%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 1 J 1 j 3 M 50 744.1 m 562 744.1 l s BT /F1 10.00 Tf ET BT /F2 18.00 Tf ET q 0 0 0 rg BT 235.55 720.50 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 720.50 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 720.50 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 698.90 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 698.90 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.45 686.90 Td (W) Tj ET Q q 0 0 0 rg BT 263.90 686.90 Td (ashington, D.C. 20549) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 257.25 657.30 Td (FORM 10-K) Tj ET Q /GS0 gs q 10.70 0 0 11.71 57.15 632.59 cm /I1 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 78.00 635.92 Td (ANNUAL) Tj ET Q q 0 0 0 rg BT 128.67 635.92 Td ( REPOR) Tj ET Q q 0 0 0 rg BT 173.25 635.92 Td (T) Tj ET Q q 0 0 0 rg BT 181.04 635.92 Td ( PURSUANT) Tj ET Q q 0 0 0 rg BT 249.16 635.92 Td ( ) Tj ET Q q 0 0 0 rg BT 251.94 635.92 Td (T) Tj ET Q q 0 0 0 rg BT 259.73 635.92 Td (O SECTION13 OR 15\(d\) OF) Tj ET Q q 0 0 0 rg BT 410.96 635.92 Td ( ) Tj ET Q q 0 0 0 rg BT 413.75 635.92 Td (THE) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 78.00 623.92 Td (SECURITIES EXCHANGE ) Tj ET Q q 0 0 0 rg BT 225.38 623.92 Td (ACT) Tj ET Q q 0 0 0 rg BT 250.49 623.92 Td ( OF) Tj ET Q q 0 0 0 rg BT 269.71 623.92 Td (1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.15 607.30 Td (For) Tj ET Q q 0 0 0 rg BT 225.52 607.30 Td ( the fiscal year) Tj ET Q q 0 0 0 rg BT 287.26 607.30 Td ( ended: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.15 607.30 Td (December) Tj ET Q q 0 0 0 rg BT 364.28 607.30 Td (31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.78 607.30 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.35 595.30 Td (or) Tj ET Q /GS0 gs q 10.69 0 0 11.71 57.15 570.59 cm /I2 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 78.00 573.92 Td (TRANSITION REPOR) Tj ET Q q 0 0 0 rg BT 198.60 573.92 Td (T) Tj ET Q q 0 0 0 rg BT 206.38 573.92 Td ( PURSUANT) Tj ET Q q 0 0 0 rg BT 274.51 573.92 Td ( ) Tj ET Q q 0 0 0 rg BT 277.29 573.92 Td (T) Tj ET Q q 0 0 0 rg BT 285.08 573.92 Td (O SECTION13 OR 15\(d\) OF) Tj ET Q q 0 0 0 rg BT 436.31 573.92 Td ( ) Tj ET Q q 0 0 0 rg BT 439.10 573.92 Td (THE) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 78.00 561.92 Td (SECURITIES EXCHANGE ) Tj ET Q q 0 0 0 rg BT 225.38 561.92 Td (ACT) Tj ET Q q 0 0 0 rg BT 250.49 561.92 Td ( OF) Tj ET Q q 0 0 0 rg BT 269.71 561.92 Td (1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 545.30 Td (For) Tj ET Q q 0 0 0 rg BT 232.67 545.30 Td ( the transition period fr) Tj ET Q q 0 0 0 rg BT 333.03 545.30 Td (omto) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 237.10 525.30 Td (Commission File No.: 001-33710) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 140.85 495.70 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 273.40 495.70 Td ( ) Tj ET Q q 0 0 0 rg BT 277.57 495.70 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.70 483.70 Td (\(Exact name of registrant as specified in its charter\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.80 455.93 Td (Delawar) Tj ET Q q 0 0 0 rg BT 250.72 455.93 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.60 445.77 Td (State or other jurisdiction of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.45 435.77 Td (incorporation or or) Tj ET Q q 0 0 0 rg BT 251.80 435.77 Td (ganization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 350.80 455.93 Td (06-1393453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.80 445.77 Td (\(I.R.S. Employer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.75 435.77 Td (Identification No.\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.70 407.70 Td (1621 Fiske Place) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.10 395.70 Td (Oxnard, CA) Tj ET Q q 0 0 0 rg BT 318.33 395.70 Td ( 93033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.35 383.70 Td (\(Address of principal executive of) Tj ET Q q 0 0 0 rg BT 339.79 383.70 Td (fices\) \(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.05 363.70 Td (Registrant's telephone number) Tj ET Q q 0 0 0 rg BT 290.87 363.70 Td (, including area code: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.44 363.70 Td (\(805\)639-9458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 343.70 Td (Securities registered pursuant to Section12\(b\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 94.5 321.2 m 294.5 321.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 321.2 m 516.5 321.2 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 163.95 325.28 Td (Title of each class) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.00 325.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.70 325.28 Td (Name of each exchange on which registered) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.25 311.77 Td (Common Stock, $0.01 par value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 311.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 311.77 Td (The NASDAQ Stock MarketLLC) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 287.70 Td (Securities registered pursuant to Section12\(g\): ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.51 287.70 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 267.70 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 364.56 267.70 Td (, as defined in rule405 of the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.70 Td (Act.) Tj ET Q q 0 0 0 rg BT 69.07 255.70 Td (Y) Tj ET Q q 0 0 0 rg BT 75.29 255.70 Td (es) Tj ET Q /GS0 gs q 8.91 0 0 10.09 86.12 253.54 cm /I3 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.03 255.70 Td (No) Tj ET Q /GS0 gs q 8.92 0 0 10.09 119.75 253.54 cm /I4 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 235.70 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15\(d\) of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.70 Td (Act.) Tj ET Q q 0 0 0 rg BT 69.07 223.70 Td (Y) Tj ET Q q 0 0 0 rg BT 75.29 223.70 Td (es) Tj ET Q /GS0 gs q 8.91 0 0 10.09 86.12 221.54 cm /I5 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.03 223.70 Td (No) Tj ET Q /GS0 gs q 8.92 0 0 10.09 119.75 221.54 cm /I6 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 203.70 Td (Indicate by check mark whether the registrant: \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 191.70 Td (Securities Exchange ) Tj ET Q q 0 0 0 rg BT 133.31 191.70 Td (Act of 1934 during the preceding 12months \(or for such shorter period that the registrant was required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.70 Td (file such reports\), and \(2\)has been subject to such filing requirements for the past 90days.) Tj ET Q q 0 0 0 rg BT 414.80 179.70 Td (Y) Tj ET Q q 0 0 0 rg BT 421.03 179.70 Td (es) Tj ET Q /GS0 gs q 8.92 0 0 10.09 431.86 177.54 cm /I7 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.77 179.70 Td (No) Tj ET Q /GS0 gs q 8.91 0 0 10.09 465.49 177.54 cm /I8 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 159.70 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 487.51 159.70 Td (W) Tj ET Q q 0 0 0 rg BT 496.15 159.70 Td (ebsite, if any) Tj ET Q q 0 0 0 rg BT 546.87 159.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.70 Td (every Interactive Data File required to be submitted and posted pursuant to Rule405 of RegulationS-T) Tj ET Q q 0 0 0 rg BT 463.05 147.70 Td ( during the preceding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.70 Td (12months \(or for such shorter period that the registrant was required to submit and post such files\).) Tj ET Q q 0 0 0 rg BT 450.38 135.70 Td (Y) Tj ET Q q 0 0 0 rg BT 456.60 135.70 Td (es) Tj ET Q /GS0 gs q 8.92 0 0 10.09 467.43 133.54 cm /I9 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.34 135.70 Td (No) Tj ET Q /GS0 gs q 8.91 0 0 10.09 501.06 133.54 cm /I10 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 115.70 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of RegulationS-K is not contained herein, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.70 Td (and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.70 Td (by reference in PartIII of this Form10-K or any amendment to this Form10-K.) Tj ET Q /GS0 gs q 8.91 0 0 10.09 379.93 89.54 cm /I11 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 71.70 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 289.23 71.70 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 364.88 71.70 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 445.53 71.70 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 539.50 71.70 Td (, or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 59.70 Td (smaller reporting company) Tj ET Q q 0 0 0 rg BT 157.09 59.70 Td (. See the definitions of "lar) Tj ET Q q 0 0 0 rg BT 264.30 59.70 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 339.95 59.70 Td (," "accelerated filer" and "smaller reporting company" ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 47.70 Td (in Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 174.41 47.70 Td (Act.) Tj ET Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.30 739.07 Td (Lar) Tj ET Q q 0 0 0 rg BT 76.00 739.07 Td (ge) Tj ET Q q 0 0 0 rg BT 87.38 739.07 Td (Acceleratedfiler) Tj ET Q /GS0 gs q 8.91 0 0 10.09 156.78 736.91 cm /I12 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.80 739.07 Td (Acceleratedfiler) Tj ET Q /GS0 gs q 8.91 0 0 10.09 272.19 736.91 cm /I13 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.95 739.07 Td (Non-acceleratedfiler) Tj ET Q /GS0 gs q 8.91 0 0 10.09 409.11 736.91 cm /I14 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.85 729.07 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.35 729.07 Td (\(Do not check if a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.55 720.45 Td (smaller reporting company\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.55 739.07 Td (Smallerreportingcompany) Tj ET Q /GS0 gs q 8.92 0 0 10.09 549.46 736.91 cm /I15 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 697.00 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule12b-2 of the Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.00 Td (Act\).) Tj ET Q q 0 0 0 rg BT 72.40 685.00 Td (Y) Tj ET Q q 0 0 0 rg BT 78.62 685.00 Td (es) Tj ET Q /GS0 gs q 8.91 0 0 10.09 89.45 682.84 cm /I16 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 685.00 Td (No) Tj ET Q /GS0 gs q 8.92 0 0 10.09 123.08 682.84 cm /I17 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 665.00 Td (The aggregate market value of the common equity held by non-af) Tj ET Q q 0 0 0 rg BT 339.50 665.00 Td (filiates of the registrant, computed by reference to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 653.00 Td (closing price as of the last business day of the registrant's most recently completed second fiscal quarter) Tj ET Q q 0 0 0 rg BT 464.61 653.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.61 653.00 Td (June30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.44 653.00 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 641.00 Td ($6,460,563) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 641.00 Td ( ) Tj ET Q q 0 0 0 rg BT 97.32 641.00 Td (This calculation does not reflect a determination that persons are af) Tj ET Q q 0 0 0 rg BT 365.92 641.00 Td (filiates for any other purposes. ) Tj ET Q q 0 0 0 rg BT 490.15 641.00 Td (The registrant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 629.00 Td (does not have non-voting common stock outstanding.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 609.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.44 609.00 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.04 609.00 Td (, the registrant had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 609.00 Td (15,703,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.96 609.00 Td ( shares of common stock issued and outstanding.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.40 589.00 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 319.83 589.00 Td (TED BY) Tj ET Q q 0 0 0 rg BT 356.41 589.00 Td ( REFERENCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 569.00 Td (Portions of the registrant) Tj ET Q q 0 0 0 rg BT 187.93 569.00 Td (s Proxy Statement for the registrant) Tj ET Q q 0 0 0 rg BT 332.62 569.00 Td (s 2017 ) Tj ET Q q 0 0 0 rg BT 360.96 569.00 Td (Annual Meeting of Stockholders are incorporated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 557.00 Td (by reference in Part III of this ) Tj ET Q q 0 0 0 rg BT 170.79 557.00 Td (Annual Report on Form 10-K. Such Proxy Statement will be filed with the Securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.00 Td (Exchange Commission within 120 days of December 31, 2016, the last day of the fiscal year covered by this ) Tj ET Q q 0 0 0 rg BT 486.28 545.00 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.00 Td (Form 10-K.) Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 1 J 1 j 3 M 50 523 m 562 523 l s BT /F1 10.00 Tf ET endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.60 31.60 Td (i) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.35 722.25 Td (Annual Report on Form10-K) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.70 710.25 Td (For) Tj ET Q q 0 0 0 rg BT 238.07 710.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 256.03 710.25 Td (Y) Tj ET Q q 0 0 0 rg BT 262.14 710.25 Td (ear) Tj ET Q q 0 0 0 rg BT 275.83 710.25 Td ( Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.63 710.25 Td (December) Tj ET Q q 0 0 0 rg BT 351.75 710.25 Td (31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.25 710.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.40 690.25 Td (T) Tj ET Q q 0 0 0 rg BT 274.15 690.25 Td (able of Contents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 661.43 Td (P) Tj ET Q q 0 0 0 rg BT 58.37 661.43 Td (AR) Tj ET Q q 0 0 0 rg BT 72.46 661.43 Td (T) Tj ET Q q 0 0 0 rg BT 78.95 661.43 Td ( I) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 661.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 661.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 646.42 Td (Item1.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 646.42 Td (Business) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 631.42 Td (Item1A.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 631.42 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 616.42 Td (Item1B.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 616.42 Td (Unresolved Staf) Tj ET Q q 0 0 0 rg BT 182.53 616.42 Td (f Comments) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 601.42 Td (Item2.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 601.42 Td (Properties) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 586.42 Td (Item3.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 586.42 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 571.42 Td (Item4.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 571.42 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 541.43 Td (P) Tj ET Q q 0 0 0 rg BT 58.37 541.43 Td (AR) Tj ET Q q 0 0 0 rg BT 72.46 541.43 Td (T) Tj ET Q q 0 0 0 rg BT 78.95 541.43 Td ( II) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 541.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 541.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 527.32 Td (Item5.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 526.42 Td (Market for Registrant's Common Equity) Tj ET Q q 0 0 0 rg BT 278.58 526.42 Td (, Related Stockholder Matters and Issuer Purchases of Equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 516.42 Td (Securities) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 501.42 Td (Item6.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 501.42 Td (Selected Financial Data) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 486.42 Td (Item7.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 486.42 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 241.17 486.42 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 471.42 Td (Item7A.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 471.42 Td (Quantitative and Qualitative Disclosures about Market Risk) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 456.42 Td (Item8.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 456.42 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 441.42 Td (Item9.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 441.42 Td (Changes in and Disagreements with ) Tj ET Q q 0 0 0 rg BT 263.81 441.42 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 328.24 441.42 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 426.42 Td (Item9A.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 426.42 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 411.42 Td (Item9B.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 411.42 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 381.43 Td (P) Tj ET Q q 0 0 0 rg BT 58.37 381.43 Td (AR) Tj ET Q q 0 0 0 rg BT 72.46 381.43 Td (T) Tj ET Q q 0 0 0 rg BT 78.95 381.43 Td ( III) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 381.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 381.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 366.42 Td (Item10.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 366.42 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 213.06 366.42 Td (ficers and Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 351.42 Td (Item1) Tj ET Q q 0 0 0 rg BT 78.45 351.42 Td (1.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 351.42 Td (Executive Compensation) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 336.42 Td (Item12.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 336.42 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 321.42 Td (Item13.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 321.42 Td (Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 256.68 321.42 Td (T) Tj ET Q q 0 0 0 rg BT 262.43 321.42 Td (ransactions, and Director Independence) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 306.42 Td (Item14.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 306.42 Td (Principal ) Tj ET Q q 0 0 0 rg BT 156.05 306.42 Td (Accounting Fees and Services) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 276.43 Td (P) Tj ET Q q 0 0 0 rg BT 58.37 276.43 Td (AR) Tj ET Q q 0 0 0 rg BT 72.46 276.43 Td (T) Tj ET Q q 0 0 0 rg BT 78.95 276.43 Td ( IV) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 276.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 276.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 261.42 Td (Item15.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 261.42 Td (Exhibits, Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 246.42 Td (Item16.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 246.42 Td (Form 10-K Summary) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 216.43 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 83.93 216.43 Td (TURES) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 646.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 631.42 Td (8) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 616.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 601.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 586.42 Td (19) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 571.42 Td (19) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 516.42 Td (20) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 501.42 Td (20) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 486.42 Td (21) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 471.42 Td (28) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 456.42 Td (28) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 441.42 Td (29) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 426.42 Td (29) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 411.42 Td (30) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 366.42 Td (31) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 351.42 Td (31) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 336.42 Td (31) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 321.42 Td (32) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 306.42 Td (32) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 261.42 Td (33) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 246.42 Td (34) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.00 216.42 Td (34) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.20 31.60 Td (ii) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 116.40 742.25 Td (CAUTIONAR) Tj ET Q q 0 0 0 rg BT 177.72 742.25 Td (Y) Tj ET Q q 0 0 0 rg BT 184.57 742.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 198.56 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 205.04 742.25 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 248.20 742.25 Td ( CONCERNING FOR) Tj ET Q q 0 0 0 rg BT 343.40 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 352.29 742.25 Td (ARD-LOOKING ST) Tj ET Q q 0 0 0 rg BT 440.17 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 446.65 742.25 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (This ) Tj ET Q q 0 0 0 rg BT 69.73 722.25 Td (Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A) Tj ET Q q 0 0 0 rg BT 479.38 722.25 Td ( of the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (Act of 1933, as amended, and Section 21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 331.59 710.25 Td (Act of 1934, as amended, adopted pursuant to the Private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (Securities Litigation Reform ) Tj ET Q q 0 0 0 rg BT 166.37 698.25 Td (Act of 1995. Forward-looking statements involve risks and uncertainties, as well as assumptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (that could cause our results to dif) Tj ET Q q 0 0 0 rg BT 182.56 686.25 Td (fer materially from those expressed or implied by such forward-looking statements. Forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (looking statements generally are identified by the words may) Tj ET Q q 0 0 0 rg BT 298.16 674.25 Td (, will, project, might, expects, anticipates, believes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (intends, estimates, should, could, would, strategy) Tj ET Q q 0 0 0 rg BT 294.81 662.25 Td (, plan, continue, pursue, or the negative of these words or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (other words or expressions of similar meaning. ) Tj ET Q q 0 0 0 rg BT 239.97 650.25 Td (All statements, other than statements of historical fact, are statements that could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.25 Td (be deemed forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 210.60 638.25 Td (These forward-looking statements are based on information available to us, are current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.25 Td (only as of the date on which the statements are made, and are subject to numerous risks and uncertainties that could cause our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.25 Td (actual results, performance, prospects or opportunities to dif) Tj ET Q q 0 0 0 rg BT 290.58 614.25 Td (fer materially from those expressed in, or implied by) Tj ET Q q 0 0 0 rg BT 500.70 614.25 Td (, the forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (looking statements. For a discussion of such risks and uncertainties, please see the discussion under the caption Risk Factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (contained in this ) Tj ET Q q 0 0 0 rg BT 118.05 590.25 Td (Annual Report on Form 10-K and in other information contained in this annual report and our publicly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (available filings with the Securities and Exchange Commission. ) Tj ET Q q 0 0 0 rg BT 307.63 578.25 Td (Y) Tj ET Q q 0 0 0 rg BT 313.85 578.25 Td (ou should not place undue reliance on any forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (statements. