198,593 awards available for grant under the 2013 Plans. Share<font style="font: 10pt Times New Roman, Times, serif">-based awards are generally exercisable or issuable upon vesting.</font> The Company&#8217;s policy is to recognize compensation expense for awards <font style="font: 10pt Times New Roman, Times, serif">with only service conditions and a graded vesting </font>on a straight-line basis over the requisite vesting period for the entire award.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">The Company&#8217;s share-based compensation expense consisting of ordinary share options, issued restricted stock units and ordinary shares for the years ended December 31, 2016, 2015 and 2014 was as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z3247fd05b619466bbcfe284b66565c5c" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary share options</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,138</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,108</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,072</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Restricted stock units</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,082</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,160</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,118</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,220</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,268</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,190</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif">The detail of total share-based compensation recognized by income statement classification is as follows (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z452daa0681bf4e13ae9a9b4403f1406e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Cost of revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">465</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">146</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">551</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,594</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">General and administrative</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,755</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,194</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,166</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Research and development</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">243</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">447</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">965</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,220</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,268</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,190</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif">The decreases in share-based compensation for the years ended December 31, 2016 and 2015, are due primarily to the expense associated with previous awards being fully amortized exceeding the expense associated with new award grants.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Ordinary Share Options</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Ordinary share options granted under the 2013 Plans have a five-year life and vest over a period of 24 to 37 months beginning at the date of grant. The 2013 Plans currently allow for a maximum term of five years for awards granted. The following table provides additional information regarding ordinary share options issued, outstanding and exercisable for years ended December 31, 2016, 2015 and 2014 (aggregate intrinsic value in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <table id="z8292098fc41f4a5ca2702123b72a15a6" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Date of Grant</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number of </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Options</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Exercise </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Price</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted Average </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Remaining </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Contractual Term<font style="font: 10pt Times New Roman, Times, serif"><br /> </font>(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Aggregate </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Intrinsic Value *</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">January 1, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,285,207</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.95</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.41</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">762,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.71</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(30</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">147.55</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,043,857</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">998,614</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,250</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Forfeited</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(247,257</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(263,537</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12.67</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2015</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,527,427</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12.98</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,107,040</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.09</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.96</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Forfeited</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(34,740</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.83</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(109,168</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,488,059</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">11.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.11</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Vested at December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,310,482</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.54</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Exercisable at December 31, 2016 and expected to vest</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,310,482</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.54</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z8f861014666c4a0d97780981d05e5d53" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">* The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options on the respective dates.</div> </td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Share-based compensation expense recognized for ordinary share options was approximately $2.1 million, $4.1 million and $6.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. The total intrinsic value of ordinary share options exercised during&#160;the years ended December 31, 2016, 2015 and&#160;2014 was $7 thousand, $14 thousand and $42 thousand,&#160;respectively. As of December 31, 2016, there was approximately $2.1 million of unrecognized share-based compensation expense related to unvested ordinary share options, which is expected to be recognized over a weighted average period of 2.19 years.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company&#8217;s stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company&#8217;s expected stock price volatility over the term of the awards, assumed employee exercise behaviors, risk-free interest rate and expected dividends. For purposes of valuing ordinary share options, the Company used historical volatility at the date of grant. The approximate risk-free interest rate was based on the U.S. Treasury yield for comparable periods. The Company has experienced forfeitures in the past and estimates a forfeiture rate for awards issued when deemed applicable. Due to the small sample size, <font style="font: 10pt Times New Roman, Times, serif">historical share option exercise experience is not considered representative of future activity. </font>Therefore, the expected term of the ordinary share options was calculated using the simplified method in accordance with section 10-S99 of ASC Topic 718, "Compensation - Stock Compensation" (&#8220;ASC 718&#8221;). The Company does not expect to pay dividends on its ordinary shares in the foreseeable future. Accordingly, the Company used a dividend yield of zero in its option pricing model.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">The weighted average fair value of ordinary share options granted during the years ended December 31, 2016, 2015 and 2014 was $2.75, $3.60 and $6.22, and was measured at the date of grant using the following assumptions:</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="line-height: 1.25"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z3b36cbe74433421393f7bfa4da6c6adc" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expected term (in years)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.2 - 3.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Dividend yield</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expected volatility</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">52.2% to 52.5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">51.8</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">57.2% to 58.8</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Risk free interest rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">0.95% to 1.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.29</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: right">1.07% to 1.64</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Forfeiture rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">20.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.0</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> &#160;</font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Restricted Stock Units</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The Company may also award non-vested restricted stock units to its </font>executives, employees, directors and outside consultants under the 2013 Plans, which may vest based on service or a combination or service and other conditions, such as market share price<font style="font: 10pt Times New Roman, Times, serif">. The compensation expense for the award will be recognized assuming that the requisite service is rendered regardless of whether the market conditions are achieved. Each non-vested stock unit, upon vesting, represents the right to receive one ordinary share of the Company. </font>During the year ended December 31, 2016, the Company granted 320,305 restricted stock units under the 2013 Plans, as amended. During the year ended December 31, 2015 the Company granted certain officers 385,852 service based restricted stock units under the 2013 Plans. During the year ended December 31, 2014 the Company granted certain officers, directors and consultants 30,500 service-based restricted stock units under the 2013 Plans.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The following table summarizes the Company&#8217;s restricted stock unit activity for the year ended December 31, 2016, 2015 and 2014:</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1bcec4cd2e924507861cc53ae83336d6" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number of</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Fair</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Shares</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Value at Grant Date</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">January 1, 2014</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">154,746</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">19.15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(37,982</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">147,264</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">385,852</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(90,014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2015</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">443,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">320,305</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Vested</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(267,300</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.11</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 72%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;&#160;Forfeited</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(14,022</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.40</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 72%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Non-vested at December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">482,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.70</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">During the years ended December 31, 2016, 2015 and 2014, the Company recognized $2.1 million, $1.2 million and $1.1 million in share-based compensation expense related to restricted stock units. As of December 31, 2016, there was $2.0 million in unrecognized share-based compensation costs related to restricted stock units. The unrecognized share-based compensation expense is expected to be recognized over a weighted average period of 1.22 years.