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.22 532.25 Td (ou should read this ) Tj ET Q q 0 0 0 rg BT 133.99 532.25 Td (Annual Report on Form 10-K and the documents that we reference in this ) Tj ET Q q 0 0 0 rg BT 430.86 532.25 Td (Annual Report on Form 10-K ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.25 Td (and have filed with the Securities and Exchange Commission as exhibits thereto with the understanding that our actual future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.25 Td (results and circumstances may be materially dif) Tj ET Q q 0 0 0 rg BT 240.31 508.25 Td (ferent from what we expect.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.75 478.25 Td (EXPLANA) Tj ET Q q 0 0 0 rg BT 300.34 478.25 Td (T) Tj ET Q q 0 0 0 rg BT 306.83 478.25 Td (OR) Tj ET Q q 0 0 0 rg BT 321.48 478.25 Td (Y) Tj ET Q q 0 0 0 rg BT 328.33 478.25 Td ( NOTE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (The terms CDT) Tj ET Q q 0 0 0 rg BT 116.85 458.25 Td (i or the Company or we, our and us means Clean Diesel ) Tj ET Q q 0 0 0 rg BT 382.40 458.25 Td (T) Tj ET Q q 0 0 0 rg BT 387.81 458.25 Td (echnologies, Inc. and its consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (subsidiaries as of the date of this ) Tj ET Q q 0 0 0 rg BT 182.48 446.25 Td (Annual Report on Form 10-K. References to Notes are notes included in the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (financial statements included in this ) Tj ET Q q 0 0 0 rg BT 195.80 434.25 Td (Annual Report on Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 269.85 414.25 Td (TRADEMARKS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (The Clean Diesel ) Tj ET Q q 0 0 0 rg BT 121.74 394.25 Td (T) Tj ET Q q 0 0 0 rg BT 127.15 394.25 Td (echnologies name with logo, CDT) Tj ET Q q 0 0 0 rg BT 264.44 394.25 Td ( logo, CDT) Tj ET Q q 0 0 0 rg BT 309.37 394.25 Td (i name with logo, CSI, CA) Tj ET Q q 0 0 0 rg BT 422.80 394.25 Td (T) Tj ET Q q 0 0 0 rg BT 428.11 394.25 Td (AL) Tj ET Q q 0 0 0 rg BT 440.44 394.25 Td (YTIC SOLUTIONS, CSI ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (logo, ) Tj ET Q q 0 0 0 rg BT 72.23 382.25 Td (ARIS, BARETRAP, BMARS, CA) Tj ET Q q 0 0 0 rg BT 235.03 382.25 Td (TTRAP, COMBICLEAN, COMBIFIL) Tj ET Q q 0 0 0 rg BT 404.88 382.25 Td (TER, DESIGNED ) Tj ET Q q 0 0 0 rg BT 488.68 382.25 Td (T) Tj ET Q q 0 0 0 rg BT 494.60 382.25 Td (O FIT) Tj ET Q q 0 0 0 rg BT 518.58 382.25 Td (. BUIL) Tj ET Q q 0 0 0 rg BT 546.00 382.25 Td (T) Tj ET Q q 0 0 0 rg BT 551.92 382.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.93 370.25 Td (O LAST) Tj ET Q q 0 0 0 rg BT 89.91 370.25 Td (., DURAFIT, DURAFIT) Tj ET Q q 0 0 0 rg BT 208.50 370.25 Td ( OEM REPLACEMENT) Tj ET Q q 0 0 0 rg BT 308.32 370.25 Td ( EMISSION ) Tj ET Q q 0 0 0 rg BT 360.36 370.25 Td (TECHNOLOGIES, MPC, P2C, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (P) Tj ET Q q 0 0 0 rg BT 54.64 358.25 Td (A) Tj ET Q q 0 0 0 rg BT 60.76 358.25 Td (TFLUID, PLA) Tj ET Q q 0 0 0 rg BT 126.69 358.25 Td (TINUM PLUS, PURIFIER and design, PURIFIL) Tj ET Q q 0 0 0 rg BT 330.88 358.25 Td (TER, PURIMUFFLER, SPGM, SPINEL, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (THREE-W) Tj ET Q q 0 0 0 rg BT 93.88 346.25 Td (A) Tj ET Q q 0 0 0 rg BT 100.18 346.25 Td (Y) Tj ET Q q 0 0 0 rg BT 107.03 346.25 Td ( ZPGM, ) Tj ET Q q 0 0 0 rg BT 151.93 346.25 Td (TWO-W) Tj ET Q q 0 0 0 rg BT 186.36 346.25 Td (A) Tj ET Q q 0 0 0 rg BT 192.67 346.25 Td (Y) Tj ET Q q 0 0 0 rg BT 199.52 346.25 Td ( ZPGM, ZPGM, ZPGM ) Tj ET Q q 0 0 0 rg BT 317.29 346.25 Td (TWC, ) Tj ET Q q 0 0 0 rg BT 354.12 346.25 Td (TERMINOX and UNIKA) Tj ET Q q 0 0 0 rg BT 465.04 346.25 Td (T, among others, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (registered or unregistered trademarks of Clean Diesel ) Tj ET Q q 0 0 0 rg BT 266.12 334.25 Td (T) Tj ET Q q 0 0 0 rg BT 271.53 334.25 Td (echnologies, Inc. \(including its subsidiaries\).) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 742.25 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 714.25 Td (ITEM 1.BUSINESS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Company Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Clean Diesel ) Tj ET Q q 0 0 0 rg BT 103.69 674.25 Td (T) Tj ET Q q 0 0 0 rg BT 109.10 674.25 Td (echnologies, Inc. is a leading provider of technology and solutions to the automotive emissions control markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 662.25 Td (e possess market leading expertise in emissions catalyst design and engineering for automotive and of) Tj ET Q q 0 0 0 rg BT 466.13 662.25 Td (f-road applications. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (particular) Tj ET Q q 0 0 0 rg BT 87.91 650.25 Td (, we have a proven ability to develop proprietary materials incorporating various base metals that replace costly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.25 Td (platinum group metals \("PGM"\) and rare earth metals in coatings on vehicle catalytic converters. Our business is driven by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.25 Td (increasingly stringent global emission standards for internal combustion engines, which are major sources of a variety of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.25 Td (harmful pollutants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 594.25 Td (e deliver our catalyst technology through the supply of materials and technology used in the catalyst coating process as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (as finished products such as coated substrates and emission control systems. ) Tj ET Q q 0 0 0 rg BT 356.99 582.25 Td (W) Tj ET Q q 0 0 0 rg BT 365.63 582.25 Td (e supply our proprietary catalyst technologies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.25 Td (major automakers, heavy duty truck manufacturers, catalyst manufacturers, distributors, integrators and retrofitters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 550.25 Td (e produce coated substrates at our ISO ) Tj ET Q q 0 0 0 rg BT 214.79 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 220.21 550.25 Td (echnical Specifications certified manufacturing facility in Oxnard, California. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (some instances, the coated substrates we produce are integrated into exhaust systems by third-party manufacturers before being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (shipped to our end customer) Tj ET Q q 0 0 0 rg BT 162.76 526.25 Td (. ) Tj ET Q q 0 0 0 rg BT 170.08 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 178.72 526.25 Td (e also supply coated substrates directly to exhaust systems manufacturers for incorporation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (their own products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (Over the past decade, we have developed several generations of high performance catalysts, including our low-PGM mixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (phase catalysts, or MPC that are used on certain new Honda vehicles. During the same period we have developed the ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (to deliver our catalyst technology to other catalyst manufacturers in the form of functional powders or material systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (Recently) Tj ET Q q 0 0 0 rg BT 84.89 458.25 Td (, we have expanded our of) Tj ET Q q 0 0 0 rg BT 190.22 458.25 Td (fering of material systems beyond MPC to include new syner) Tj ET Q q 0 0 0 rg BT 442.87 458.25 Td (gized-PGM diesel oxidation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (catalysts, or SPGM DOCs, base-metal activated rhodium support, or BMARS, and Spinel technologies. Most catalytic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (systems require significant amounts of costly PGMsto operate ef) Tj ET Q q 0 0 0 rg BT 311.16 434.25 Td (fectively) Tj ET Q q 0 0 0 rg BT 345.49 434.25 Td (. Our family of unique high-performance material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (systems, featuring inexpensive base-metals with low PGM content will enable further advances in catalyst performance. ) Tj ET Q q 0 0 0 rg BT 533.28 422.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.92 422.25 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (marketing these new catalyst technologies to other catalyst manufacturers in a proprietary powder form, which will allow them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (to capture the benefits of our advanced catalyst technology in their own manufacturing operations and will provide a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (source of revenue for the Company) Tj ET Q q 0 0 0 rg BT 190.69 386.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (Strategy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (Over more than twenty years, we have developed the emissions control technology and manufacturing know-how to allow us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (progress to delivering enabling technology for manufacturers serving the emissions catalyst market. ) Tj ET Q q 0 0 0 rg BT 451.65 334.25 Td (The ability to deliver our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (advanced materials to other catalyst producers as functional powders allows us to achieve greater scale and higher return on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (technology investment than would be possible as a manufacturer of emission control systems. ) Tj ET Q q 0 0 0 rg BT 430.02 310.25 Td (The strategy to provide our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (technology to other manufacturers has significantly increased the size of our addressable market and provides access to markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (that would not be achievable as a catalyst producer) Tj ET Q q 0 0 0 rg BT 253.26 286.25 Td (. In the short term, we are focusing our ef) Tj ET Q q 0 0 0 rg BT 421.35 286.25 Td (forts and resources by pursuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (opportunities in fast growing markets in China and India, as well as North ) Tj ET Q q 0 0 0 rg BT 348.28 274.25 Td (America, where we believe that we can serve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (profitably with our technology provider business model.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (The Chinese market of) Tj ET Q q 0 0 0 rg BT 141.18 242.25 Td (fers significant opportunity as the world) Tj ET Q q 0 0 0 rg BT 304.20 242.25 Td (s single lar) Tj ET Q q 0 0 0 rg BT 347.34 242.25 Td (gest automotive market with over 24 million vehicles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (produced in 2016. ) Tj ET Q q 0 0 0 rg BT 127.30 230.25 Td (There is an extensive emission control systems supply chain serving domestic and international automobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (manufacturers in China. Somewhat unique to China, there are many domestic catalyst manufacturers serving the automotive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (market in competition with the lar) Tj ET Q q 0 0 0 rg BT 186.17 206.25 Td (ge global catalyst producers. ) Tj ET Q q 0 0 0 rg BT 305.40 206.25 Td (This segment of the market requires technology and know-how ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (to adhere to increasingly stringent emissions standards and to deliver competitively priced catalysts. In addition, there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (significant pressure for the Chinese automotive market to address increasing air pollution, an issue that has escalated to become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 Td (a matter of public policy) Tj ET Q q 0 0 0 rg BT 147.65 170.25 Td (. ) Tj ET Q q 0 0 0 rg BT 154.97 170.25 Td (W) Tj ET Q q 0 0 0 rg BT 163.61 170.25 Td (e believe these factors provide a highly favorable environment for our products and technology) Tj ET Q q 0 0 0 rg BT 543.66 170.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.25 Td (Air quality is also an important market driver in India where annual vehicle production was over 4 million in 2016. India has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.25 Td (number of domestic vehicle manufacturers that are served by both global and local catalyst manufacturers. ) Tj ET Q q 0 0 0 rg BT 481.04 138.25 Td (There is significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.25 Td (opportunity to provide enabling technology to domestic catalyst producers with the appropriate manufacturing expertise. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (North ) Tj ET Q q 0 0 0 rg BT 75.28 106.25 Td (America continues to be a leading global automotive market with over 18 million vehicles produced in 2016. ) Tj ET Q q 0 0 0 rg BT 518.87 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 527.51 106.25 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (focused our resources in North ) Tj ET Q q 0 0 0 rg BT 175.24 94.25 Td (America on developing the growing original equipment manufacturer \("OEM"\) diesel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (particulate filter \("DPF"\) and diesel oxidation catalysts \("DOC"\) replacement market. ) Tj ET Q q 0 0 0 rg BT 397.15 82.25 Td (W) Tj ET Q q 0 0 0 rg BT 405.79 82.25 Td (e currently serve that market directly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (with our DuraFit product line and through the supply of technology and products to other manufacturers and distributors for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (sale under their own brand. ) Tj ET Q q 0 0 0 rg BT 163.95 58.25 Td (W) Tj ET Q q 0 0 0 rg BT 172.59 58.25 Td (e believe that our technology has the potential to become the market standard in the OEM DPF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td (and DOC replacement market. ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (In support of this strategy) Tj ET Q q 0 0 0 rg BT 152.11 742.10 Td (, we have filed approximately 215patents that underpin next-generation technology for our advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (zero-PGM or ZPGM and low-PGM catalysts, and during 2015 and 2016, we completed an initial series of vehicle tests to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (validate our next-generation technologies. Based on the success of these tests, we are beginning to make our new catalyst ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (technologies available to OEMs, catalyst coaters and other participants in the emission reduction supply chain for use in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (proprietary powder form, and we foresee multiple paths to market our new technologies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (Emissions Contr) Tj ET Q q 0 0 0 rg BT 120.66 674.10 Td (ol Industry Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (Regulatory standards have been adopted worldwide to control the exhaust emissions from on- and of) Tj ET Q q 0 0 0 rg BT 453.05 654.10 Td (f-road engines. ) Tj ET Q q 0 0 0 rg BT 515.35 654.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (emissions typically include nitrogen oxides, hydrocarbons, particulate matter) Tj ET Q q 0 0 0 rg BT 357.57 642.10 Td (, carbon monoxide and more recently greenhouse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (gases such as carbon dioxide. Emission regulations for mobile sources have tightened and expanded over the years due to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (increased understanding of the impacts of these emissions on human health and the environment, which is highlighted by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 586.10 Td (According to a March 2014 EP) Tj ET Q q 0 0 0 rg BT 209.77 586.10 Td (A) Tj ET Q q 0 0 0 rg BT 216.44 586.10 Td ( report, over 149million ) Tj ET Q q 0 0 0 rg BT 316.43 586.10 Td (Americans today still experience unhealthy levels of air ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 574.10 Td (pollution which are linked to adverse health impacts such as hospital admissions, emer) Tj ET Q q 0 0 0 rg BT 432.68 574.10 Td (gency roomvisits and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 562.10 Td (premature mortality) Tj ET Q q 0 0 0 rg BT 165.04 562.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 542.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 542.10 Td (In a 2014 State of the ) Tj ET Q q 0 0 0 rg BT 173.76 542.10 Td (Air report prepared by the ) Tj ET Q q 0 0 0 rg BT 280.11 542.10 Td (American Lung ) Tj ET Q q 0 0 0 rg BT 345.09 542.10 Td (Association, it was documented that air pollution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 530.10 Td (hovers at unhealthy levels in almost every major city) Tj ET Q q 0 0 0 rg BT 296.96 530.10 Td (, placing lives at risk. ) Tj ET Q q 0 0 0 rg BT 384.81 530.10 Td (The same report indicated that cleaner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 518.10 Td (diesel engines helped cut year) Tj ET Q q 0 0 0 rg BT 205.75 518.10 Td (-round particle pollution in many areas.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 498.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 498.10 Td (According to a 2013 report published by the ) Tj ET Q q 0 0 0 rg BT 265.22 498.10 Td (W) Tj ET Q q 0 0 0 rg BT 273.86 498.10 Td (orld Health Or) Tj ET Q q 0 0 0 rg BT 332.00 498.10 Td (ganization, exposure to particulate matter less than 2.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 486.10 Td (micrometers in diameter \(PM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.02 486.10 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.02 486.10 Td (\) reduces the life expectancy of each person in Europe by an average of 8.6months.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 466.10 Td (A) Tj ET Q q 0 0 0 rg BT 92.67 466.10 Td ( comprehensive 2016 study led by ) Tj ET Q q 0 0 0 rg BT 231.91 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 237.32 466.10 Td (singhua University and the Health Ef) Tj ET Q q 0 0 0 rg BT 385.71 466.10 Td (fects Institute found that, with continued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 454.10 Td (actions to control air pollution, levels will decline substantially by the year 2030, and 275,000 premature deaths will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 442.10 Td (be avoided in the People) Tj ET Q q 0 0 0 rg BT 187.08 442.10 Td (s Republic of China. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (Because standards put in place by the United States Environmental Protection ) Tj ET Q q 0 0 0 rg BT 363.54 422.10 Td (Agency) Tj ET Q q 0 0 0 rg BT 393.98 422.10 Td (, or EP) Tj ET Q q 0 0 0 rg BT 420.57 422.10 Td (A, the California ) Tj ET Q q 0 0 0 rg BT 490.00 422.10 Td (Air Resources or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (CARB, the European Union, the Chinese Ministry of Environmental Protection and other international regulators continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (become more restrictive, we view the market opportunities for our products as continually expanding. Our light duty vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (catalyst products and heavy duty diesel emission control systems are designed specifically to deal with emissions from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (gasoline, diesel and a variety of alternative fuel powered engines.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (Light Duty V) Tj ET Q q 0 0 0 rg BT 102.79 354.10 Td (ehicles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (Key milestones in the evolution of light duty vehicle emissions control in the U.S. are summarized in the table below:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 306.17 Td (1970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 306.17 Td (Congress passed the Clean Air Act, which required a 90% reduction in emissions from new automobiles by 1975, and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 296.17 Td (resulted in the introduction of the first generation two-way catalytic converter to remove carbon monoxide and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 286.17 Td (hydrocarbon emissions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 271.17 Td (1977) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 271.17 Td (Congress amended the Clean Air Act in order to further reduce the limits for nitrogen oxide emissions which resulted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 261.17 Td (in the introduction of the three-way catalytic converter in 1981.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 246.17 Td (1990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 246.17 Td (Amendments were made to the Clean Air Act to further reduce nitrogen oxide emission limits by another 40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 236.17 Td (beginning in 1994. These "Tier1" standards also resulted in standards for certain trucks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 221.17 Td (1998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 221.17 Td (The Clinton Administration, auto industry and Northeast States came to a voluntary agreement to implement the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 211.17 Td (National Low Emissions Vehicles, or NLEV, which was fully implemented across the U.S. by 2001. Additionally,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 201.17 Td (CARB adopted the Low Emission Vehicle II, or LEV II, program which was a predecessor to the EPA's "Tier2") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 191.17 Td (standards set in 1999, which took effect in 2004.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 176.17 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 176.17 Td (The EPA announced their finalized "Tier3" standards, which are to be phased in between 2017 and 2025. These) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 166.17 Td (standards further reduce emissions from light duty vehicles by approximately 70% to 80% and are closely coordinated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 156.17 Td (with the CARB LEV III standards. Of particular note, particulate matter standards are being further tightened to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 146.17 Td (ensure that new advanced combustion strategies such as gasoline direct injection and diesel fueled vehicles do not) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 136.17 Td (pose additional new sources of pollution.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (Light Duty V) Tj ET Q q 0 0 0 rg BT 102.79 103.10 Td (ehiclesInternational Markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.10 Td (Europe implemented similar regulations as those noted above under Euro III \(ef) Tj ET Q q 0 0 0 rg BT 369.44 83.10 Td (fective 2000\), Euro IV) Tj ET Q q 0 0 0 rg BT 459.78 83.10 Td ( \(ef) Tj ET Q q 0 0 0 rg BT 473.20 83.10 Td (fective 2005\), Euro ) Tj ET Q q 0 0 0 rg BT 552.99 83.10 Td (V) Tj ET Q q 0 0 0 rg BT 560.03 83.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 71.10 Td (\(ef) Tj ET Q q 0 0 0 rg BT 60.92 71.10 Td (fective 2009\) and Euro ) Tj ET Q q 0 0 0 rg BT 155.15 71.10 Td (VI \(ef) Tj ET Q q 0 0 0 rg BT 179.12 71.10 Td (fective 2016\).) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (In India the current emission standard is at BSIII going to BSIV) Tj ET Q q 0 0 0 rg BT 305.61 742.10 Td ( nationwide \(similar to Euro-IV\) with discussions still on-going ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (concerning timing to implement BSV) Tj ET Q q 0 0 0 rg BT 200.36 730.10 Td ( and BSV1.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (China has the world's lar) Tj ET Q q 0 0 0 rg BT 148.82 710.10 Td (gest passenger car market and is transitioning to China ) Tj ET Q q 0 0 0 rg BT 369.98 710.10 Td (V) Tj ET Q q 0 0 0 rg BT 377.02 710.10 Td ( \(equivalent to Euro-V\) in 2016 and 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (with a complex set of regional deadlines. China ) Tj ET Q q 0 0 0 rg BT 242.82 698.10 Td (VI \(with an accelerated timetable for Beijing called "Beijing 6"\) is set to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (implemented in 2019. China ) Tj ET Q q 0 0 0 rg BT 166.19 686.10 Td (VI is equivalent to Euro-VI.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (Heavy Duty Diesel Engines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Key milestones in the evolution of heavy duty diesel engine emissions control in the U.S. are summarized in the table below) Tj ET Q q 0 0 0 rg BT 547.02 646.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 618.17 Td (1985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 618.17 Td (The EPA first mandated emission standards for diesel-fueled trucks and buses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 603.17 Td (1991-2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 603.17 Td (Emissions standards were largely met with advanced engine technologies. In approximately 375 engine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 593.17 Td (certifications between 1994 and 2006, diesel oxidation catalysts were also used to help engines comply with) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 583.17 Td (particulate matter standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 568.17 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 568.17 Td (The EPA and CARB standards further reduced particulate matter emissions limits for heavy duty engines by an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 558.17 Td (additional 90% which led to the introduction of catalyzed diesel particulate filters, or CDPF.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 543.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 543.17 Td (EPA 2010 significantly lowers the tailpipe emissions of nitrogen oxides, or NOx compared to the 2007 standard.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 533.17 Td (2010 tailpipe standards in US have led to the use of selective catalytic reduction, or SCR in addition to DOC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 523.17 Td (and filters commonplace in EPA 2007 systems.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 498.10 Td (f-road compression ignition emissions standards \(non-road ) Tj ET Q q 0 0 0 rg BT 297.92 498.10 Td (T) Tj ET Q q 0 0 0 rg BT 303.68 498.10 Td (ier1\) were first set in 1996 and consistently phased in and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (further tightened by of) Tj ET Q q 0 0 0 rg BT 140.07 486.10 Td (f-road ) Tj ET Q q 0 0 0 rg BT 166.82 486.10 Td (T) Tj ET Q q 0 0 0 rg BT 172.57 486.10 Td (ier2 and ) Tj ET Q q 0 0 0 rg BT 209.88 486.10 Td (T) Tj ET Q q 0 0 0 rg BT 215.63 486.10 Td (ier3 emissions limits. ) Tj ET Q q 0 0 0 rg BT 305.73 486.10 Td (T) Tj ET Q q 0 0 0 rg BT 311.49 486.10 Td (ier4 emissions limits which have been phased in between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (201) Tj ET Q q 0 0 0 rg BT 64.63 474.10 Td (1 and 2014 saw the first introduction of various exhaust emissions controls including diesel oxidation catalysts, diesel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (particulate filters and selective catalytic reduction catalysts. Given the global nature of the of) Tj ET Q q 0 0 0 rg BT 421.34 462.10 Td (f-road diesel powered equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (market, common EP) Tj ET Q q 0 0 0 rg BT 131.01 450.10 Td (A) Tj ET Q q 0 0 0 rg BT 137.68 450.10 Td ( and European Union standards have typically been enacted at comparable times.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Emerging Replacement Market in North ) Tj ET Q q 0 0 0 rg BT 219.36 430.10 Td (America) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (According to market analysis firm Power System Research, manufacturers in North ) Tj ET Q q 0 0 0 rg BT 386.58 410.10 Td (America have produced on average of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (250,000 heavy duty on-road diesel vehicles equipped with a diesel particulate filter each year since 2007 to comply with EP) Tj ET Q q 0 0 0 rg BT 545.04 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 551.71 398.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 107.02 386.10 Td (The typical OEM warranty on diesel particulate filters is five years and has expired for many of these vehicles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (with more continuing to expire in the coming years. ) Tj ET Q q 0 0 0 rg BT 259.40 374.10 Td (As 2007 and newer diesel particulate filters from OEMsfail and require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (replacement, non-OEM diesel particulate filters will be needed as replacements. ) Tj ET Q q 0 0 0 rg BT 372.09 362.10 Td (According to a 2012 industry report, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (market for medium and heavy duty vehicle after) Tj ET Q q 0 0 0 rg BT 242.78 350.10 Td (-treatment maintenance and repair is projected to grow from $0.5billion in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (2010 to $3.0billion by 2017. In the third quarter of 2014, we introduced the CDT) Tj ET Q q 0 0 0 rg BT 376.26 338.10 Td (i manufactured DuraFit OEM replacement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (diesel particulate filters through our channel of distributors to provide an alternative to OEM manufactured parts. ) Tj ET Q q 0 0 0 rg BT 504.96 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.59 326.10 Td (e expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (leverage our existing technology and know-how to serve this emer) Tj ET Q q 0 0 0 rg BT 316.13 314.10 Td (ging market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (Heavy Duty Diesel EnginesInternational Markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Europe has adopted the stringent Euro-VI standard for heavy-duty vehicles which has led to systems using DOC, particulate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (filters and SCR. China is following the European standards and is currently implementing Euro-V) Tj ET Q q 0 0 0 rg BT 444.47 262.10 Td ( with Euro-VI set to begin in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (2010 with an accelerated version in Beijing. India is currently at BSIV) Tj ET Q q 0 0 0 rg BT 331.96 250.10 Td ( \(similar to Euro-IV\) and is discussing the timetable for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (BSV) Tj ET Q q 0 0 0 rg BT 69.27 238.10 Td ( and BSVI implementation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.75 218.10 Td (echnology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (In addition to our traditional catalyst products \(TWC, DOC, CDPF and SCR\), we have succeeded in developing a broad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (technology portfolio of new materials and catalysts to meet and exceed regulatory emission standards around the globe. ) Tj ET Q q 0 0 0 rg BT 530.79 186.10 Td (W) Tj ET Q q 0 0 0 rg BT 539.42 186.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (have focused on the two products, ) Tj ET Q q 0 0 0 rg BT 188.95 174.10 Td (Three-W) Tj ET Q q 0 0 0 rg BT 224.23 174.10 Td (ay Catalysts \(TWC\) and Diesel Oxidation Catalysts \(DOC\), that currently utilize a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (significant amount of PGMs.In particular) Tj ET Q q 0 0 0 rg BT 217.34 162.10 Td (, our BMARS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.19 162.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.03 162.10 Td (, Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.58 162.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.42 162.10 Td ( and MPC powder materials and catalyst products) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (developed from these technologies: SPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 221.64 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.48 142.10 Td ( DOC, SPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.33 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.17 142.10 Td ( ) Tj ET Q q 0 0 0 rg BT 295.48 142.10 Td (TWC and ) Tj ET Q q 0 0 0 rg BT 336.96 142.10 Td (TWC using BMARS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.86 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.70 142.10 Td ( and MPC, are at the core of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 110.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 110.10 Td (Spinel) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 112.12 110.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.12 110.10 Td (.Our Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 171.23 110.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.07 110.10 Td ( technology is a unique clean emissions exhaust technology which we believe will dramatically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 98.10 Td (reduce the cost of attaining more stringent clean air standards. Spinel was the name initially given to naturally-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 86.10 Td (occurring magnesium aluminate \(MgAI2O4\) and is now used to describe any composition with the same structure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 74.10 Td (Our Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.61 74.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.45 74.10 Td ( technology can employ numerous low-cost metals in the spinel structure enabling use in a wide range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 62.10 Td (engine and vehicle applications, both gasoline and diesel, as well as other potential vertical markets. Our unique ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 50.10 Td (Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.56 50.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.40 50.10 Td ( technology utilizes various base metals, which when combined together in a common structure, achieve ) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (unusual and very ef) Tj ET Q q 0 0 0 rg BT 164.40 742.10 Td (fective catalytic conversion activity) Tj ET Q q 0 0 0 rg BT 306.19 742.10 Td (. Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.75 742.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.59 742.10 Td ( technology is ideal for the coating of catalytic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (converters, an alternative to those utilizing costly PGMsand rare earth materials. ) Tj ET Q q 0 0 0 rg BT 412.38 730.10 Td (The base metals we use are common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (and inexpensive compared to PGMs, such as platinum, palladium and rhodium, and rare earth metals, such as cerium, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 706.10 Td (lanthanum and neodymium. ) Tj ET Q q 0 0 0 rg BT 200.24 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 208.88 706.10 Td (e believe Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.75 706.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.59 706.10 Td ( technology will provide significant cost savings over conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td (coating formulations. In addition, the Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.91 694.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.75 694.10 Td ( technology structure is extremely versatile and stable. ) Tj ET Q q 0 0 0 rg BT 490.78 694.10 Td (The versatility is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 682.10 Td (critical for optimizing future generations of products to meet changing catalytic conversion needs for rapidly evolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 670.10 Td (engine technologies and increasingly stringent clean air standards. ) Tj ET Q q 0 0 0 rg BT 353.23 670.10 Td (The stability of Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.39 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.23 670.10 Td ( is critical to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 658.10 Td (superior catalytic performance over time and at extreme temperatures for lifetime durability) Tj ET Q q 0 0 0 rg BT 452.69 658.10 Td (. In addition to SPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.31 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 646.10 Td (and ZPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 130.72 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.56 646.10 Td (catalysts, we currently have oxygen storage material, or OSM, under development, which syner) Tj ET Q q 0 0 0 rg BT 521.04 646.10 Td (gizes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 634.10 Td (PGM function and drives the critical vehicle on-board diagnostic system. Our newest family of advanced low-PGM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 622.10 Td (and ZPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 130.72 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.56 622.10 Td ( oxide compounds based upon our Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.54 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.38 622.10 Td ( technology is summarized below:) Tj ET Q /GS0 gs q 351.00 0 0 250.00 130.50 355.10 cm /I18 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 335.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 335.10 Td (o date, we have filed numerous patents on our Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.58 335.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.42 335.10 Td ( technology and two were issued in late 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 315.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 315.10 Td (BMARS) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 120.46 315.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 128.46 315.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.96 315.10 Td () Tj ET Q q 0 0 0 rg BT 135.78 315.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.42 315.10 Td (e have developed and patented intellectual property rights to a novel technology for enhancing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 303.10 Td (catalytic activity of rhodium known as base-metal activated rhodium on Support \(BMARS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.43 303.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.27 303.10 Td (\). ) Tj ET Q q 0 0 0 rg BT 464.42 303.10 Td (This technology is in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 291.10 Td (the form of a nano-scale powder that can be used by catalyst manufacturing partners in the production of ) Tj ET Q q 0 0 0 rg BT 507.34 291.10 Td (TWC. ) Tj ET Q q 0 0 0 rg BT 534.37 291.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 279.10 Td (products made from these novel materials exhibit superior NOx performance at reduced rhodium loading.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 259.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 259.10 Td (MPC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.64 259.10 Td () Tj ET Q q 0 0 0 rg BT 122.46 259.10 Td (W) Tj ET Q q 0 0 0 rg BT 131.10 259.10 Td (e have developed and patented intellectual property rights to a novel technology for creating and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 247.10 Td (manufacturing catalysts known as mixed phase catalysts \(MPC\). ) Tj ET Q q 0 0 0 rg BT 354.19 247.10 Td (This technology involves the self-assembly of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 235.10 Td (ceramic oxide matrix with catalytic metals precisely positioned within three-dimensional structures. ) Tj ET Q q 0 0 0 rg BT 487.92 235.10 Td (The MPC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 223.10 Td (design gives our catalyst products two critical attributes that we believe dif) Tj ET Q q 0 0 0 rg BT 385.45 223.10 Td (ferentiate them from competing of) Tj ET Q q 0 0 0 rg BT 523.00 223.10 Td (ferings: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 211.10 Td (superior stability that allows heat resistance and high performance with very low levels of precious metals; and base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 199.10 Td (metal activation that allows base metals to be used instead of costly PGMswithout compromising catalytic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 187.10 Td (performance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 167.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 167.10 Td (SPGM) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.78 167.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.78 167.10 Td ( DOC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.90 167.10 Td () Tj ET Q q 0 0 0 rg BT 152.72 167.10 Td (W) Tj ET Q q 0 0 0 rg BT 161.35 167.10 Td (e have developed powder materials that can be used to produce SPGM) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.77 167.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.77 167.10 Td (DOC, syner) Tj ET Q q 0 0 0 rg BT 499.36 167.10 Td (gized PGM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 155.10 Td (diesel oxidation catalyst. ) Tj ET Q q 0 0 0 rg BT 187.46 155.10 Td (The unique materials developed enable a low PGM and high performance DOC for use in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 143.10 Td (range of applications, including systems utilizing particulate filters and SCR for advanced emission standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 123.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 123.10 Td (Platinum Plus.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.16 123.10 Td () Tj ET Q q 0 0 0 rg BT 159.97 123.10 Td (W) Tj ET Q q 0 0 0 rg BT 168.61 123.10 Td (e have developed and patented our Platinum Plus fuel-borne catalyst as a diesel fuel soluble ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 111.10 Td (additive, which contains minute amounts of or) Tj ET Q q 0 0 0 rg BT 271.62 111.10 Td (gano-metallic platinum and cerium catalysts. Platinum Plus enables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 99.10 Td (rapid conversion of particulate matter from diesel engines when coupled with a diesel particulate filter) Tj ET Q q 0 0 0 rg BT 494.74 99.10 Td (. It also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 87.10 Td (improves combustion, which acts to reduce engine-out emissions. Platinum Plus fuel-borne catalyst lends itself to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 75.10 Td (wide range of enabling solutions including diesel particulate filtration, low emission biodiesel, carbon reduction and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 63.10 Td (exhaust emission reduction.) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (ARIS.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.76 742.10 Td () Tj ET Q q 0 0 0 rg BT 123.58 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.22 742.10 Td (e have developed technology for selective catalytic reduction using urea, which is a highly ef) Tj ET Q q 0 0 0 rg BT 504.40 742.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (method of reducing oxides of nitrogen. ) Tj ET Q q 0 0 0 rg BT 244.02 730.10 Td (ARIS technology formsa key part of the selective catalytic reduction system ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (and is an advanced, computer) Tj ET Q q 0 0 0 rg BT 204.36 718.10 Td (-controlled, reagent injection system. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 698.10 Td (e protect our proprietary technologies, along with our other intellectual property) Tj ET Q q 0 0 0 rg BT 378.16 698.10 Td (, through the use of patents, trade secrets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (registered and common law trademarks. For additional information, refer to the "Intellectual Property" discussion below) Tj ET Q q 0 0 0 rg BT 530.71 686.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (Competitive ) Tj ET Q q 0 0 0 rg BT 104.16 666.10 Td (Advantages) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Through a focused technology development campaign, we have developed a full suite of materials for gasoline and diesel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (engines with an associated broad portfolio of emission control catalysts. ) Tj ET Q q 0 0 0 rg BT 340.59 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 349.22 634.10 Td (e believe that our technologies and products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (represent a fundamentally dif) Tj ET Q q 0 0 0 rg BT 167.27 622.10 Td (ferent solution, and the following competitive strengths position us as a leading provider of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (emission control products and systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 590.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 590.10 Td (Superior Catalyst Performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.83 590.10 Td (Our proprietary technology enables us to produce catalytic coatings capable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 578.10 Td (significantly better catalytic performance than those previously available. ) Tj ET Q q 0 0 0 rg BT 382.09 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 390.73 578.10 Td (e have achieved this demonstrated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 566.10 Td (performance advantage by creating catalysts using unique nanostructures with superior stability under prolonged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 554.10 Td (exposure to high temperatures. ) Tj ET Q q 0 0 0 rg BT 211.24 554.10 Td (As a result, in heavy duty diesel and automotive applications, our catalyst formulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 542.10 Td (are able to maintain high levels of performance over time using substantially lower) Tj ET Q q 0 0 0 rg BT 417.72 542.10 Td (, or zero, PGMsthan products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 530.10 Td (previously available.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 510.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 510.10 Td (Catalyst Cost ) Tj ET Q q 0 0 0 rg BT 142.30 510.10 Td (AdvantageAddressing Global PGM Supply and Demand.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.21 510.10 Td (Expensive PGMs, which include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 498.10 Td (palladium, platinum and rhodium, and rare earth metals such as cerium, neodymium and lanthanum, are used in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 486.10 Td (manufacture of emission control catalysts, with palladium being the primary component used in catalysts serving the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 474.10 Td (global light duty vehicle market. ) Tj ET Q q 0 0 0 rg BT 218.19 474.10 Td (According to Johnson MattheyPLC's "Platinum 2013 Interim Review", in 2013, over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 462.10 Td (70% of all primary platinum and 80% of all primary rhodium produced originated in South ) Tj ET Q q 0 0 0 rg BT 452.31 462.10 Td (Africa. Russia and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 450.10 Td (Africa combined supplied over 75% of palladium. ) Tj ET Q q 0 0 0 rg BT 289.10 450.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.73 450.10 Td (e believe that the continued growth in supply of these metals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 438.10 Td (from the mines in South ) Tj ET Q q 0 0 0 rg BT 184.61 438.10 Td (Africa and Russia will be critical in order to meet the increasingly stringent global emission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 426.10 Td (control standards. ) Tj ET Q q 0 0 0 rg BT 159.04 426.10 Td (According to the same report, it is estimated that more than $6billion is spent annually by OEMson ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 414.10 Td (PGM purchases for catalysts. ) Tj ET Q q 0 0 0 rg BT 205.52 414.10 Td (The global auto industry is expected to produce over 100million vehicles by 2018, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 402.10 Td (according to IHS ) Tj ET Q q 0 0 0 rg BT 156.26 402.10 Td (Automotive. ) Tj ET Q q 0 0 0 rg BT 208.86 402.10 Td (These production levels are expected to result in a continued increase in PGM demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 390.10 Td (for the foreseeable future. In addition, continued tightening of emission standards by regulators globally will require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 378.10 Td (increased loading of PGM in emission catalysts. ) Tj ET Q q 0 0 0 rg BT 281.34 378.10 Td (The new materials developed at CDTI enable OEMsand their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 366.10 Td (suppliers to drastically reduce the PGM loadings in the DOC and ) Tj ET Q q 0 0 0 rg BT 348.83 366.10 Td (TWC products that currently require the high cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 354.10 Td (elevated PGM usage. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 334.10 Td (Highly Customizable Catalyst Formulations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.93 334.10 Td (Our proprietary MPC technology is a design approach, as opposed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 322.10 Td (a single chemical formulation. ) Tj ET Q q 0 0 0 rg BT 209.95 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.58 322.10 Td (e have developed this technology since inception as a platform that can be tailored ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 310.10 Td (for a range of dif) Tj ET Q q 0 0 0 rg BT 153.56 310.10 Td (ferent catalyst applications. Specifically) Tj ET Q q 0 0 0 rg BT 312.85 310.10 Td (, our formulations can be tailored in two distinct ways. First, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 298.10 Td (the oxide compounds used in our formulations can be adapted for specific applications by adding to them, or doping ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 286.10 Td (them with, a wide range of chemical elements. Second, we are able to vary the mixtures of our compounds to create ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 274.10 Td (customized solutions for specific applications for dif) Tj ET Q q 0 0 0 rg BT 296.32 274.10 Td (ferent vehicle platforms within the auto industry) Tj ET Q q 0 0 0 rg BT 488.95 274.10 Td (, complex heavy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 262.10 Td (duty diesel equipment for OEMs, aftermarket and retrofit markets, and for dif) Tj ET Q q 0 0 0 rg BT 396.55 262.10 Td (ferent applications in the ener) Tj ET Q q 0 0 0 rg BT 515.21 262.10 Td (gy sector) Tj ET Q q 0 0 0 rg BT 551.19 262.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 250.10 Td (such as selective catalytic reduction nitrogen oxide control for industrial and utility boilers, process heaters, gas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 238.10 Td (turbines and generator sets. ) Tj ET Q q 0 0 0 rg BT 197.73 238.10 Td (These could also include applications in the fuel cell, petrochemical and refinery) Tj ET Q q 0 0 0 rg BT 519.73 238.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 226.10 Td (thermoelectric industries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 206.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 206.10 Td (Proven Durability) Tj ET Q q 0 0 0 rg BT 159.79 206.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.29 206.10 Td (Our products and systems have under) Tj ET Q q 0 0 0 rg BT 317.36 206.10 Td (gone substantial laboratory and field testing by our existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 194.10 Td (and prospective customers and have demonstrated their durability and reliability in a wide range of applications in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 182.10 Td (actual use for many years. In addition, our products and systems have achieved numerous certifications and meet or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 170.10 Td (exceed industry standards. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 150.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 150.10 Td (Broad Portfolio of V) Tj ET Q q 0 0 0 rg BT 169.62 150.10 Td (erified Heavy Duty Diesel Systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.19 150.10 Td () Tj ET Q q 0 0 0 rg BT 318.01 150.10 Td (W) Tj ET Q q 0 0 0 rg BT 326.65 150.10 Td (e believe we of) Tj ET Q q 0 0 0 rg BT 387.27 150.10 Td (fer one of the industry's most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 138.10 Td (comprehensive portfolios of system products that have been evaluated and verified \(approved\) by the EP) Tj ET Q q 0 0 0 rg BT 504.39 138.10 Td (A) Tj ET Q q 0 0 0 rg BT 511.06 138.10 Td ( and CARB, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 126.10 Td (as well as regulators in several European countries, for use in engine retrofit programs and in the aftermarket segment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 114.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 135.90 114.10 Td (, we have a thorough understanding of the verification process and the demonstrated ability to obtain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 102.10 Td (broad verifications of products for use in the retrofit market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 82.10 Td (Compatibility with Existing Manufacturing Infrastructure and Operating Specifications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.07 82.10 Td (Catalytic converters using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 70.10 Td (our catalyst products are compatible with existing automotive manufacturing processes as well as specific vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 58.10 Td (operating specifications. Our customers generally do not need to change their manufacturing operations, processes, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 46.10 Td (how their products operate in order to utilize our proprietary technology) Tj ET Q q 0 0 0 rg BT 373.59 46.10 Td (. Our heavy duty diesel emission control ) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (products and solutions are engineered to each customer's specific application and designed to deliver custom and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (industry-leading solutions that meet or exceed environmental mandates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.37 710.10 Td (oducts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 690.10 Td (e categorize our products as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 662.17 Td (Gasoline) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 652.17 Td (Engines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 662.17 Td (W) Tj ET Q q 0 0 0 rg BT 121.64 662.17 Td (e of) Tj ET Q q 0 0 0 rg BT 136.73 662.17 Td (fer a range of advanced powder materials for use in catalyst products for emission control from gasoline ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 652.17 Td (engines: MPC, BMARS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 217.56 652.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.40 652.17 Td ( and Spinel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.40 652.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.24 652.17 Td (. In addition we provide the catalyst products themselves in high-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 642.17 Td (value applications where necessary) Tj ET Q q 0 0 0 rg BT 253.12 642.17 Td (. ) Tj ET Q q 0 0 0 rg BT 257.94 642.17 Td (W) Tj ET Q q 0 0 0 rg BT 266.58 642.17 Td (e believe catalytic converters using our technology have superior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 632.17 Td (catalytic performance, can cost substantially less as a result of significantly reduced PGM loadings, have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 622.17 Td (comparable or better durability and are physically and operationally compatible with all existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 612.17 Td (manufacturing processes and operating requirements. Our solution is based on industry-leading, patent-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 602.17 Td (protected technology and a scalable manufacturing business model.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 580.17 Td (Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 570.17 Td (Engines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 580.17 Td (W) Tj ET Q q 0 0 0 rg BT 121.64 580.17 Td (e of) Tj ET Q q 0 0 0 rg BT 136.73 580.17 Td (fer proven and robust catalyst products for emissions control from diesel engine applications: catalyzed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 570.17 Td (particulate filters and diesel oxidation catalysts. Current techniques for diesel engines to meet emissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 560.17 Td (standards require the use of several methods, including diesel oxidation catalysts, catalyzed diesel particulate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 550.17 Td (filters and selective catalytic reduction systems. ) Tj ET Q q 0 0 0 rg BT 306.36 550.17 Td (W) Tj ET Q q 0 0 0 rg BT 315.00 550.17 Td (e of) Tj ET Q q 0 0 0 rg BT 330.09 550.17 Td (fer a full range of catalyst products for the control of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 540.17 Td (carbon monoxide, hydrocarbons, particulate matter and nitrogen oxide in light and heavy duty applications. ) Tj ET Q q 0 0 0 rg BT 544.83 540.17 Td (A) Tj ET Q q 0 0 0 rg BT 551.50 540.17 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 530.17 Td (new generation of materials is now available that enable catalyst manufacturing partners to commercialize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 520.17 Td (SPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.24 520.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.08 520.17 Td ( DOC products for improved performance and low PGM usage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 500.17 Td (Energy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 490.17 Td (Applications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 500.17 Td (We have developed and can manufacture catalysts for use in selective catalytic reduction and carbon monoxide) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 490.17 Td (reduction systems, which are used to reduce nitrogen oxide and carbon monoxide emissions from natural gas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 480.17 Td (and petroleum gas burning utility plants, industrial process plants, OEMs, refineries, food processors, product) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 470.17 Td (manufacturers and universities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 450.17 Td (Advanced) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 440.17 Td (Catalytic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 430.17 Td (Materials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 450.17 Td (We have developed a complete suite of high performance and cost efficient technologies that can be offered in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 440.17 Td (powder form to catalyst suppliers for inclusion in their manufacturing processes to address global demand by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 430.17 Td (OEMs.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 405.10 Td (Sales and Marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 385.10 Td (e deliver our catalyst technology to customers as finished products such as coated substrates and emissions control systems as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (well as through the supply of materials and technology used in the catalyst coating process. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 353.10 Td (e supply our proprietary catalyst technologies to the OEM segment including automakers, heavy duty truck manufacturers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (catalyst manufacturers, and aftermarket participants including distributors, integrators and retrofitters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (In the OEM segment, we utilize a business development team, with technical backgrounds, to pursue customers that can benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (from the use of our technology in the manufacture of their own catalysts. ) Tj ET Q q 0 0 0 rg BT 346.67 309.10 Td (The catalyst industry is mainly comprised of a few ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (suppliers serving lar) Tj ET Q q 0 0 0 rg BT 130.91 297.10 Td (ge, sophisticated customers such as automobile manufacturers. Extensive interaction is required between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (catalyst manufacturers and the auto maker in the course of developing an ef) Tj ET Q q 0 0 0 rg BT 352.48 285.10 Td (fective, reliable catalyst for a particular application. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 273.10 Td (e produce coated catalysts and continue to be an approved supplier of catalysts for major automotive manufacturers. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 261.10 Td (ability to deliver our technology in powder form to catalyst manufacturers has enhanced our ability to market our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (globally and to other catalyst manufacturers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.10 Td (In the aftermarket segment, we sell emissions control products to automotive aftermarket suppliers and distributors for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (OEM DPF and DOC replacement market. OEM replacement products are sold through the OEMs proprietary service network ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 205.10 Td (or through independent distributors and retailers. ) Tj ET Q q 0 0 0 rg BT 250.33 205.10 Td (W) Tj ET Q q 0 0 0 rg BT 258.96 205.10 Td (e are present in the OEM replacement market with Durafit brand of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 193.10 Td (OEM replacement diesel particulate filters and diesel oxidation catalysts as well as through the sale of products to other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 181.10 Td (manufacturers. Retrofit applications generally involve funded projects that use "approved systems" that are one-of) Tj ET Q q 0 0 0 rg BT 509.22 181.10 Td (f in nature. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 169.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 169.10 Td (ypical retrofit end-user customers include school districts, municipalities and other fleet operators, and the market for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.10 Td (heavy duty diesel systems products is heavily influenced by government funding of emissions control projects.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (The automotive emissions control industry is highly concentrated with a few major competitors as a result of continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (consolidation through acquisitions. ) Tj ET Q q 0 0 0 rg BT 192.58 105.10 Td (The major competitors are diversified enterprises with catalysts representing one of several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (lines of business. Globally) Tj ET Q q 0 0 0 rg BT 155.45 93.10 Td (, we and our catalyst manufacturer customers compete directly against BASFGmbH, Johnson ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (MattheyPLC and Umicore Limited Liability Company) Tj ET Q q 0 0 0 rg BT 270.42 81.10 Td (. In the North ) Tj ET Q q 0 0 0 rg BT 326.25 81.10 Td (America heavy-duty diesel market, competitors also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (include, Donaldson Company) Tj ET Q q 0 0 0 rg BT 168.50 69.10 Td (, Inc., ESW) Tj ET Q q 0 0 0 rg BT 213.96 69.10 Td (, Inc., Hug Filtersystems, and DCL) Tj ET Q q 0 0 0 rg BT 353.85 69.10 Td ( International, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (In the worldwide market the key competitive factors are:) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (Ability to provide a solution that satisfies emission reduction regulations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 722.10 Td (T) Tj ET Q q 0 0 0 rg BT 91.41 722.10 Td (otal cost of product \(inclusive of PGM\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 702.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 702.10 Td (Ability to transition new products from development to production;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 682.10 Td (Quality control that guarantees 100% compliance with specifications;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 662.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 662.10 Td (On-time delivery to support customer production requirements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 642.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 642.10 Td (Financial stability and global reach.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Our strategy of transitioning to an advanced materials company is intended to enable broad commercialization of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (technology without the need for a global manufacturing footprint. In particular) Tj ET Q q 0 0 0 rg BT 364.22 610.10 Td (, our ability to provide enabling technology to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (domestic catalyst manufacturers in key growth markets will allow our customers to defend and grow their market share.