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company recorded share-based compensation costs from ordinary share options and restricted stock units, related deferred tax assets and tax benefits of&#160;$4.2 million,&#160;$5.7 million&#160;and&#160;$2.2 million, respectively, in&#160;2016, $5.3 million,&#160;$4.7 million&#160;and&#160;$1.8 million, respectively, in&#160;2015 and&#160;$7.2 million,&#160;$4.2 million&#160;and&#160;$1.6 million, respectively, in&#160;2014.</font></div> <div id="DSPFPageBreakArea" style="margin-bottom: 10pt; clear: both; margin-top: 10pt; line-height: 1.25"></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 13 &#8211; INCOME TAXES</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The information in this note is on a consolidated basis, but uses the United States as the primary taxing authority as the Company&#8217;s primary operations are in the United States. The parent Company is an Israeli company, whose primary taxable income is from the provision, directly or indirectly through its affiliates, of telecommunication services.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Components of Income Before Tax Expense</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The components of income (loss) before income tax expense are as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z2342daee722e4b8b86019ae6d071fb1e" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 80%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 55%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">United States</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,513</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 55%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,262</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,969</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,040</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 55%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,312</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,530</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Components of Income Tax Provision</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The components of the income tax provision (benefit) in 2016, 2015 and 2014 are as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zfd1374c5c2dc4fad86ec6096649d0838" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 90%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Current:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,666</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,951</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">State</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">949</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">76</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Current provision</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,615</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,027</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(637</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,203</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,774</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">State</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(59</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">604</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(165</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Foreign</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,114</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,056</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,484</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred (benefit) provision</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,418</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12,863</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,423</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Uncertain tax positions</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(314</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,088</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,166</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 58%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 11%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 58%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total income tax (benefit) provision</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8,719</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">11,802</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 11%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,745</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Effective Tax Rate Reconciliation</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The following is a reconciliation of the Company&#8217;s estimated annual effective income tax rate to the U.S. federal statutory rate for the years ended December 31, 2016, 2015 and 2014:</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div></div> <table id="z29dacd1c3c6544149d9b0ad26e5ab260" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Federal tax at statutory rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">State and local taxes, net of federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Taxable gains from revaluation</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45.01</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Effect of exchange rate on deferred taxes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18.84</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Foreign results at rates other than domestic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(5.65</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(27.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Uncertain tax positions</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(5.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47.60</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Anticipated benefit on increase in foreign NOL</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(38.77</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expiration of stock options</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.73</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Noncontrolling interest</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Israeli tax rate changes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">38.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax charges on intercompany sales</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Return-to-provision adjustments</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.25</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2.66</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(8.89</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(11.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effective tax rate</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">63.30</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">46.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">72.03</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company operates in the U.S. and Israel. Its U.S. operations are subject to a federal statutory income tax rate of 34% in 2016, 2015 and 2014 and its Israeli operations are subject to statutory income tax rates of 25.0% in 2016 and 26.5% in 2015 and 2014. The Israel operations will be subject to statutory income tax rates of 24% in 2017 and 23% in 2018. The income tax provision for 2016, 2015, and 2014 included items that have resulted in significant variances in the Company&#8217;s effective tax rate in comparison to statutory rates.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the year ended December 31, 2016, the Company recorded income tax expense of $8.7 million, which is higher than the expected tax provision of $4.7 million, using the statutory rate of 34%, due, in part, to the net impact of a decrease in the Israeli corporate tax rate from 26.5% to 23.0% which was effective in December 2016. The decrease in the rate resulted in the Company needing to reduce its Israeli deferred tax assets, primarily net operating loss carryforwards, which resulted in deferred tax expense and a reduction in the value of related deferred tax assets of $5.2 million. Additionally, the effective tax rate was impacted by increases to uncertain tax positions of ($0.8 million), decreases in valuation allowances of ($1.2 million) and other items of $0.8 million. The discrete items noted above were partially offset by the lower jurisdictional tax rate charged on the operating income of the Company&#8217;s Israeli operations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the year ended December 31, 2015, the Company recorded income tax expense of $11.8 million, which differed from the expected provision of $8.6 million, using the statutory rate of 34%, primarily due to changes in valuation allowances of $1.3 million established against certain Israeli capital losses and state net operating loss carryforwards, increases to uncertain tax positions of $0.5 million, a decrease to deferred tax assets associated with expired stock options of $0.7 million, and other one-time discrete items of $0.7 million. State income tax expense, net of federal tax benefit, is presented in the effective tax rate reconciliation exclusive of changes in valuation allowances on state income tax deferred items.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">For the year ended December 31, 2014, the Company recorded income tax expense of $9.7 million, which differed from the expected tax provision of $5.0 million, using the statutory rate of 34%, primarily due to an increase in the U.S. uncertain tax positions of $6.4 million, as well as the effect of changes in the exchange rate on both the Company&#8217;s net deferred tax assets associated with its Israeli operations of $2.5 million, and taxable unrealized gains on the Israeli parent&#8217;s U.S. dollar denominated assets of $6.4 million. These items were partially offset by an income tax benefit in the Company&#8217;s foreign taxes associated with expected revisions to jurisdictional income allocations resulting from the IRS audit examination of $5.3 million, and by the jurisdictional rate differential between the U.S. and Israel of $3.7 million and an adjustment of our estimate of the required valuation allowance of $1.2 million. The Company&#8217;s Israeli operations resulted in an income tax provision of $5.2 million, an effective tax rate of 28.9%, and its domestic operations recorded a provision of $4.5 million for the year ended December 31, 2014.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The effective tax rate in the future may be affected by the realization of previously unrecognized deferred tax assets being recovered from future taxable income, the mix of foreign sourced versus domestic income and the effect of any significant changes in foreign currency rates.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Components of Deferred Income Tax</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The significant components of estimated deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> </div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div></div> <table id="z33dea39ca0bb4f20aaa06b52e2562636" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax assets:</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Deferred revenue, net of deferred costs</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,043</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,925</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Domestic net operating loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,214</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">803</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Foreign net operating loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,103</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">36,662</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in intangible assets</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,467</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Allowance for doubtful accounts</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">91</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">59</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Currently non-deductible expenses and other</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,914</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,593</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Capital loss carryforwards</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,413</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,644</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Stock based compensation</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,198</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,792</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Foreign tax credit carryforward</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,558</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,075</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total deferred tax assets</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45,877</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">50,020</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax liabilities:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in goodwill</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,079</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(953</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basis difference in fixed assets</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(911</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(834</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">Total deferred tax liabilities</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,990</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,787</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: bottom; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(16,319</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: bottom; width: 76%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 76%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 30pt">Net deferred taxes</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">26,568</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,689</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In November 2015, the FASB issued ASU No. 2015-17, &#8220;Balance Sheet Classification of Deferred Taxes&#8221;. ASU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in the consolidated balance sheet. The standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for financial statements that have not been previously issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted ASU 2015-17 on a prospective basis in the fourth quarter of 2015. Prior periods were not retrospectively adjusted.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Valuation Allowance</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">At December 31, 2016 and 2015, the Company had valuation allowances related to deferred tax assets associated with net operating losses of an inactive foreign subsidiary, foreign capital and revaluation losses, unrealized gains on prior year transactions associated with the Company&#8217;s common equity put options, and domestic state net operating losses.&#160; These deferred tax assets do not meet the more likely than not threshold that they will be realized.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">More broadly, the Company&#8217;s assessment for the years ended December 31, 2016, 2015 and 2014 considered the following positive and negative evidence.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Positive evidence</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company has generated cumulative pre-tax income in the U.S and Israel of $22.3 million and $30.3 million, respectively, for the three year period ended December 31, 2016, and has utilized some of its available tax assets to reduce the tax liabilities that would have otherwise arisen in those periods.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The U.S. and Israel require approximately $15.4 million and $85.2 million in future taxable income, respectively, to realize the deferred tax assets at December 31, 2016. The Company&#8217;s Israeli net operating loss carryforwards are not subject to expiration and its financial performance has continued to generate pre-tax operating income despite challenging macroeconomic conditions.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Negative evidence</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">At December 31, 2016, the negative evidence consists primarily of the Company&#8217;s history of significant pre-tax losses dating back to years prior to 2010. In total, the U.S. group of companies has approximately $0.6 million of state deferred tax assets, before application of valuation allowances, related to $13.7 million of state net operating losses which expire over periods ranging through 2036. The Israeli group of companies has approximately $30.1 million of deferred tax assets, before application of valuation allowances, related to $130.6 million of net operating loss carryforwards, which has accumulated over many years. Of the total Israeli group combined net operating losses, $51.2 million are limited in use as these net operating losses relate to specific subsidiaries, which are currently inactive and a valuation allowance remains against those losses. The Company believes that the combined impact of a number of Company specific and industry specific developments over recent years makes it unlikely that the repeated annual losses incurred prior to the year ended December 31, 2012 would recur.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">In addition, the Company considered negative evidence in connection with various industry specific factors. The market in which the Company participates is highly competitive and could be impacted by changes in technology. If the Company does not compete effectively, its operating results may be harmed by loss of market share and revenues. The Company may also face difficulty in attracting new customers, and if it fails to attract new customers, its business and results of operations may suffer. The Company also relies on independent retailers to sell the magicJack devices, and disruption to these channels would harm its business.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">After consideration of both the positive and negative evidence, the Company believes that its positive evidence is strong. The operating profits in recent years compared to the historical operating losses prior to 2012 is an objectively verifiable piece of positive evidence and is the result of a number of factors, which have been present to a greater or lesser extent in prior years, but have only recently gathered sufficient weight to deliver consistent taxable profits. A key consideration in the Company&#8217;s analysis was that the unlimited carryforward periods of its Israel net operating losses make the realization of those assets less sensitive to variations in the Company&#8217;s projections of future taxable income than would otherwise be the case if the carryforward periods were time limited.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Valuation allowances of $16.3 million, $17.5 million and $16.2 million at December 31, 2016, 2015 and 2014, respectively, were provided for deferred tax assets associated with net operating losses of an inactive foreign subsidiary, foreign capital and revaluation losses, unrealized gains on prior year transactions associated with the Company&#8217;s common equity put options, and domestic state net operating losses.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The reconciliation of the valuation allowance for the years ended December 31, 2016 and 2015 is as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1b7cbe09806d419faa80d592baf59638" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Years Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 68%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 68%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, beginning of period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,230</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 68%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Changes to the valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 13%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,225</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 13%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,314</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 68%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Balance, end of period</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,319</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 13%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,544</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Uncertain Tax Positions</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company reassesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the Company&#8217;s consolidated financial statements.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations.&#160; During 2013, the Company received notice that the IRS was going to examine its tax returns for 2010 and 2011.&#160; In October 2014, the Company was informed by the IRS that it was going to expand its audit to include the Company&#8217;s 2012 and 2013 tax returns. During 2015, the Company reached agreement with the IRS on a settlement of all years under audit. The settlement resulted in an increase to the jurisdictional income of the U.S. The additional tax and interest due to the IRS and various state taxing authorities as a result of the increased U.S. jurisdictional income was $6.8 million and $0.9 million, respectively.&#160; The Company was able to utilize approximately $4.2 million of benefits related to other favorable adjustments identified during the exam to satisfy a portion of the federal liability, resulting in net tax and interest paid to the IRS of $2.6 million. The $0.9 million state liability is reflected as a reduction to prepaid income taxes in the Company&#8217;s December 31, 2015 consolidated balance sheets. The increase to the U.S. jurisdictional income resulted in a decrease in the Company&#8217;s Israeli jurisdictional income. The decrease in Israeli income, in turn, increased the Company&#8217;s Israeli net operating losses, resulting in a tax benefit of $5.6 million. The tax years 2010 through 2016 remain open to examination by other major taxing jurisdictions to which the Company is subject.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zbb7172cfa95f4e12800b884b0983c680" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Years Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Unrecognized tax benefits, opening balance</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,929</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross increases (decreases) - tax positions in prior periods</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(356</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,030</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,978</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross increases - tax positions in current period</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,205</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Settlements</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(516</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(7,906</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Lapse of statute of limitations</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Unrecognized tax benefits, ending balance</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,136</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,929</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18,860</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">All amounts in the reconciliation above are reported on a gross basis and do not reflect a federal tax benefit on state income taxes. The Company does not anticipate a significant reduction in unrecognized tax benefits within the next twelve months due to lapse of statute of limitation.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">As of December 31, 2016, 2015 and, 2014, there were $8.3 million, $9.2 million and $12.5 million of unrecognized tax benefits, respectively, that if recognized, would favorably affect the Company&#8217;s annual effective tax rate. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense as a component of the income tax (benefit) expense in the Company&#8217;s consolidated statements of operations and the corresponding liability is included in income taxes payable and other non-current liabilities in its consolidated balance sheets.