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 578.10 Td (ch and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (Our research and development in catalyst technology is our core strength and has resulted in a broad array of products for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (light duty vehicle and heavy duty diesel markets. ) Tj ET Q q 0 0 0 rg BT 248.38 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 257.02 546.10 Td (e believe that the technical sophistication and cost-to-performance ratio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (our products truly distinguishes our company) Tj ET Q q 0 0 0 rg BT 230.72 534.10 Td (. Product development for ) Tj ET Q q 0 0 0 rg BT 337.46 534.10 Td (TWC and DOC has resulted in a broad family of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (verified products and systems. ) Tj ET Q q 0 0 0 rg BT 173.96 522.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.60 522.10 Td (e credit our accomplishments to date to innovation, technology dif) Tj ET Q q 0 0 0 rg BT 447.91 522.10 Td (ferentiation, application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (engineering expertise, highly tar) Tj ET Q q 0 0 0 rg BT 179.22 510.10 Td (geted product development ef) Tj ET Q q 0 0 0 rg BT 298.16 510.10 Td (forts and solid experience in the verification and approval ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (process. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (Intellectual Pr) Tj ET Q q 0 0 0 rg BT 111.19 478.10 Td (operty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (Our intellectual property includes patent rights, trade secrets and registered and common law trademarks. Historically) Tj ET Q q 0 0 0 rg BT 520.30 458.10 Td (, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (primarily protected our intellectual property) Tj ET Q q 0 0 0 rg BT 225.40 446.10 Td (, particularly in the area of three-way catalysts \(and particularly in the automotive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (area\) by maintaining our innovative technology as trade secrets. ) Tj ET Q q 0 0 0 rg BT 308.06 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 316.70 434.10 Td (e believe that the protection provided by trade secrets for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (intellectual property was the most suitable protection available for the automotive industry where our business initially started ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (and in which we currently sell our commercial products. Our automotive competitors lar) Tj ET Q q 0 0 0 rg BT 403.88 410.10 Td (gely rely on trade secret protection for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (their innovative technology) Tj ET Q q 0 0 0 rg BT 159.32 398.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (In order to more broadly commercialize our technology in new business models, we have sought patent protection in relation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (any new industries and new countries in which we expect to do business. ) Tj ET Q q 0 0 0 rg BT 344.20 366.10 Td (W) Tj ET Q q 0 0 0 rg BT 352.84 366.10 Td (e currently have approximately 1) Tj ET Q q 0 0 0 rg BT 484.63 366.10 Td (1) Tj ET Q q 0 0 0 rg BT 489.26 366.10 Td (1 issued patents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (and approximately 177 pending applications covering the following main technologies: fundamental catalyst formulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (based on perovskite mixed metal oxides applicable to all catalyst markets, Spinel technology) Tj ET Q q 0 0 0 rg BT 430.44 342.10 Td (, Mixed Phase Catalyst \(MPC\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.78 330.10 Td (, PGM-free catalyzed diesel particulate filter) Tj ET Q q 0 0 0 rg BT 271.63 330.10 Td (, selective catalytic reduction, diesel oxidation catalyst, ZPGM three-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (way catalyst formulations, ZPGM diesel oxidation catalyst, palladium three-way catalyst formulations, fuel-borne catalysts, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (optimization and stabilization of oxygen storage materials without rare earth materials, exhaust gas recirculation with selective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (catalytic reduction and exhaust systems for diesel engines incorporating particulate filters. Currently) Tj ET Q q 0 0 0 rg BT 450.89 294.10 Td (, our patents have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (expiration dates ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.07 282.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.07 282.10 Td ( through 2033.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 262.10 Td (e have conducted an analysis of our technologies and intellectual property and have decided to aggressively patent our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (important technologies going forward. ) Tj ET Q q 0 0 0 rg BT 206.17 250.10 Td (While we continue to rely on a combination of trade secrets, know-how) Tj ET Q q 0 0 0 rg BT 492.10 250.10 Td (, trademark ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (registrations, confidentiality and other agreements with employees, customers, partners and others, we intend to strengthen our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (position through the prosecution of patents to protect our intellectual property rights pertaining to our products and technology) Tj ET Q q 0 0 0 rg BT 555.63 226.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 206.10 Td (e currently have registered and unregistered trademarks for the Clean Diesel ) Tj ET Q q 0 0 0 rg BT 365.83 206.10 Td (T) Tj ET Q q 0 0 0 rg BT 371.24 206.10 Td (echnologies name with logo, CDT) Tj ET Q q 0 0 0 rg BT 508.53 206.10 Td ( logo, CDT) Tj ET Q q 0 0 0 rg BT 553.46 206.10 Td (i ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (name with logo, CSI, CA) Tj ET Q q 0 0 0 rg BT 158.15 194.10 Td (T) Tj ET Q q 0 0 0 rg BT 163.46 194.10 Td (AL) Tj ET Q q 0 0 0 rg BT 175.79 194.10 Td (YTIC SOLUTIONS, CSI logo, ) Tj ET Q q 0 0 0 rg BT 310.06 194.10 Td (ARIS, BARETRAP, BMARS, CA) Tj ET Q q 0 0 0 rg BT 472.87 194.10 Td (TTRAP, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (COMBICLEAN, COMBIFIL) Tj ET Q q 0 0 0 rg BT 175.58 182.10 Td (TER, DESIGNED ) Tj ET Q q 0 0 0 rg BT 259.38 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 265.30 182.10 Td (O FIT) Tj ET Q q 0 0 0 rg BT 289.28 182.10 Td (. BUIL) Tj ET Q q 0 0 0 rg BT 316.69 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 322.62 182.10 Td ( ) Tj ET Q q 0 0 0 rg BT 324.94 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 330.87 182.10 Td (O LAST) Tj ET Q q 0 0 0 rg BT 364.85 182.10 Td (., DURAFIT, DURAFIT) Tj ET Q q 0 0 0 rg BT 483.44 182.10 Td ( OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (REPLACEMENT) Tj ET Q q 0 0 0 rg BT 122.60 170.10 Td ( EMISSION ) Tj ET Q q 0 0 0 rg BT 174.64 170.10 Td (TECHNOLOGIES, MPC, P2C, P) Tj ET Q q 0 0 0 rg BT 335.94 170.10 Td (A) Tj ET Q q 0 0 0 rg BT 342.06 170.10 Td (TFLUID, PLA) Tj ET Q q 0 0 0 rg BT 407.99 170.10 Td (TINUM PLUS, PURIFIER and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (design, PURIFIL) Tj ET Q q 0 0 0 rg BT 117.97 158.10 Td (TER, PURIMUFFLER, SPGM, SPINEL, ) Tj ET Q q 0 0 0 rg BT 321.51 158.10 Td (THREE-W) Tj ET Q q 0 0 0 rg BT 365.39 158.10 Td (A) Tj ET Q q 0 0 0 rg BT 371.69 158.10 Td (Y) Tj ET Q q 0 0 0 rg BT 378.54 158.10 Td ( ZPGM, ) Tj ET Q q 0 0 0 rg BT 423.44 158.10 Td (TWO-W) Tj ET Q q 0 0 0 rg BT 457.87 158.10 Td (A) Tj ET Q q 0 0 0 rg BT 464.17 158.10 Td (Y) Tj ET Q q 0 0 0 rg BT 471.03 158.10 Td ( ZPGM, ZPGM, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (ZPGM ) Tj ET Q q 0 0 0 rg BT 80.10 146.10 Td (TWC, ) Tj ET Q q 0 0 0 rg BT 116.94 146.10 Td (TERMINOX and UNIKA) Tj ET Q q 0 0 0 rg BT 227.86 146.10 Td (T.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (Manufacturing Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 106.10 Td (e have developed innovative and sophisticated manufacturing processes for coating substrates using our proprietary catalytic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (coatings. ) Tj ET Q q 0 0 0 rg BT 88.14 94.10 Td (The manufacturing process consists of preparing coatings direct or in powder form via controlled mixing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (calcination, then coating and further calcining \(one or multiple times\) the coated substrates. ) Tj ET Q q 0 0 0 rg BT 418.31 82.10 Td (The process of mixing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (applying the various types of coatings onto high cell density substrates is complex and requires sophisticated manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.78 58.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.10 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 109.74 58.10 Td (e have been manufacturing automotive catalysts in house since 1999 perfecting those technologies. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (manufacturing processes are designed to provide a high level of quality control at every step of our unique manufacturing ) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (process. ) Tj ET Q q 0 0 0 rg BT 84.81 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 93.45 742.10 Td (e coat our proprietary catalyst products at our Oxnard, California manufacturing facility as well as support our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (downstream partners in deploying coating processes in their global facilities to enable them to correctly apply our unique ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (For our complete turnkey DuraFit, Purifilter, and private label family emissions products we outsource the manufacture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (the metal enclosures, accessories and hardware which complete the unit sold to the end customer) Tj ET Q q 0 0 0 rg BT 436.82 686.10 Td (. ) Tj ET Q q 0 0 0 rg BT 444.14 686.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.77 686.10 Td (e maintain ISO9001:2008, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (ISO/TS 16949:2009 and ISO14001:2004 certifications for our facilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (Our raw material requirements include significant purchases of ceramic substrates filters that we coat with specialty formulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (catalytic materials comprised of platinum group metals \(PGMs\)and various chemicals. PGMs and substratesare either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (provided on a consignment basis by the customers or are purchased by us on behalf of the customer) Tj ET Q q 0 0 0 rg BT 447.95 630.10 Td (. ) Tj ET Q q 0 0 0 rg BT 452.77 630.10 Td (The availability of raw ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (materials is generally dictated by global market supply of key materials. Delivery of key materials such as rare earth metals and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (PGMs have been at times constricted due to global supply constraints. ) Tj ET Q q 0 0 0 rg BT 333.10 606.10 Td (The ceramic substrates and filters that we buy can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (generally be purchased from more than one source, limiting our risk of supply) Tj ET Q q 0 0 0 rg BT 361.77 594.10 Td (. Changing suppliers for some raw materials may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (require regulatory or customer approval. For further discussion of risk of supply) Tj ET Q q 0 0 0 rg BT 369.83 582.10 Td (, refer to "Item1.A. Risk Factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (Regulations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 538.10 Td (e are committed to complying with all federal, state and international environmental laws governing production, use, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (these laws often impact the development of our emissions control products, including, but not limited to, required compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (with emissions standards applicable to new product diesel, gasoline and alternative fuel engines. ) Tj ET Q q 0 0 0 rg BT 437.77 502.10 Td (These regulations include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (those developed in Japan, in the United States by the EP) Tj ET Q q 0 0 0 rg BT 274.32 490.10 Td (A) Tj ET Q q 0 0 0 rg BT 280.99 490.10 Td ( and CARB and in the E.U. by the European Environment ) Tj ET Q q 0 0 0 rg BT 515.11 490.10 Td (Agency) Tj ET Q q 0 0 0 rg BT 545.56 490.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (including standards from the ) Tj ET Q q 0 0 0 rg BT 167.02 478.10 Td (V) Tj ET Q q 0 0 0 rg BT 173.13 478.10 Td (erification of Emission Reduction ) Tj ET Q q 0 0 0 rg BT 310.70 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 316.11 478.10 Td (echnologies, or ) Tj ET Q q 0 0 0 rg BT 379.52 478.10 Td (VER) Tj ET Q q 0 0 0 rg BT 398.92 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 404.29 478.10 Td (, ) Tj ET Q q 0 0 0 rg BT 408.74 478.10 Td (Association.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (Many of our products must receive regulatory approval prior to sale. In the United States, regulatory approval is obtained from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (the EP) Tj ET Q q 0 0 0 rg BT 75.47 446.10 Td (A) Tj ET Q q 0 0 0 rg BT 82.14 446.10 Td ( or CARB through a verification process. ) Tj ET Q q 0 0 0 rg BT 249.15 446.10 Td (The verification process includes a thorough review of the technology as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (as tightly controlled testing to quantify statistically significant levels of emission reductions. For example, the EP) Tj ET Q q 0 0 0 rg BT 502.61 434.10 Td (A) Tj ET Q q 0 0 0 rg BT 509.28 434.10 Td ( verification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (process begins with a verification application and a test plan. Once this is completed, the testing phase begins and is then ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (followed by a data analysis to determine if the technology qualifies for verification. Once a technology is placed on the verified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (technologies list and 500 units are sold, the manufacturer is responsible for conducting in-use testing and reporting of results to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (the EP) Tj ET Q q 0 0 0 rg BT 75.47 386.10 Td (A. ) Tj ET Q q 0 0 0 rg BT 87.51 386.10 Td (Where we own the verification, primarily in retrofit, we are responsible for this testing. Similar product approval ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (schemes exist in other countries around the world.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (Company History) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 334.10 Td (e are a Delaware corporation formed in 1994 as a wholly-owned subsidiary of Fuel ) Tj ET Q q 0 0 0 rg BT 393.35 334.10 Td (T) Tj ET Q q 0 0 0 rg BT 398.76 334.10 Td (ech,Inc., a Delaware corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (\(formerly known as Fuel-T) Tj ET Q q 0 0 0 rg BT 157.89 322.10 Td (echN.V) Tj ET Q q 0 0 0 rg BT 189.92 322.10 Td (., a Netherlands ) Tj ET Q q 0 0 0 rg BT 254.62 322.10 Td (Antilles limited liability company\) \("Fuel ) Tj ET Q q 0 0 0 rg BT 423.22 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 428.63 322.10 Td (ech"\), and were spun of) Tj ET Q q 0 0 0 rg BT 523.33 322.10 Td (f by Fuel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 310.10 Td (ech in a rights of) Tj ET Q q 0 0 0 rg BT 122.43 310.10 Td (fering in December 1995 on the NASDAQ Stock Market \(Symbol CDTI\). On October15, 2010, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (completed a business combination with Catalytic Solutions,Inc. \("CSI"\), a California corporation formed in 1996, when our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (wholly-owned subsidiary) Tj ET Q q 0 0 0 rg BT 150.73 286.10 Td (, CDTI Mer) Tj ET Q q 0 0 0 rg BT 198.04 286.10 Td (ger Sub,Inc., mer) Tj ET Q q 0 0 0 rg BT 269.50 286.10 Td (ged with and into CSI. ) Tj ET Q q 0 0 0 rg BT 362.09 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 370.73 286.10 Td (e refer to this transaction as the "Mer) Tj ET Q q 0 0 0 rg BT 518.75 286.10 Td (ger) Tj ET Q q 0 0 0 rg BT 530.96 286.10 Td (." ) Tj ET Q q 0 0 0 rg BT 539.86 286.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Mer) Tj ET Q q 0 0 0 rg BT 66.48 274.10 Td (ger was accounted for as a reverse acquisition and, as a result, our Company's \(the legal acquirer\) consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (statements are now those of CSI \(the accounting acquirer\), with the assets, liabilities, revenues and expenses of CDTI being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (included ef) Tj ET Q q 0 0 0 rg BT 94.52 250.10 Td (fective from October15, 2010, the closing date of the Mer) Tj ET Q q 0 0 0 rg BT 328.15 250.10 Td (ger) Tj ET Q q 0 0 0 rg BT 340.37 250.10 Td (. From November22, 2006 through the closing date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (the Mer) Tj ET Q q 0 0 0 rg BT 81.20 238.10 Td (ger) Tj ET Q q 0 0 0 rg BT 93.56 238.10 Td (, CSI's common stock was listed on the ) Tj ET Q q 0 0 0 rg BT 252.30 238.10 Td (AIM of the London Stock Exchange \(AIM: CTS and CTSU\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (Employees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 198.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 198.10 Td (, we had 97 full time employees and 2 part time employees. None of our employees is a party to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (collective bar) Tj ET Q q 0 0 0 rg BT 103.96 186.10 Td (gaining agreement. ) Tj ET Q q 0 0 0 rg BT 182.91 186.10 Td (W) Tj ET Q q 0 0 0 rg BT 191.55 186.10 Td (e also retain outside consultants and sales and marketing consultants and agents.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (ITEM 1A.RISK F) Tj ET Q q 0 0 0 rg BT 136.21 158.10 Td (ACT) Tj ET Q q 0 0 0 rg BT 157.14 158.10 Td (ORS) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.41 138.10 Td (e ar) Tj ET Q q 0 0 0 rg BT 72.87 138.10 Td (e subject to risks and uncertainties that may affect our futur) Tj ET Q q 0 0 0 rg BT 311.91 138.10 Td (e financial performance and our stock price. Some of the risks ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (and uncertainties that may cause our financial performance to vary or that may materially or adversely affect our financial ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (performance or stock price ar) Tj ET Q q 0 0 0 rg BT 169.60 114.10 Td (e discussed below) Tj ET Q q 0 0 0 rg BT 240.52 114.10 Td (. ) Tj ET Q q 0 0 0 rg BT 245.34 114.10 Td (Any of these risks, as well as other risks and uncertainties not known to us or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (that we believe to be immaterial, could harm our financial condition, r) Tj ET Q q 0 0 0 rg BT 332.65 102.10 Td (esults of operations or cash flows. Y) Tj ET Q q 0 0 0 rg BT 476.46 102.10 Td (ou should car) Tj ET Q q 0 0 0 rg BT 531.09 102.10 Td (efully ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (consider the risks described below in addition to the cautionary statements and risk factors described elsewher) Tj ET Q q 0 0 0 rg BT 494.29 90.10 Td (e and the other ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (information contained in this ) Tj ET Q q 0 0 0 rg BT 168.71 78.10 Td (Annual r) Tj ET Q q 0 0 0 rg BT 203.61 78.10 Td (eport on Form10-K and in our other filings with the SEC, including subsequent r) Tj ET Q q 0 0 0 rg BT 530.18 78.10 Td (eports ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (on Forms10-K, 10-Q and 8-K, befor) Tj ET Q q 0 0 0 rg BT 197.40 66.10 Td (e deciding to pur) Tj ET Q q 0 0 0 rg BT 265.07 66.10 Td (chase, hold, or sell our stock.) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 742.25 Td ( Financial Condition) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 722.25 Td (e have limited cash and experience negative cash flows from operations, and may need to raise additional capital to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (sustain our operations. If we are unable to raise additional capital when needed, we may be forced to seek to reorganize ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (under bankruptcy laws or liquidate. ) Tj ET Q q 0 0 0 rg BT 199.10 698.25 Td (As a result, our independent registered public accounting firm has expressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (substantial doubt about our ability to continue as a going concern.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 664.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 664.25 Td (, we had cash of $7.8 million, and indebtedness of $3.3 million. ) Tj ET Q q 0 0 0 rg BT 409.38 664.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 459.28 664.25 Td (, we have historically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (operated with negative cash flows from operations and had operating cash flow deficits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.66 652.25 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.55 652.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.99 652.25 Td ($1) Tj ET Q q 0 0 0 rg BT 490.62 652.25 Td (1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.51 652.25 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.69 640.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.28 640.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.71 640.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.71 640.