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">As of December 31, 2016, 2015 and 2014, $10.4 million, $10.8 million and $11.4 million, respectively, was included in other non-current liabilities in the Company&#8217;s consolidated balance sheets for uncertain tax positions. As of December 31, 2016 and 2015 nothing and as of December 31, 2014, $7.5 million was included in income taxes payable in the Company&#8217;s consolidated balance sheets for uncertain tax positions. The amount of accrued interest and penalties recognized by the Company in the years ended December 31, 2016, 2015 and 2014 was $2.1 million, $1.6 million and $0.7 million, respectively.</font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 14 &#8211; INCOME PER SHARE</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Net income per share&#8211; basic, is calculated by dividing net income attributable to the Company&#8217;s common shareholders by the weighted average number of ordinary shares outstanding during each period. Net income&#8211; diluted, is computed using net income per share attributable to the Company&#8217;s common shareholders, and dividing it by the weighted average number of ordinary and potentially dilutive ordinary share equivalents outstanding during the period. Potentially dilutive ordinary share equivalents consist of shares issuable upon the exercise or settlement of options to purchase ordinary shares.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Potentially dilutive securities, using the treasury stock method are set forth in the following table, which presents the computation of basic and diluted net income per ordinary share attributable to shareholders (in thousands, except for per share information):</font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="zcfef4ca2138a4b4bbc2fce871a6935ba" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Numerator:</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 16px"> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Net income attributable to common shareholders</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,691</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,785</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Denominator:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Denominator for basic net income per share - weighted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">average common shares outstanding</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,815</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,975</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,831</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effect of dilutive options and/or restricted stock units to</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">purchase common shares</div> </td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effect of dilutive options and/or restricted stock units</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">exercised or expired during the year</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">249</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">68</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">37</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Denominator for diluted net income per share - weighted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 64%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 20pt">average common shares outstanding *</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,064</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,045</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,868</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 15px"> <td style="vertical-align: bottom; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income per common share:</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basic</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Diluted</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.35</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">* Options to purchase 2,402,427 ordinary shares and 299,137 restricted stock units outstanding during the year ended December 31, 2016 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,524,927 ordinary shares and 443,102 restricted stock units outstanding during the year ended December 31, 2015 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,037,107 ordinary shares and 147,264 restricted stock units outstanding for the year ended December 31, 2014 were not included in the calculation of diluted earnings per ordinary share because their exercise prices were greater than the average market price of the ordinary shares and their inclusion would have been antidilutive.</font></div> <div style="text-align: justify; line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">NOTE 15 &#8211; ACQUISITION OF BUSINESS</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Broadsmart</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On March 15, 2016, the Company entered into an Asset Purchase Agreement, dated as of March 15, 2016 (the "Agreement") with Todd A. Correll, Thomas J. Tharrington (Messrs. Correll and Tharrington are collectively referred to as the "Seller Shareholders"), North American Telecommunications Corporation d/b/a Broadsmart (the "Seller" and collectively with the "Seller Shareholders," referred to as the "Seller Parties"). <font style="font: 10pt Times New Roman, Times, serif">Based on</font> the terms and subject to the conditions set forth in the Agreement, the Company <font style="font: 10pt Times New Roman, Times, serif">acquired</font> all of the Seller's assets, properties and rights of whatever kind, tangible and intangible, other than certain excluded assets and liabilities.</font></div> </div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company <font style="font: 10pt Times New Roman, Times, serif">acquired</font> substantially all of the assets and assume<font style="font: 10pt Times New Roman, Times, serif">d</font> certain liabilities of the Seller in exchange for approximately $38.0 million in cash, plus unregistered ordinary shares of the Company worth $1.8 million, valued based on the average of the previous 30 days stock price, subject to certain adjustments, including an adjustment for working capital and indebtedness. The Agreement also provided for an additional contingent payment of up to $200,000 in cash to the Seller Shareholders in the event that certain two individuals currently employed by the Seller fail to accept the Company's employment offer (the contingent payment is $100,000 in the event that one of the two individuals fails to accept such employment offer). This amount <font style="font: 10pt Times New Roman, Times, serif">wa</font>s included in <font style="font: 10pt Times New Roman, Times, serif">consideration and was recorded as </font>accrued expenses and other current liabilities in the accompanying consolidated balance sheets as of December 31, 2016. Lastly, the Seller Shareholders <font style="font: 10pt Times New Roman, Times, serif">would </font>receive an additional contingent payment of $2.0 million in cash if the acquired assets generate<font style="font: 10pt Times New Roman, Times, serif">d</font> 2016 revenues equal to or exceeding $15.6 million (the "Earnout Payment"). The $2.0 million Earnout Payment was paid into escrow at the time of closing<font style="font: 10pt Times New Roman, Times, serif">. With the help of a third party valuation firm, the value of this contingent consideration was determined to be $1.7 million which was included in total consideration of the business acquired. </font>&#160;In the third quarter ended September 30, 2016 management concluded that it was remote that 2016 revenues of the acquired assets would equal or exceed $15.6 million, and accordingly recorded a $2.0 million receivable from earnout escrow in the consolidated balance sheets. Corresponding income of $1.7 million from change in contingent consideration was recorded as a reduction of operating expense labeled gain on mark-to-market in the consolidated statement of operations.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">As specified by</font> the Agreement<font style="font: 10pt Times New Roman, Times, serif">,</font>&#160;the Company place<font style="font: 10pt Times New Roman, Times, serif">d</font> $3.0 million of the cash consideration at the closing in escrow with an escrow agent. The purpose of the escrow is to cover any indemnification claims by the Company against the Seller Parties. Under the terms of the Agreement, the Seller Parties are not liable to the Company and its affiliates until the aggregate amount of all losses in respect of indemnification exceeds $400,000 (the "Basket") and in such case the Seller Parties shall be liable only for all losses in excess of the Basket up to a cap of $3.0 million and excluding any individual loss that is less than or equal to $7,500. Certain fundamental representations and warranties, the post-closing covenants and certain other specified obligations of the Seller Parties are outside of the Basket, cap and individual loss limitations. The Company, at this time, does not estimate any liability in excess of the Basket and therefore no asset or liability are included in the accompanying consolidated balance sheets for this item.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On March 17, 2016, the Company completed the acquisition of substantially all of the assets and assumed certain liabilities of Broadsmart upon the terms and conditions of the Agreement.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company issued 233,402 shares of the Company's ordinary shares from treasury stock with a fair value of $1.7 million based on closing market price per share as of the date of the acquisition to the Seller in satisfaction of the stock consideration provided in the Agreement. The Company also granted stock options to each of the Seller Shareholders to purchase 500,000 shares of the Company's ordinary shares in conjunction with each of them entering into an employment agreement with the Company which is considered compensation expense. The stock options shall vest as follows: 50% will vest in even annual increments over the next three-year period if the Seller Shareholders remain employed with the Company as of each respective vesting date, and 50% will vest over the next three-year period if Broadsmart achieves certain designated revenue and EBITDA targets. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The Agreement also provided for an additional contingent payment of up to $1.0 million in cash from the Seller Shareholders to certain two non-shareholders currently employed by the Seller Shareholders in the event those two individuals accept the Company's employment offer and remain employed by the Company through and including December 15, 2016. No expense has been recorded for this as no agreement has been reached on employment offers with the two non-shareholders.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Broadsmart is a leading hosted Unified Communication as a Service (&#8220;UCaaS&#8221;) provider for medium-to-large multi-location enterprise customers. Broadsmart has a track record of provisioning and delivering complex UCaaS solutions to blue chip corporate customers on a nationwide basis. Broadsmart has expertise in servicing enterprises with hundreds-to-thousands of locations. With the acquisition of Broadsmart, the Company has diversified its operations into UCaaS targeting high end enterprise customers. This acquisition has positioned the Company to compete long-term in the UCaaS market.</font></div> <font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company incurred $0.8 million in acquisition related transaction costs, which are included in general and administrative expense in the accompanying consolidated statements of operations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The results of operations of the Broadsmart business and the estimated fair values of the assets acquired and liabilities assumed have been included in our consolidated financial statements since the date of the acquisition.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The acquisition was accounted for using the acquisition method of accounting under which assets and liabilities of Broadsmart were recorded at their respective fair values including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. The Company expects this goodwill to be deductible for tax purposes. The goodwill attributable to the acquisition has been recorded as a non-current asset and is not amortized, but is subject to an annual review for impairment. </font>Refer to Note 7, &#8220;Goodwill&#8221; for further details. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management&#8217;s estimates and assumptions. The Company finalized the valuation as of December 31, 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The table below summarizes the Broadsmart assets acquired and liabilities assumed as of March 17, 2016, including any measurement period adjustments (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z536c4f756b9e47938724c5ef55a32d50" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr style="height: 19px"> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Estimated Fair Value</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 19px"> <td style="vertical-align: middle; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Assets</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom"></td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 14px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; background-color: #ffffff; vertical-align: bottom"> <div>Current assets:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 13px"> <td style="vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Accounts&#160;receivable</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">$</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">567</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Inventories</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>302</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deposits and other current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>143</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,012</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Property&#160;and equipment</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>355</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Intangible&#160;assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>26,385</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deposits and other non-current assets</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>96</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total assets acquired</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>27,848</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; font-weight: bold; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; font-weight: bold; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Current liabilities:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Accrued expenses and other current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>900</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Deferred revenue</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>172</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,072</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div style="margin-left: 9pt">Other non-current liabilities</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>62</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Total liabilities&#160;assumed</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,134</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 18px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Net identifiable assets acquired</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>26,714</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div style="margin-left: 9pt">Goodwill</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>14,881</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 4px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Total purchase price</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>41,595</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 88%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; vertical-align: bottom"> <div>The intangible&#160;assets as of the closing date of the acquisition included:</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; font-weight: bold; background-color: #ffffff; vertical-align: bottom"> <div style="text-align: center">Amount</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Customer relations hips</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>22,100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Non-compete agreements</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Tradename</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>2,200</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; width: 88%; background-color: #ffffff; vertical-align: bottom"> <div>Process know how</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>1,100</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="font-family: Times New Roman, Times, serif; vertical-align: middle; padding-bottom: 2px; width: 88%; background-color: #cceeff; vertical-align: bottom"> <div>Software&#160;license</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div>885</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 12px"> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 88%; background-color: #ffffff; vertical-align: bottom"></td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div>$</div> </td> <td style="font-family: Times New Roman, Times, serif; vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div>26,385</div> </td> <td nowrap="nowrap" style="font-family: Times New Roman, Times, serif; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">Indications of fair value of the intangible assets acquired in connection with the acquisition were determined using either the income, market or replacement cost methodologies. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized. The customer relationships are being amortized on an accelerated basis over an estimated useful life of ten years and the non-compete agreements, process know how and software license are being amortized on a straight-line basis over four years, five years and ten years, respectively. Tradename is not subject to amortization but is subject to an annual review for impairment. An impairment charge of $0.5 million was recognized on the tradename during the year ended December 31, 2016.&#160; </font>Refer to Note 6, &#8220;Intangible Assets&#8221; for further details.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Pro Forma Financial Information</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The following table presents the unaudited pro forma combined results of operations of the Company and Broadsmart for the years ended December 31, 2016 and 2015 as if the acquisition of Broadsmart had occurred on January 1, 2015.</font><font style="font: 10pt Times New Roman, Times, serif">&#160;</font><font style="font: 10pt Times New Roman, Times, serif">The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2015.</font></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1160647c5629497890a3219f23c19c24" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">99,938</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">113,525</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,407</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,305</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif">The pro forma results are based on estimates and assumptions, which the Company believes are reasonable.</font><font style="font: 10pt Times New Roman, Times, serif">&#160;</font><font style="font: 10pt Times New Roman, Times, serif">The pro forma results include adjustments primarily related to amortization of acquired intangible assets, depreciation, interest expense, and transaction costs expensed during the period.</font></font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 16 &#8211; SEGMENT REPORTING</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Reportable segments are defined under U.S. GAAP as components of an enterprise for which separate financial information is available and evaluated regularly by a company's chief operating decision makers in deciding how to allocate resources and assess performance.</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Historically, the Company has not had separate reportable segments. However, with the acquisition of Broadsmart in March 2016, refer to Note 15, &#8220;Acquisition of Business,&#8221; for further details, and the founding of the SMB business during the first quarter of 2016, management evaluated each of these new business lines separately and determined that the Company now has three reportable segments &#8211; &#8220;Core Consumer,&#8221; &#8220;Enterprise&#8221; and &#8220;SMB&#8221;. These segments are organized by the products and services that are sold and the customers that are served. The below table includes an &#8220;Other&#8221; segment to capture the Company&#8217;s interest in a joint venture that does not meet either the aggregation criteria to be combined with the existing Core Consumer segment or the quantitative thresholds to be treated as a reportable segment.&#160; The Company measures and evaluates its reportable segments based on revenues and gross profit margins. The Company&#8217;s segments and their principal activities consist of the following:</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Core Consumer</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">This segment represents a vertically integrated group of companies, a micro-processor chip design company, an Appserver and session border controller company, a wholesale provider of VoIP services, a softphone company, the developer and provider of the magicJack device, and a wholesaler of telephone service to VoIP providers and telecommunication carriers. This segment represents the historical magicJack consumer business.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">magicJack is a cloud communications leader that is the inventor of the magicJack devices and other magicJack products and services. magicJack&#8217;s products and services allow users to make and/or receive free telephone calls to and from anywhere in the world where the customer has broadband access to the Internet, and allow customers to make free calls back to the United States and Canada from anywhere legally permitted in the world.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Enterprise</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">This segment includes Broadsmart. Broadsmart is a leading hosted Unified Communication as a Service (&#8220;UCaaS&#8221;) provider for medium-to-large multi-location enterprise customers. Broadsmart has a track record of provisioning and delivering complex UCaaS solutions to blue chip corporate customers on a nationwide basis. Broadsmart has expertise in servicing enterprises with hundreds-to-thousands of locations.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">SMB</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Through this segment, started during the first quarter of 2016, the Company provides VoIP services to small to medium sized businesses. The Company began sales of its SMB segment in the third quarter of 2016.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">Other</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">This segment includes the Company&#8217;s 60% controlling interest in a joint venture which began selling a line of high-technology residential consumer products in the fourth quarter of fiscal year 2016. The Company&#8217;s consolidated financial statements for the year ended December 31, 2016, include an adjustment to comprehensive income attributable to common shareholders of $635 thousand, to recognize the impact of the noncontrolling interest.&#160; The Company has determined that the joint venture does not meet either the aggregation criteria to be combined with the existing Core Consumer segment or the quantitative thresholds to be treated as a reportable segment. As such, it is included in the &#8220;Other&#8221; segment.