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 285.38 640.25 Td (. Due to these conditions, substantial doubt exists as to our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (continue as a going concern. If necessary) Tj ET Q q 0 0 0 rg BT 216.50 628.25 Td (, we will seek to raise additional capital from the sale of equity securities or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (incurrence of indebtedness to allow us to continue operations. ) Tj ET Q q 0 0 0 rg BT 302.25 616.25 Td (There can be no assurance that additional financing will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (available to us on acceptable terms, or at all. Our inability to raise capital when needed may cause us to reor) Tj ET Q q 0 0 0 rg BT 484.38 604.25 Td (ganize our balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.25 Td (sheet and operations, or liquidate, under the protection of the U.S. Bankruptcy Code, which could result in a loss of your entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.25 Td (investment. Consistent with the foregoing, our auditors have rendered a going concern opinion in respect of our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.25 Td (statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 548.25 Td (e may require additional working capital to maintain our operations in the form of funding from outside sources which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (may be limited, dif) Tj ET Q q 0 0 0 rg BT 125.91 536.25 Td (ficult to obtain, or unavailable on acceptable terms or not available at all, or in the case of an of) Tj ET Q q 0 0 0 rg BT 520.45 536.25 Td (fering of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 524.25 Td (common stock or securities convertible into or exercisable for common stock, may result in dilution to our existing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 512.25 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 490.25 Td (e have historically relied on outside sources of funding in the form of debt or equity) Tj ET Q q 0 0 0 rg BT 393.18 490.25 Td (. ) Tj ET Q q 0 0 0 rg BT 397.63 490.25 Td (Although we have a demand credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (facility backed by our receivables and inventory) Tj ET Q q 0 0 0 rg BT 242.05 478.25 Td (, there is no guarantee that we will be able to borrow to the full limit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td ($7.5million if the lender chooses not to finance a portion of our receivables or inventory) Tj ET Q q 0 0 0 rg BT 404.80 466.25 Td (. ) Tj ET Q q 0 0 0 rg BT 409.25 466.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 459.16 466.25 Td (, the lender may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (terminate the facility at any time. ) Tj ET Q q 0 0 0 rg BT 185.04 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 193.68 454.25 Td (e were successful in raising net proceeds of approximately $10.2 million and $7.1million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (through private and public of) Tj ET Q q 0 0 0 rg BT 166.46 442.25 Td (ferings of shares during the years ended December31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 499.03 442.25 Td (, but there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (guarantee that should the need arise, we will be able to do so again.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 408.25 Td (Any required additional funding may be in the form of debt financing or a private or public of) Tj ET Q q 0 0 0 rg BT 425.54 408.25 Td (fering of equity securities. ) Tj ET Q q 0 0 0 rg BT 532.83 408.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.46 408.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 396.25 Td (believe that debt financing would be dif) Tj ET Q q 0 0 0 rg BT 209.21 396.25 Td (ficult to obtain because of our limited assets and cash flows as well as current general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 384.25 Td (economic conditions. ) Tj ET Q q 0 0 0 rg BT 137.49 384.25 Td (Any additional of) Tj ET Q q 0 0 0 rg BT 207.85 384.25 Td (fering of shares of our common stock or of securities exercisable for or convertible into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 372.25 Td (shares of our common stock may result in further dilution to our existing stockholders. Our ability to consummate a financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.25 Td (will depend not only on our ability to achieve positive operating results, but also on conditions then prevailing in the relevant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.25 Td (capital markets. ) Tj ET Q q 0 0 0 rg BT 115.63 348.25 Td (There can be no assurance that such funding will be available if needed, or on acceptable terms. In the event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (that we are unable to raise such funds, we may be required to delay) Tj ET Q q 0 0 0 rg BT 318.14 336.25 Td (, reduce or severely curtail or cease our operations or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (implementation of our business strategies or otherwise impede our on-going business ef) Tj ET Q q 0 0 0 rg BT 401.14 324.25 Td (forts and/or seek reor) Tj ET Q q 0 0 0 rg BT 486.20 324.25 Td (ganization under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.25 Td (the U.S. Bankruptcy Code, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 343.89 312.25 Td (fect on our business, operating results, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.25 Td (condition and long-term prospects.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.25 Td (Future growth of our business depends, in part, on the general availability of funding for emissions control programs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (enforcement of existing emissions-related environmental regulations, further tightening of emission standards worldwide, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (market acceptance of our catalyst products, and successful product verifications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (Although retrofit is a declining part of our business, future growth of our business depends in part on the general availability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (funding for emissions control programs, which can be af) Tj ET Q q 0 0 0 rg BT 276.15 202.25 Td (fected by economic as well as political reasons. ) Tj ET Q q 0 0 0 rg BT 470.53 202.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 520.43 202.25 Td (, funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (for the EP) Tj ET Q q 0 0 0 rg BT 89.63 190.25 Td (A's Diesel Emissions Reductions ) Tj ET Q q 0 0 0 rg BT 223.65 190.25 Td (Act, or DERA, for 2016 was substantially reduced from historic levels, and future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (funding remains uncertain as budget discussions continue to be debated in the U.S. Congress. Funding under the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (Congestion Mitigation and ) Tj ET Q q 0 0 0 rg BT 159.17 166.25 Td (Air Quality program, or CMAQ, can be used by states for a variety of emission reduction programs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (including purchase of new vehicles, building high occupancy travel lanes \(car) Tj ET Q q 0 0 0 rg BT 361.08 154.25 Td (-pool lanes\) and retrofit programs. ) Tj ET Q q 0 0 0 rg BT 500.85 154.25 Td (T) Tj ET Q q 0 0 0 rg BT 506.26 154.25 Td (o the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (that these funds are not used for retrofit programs, it limits our sales opportunities. Funding for these types of emissions control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (projects drives demand for our products. If such funding is not available, it can negatively af) Tj ET Q q 0 0 0 rg BT 419.99 130.25 Td (fect our future growth prospects. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (addition to funding, we also expect that our future business growth will be driven, in part, by the enforcement of existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (emissions-related environmental regulations, further tightening of emissions standards worldwide, market acceptance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (catalyst products and successful product verifications. If such standards do not continue to become stricter or are loosened or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (are not enforced by governmental authorities due to commercial and business pressure or otherwise, it could have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 70.25 Td (fect on our business, operating results, financial condition and long-term prospects.) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (The pursuit of opportunities relating to special government mandated retrofit programs requires cash investment in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (operating expenses and working capital such as inventory and receivables prior to the realization of profits and cash from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (sales and, if we are not successful in accessing cash resources to make these investments, we may miss out on these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (opportunities; further) Tj ET Q q 0 0 0 rg BT 139.19 706.25 Td (, if we are not successful in generating suf) Tj ET Q q 0 0 0 rg BT 313.19 706.25 Td (ficient sales from these opportunities, we will not realize the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (benefits of the investments in inventory) Tj ET Q q 0 0 0 rg BT 211.02 694.25 Td (, which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 344.99 694.25 Td (fect on our business, financial condition and results ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (Although retrofit is a declining part of our business, we are pursuing revenue generating opportunities relating to special ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (government mandated retrofit programs such as those in California and potentially others in various jurisdictions in North ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (America, Europe and ) Tj ET Q q 0 0 0 rg BT 137.19 636.25 Td (Asia. Opportunities such as these require cash investment in operating expenses and working capital such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 624.25 Td (as inventory and receivables prior to realizing profits and cash from sales. If we are not successful in accessing cash resources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 612.25 Td (to make these investments, we may miss out on these opportunities. Further) Tj ET Q q 0 0 0 rg BT 352.61 612.25 Td (, if we are not successful in generating suf) Tj ET Q q 0 0 0 rg BT 520.98 612.25 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 600.25 Td (sales from these opportunities, we will not realize the benefits of the investments in inventory) Tj ET Q q 0 0 0 rg BT 423.98 600.25 Td (, which would have an adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 588.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 588.25 Td (fect on our business, financial condition and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (If we fail to maintain an ef) Tj ET Q q 0 0 0 rg BT 160.38 566.25 Td (fective system of internal control over financial reporting, we may not be able to accurately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (report our financial results, which will likely result in significant legal and accounting expense and diversion of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (management resources, and current and potential stockholders may lose confidence in our financial reporting and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (market price of our stock will likely decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 508.25 Td (e are required by the SEC to establish and maintain adequate internal control over financial reporting that provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.25 Td (reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.25 Td (accordance with generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 285.54 484.25 Td (W) Tj ET Q q 0 0 0 rg BT 294.17 484.25 Td (e are likewise required, on a quarterly basis, to evaluate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 472.25 Td (fectiveness of our disclosure controls and to disclose any changes and material weaknesses in those internal controls.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (Any failure to maintain internal controls could adversely af) Tj ET Q q 0 0 0 rg BT 286.96 450.25 Td (fect our ability to report our financial results on a timely and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (accurate basis. If our financial statements are not accurate, investors may not have a complete understanding of our operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 Td (If we do not file our financial statements on a timely basis as required by the SEC and ) Tj ET Q q 0 0 0 rg BT 396.40 426.25 Td (The NASDAQ Capital Market, we could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.25 Td (face negative consequences from those authorities. In either case, there could be a material adverse ef) Tj ET Q q 0 0 0 rg BT 456.02 414.25 Td (fect on our business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (negative ef) Tj ET Q q 0 0 0 rg BT 93.96 390.25 Td (fect on the trading price of our common stock. ) Tj ET Q q 0 0 0 rg BT 282.06 390.25 Td (W) Tj ET Q q 0 0 0 rg BT 290.69 390.25 Td (e can give no assurance that material weaknesses or restatements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (reporting or circumvention of these controls. In addition, in the future our controls and procedures may no longer be adequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (to prevent or identify irregularities or errors or to facilitate the fair presentation of our consolidated financial statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (Responding to inquiries from the SEC or ) Tj ET Q q 0 0 0 rg BT 216.20 342.25 Td (The NASDAQ Capital Market, regardless of the outcome, is likely to consume a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (significant amount of our management resources and cause us to incur significant legal and accounting expense. Further) Tj ET Q q 0 0 0 rg BT 530.28 330.25 Td (, many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (companies that have restated their historical financial statements have experienced a decline in stock price and related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (stockholder lawsuits.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (The debt conversion completed in the third quarter of 2016 adversely af) Tj ET Q q 0 0 0 rg BT 343.96 286.25 Td (fects our ability to take advantage of significant U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (federal tax loss carryforwards and accumulated tax credits.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (In connection with the debt conversion, we performed a study to evaluate the status of net operating loss carryforwards. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (Because the debt conversion caused an "ownership change" \(as defined for U.S. federal income tax purposes\), our ability to use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (our net operating losses and credits in future tax years has been significantly limited. In addition, due to the "ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (change," our federal research and development credits have also been limited and, consequently) Tj ET Q q 0 0 0 rg BT 433.28 218.25 Td (, we do not anticipate being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (able to use any of these credits that existed as of the date of the debt conversion in future tax years. Our limited ability to use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (these net operating losses and tax credits, including as a result of equity of) Tj ET Q q 0 0 0 rg BT 346.96 194.25 Td (ferings subsequent to the debt conversion, could have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (an adverse ef) Tj ET Q q 0 0 0 rg BT 102.56 182.25 Td (fect on our results of operations once we become profitable.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.25 Td (Foreign currency fluctuations could impact financial performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 140.25 Td (Because of our activities in the United Kingdom, Europe, Canada and ) Tj ET Q q 0 0 0 rg BT 331.31 140.25 Td (Asia, we are exposed to fluctuations in foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 128.25 Td (rates. ) Tj ET Q q 0 0 0 rg BT 73.70 128.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.33 128.25 Td (e do not manage the risk to such exposure by entering into foreign currency futures and option contracts. Foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.25 Td (currency fluctuations may have a significant ef) Tj ET Q q 0 0 0 rg BT 237.52 116.25 Td (fect on our operations in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 96.25 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 96.25 Td ( Business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 76.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 76.25 Td (e cannot assure you that we will be successful in completing our transition into an advanced materials supplier or that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 64.25 Td (those ef) Tj ET Q q 0 0 0 rg BT 81.76 64.25 Td (forts will have the intended ef) Tj ET Q q 0 0 0 rg BT 203.52 64.25 Td (fect of increasing profitability) Tj ET Q q 0 0 0 rg BT 325.63 64.25 Td (.) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e are in the process of transitioning from being a niche manufacturer of emissions control solutions for the automotive and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (heavy duty diesel markets to becoming an advanced materials technology provider of proprietary powders for these markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (During the second quarter of 2016, we completed our operating strategy transition however we are still in process with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (business strategy transition. ) Tj ET Q q 0 0 0 rg BT 163.14 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.78 706.10 Td (e believe that the transition to a powder) Tj ET Q q 0 0 0 rg BT 329.58 706.10 Td (-to-coat business model will allow us to achieve greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (scale and higher return on our technology investment than in the past. In the short term, we expect to focus our ef) Tj ET Q q 0 0 0 rg BT 503.30 694.10 Td (forts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (resources in pursuing opportunities in fast growing markets in China and India, as well as North ) Tj ET Q q 0 0 0 rg BT 436.32 682.10 Td (America, which we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (that we can serve profitably with our powder) Tj ET Q q 0 0 0 rg BT 229.46 670.10 Td (-to-coat business model. However) Tj ET Q q 0 0 0 rg BT 365.69 670.10 Td (, we cannot assure you that these ef) Tj ET Q q 0 0 0 rg BT 507.13 670.10 Td (forts will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (successful and, if they are, that they will have the intended ef) Tj ET Q q 0 0 0 rg BT 294.45 658.10 Td (fect of increasing profitability) Tj ET Q q 0 0 0 rg BT 413.48 658.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 636.10 Td (e may not be able to successfully implement this strategy for a number of reasons, including, but not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 614.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 614.10 Td (Unforeseen costs and delays;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 594.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 594.10 Td (Unexpected legal, regulatory) Tj ET Q q 0 0 0 rg BT 201.13 594.10 Td (, or administrative hurdles;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 574.10 Td (Our customers' unfamiliarity with this business model;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 554.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 554.10 Td (Restrictions on our technology; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 534.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 534.10 Td (Our inability to:) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 511.94 cm /I19 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 514.10 Td (Obtain additional capital to pursue such strategies on favorable terms or at all;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 491.94 cm /I20 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 494.10 Td (Protect our intellectual property;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 471.94 cm /I21 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 474.10 Td (Develop products that meet or exceed the qualification standards of OEMsand partners and provide greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 462.10 Td (value than alternatives;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 439.94 cm /I22 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 442.10 Td (Persuade other catalyst manufacturers to incorporate our technology in their products;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 419.94 cm /I23 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 422.10 Td (Find suitable third parties with whom to enter into partnering arrangements or invest in our business; and) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 104.00 399.94 cm /I24 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 402.10 Td (Compete successfully or enter new markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 382.10 Td (e hired a new Chief Executive Of) Tj ET Q q 0 0 0 rg BT 192.29 382.10 Td (ficer in November 2015, and our Executive ) Tj ET Q q 0 0 0 rg BT 368.16 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 373.57 382.10 Td (eam, with input from our Board of Directors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (is in the process of accelerating the execution of our business strategy) Tj ET Q q 0 0 0 rg BT 328.43 370.10 Td (. However) Tj ET Q q 0 0 0 rg BT 369.68 370.10 Td (, we cannot assure you that we will successfully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (complete our transformation from serving as a manufacturer of emissions solutions to a developer and supplier of proprietary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (powders used by other catalyst manufacturers for supply to the global automotive industry or that those ef) Tj ET Q q 0 0 0 rg BT 473.60 346.10 Td (forts will have the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (intended ef) Tj ET Q q 0 0 0 rg BT 94.52 334.10 Td (fect of increasing profitability) Tj ET Q q 0 0 0 rg BT 213.55 334.