</font></div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif">Selected information for the year ended December 31, 2016 is presented by Reportable Segment below (in thousands):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <table id="z890a2c8185044cb8bd6a85aaec86d910" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="22" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">For the Year ended December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Core Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Intercompany</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">88,315</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,043</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">105</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Cost of revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">29,250</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">179</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">81</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">36,734</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Gross profit (loss)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">59,065</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,819</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(74</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(68</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">60,664</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Marketing</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,768</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">380</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,497</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">440</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,085</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">General and administrative</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,584</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,641</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,102</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,076</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34,325</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Research and development</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,859</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">22</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,313</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,199</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gain on mark-to-market</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,700</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,700</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Operating expenses</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">30,511</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,043</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">10,912</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,521</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(78</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">46,909</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating income (loss)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28,554</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,986</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,589</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,755</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Interest and dividend income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(26</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(26</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other expenses, net</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Income (loss) before income taxes</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">28,574</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,224</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(10,986</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,589</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,775</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z90c256cc88ab4212ba01f15e4e34e939" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="22" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">For the Year ended December 31, 2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Core Consumer</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Enterprise</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SMB</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Other</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Intercompany</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: middle; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Consolidated</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Goodwill</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">32,304</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,881</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Total assets</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">142,870</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">40,839</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(9,447</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">255</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">174,517</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Capital expenditures</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">511</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">431</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">220</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,185</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 28%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Depreciation expense</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">994</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">155</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">40</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,191</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 28%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Amortization expense</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,604</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,938</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,542</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> </div></div> <div style="line-height: 1.25"><div style="font: italic bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gain on Mark-to-Market</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The acquisition of Broadsmart in March 2016, described in Note 15, &#8220;Acquisition of Business,&#8221; <font style="font: 10pt Times New Roman, Times, serif">included an additional contingent payment of $2.0 million in cash to Todd A. Correll and Thomas J. Tharrington (Messrs. Correll and Tharrington are collectively referred to as the "Seller Shareholders"), if the acquired assets generate 2016 revenues equal to or exceeding $15.6 million (the "Earnout Payment"). The Earnout Payment will not exceed $2.0 million. The $2.0 million Earnout Payment was paid into escrow at the time of closing</font><font style="font: 10pt Times New Roman, Times, serif">. With the help of a third party valuation firm, the value of this contingent consideration was determined to be $1.7 million</font><font style="font: 10pt Times New Roman, Times, serif">&#160;</font><font style="font: 10pt Times New Roman, Times, serif">which was </font><font style="font: 10pt Times New Roman, Times, serif">included in total consideration of the business acquired</font><font style="font: 10pt Times New Roman, Times, serif">. In the third quarter ended September 30, 2016, management concluded that it was remote that 2016 revenues of the acquired assets would equal or exceed $15.6 million, and accordingly recorded a $2.0 million receivable from earnout escrow in the consolidated balance sheets. Corresponding income of $1.7 million from change in contingent consideration was recorded as a reduction of operating expense labeled gain on mark-to-market in the consolidated statements of operations.</font></font></div></div></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="za41a66b2d94b48398293c23106e0fae7" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr style="height: 16px"> <td style="vertical-align: top; width: 70%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">magicJack devices</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9,352</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Access right renewals</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">37,323</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">40,677</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Prepaid minutes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,851</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,525</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">371</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Deferred revenue, current</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">48,507</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">52,554</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 70%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 70%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred revenue, non-current*</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">44,201</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 12%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">50,146</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 4px; width: 70%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; margin-left: 9pt">Total deferred revenues</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">92,708</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 12%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">102,700</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <div style="clear: both"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z6a9dad1ce7104826adb9ea4520c58f5d" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 76.54%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.</div> </td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <table id="z8292098fc41f4a5ca2702123b72a15a6" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">Date of Grant</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Number of </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Options</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Average Exercise </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Price</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Weighted Average </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Remaining </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Contractual Term<font style="font: 10pt Times New Roman, Times, serif"><br /> </font>(in years)</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Aggregate </div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Intrinsic Value *</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">January 1, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,285,207</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.95</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4.41</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">762,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.71</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(3,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(30</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">147.55</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2014</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,043,857</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.87</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">998,614</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">9.33</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(4,250</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Forfeited</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(247,257</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14.42</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(263,537</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12.67</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2015</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,527,427</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">12.98</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.61</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Granted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,107,040</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7.09</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Exercised</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2,500</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.96</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Forfeited</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(34,740</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">8.83</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Expired or cancelled</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(109,168</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,488,059</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">11.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.11</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Vested at December 31, 2016</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,310,482</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.54</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 52%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 4px; width: 52%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Exercisable at December 31, 2016 and expected to vest</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,310,482</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15.54</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">-</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z8f861014666c4a0d97780981d05e5d53" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">* The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options on the respective dates.</div> </td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div></div> <table id="z29dacd1c3c6544149d9b0ad26e5ab260" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="10" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2014</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Federal tax at statutory rate</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">34.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">State and local taxes, net of federal</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Taxable gains from revaluation</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">45.01</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Effect of exchange rate on deferred taxes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">18.84</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Foreign results at rates other than domestic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(5.65</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(27.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Uncertain tax positions</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(5.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">47.60</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Anticipated benefit on increase in foreign NOL</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(38.77</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Expiration of stock options</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.73</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Noncontrolling interest</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1.57</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Israeli tax rate changes</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">38.13</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Deferred tax charges on intercompany sales</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2.16</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Return-to-provision adjustments</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.25</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.00</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Other</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(2.66</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 2px; width: 64%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Valuation allowance</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(8.89</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(11.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> </tr> <tr> <td style="vertical-align: middle; padding-bottom: 4px; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Effective tax rate</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">63.30</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">46.63</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> <td style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">72.03</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">%</div> </td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><font style="font: 10pt Times New Roman, Times, serif"></font></font><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z1160647c5629497890a3219f23c19c24" cellspacing="0" cellpadding="0" align="left" border="0" style="font: 10pt Times New Roman, Times, serif; width: 75%"> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="6" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Year Ended</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">December 31,</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; width: 64%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2016</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; width: 1%; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">2015</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">99,938</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">113,525</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 64%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,407</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 15%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,305</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="text-align: justify; line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left"></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: justify">NOTE 17 &#8211; SUBSEQUENT EVENTS</div> <div style="text-align: justify; line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">On January 3, 2017, the Company received a letter from the staff of the Listing Qualifications Department of The Nasdaq Global Stock Market ("NASDAQ") notifying the Company that the Company no longer complies with NASDAQ Listing Rule 5620(a) for continued listing due to its failure to hold its 2016 annual meeting of shareholders within twelve months of the end of the Company's fiscal year ended December 31, 2015. The Company's last annual meeting of shareholders was held on July 8, 2015. As a result, as of January 3, 2017, the Company had 45 calendar days to submit a plan to regain compliance. If NASDAQ accepts the Company's plan, NASDAQ can grant an exception of up to 180 calendar days from the fiscal year ended December 31, 2016, or until June 29, 2017, to regain compliance.&#160; The Company submitted a plan of compliance and supplemental materials to NASDAQ on February 17, 2017 and February 27, 2017.&#160; On March 3, 2017, NASDAQ notified the Company that it had granted an extension to the Company to regain compliance with the rule by holding the annual meeting of shareholders on or before June 29, 2017.&#160; The Company anticipates holding its 2016 annual shareholders meeting on April 19, 2017.</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <div id="DSPFPageHeader"></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">As previously disclosed, the Company had a 60% controlling interest in a joint venture which began selling a line of high-technology residential consumer products in the fourth quarter of fiscal year 2016.&#160; As of December 31, 2016, the Company had invested a total of approximately $1.5 million in this joint venture.&#160; In the first quarter of 2017, the Company determined that it would not make any further investments in this joint venture.&#160; As a result of the Company's decision not to further invest, under the original terms of the joint venture, the Company's ownership interest was automatically reduced to 36%.&#160; Because the joint venture constitutes a variable interest entity of the Company, the results of the joint venture will continue to be consolidated on the Company's financial statements.</div> <font style="font: normal 10pt Times New Roman, Times, serif"></font></div> <font style="font: normal 10pt Times New Roman, Times, serif"></font> <div>&#160;</div> <div> <div style="font: normal 10pt Times New Roman, Times, serif"></div> <div style="font: normal 10pt/1.25 Times New Roman, Times, serif; text-align: justify">As previously announced in January 2017, Keith Reed, the Senior Vice President and General Manager of SMB, departed the Company effective February 3, 2017 and the Company announced a new direction and anticipated operating efficiencies for the SMB unit.&#160; As a result, the Company has made the decision to significantly reduce the staff of the SMB subsidiary and refocus the direction of the business.&#160;The Company plans to continue to sell the product and report SMB as a reportable segment going forward, but has plans to make significant changes to the marketing and sales approaches on a going forward basis.</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="line-height: 1.25"> <div></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">As previously disclosed in December 2016, the Board of Directors of the Company approved, subject to shareholder approval at the 2016 annual shareholders meeting, an extension of the term of Gerald Vento's employment agreement with the Company under the <font style="font: 10pt Times New Roman, Times, serif">under the terms of his Executive Employment Agreement with the Company dated January 1, 2013, as amended by Amendment to Executive Employment Agreement, dated as of July 15, 2015 (collectively, the "Vento Employment Agreement") such that Mr. Vento would continue to serve as the Company's President and Chief Executive Officer through the earlier of June 30, 2017 or the date the Company hired a President and Chief Executive Officer to replace Mr. Vento (the "Second Amendment").&#160; In March 2017, the Company announced that it had appointed Don Carlos Bell III as President and Chief Executive Officer of the Company to succeed Mr. Vento as President and Chief Executive Officer, effective as of March 9, 2017.&#160; Mr. Bell has agreed to defer negotiation of his compensation in exchange for serving as the Company's President and Chief Executive Officer pending his election as a director of the Company at the 2016 annual shareholders meeting.&#160; Mr. Vento will remain on the Board of Directors of the Company and will serve as a consultant to the Company effective as of March 10, 2017 on the terms previously disclosed in the Form 8-K filed on January 5, 2017 in connection with the Second Amendment. Compensation in connection with Mr. Vento&#8217;s extension of employment under the Second Amendment and his services as a consultant will not be paid until shareholder approval is received at the 2016 annual shareholders meeting, at which time all accrued compensation will be paid to Mr. Vento.</font></div> </div> <div style="line-height: 1.25">&#160;</div> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">The Company filed its definitive proxy statement for its 2016 annual shareholders meeting on March 15, 2017.&#160; The Company's 2016 annual shareholders meeting will be held on April 19, 2017 at 10:00 a.m. Eastern Daylight Time at the offices of the Company located at 222 Lakeview Avenue, Suite 1600, West Palm Beach, Florida 33401 unless otherwise adjourned or postponed.</font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">MAGICJACK VOCALTEC LTD. AND SUBSIDIARIES</div> <div style="line-height: 1.25"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SUPPLEMENTAL FINANCIAL INFORMATION</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)</div> <div style="line-height: 1.25"><font style="font: normal 10pt Times New Roman, Times, serif"><br style="line-height: 1.25" /> </font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif">Quarterly financial results for the years ended December 31, 2016 and 2015 were as follows (in thousands, except per share data):</font></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z0b96f6ca167240c08f50f828bc45c4c8" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">First</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Second</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Third</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fourth</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Total Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">2016</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,699</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,301</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,572</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,826</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross profit</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,490</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,463</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,063</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,648</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">60,664</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating income (loss) (2)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,234</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,206</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,428</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(113</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,755</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income (loss)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">734</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,515</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,222</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,415</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,056</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income (loss) attributable to magicJack VocalTec Ltd&#160; common shareholders</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">734</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,819</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,261</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,691</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Earnings per magicJack VoalTec Ltd common share: (1)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Basic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(0.