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.10 Td (Furthermore, in attempting to execute this strategy) Tj ET Q q 0 0 0 rg BT 251.80 312.10 Td (, we may harm our relationships with customers, suppliers, employees or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (other third parties, any of which could be significant. ) Tj ET Q q 0 0 0 rg BT 264.48 300.10 Td (The process of exploring, financing, and realigning our strategic path may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (also be disruptive to our business. ) Tj ET Q q 0 0 0 rg BT 187.86 288.10 Td (While we believe the pursuit of this strategy will have a positive ef) Tj ET Q q 0 0 0 rg BT 455.38 288.10 Td (fect on our profitability in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (the long-term, there is no assurance that this will be the case. If we are not successful in our ef) Tj ET Q q 0 0 0 rg BT 426.64 276.10 Td (forts to carry out this strategy) Tj ET Q q 0 0 0 rg BT 544.01 276.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (our business, financial condition, and results of operation may be adversely af) Tj ET Q q 0 0 0 rg BT 361.67 264.10 Td (fected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (Our sales of coated catalysts to Honda, which historically has represented a substantial portion of our revenues, will begin ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (to significantly decline in the fourth quarter of 2017 and end in the first quarter of 2018, which will adversely af) Tj ET Q q 0 0 0 rg BT 510.68 230.10 Td (fect our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (operations and financial results if we are unable to secure new sources of revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 196.10 Td (, we have derived a significant portion of our revenue from sales to Honda, which represented 96% and 99% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (Catalyst division revenues for the years ended December31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 407.57 184.10 Td (, and 59% and 57% of consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (revenues for the years ended December31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 337.57 172.10 Td (. ) Tj ET Q q 0 0 0 rg BT 342.39 172.10 Td (While we continually seek to broaden our customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (base, through 2017 we will remain dependent on Honda to represent a substantial portion of our revenue. Our supply of coated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (catalysts to Honda will begin to significantly decline in the fourth quarter of 2017 and end in the first quarter of 2018, as certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (current vehicle models are phased out. ) Tj ET Q q 0 0 0 rg BT 208.28 136.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 257.61 136.10 Td (, it will be critical that our powder) Tj ET Q q 0 0 0 rg BT 394.04 136.10 Td (-to-coat business strategy produces ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (revenues with new customers, which may include Honda, directly or indirectly) Tj ET Q q 0 0 0 rg BT 364.81 124.10 Td (, to replace revenues from our current core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (catalyst business with Honda.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.96 90.10 Td (, we have been dependent on a few major customers for a significant portion of our revenue and our revenue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (would decline if we are unable to maintain those relationships, if customers reduce their orders for our products, or if we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (are unable to secure new customers.) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e expect to continue to derive a significant portion of our revenue from a limited number of customers. If we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (maintain our relationships with customers, or if customers reduce their orders for our products, our revenues will decline. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (In addition, manufacturers typically seek to have two or more sources of critical components; however) Tj ET Q q 0 0 0 rg BT 460.30 718.10 Td (, there can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (assurance that manufacturers for which we are a shared supplier will not sole source the products we supply) Tj ET Q q 0 0 0 rg BT 481.15 706.10 Td (. Once our product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (is designed into a vehicle model, we generally supply our component for the life of that model. ) Tj ET Q q 0 0 0 rg BT 432.22 694.10 Td (There can be no assurance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (however) Tj ET Q q 0 0 0 rg BT 84.03 682.10 Td (, that our customers will retain us for a full model term. In this regard, relationships with our customers are based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (purchase orders rather than long-term formal supply agreements and customers can discontinue or materially reduce orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (without warning or penalty) Tj ET Q q 0 0 0 rg BT 157.94 658.10 Td (. In addition, while new models tend to remain relatively stable for a few years, there can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (assurance that manufacturers will not change models more rapidly) Tj ET Q q 0 0 0 rg BT 314.81 646.10 Td (, or change the performance requirements of components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (used in those models, and use other suppliers for these new or revised models. Demand for our products is tied directly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (demand for vehicles. ) Tj ET Q q 0 0 0 rg BT 135.53 622.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 184.86 622.10 Td (, factors that af) Tj ET Q q 0 0 0 rg BT 244.65 622.10 Td (fect the truck and automobile markets have a direct ef) Tj ET Q q 0 0 0 rg BT 459.65 622.10 Td (fect on our business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (including factors outside of our control, such as vehicle sales slowdowns due to economic concerns, or as a result of natural ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (disasters, including earthquakes and/or tsunamis. ) Tj ET Q q 0 0 0 rg BT 248.39 598.10 Td (The loss of one or more of our significant customers, or reduced demand from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (one or more of our significant customers, would have an adverse ef) Tj ET Q q 0 0 0 rg BT 319.17 586.10 Td (fect on our revenue, and could af) Tj ET Q q 0 0 0 rg BT 450.88 586.10 Td (fect our ability to become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (profitable or continue our business operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 552.10 Td (e have an expired agreement with Honda that may limit our rights to commercialize certain technology within the scope of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.10 Td (that agreement and adversely af) Tj ET Q q 0 0 0 rg BT 181.47 540.10 Td (fect our technology licensing strategy) Tj ET Q q 0 0 0 rg BT 334.98 540.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (In conjunction with our longstanding relationship with Honda, we entered into a joint research agreement with the motorcycle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (division of Honda regarding the development of ZPGM catalysts for motorcycles. ) Tj ET Q q 0 0 0 rg BT 390.10 506.10 Td (The agreement was signed in 2010, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (extended in 2012 and expired in March 2014, although confidentiality provisions continue to survive. ) Tj ET Q q 0 0 0 rg BT 458.62 494.10 Td (The agreement provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (that technology within the scope of the agreement developed solely by one party is owned by that party) Tj ET Q q 0 0 0 rg BT 462.85 482.10 Td (, and that technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (within the scope of the agreement that is jointly developed by both parties is jointly owned. ) Tj ET Q q 0 0 0 rg BT 417.80 470.10 Td (While we believe that core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (technology within the scope of the agreement was developed solely by us, there can be no assurance that our belief will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (challenged or invalidated. ) Tj ET Q q 0 0 0 rg BT 155.89 446.10 Td (T) Tj ET Q q 0 0 0 rg BT 161.30 446.10 Td (o the extent that Honda is a joint owner of critical technology developed under the agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (Honda \(including its automotive division\) might not be required to pay us a license or royalty fee for use of the jointly owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (technology; Honda may be able to manufacture its own catalysts based on the jointly owned technology; and Honda may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (able to license the jointly owned technology to others without our consent. In addition, under the terms of the agreement, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (may not be able to license jointly owned technology to others without Honda) Tj ET Q q 0 0 0 rg BT 361.05 398.10 Td (s consent. Our inability to license jointly owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (technology to others could adversely af) Tj ET Q q 0 0 0 rg BT 207.27 386.10 Td (fect the ability to license certain technology) Tj ET Q q 0 0 0 rg BT 381.55 386.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 364.10 Td (e may not be able to successfully market new products that are developed or obtain verification or approval of our new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (Some of our catalyst products and heavy duty diesel systems are still in the development or testing stage with tar) Tj ET Q q 0 0 0 rg BT 500.55 330.10 Td (geted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.37 318.10 Td (W) Tj ET Q q 0 0 0 rg BT 104.00 318.10 Td (e are developing technologies in areas that are intended to have a commercial application; however) Tj ET Q q 0 0 0 rg BT 500.10 318.10 Td (, there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (guarantee that such technologies will actually result in any commercial applications. In addition, we plan to market other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (emissions reduction devices used in combination with our current products. ) Tj ET Q q 0 0 0 rg BT 354.48 294.10 Td (There are numerous development and verification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (issues that may preclude the introduction of these products for commercial sale. ) Tj ET Q q 0 0 0 rg BT 371.67 282.10 Td (These proposed operations are subject to all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (the risks inherent in a developing business enterprise, including the likelihood of continued operating losses. If we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (demonstrate the feasibility of these proposed commercial applications and products or obtain verification or approval for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (products from regulatory agencies, we may have to abandon the products or alter our business plan. Such modifications to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (business plan will likely delay achievement of revenue milestones and profitability) Tj ET Q q 0 0 0 rg BT 380.93 234.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (PGMsand rare earth metals price fluctuations could impact financial performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (Because our catalysts contain platinum, palladium and rhodium, or platinum group metals \(PGMs\), and rare earth metals, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (fluctuations in prices could have an adverse impact on our profits as it may not be possible to recover price increases from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.00 166.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 144.90 166.10 Td (, increased prices could result in increased working capital requirements which we may not be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (finance. Conversely) Tj ET Q q 0 0 0 rg BT 129.32 154.10 Td (, reductions in PGM prices could reduce the competitive advantage our catalyst technologies have over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (conventional catalysts which rely on significantly higher PGM loadings to achieve emissions tar) Tj ET Q q 0 0 0 rg BT 435.29 142.10 Td (gets.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 120.10 Td (e depend on intellectual property and the failure to protect our intellectual property could adversely af) Tj ET Q q 0 0 0 rg BT 477.10 120.10 Td (fect our future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (growth and success.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 86.10 Td (e rely on patent, trademark and copyright law) Tj ET Q q 0 0 0 rg BT 240.14 86.10 Td (, trade secret protection, and confidentiality and other agreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (employees, customers, partners and others to protect our intellectual property) Tj ET Q q 0 0 0 rg BT 358.42 74.10 Td (. In addition, some of our intellectual property is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (not protected by any patent or patent application. ) Tj ET Q q 0 0 0 rg BT 248.36 62.10 Td (The lack of patent and trademark protection may be intentional as we may ) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (lack suf) Tj ET Q q 0 0 0 rg BT 81.20 742.10 Td (ficient resources to protect our intellectual property in every applicable jurisdiction. ) Tj ET Q q 0 0 0 rg BT 417.74 742.10 Td (As a result, it may be possible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (third parties to obtain and use our intellectual property without the need to obtain our authorization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 708.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 708.10 Td (e do not know whether any patents will be issued from our pending or future patent applications or whether the scope of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 696.10 Td (issued patents is or will be suf) Tj ET Q q 0 0 0 rg BT 170.36 696.10 Td (ficiently broad to protect our technologies. Moreover) Tj ET Q q 0 0 0 rg BT 382.39 696.10 Td (, patent applications and issued patents may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 684.10 Td (be challenged or invalidated. ) Tj ET Q q 0 0 0 rg BT 167.83 684.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.46 684.10 Td (e could incur substantial costs in prosecuting or defending patent infringement suits. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 672.10 Td (addition, the laws of some foreign countries may not protect or enforce intellectual property rights to the same extent as do the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.10 Td (laws of the United States.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (The patents protecting our proprietary technologies expire after a period of time. Currently) Tj ET Q q 0 0 0 rg BT 412.28 638.10 Td (, our patents have expiration dates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (ranging from 2017 through 2033. ) Tj ET Q q 0 0 0 rg BT 185.54 626.10 Td (Although we have attempted to incorporate technology from our core patents into specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (patented product applications, product designs and packaging, there can be no assurance that this building block approach will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (be successful in protecting our proprietary technology and products. If we are not successful in protecting our proprietary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.78 590.10 Td (, it could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 235.76 590.10 Td (fect on our business, financial condition and results of operations. Questions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (have arisen regarding our exclusive ownership and control of certain technologies, including by our principal customer) Tj ET Q q 0 0 0 rg BT 525.56 578.10 Td (, Honda, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (and a former employee, who claims ownership in a patent relating to ZPGM. In addition, we have sold technology for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (exclusive use in ) Tj ET Q q 0 0 0 rg BT 115.82 554.10 Td (Asia to another party) Tj ET Q q 0 0 0 rg BT 199.31 554.10 Td (. For additional information, refer to --W) Tj ET Q q 0 0 0 rg BT 366.79 554.10 Td (e have an expired agreement with Honda that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (may limit our rights to commercialize certain technology) Tj ET Q q 0 0 0 rg BT 277.33 542.10 Td (... above and --W) Tj ET Q q 0 0 0 rg BT 354.82 542.10 Td (e are subject to restrictions and must pay a royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (on certain sales of our products and technology in specified countries in ) Tj ET Q q 0 0 0 rg BT 339.37 530.10 Td (Asia below) Tj ET Q q 0 0 0 rg BT 388.42 530.10 Td (. Past or future weaknesses in control of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (our intellectual property could render our current strategies unachievable, require that we change our strategies which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (prove unsuccessful, result in litigation over ownership issues including the costs thereof and potential adverse findings, require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (that we pay to license back technology that we developed or co-developed, or otherwise material adversely af) Tj ET Q q 0 0 0 rg BT 488.26 494.10 Td (fect us, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (business and our financial performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (As part of our confidentiality procedures, we generally have entered into nondisclosure agreements with employees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.10 Td (consultants and corporate partners. ) Tj ET Q q 0 0 0 rg BT 191.71 448.10 Td (W) Tj ET Q q 0 0 0 rg BT 200.35 448.10 Td (e also have attempted to control access to and distribution of our technologies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (documentation and other proprietary information. ) Tj ET Q q 0 0 0 rg BT 250.87 436.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.51 436.10 Td (e plan to continue these procedures. Despite these procedures, third parties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (could copy or otherwise obtain and make unauthorized use of our technologies or independently develop similar technologies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (The steps that we have taken and that may occur in the future might not prevent misappropriation of our solutions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (technologies, particularly in foreign countries where laws or law enforcement practices may not protect the proprietary rights as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (fully as in the United States.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (There can be no assurance that we will be successful in enforcing our proprietary rights. For example, from time to time we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (have become aware of competing technologies employed by third parties who might be covered by one or more of our patents. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (In such situations, we may seek to grant licenses to such third parties or seek to stop the infringement, including through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (threat of legal action. ) Tj ET Q q 0 0 0 rg BT 137.28 330.10 Td (There is no assurance that we would be successful in negotiating a license agreement on favorable terms, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (if at all, or able to stop the infringement. ) Tj ET Q q 0 0 0 rg BT 213.57 318.10 Td (Any infringement upon our intellectual property rights could have an adverse ef) Tj ET Q q 0 0 0 rg BT 533.01 318.10 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (our ability to develop and sell commercially competitive systems and components.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.10 Td (If we fail to obtain the right to use the intellectual property rights of others which are necessary to operate our business, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (ability to succeed will be adversely af) Tj ET Q q 0 0 0 rg BT 201.45 272.10 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (From time to time, we may choose to or be required to license technology or intellectual property from third parties in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (connection with the development of our products. ) Tj ET Q q 0 0 0 rg BT 251.44 238.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.07 238.10 Td (e cannot assure you that third-party licenses will be available to us on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (commercially reasonable terms, if at all. Generally) Tj ET Q q 0 0 0 rg BT 252.04 226.10 Td (, a license, if granted, would include payments of up-front fees, ongoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (royalties or both. ) Tj ET Q q 0 0 0 rg BT 120.36 214.10 Td (These payments or other terms could have an adverse impact on our results of operations. ) Tj ET Q q 0 0 0 rg BT 481.18 214.10 Td (The inability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (obtain a necessary third-party license required for our product of) Tj ET Q q 0 0 0 rg BT 308.33 202.10 Td (ferings or to develop new products and product enhancements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (could require us to substitute technology of lower quality or performance standards, or of greater cost, either of which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.40 178.10 Td (fect our business. If we are not able to obtain licenses from third parties, if necessary) Tj ET Q q 0 0 0 rg BT 436.81 178.10 Td (, then we may also be subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (to litigation to defend against infringement claims from these third parties. Our competitors may be able to obtain licenses or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (cross-license their technology on better terms than we can, which could put us at a competitive disadvantage. If we are unable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (to obtain or maintain any third-party license required to develop new products and product enhancements, on favorable terms, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (our results of operations may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (If third parties claim that our products infringe upon their intellectual property rights, we may be forced to expend ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (significant financial resources and management time litigating such claims and our operating results could suf) Tj ET Q q 0 0 0 rg BT 507.66 94.10 Td (fer) Tj ET Q q 0 0 0 rg BT 518.77 94.