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Diluted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(0.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.35</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <table id="z42b4602423364756a22c0a846518e71f" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">First</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Second</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Third</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fourth</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Total Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">2015</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,512</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,410</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,409</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,631</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">100,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross profit</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,045</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,741</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,184</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,850</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">66,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,433</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,429</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,453</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,028</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,308</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,952</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,311</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,939</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Earnings per ordinary share: (1)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.12</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Diluted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z3515ea87de3849138458e0021ef74ba7" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td colspan="10" style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">(1) The sum of quarterly earnings per ordinary share amounts may not add to the annual earnings per ordinary share amount due to the weighting of ordinary shares and equivalent ordinary shares outstanding during each of the respective periods.</div> </td> </tr> <tr> <td colspan="10" style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">(2) During the third quarter of 2016, the Company recognized a $2.0 million gain on mark-to-market related to the Broadsmart Earnout and a $0.5 million loss on impairment of intangible assets. During the fourth quarter of 2016, the Company reduced the gain on mark-to-market by $0.3 million and recognized a $0.5 million loss on impairment of intangible assets.</div></td></tr></table></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"></div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font id="DSPFPageNumber" style="font: normal 10pt Times New Roman, Times, serif"></font> <div id="DSPFPageHeader"><font style="font: normal 10pt Times New Roman, Times, serif">&#160; </font></div> <table id="z0b96f6ca167240c08f50f828bc45c4c8" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: top; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">First</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Second</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Third</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fourth</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Total Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">2016</div> </td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,699</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,301</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,572</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">23,826</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">97,398</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross profit</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,490</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,463</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">15,063</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">14,648</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">60,664</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating income (loss) (2)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,234</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,206</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,428</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(113</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,755</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income (loss)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">734</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,515</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,222</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,415</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,056</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income (loss) attributable to magicJack VocalTec Ltd&#160; common shareholders</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">734</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">2,819</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,399</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(1,261</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">5,691</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Earnings per magicJack VoalTec Ltd common share: (1)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Basic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(0.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.36</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Diluted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.05</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.18</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.21</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">(0.08</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.35</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"> <table id="z42b4602423364756a22c0a846518e71f" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td style="vertical-align: bottom; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">First</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Second</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Third</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: bottom; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Fourth</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">&#160;</div> </td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Quarter</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td colspan="2" nowrap="nowrap" style="vertical-align: top; border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: center">Total Year</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: bold 10pt/1.25 Times New Roman, Times, serif; text-align: left">2015</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net revenues</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,512</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,410</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,409</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">24,631</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">$</div> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">100,962</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: top; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Gross profit</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,045</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,741</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">17,184</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">16,850</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">66,820</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Operating income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">4,433</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,429</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,453</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">7,028</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">25,343</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Net income</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,308</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">6,952</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">3,311</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">1,939</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">13,510</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left">Earnings per ordinary share: (1)</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Basic</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.12</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.80</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff; vertical-align: bottom">&#160;</td> </tr> <tr> <td style="vertical-align: bottom; width: 40%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: left; text-indent: 10pt">Diluted</div> </td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.07</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.39</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.20</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.15</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff; vertical-align: bottom"> <div style="font: 10pt/1.25 Times New Roman, Times, serif">0.79</div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff; vertical-align: bottom">&#160;</td> </tr> </table> </div> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, serif"></font> <div><font style="font: normal 10pt Times New Roman, Times, serif"></font>&#160;</div> <table id="z3515ea87de3849138458e0021ef74ba7" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, serif; width: 100%"> <tr> <td colspan="10" style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">(1) The sum of quarterly earnings per ordinary share amounts may not add to the annual earnings per ordinary share amount due to the weighting of ordinary shares and equivalent ordinary shares outstanding during each of the respective periods.</div> </td> </tr> <tr> <td colspan="10" style="vertical-align: top; width: 100%"> <div style="font: 10pt/1.25 Times New Roman, Times, serif; text-align: justify">(2) During the third quarter of 2016, the Company recognized a $2.0 million gain on mark-to-market related to the Broadsmart Earnout and a $0.5 million loss on impairment of intangible assets. During the fourth quarter of 2016, the Company reduced the gain on mark-to-market by $0.3 million and recognized a $0.5 million loss on impairment of intangible assets.</div></td></tr></table></div> -300000 The estimated useful life for leasehold improvements is the shorter of the term of the lease or life of the asset. The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options on the respective dates. The sum of quarterly earnings per ordinary share amounts may not add to the annual earnings per ordinary share amount due to the weighting of ordinary shares and equivalent ordinary shares outstanding during each of the respective periods. Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals. Options to purchase 2,402,427 ordinary shares and 299,137 restricted stock units outstanding during the year ended December 31, 2016 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,524,927 ordinary shares and 443,102 restricted stock units outstanding during the year ended December 31, 2015 were not included in the calculation of diluted earnings per share because their respective exercise prices were greater than the average market price of the ordinary shares and their inclusion in the calculation would be antidilutive. Options to purchase 2,037,107 ordinary shares and 147,264 restricted stock units outstanding for the year ended December 31, 2014 were not included in the calculation of diluted earnings per ordinary share because their exercise prices were greater than the average market price of the ordinary shares and their inclusion would have been antidilutive. During the third quarter of 2016, the Company recognized a $2.0 million gain on mark-to-market related to the Broadsmart Earnout and a $0.5 million loss on impairment of intangible assets. During the fourth quarter of 2016, the Company reduced the gain on mark-to-market by $0.3 million and recognized a $0.5 million loss on impairment of intangible assets.