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.10 Td (Third parties may claim that our products and systems infringe upon their patents and other intellectual property rights. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (Identifying third-party patent rights can be particularly dif) Tj ET Q q 0 0 0 rg BT 282.24 60.10 Td (ficult, notably because patent applications are generally not published ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.10 Td (until up to 18months after their filing dates. If a competitor were to challenge our patents, or assert that our products or ) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (processes infringe their patent or other intellectual property rights, we could incur substantial litigation costs, be forced to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (expensive product modifications, pay substantial damages or even be forced to cease some operations. ) Tj ET Q q 0 0 0 rg BT 461.91 730.10 Td (Third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (infringement claims, regardless of their outcome, would not only drain financial resources but also divert the time and ef) Tj ET Q q 0 0 0 rg BT 532.45 718.10 Td (fort of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (management and could result in customers or potential customers limiting or deferring their purchase or use of the af) Tj ET Q q 0 0 0 rg BT 517.46 706.10 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (products or services until resolution of the litigation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 672.10 Td (e are subject to restrictions and must pay a royalty on certain sales of our products and technology in specified countries ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.10 Td (in ) Tj ET Q q 0 0 0 rg BT 60.47 660.10 Td (Asia.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (In February 2008, we established a joint venture in Japan called ) Tj ET Q q 0 0 0 rg BT 307.52 638.10 Td (TC Catalyst,Inc., or ) Tj ET Q q 0 0 0 rg BT 391.49 638.10 Td (TCC, with ) Tj ET Q q 0 0 0 rg BT 436.04 638.10 Td (T) Tj ET Q q 0 0 0 rg BT 441.45 638.10 Td (anaka HoldingsCo.,Ltd. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (\(formerly ) Tj ET Q q 0 0 0 rg BT 90.63 626.10 Td (T) Tj ET Q q 0 0 0 rg BT 96.04 626.10 Td (anaka Holdings K.K.\), a Japanese company) Tj ET Q q 0 0 0 rg BT 269.79 626.10 Td (, which, together with its subsidiary ) Tj ET Q q 0 0 0 rg BT 415.14 626.10 Td (T) Tj ET Q q 0 0 0 rg BT 420.55 626.10 Td (anaka Kikinzoku Kogyo K.K., is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (referred to herein as ) Tj ET Q q 0 0 0 rg BT 132.55 614.10 Td (TKK. Initially) Tj ET Q q 0 0 0 rg BT 189.11 614.10 Td (, we and ) Tj ET Q q 0 0 0 rg BT 225.03 614.10 Td (TKK each owned 50% of ) Tj ET Q q 0 0 0 rg BT 329.54 614.10 Td (TCC, but since formation we have sold most of our stake ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (in the venture to ) Tj ET Q q 0 0 0 rg BT 117.58 602.10 Td (TKK and now own 5%. In connection with these transactions, we also sold to ) Tj ET Q q 0 0 0 rg BT 430.67 602.10 Td (TKK certain proprietary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (technology for sale, licensing or use in various countries in ) Tj ET Q q 0 0 0 rg BT 288.00 590.10 Td (Asia, which we refer to as the ) Tj ET Q q 0 0 0 rg BT 409.44 590.10 Td (T) Tj ET Q q 0 0 0 rg BT 414.85 590.10 Td (erritory) Tj ET Q q 0 0 0 rg BT 444.19 590.10 Td (. In general, the technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (covers our catalyst formulations \(including platinum and zero platinum\) developed for heavy duty commercial vehicles and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (other applications through 2013, and for non-commercial light vehicles through 2012. In addition, ) Tj ET Q q 0 0 0 rg BT 444.73 566.10 Td (TKK has a right to cause us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (to license heavy duty commercial technology to ) Tj ET Q q 0 0 0 rg BT 243.93 554.10 Td (TKK or ) Tj ET Q q 0 0 0 rg BT 277.63 554.10 Td (TCC in exchange for a royalty if ) Tj ET Q q 0 0 0 rg BT 410.46 554.10 Td (TKK or ) Tj ET Q q 0 0 0 rg BT 444.16 554.10 Td (TCC desire to sell related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (products or services outside the ) Tj ET Q q 0 0 0 rg BT 178.40 542.10 Td (T) Tj ET Q q 0 0 0 rg BT 183.81 542.10 Td (erritory to subsidiaries of OEM customers located within the ) Tj ET Q q 0 0 0 rg BT 428.85 542.10 Td (T) Tj ET Q q 0 0 0 rg BT 434.26 542.10 Td (erritory) Tj ET Q q 0 0 0 rg BT 463.60 542.10 Td (. ) Tj ET Q q 0 0 0 rg BT 468.42 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 477.06 542.10 Td (e have also agreed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (not to compete in the ) Tj ET Q q 0 0 0 rg BT 136.74 530.10 Td (T) Tj ET Q q 0 0 0 rg BT 142.15 530.10 Td (erritory with ) Tj ET Q q 0 0 0 rg BT 194.74 530.10 Td (TKK or ) Tj ET Q q 0 0 0 rg BT 228.44 530.10 Td (TCC in connection with heavy duty commercial vehicles and applications and light ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (duty vehicles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (Subsequent to these arrangements, we discovered that an exception allowing us to continue to supply catalysts in Japan to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (lar) Tj ET Q q 0 0 0 rg BT 60.37 484.10 Td (gest customer) Tj ET Q q 0 0 0 rg BT 115.23 484.10 Td (, Honda, had been omitted in an amendment to the original transaction documents with ) Tj ET Q q 0 0 0 rg BT 465.52 484.10 Td (TKK. ) Tj ET Q q 0 0 0 rg BT 490.89 484.10 Td (W) Tj ET Q q 0 0 0 rg BT 499.53 484.10 Td (e have shipped ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (approximately $5.6million of catalysts covered by the agreements since such amendment through December31, 2014. In this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (regard, in December 2014 we made a good faith payment of $0.3million to ) Tj ET Q q 0 0 0 rg BT 354.73 460.10 Td (TKK with respect to such prior shipments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (In addition, on March13, 2015, we further amended our agreements with ) Tj ET Q q 0 0 0 rg BT 346.12 438.10 Td (TKK and ) Tj ET Q q 0 0 0 rg BT 385.93 438.10 Td (TCC to, among other things, enable us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (sell in the ) Tj ET Q q 0 0 0 rg BT 91.20 426.10 Td (T) Tj ET Q q 0 0 0 rg BT 96.61 426.10 Td (erritory \(i\)coated substrates or certain catalytic materials utilizing the technology we sold to ) Tj ET Q q 0 0 0 rg BT 468.53 426.10 Td (TKK for a 4% royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (to ) Tj ET Q q 0 0 0 rg BT 60.10 414.10 Td (TKK; \(ii\)coated substrates and certain catalytic materials utilizing solely new technology developed by us after we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (TKK the prior technology) Tj ET Q q 0 0 0 rg BT 153.49 402.10 Td (, as well as licenses of such technology related to catalysts for heavy-duty commercial vehicles and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (applications and light duty vehicles, for a 3% royalty to ) Tj ET Q q 0 0 0 rg BT 274.49 390.10 Td (TKK; \(iii\)products used in vehicles without a royalty) Tj ET Q q 0 0 0 rg BT 488.79 390.10 Td (, provided that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (ultimate user of the vehicle which contains the product purchases the vehicle outside the ) Tj ET Q q 0 0 0 rg BT 405.82 378.10 Td (T) Tj ET Q q 0 0 0 rg BT 411.23 378.10 Td (erritory; \(iv\)limited quantities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (coated substrates or certain catalytic materials sold for the purpose of customer testing, evaluation and approval without a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (royalty; and \(v\)limited quantities of coated substrates sold during an extended period of time after mass production ends for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (specified vehicle model year program without a royalty) Tj ET Q q 0 0 0 rg BT 271.22 342.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 320.10 Td (Pursuant to the terms of the amendment, once an aggregate amount of approximately $16.6million in royalties has been paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (by us to ) Tj ET Q q 0 0 0 rg BT 83.99 308.10 Td (TKK, we may commercialize any technology without a royalty) Tj ET Q q 0 0 0 rg BT 336.31 308.10 Td (, including inside the ) Tj ET Q q 0 0 0 rg BT 422.51 308.10 Td (T) Tj ET Q q 0 0 0 rg BT 427.92 308.10 Td (erritory) Tj ET Q q 0 0 0 rg BT 457.26 308.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Consequently) Tj ET Q q 0 0 0 rg BT 104.35 286.10 Td (, if we or third parties desire to sell our products or otherwise commercialize certain of our technology in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 274.10 Td (erritory) Tj ET Q q 0 0 0 rg BT 84.75 274.10 Td (, we currently would have to pay a royalty to ) Tj ET Q q 0 0 0 rg BT 266.46 274.10 Td (TKK in order to do so, which could adversely af) Tj ET Q q 0 0 0 rg BT 460.11 274.10 Td (fect our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (expand. In addition, although we believe that the amendment to the parties) Tj ET Q q 0 0 0 rg BT 351.11 262.10 Td ( agreements will generally enable us to pursue our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (business strategies in the ) Tj ET Q q 0 0 0 rg BT 151.47 250.10 Td (T) Tj ET Q q 0 0 0 rg BT 156.88 250.10 Td (erritory and that, based on discussions with ) Tj ET Q q 0 0 0 rg BT 332.23 250.10 Td (TKK, our non-binding, good faith payment relieves us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (from further obligations to ) Tj ET Q q 0 0 0 rg BT 158.69 238.10 Td (TKK with respect to past shipments of catalysts covered by the agreements, there can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (assurance that ) Tj ET Q q 0 0 0 rg BT 108.68 226.10 Td (TKK will not assert claims and pursue available remedies, any of which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 498.09 226.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (Failure of one or more key suppliers to timely deliver could prevent, delay or limit us from supplying products. Delays in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (delivery times for PGM purchases could also result in losses due to fluctuations in prices. Delays in the delivery times and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (the cost impact of the world-wide shortage of rare earth metals could delay us from supplying products and could result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (lower profits.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (Due to customer demands and specifications, we are required to source critical materials and components such as ceramic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (substrates from a sole supplier) Tj ET Q q 0 0 0 rg BT 171.09 120.10 Td (. Our three lar) Tj ET Q q 0 0 0 rg BT 226.99 120.10 Td (gest suppliers accounted for over 45% and 60% of our raw material purchases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (during the years ended December31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 313.98 108.10 Td (. Failure of one or more of the key suppliers to deliver timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td (could prevent, delay or limit us from supplying products because we would be required to qualify an alternative supplier) Tj ET Q q 0 0 0 rg BT 531.26 96.10 Td (. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 84.10 Td (certain products and customers, we are required to purchase PGM materials. ) Tj ET Q q 0 0 0 rg BT 357.40 84.10 Td (As commodities, PGM materials are subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.10 Td (daily price fluctuations and significant volatility) Tj ET Q q 0 0 0 rg BT 241.80 72.10 Td (, based on global market conditions. Historically) Tj ET Q q 0 0 0 rg BT 435.56 72.10 Td (, the cost of PGMsused in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (manufacturing process has been passed through to the customer) Tj ET Q q 0 0 0 rg BT 304.38 60.10 Td (. ) Tj ET Q q 0 0 0 rg BT 309.19 60.10 Td (This limits the economic risk of changes in market prices to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.10 Td (PGM metal usage in excess of nominal amounts allowed by the customer) Tj ET Q q 0 0 0 rg BT 343.00 48.10 Td (. However) Tj ET Q q 0 0 0 rg BT 384.25 48.10 Td (, going forward there can be no assurance ) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (that we will continue to be successful in passing PGM price risk onto our current and future customers to minimize the risk of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (financial loss. ) Tj ET Q q 0 0 0 rg BT 107.49 730.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 157.39 730.10 Td (, PGM material is accounted for as inventory and therefore subject to lower of cost or market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (adjustments on a regular basis. ) Tj ET Q q 0 0 0 rg BT 174.98 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 181.65 718.10 Td ( drop in market prices relative to the purchase price of PGMscould result in a write-down of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.68 706.10 Td (. Due to the high value of PGM materials, special measures have been taken to secure and insure the inventory) Tj ET Q q 0 0 0 rg BT 529.38 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 534.20 706.10 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (is a risk that these measures may be inadequate and expose us to financial loss. ) Tj ET Q q 0 0 0 rg BT 368.06 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 376.70 694.10 Td (e utilize rare earth metals in the production of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (some of our catalysts. Due to a reduction in export from China of these materials, there has been a world-wide shortage, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (leading to a lack of supply and higher prices. ) Tj ET Q q 0 0 0 rg BT 231.99 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 240.63 670.10 Td (e risk delays in shipment due to this constrained supply and potentially lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (mar) Tj ET Q q 0 0 0 rg BT 65.37 658.10 Td (gins if we are unable to pass the increased costs on to our customers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (Qualified management, marketing, and sales personnel are dif) Tj ET Q q 0 0 0 rg BT 307.33 636.10 Td (ficult to locate, hire and train, and if we cannot attract and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.10 Td (retain qualified personnel, it will harm the ability of the business to grow) Tj ET Q q 0 0 0 rg BT 349.39 624.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (Our success depends, in part, on our ability to retain current key personnel, attract and retain future key personnel, additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (qualified management, marketing, scientific, and engineering personnel, and develop and maintain relationships with research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (institutions and other outside consultants. Competition for qualified management, technical, sales and marketing employees is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (intense. In addition, some employees might leave our Company and go to work for competitors. ) Tj ET Q q 0 0 0 rg BT 436.41 566.10 Td (The loss of key personnel or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (the inability to hire or retain qualified personnel, or the failure to assimilate ef) Tj ET Q q 0 0 0 rg BT 361.38 554.10 Td (fectively such personnel could have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 542.10 Td (fect on our business, operating results and financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 520.10 Td (e are transitioning from being a niche manufacturer of emissions control solutions to becoming an advanced materials ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (technology provider of proprietary powders, which will increase our reliance on third-party manufacturers and could harm ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (In connection with our ef) Tj ET Q q 0 0 0 rg BT 150.90 474.10 Td (forts to realign our manufacturing footprint, we closed our Canadian manufacturing facility in 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (As a result of this action, we now rely on third-party service providers to manufacture certain of our products. ) Tj ET Q q 0 0 0 rg BT 491.63 462.10 Td (This reliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (generates a number of risks, including decreased control over the production process, which could lead to production delays or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (interruptions, and inferior product quality control. In addition, performance problems at these third-party providers could lead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (to cost overruns, shortages or other problems, which could increase our costs of production or result in delivery delays to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (If one or more of our third-party manufacturers becomes insolvent or unwilling to continue to manufacture products of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (acceptable quality) Tj ET Q q 0 0 0 rg BT 121.81 380.10 Td (, at acceptable costs, in a timely manner) Tj ET Q q 0 0 0 rg BT 281.07 380.10 Td (, our ability to deliver products to our retail customers could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 368.10 Td (significantly impaired. Substitute manufacturers might not be available or) Tj ET Q q 0 0 0 rg BT 344.80 368.10 Td (, if available, might be unwilling or unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 356.10 Td (manufacture the products we need on acceptable terms. Moreover) Tj ET Q q 0 0 0 rg BT 313.10 356.10 Td (, if customer demand for our products increases, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 344.10 Td (unable to secure suf) Tj ET Q q 0 0 0 rg BT 129.51 344.10 Td (ficient additional capacity from our current third-party manufacturers, or others, on commercially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 332.10 Td (reasonable terms, or at all.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Any liability for environmental harm or damages resulting from technical faults or failures of our products could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (substantial and could adversely af) Tj ET Q q 0 0 0 rg BT 189.82 298.10 Td (fect our business and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (Customers rely upon our products to meet governmental emissions control standards. Failure of our products to meet such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (standards could expose us to claims from customers. Our products are also integrated into goods manufactured by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td (customers, and therefore, a malfunction or the inadequate design of our products could subject us and our customers to product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (liability claims. ) Tj ET Q q 0 0 0 rg BT 114.53 240.10 Td (W) Tj ET Q q 0 0 0 rg BT 123.17 240.10 Td (e have agreed to indemnify and hold harmless certain of our customers against losses arising from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (environmental harm and product liability claims. ) Tj ET Q q 0 0 0 rg BT 247.45 228.10 Td (Any liability for environmental harm or damages resulting from technical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (faults or failures could be substantial and could adversely af) Tj ET Q q 0 0 0 rg BT 290.02 216.10 Td (fect our business and results of operations. In addition, a well-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (publicized actual or perceived problem could adversely af) Tj ET Q q 0 0 0 rg BT 281.66 204.10 Td (fect the market) Tj ET Q q 0 0 0 rg BT 344.40 204.10 Td (s perception of our products, which would materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (impact our financial condition and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (By email dated June26, 2015, the California ) Tj ET Q q 0 0 0 rg BT 231.07 170.10 Td (Air Resources Board \(CARB\) asserted that we had deficiencies in compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (with the ) Tj ET Q q 0 0 0 rg BT 84.81 158.10 Td (V) Tj ET Q q 0 0 0 rg BT 90.93 158.10 Td (erification Procedure, ) Tj ET Q q 0 0 0 rg BT 179.50 158.10 Td (Aftermarket Parts Regulations and the ) Tj ET Q q 0 0 0 rg BT 335.11 158.10 Td (V) Tj ET Q q 0 0 0 rg BT 341.23 158.10 Td (ehicle Code. ) Tj ET Q q 0 0 0 rg BT 393.53 158.10 Td (The penalty calculated by CARB for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (these alleged violations was $1.8million, with the lar) Tj ET Q q 0 0 0 rg BT 263.67 146.10 Td (gest component relating to the use of empty center bodies to allow trucks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (to be placed back in service while warranty claims are being evaluated. ) Tj ET Q q 0 0 0 rg BT 337.19 134.10 Td (This process is now explicitly permitted by regulation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (but was not permitted at the time of the alleged violation. ) Tj ET Q q 0 0 0 rg BT 281.05 122.10 Td (Although we disagreed, and continue to disagree, with CARB) Tj ET Q q 0 0 0 rg BT 531.56 122.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (findings, we cooperated with CARB) Tj ET Q q 0 0 0 rg BT 198.59 110.10 Td (s investigation and discussed with CARB whether and to what extent the payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (monetary penalties would be appropriate. ) Tj ET Q q 0 0 0 rg BT 217.72 98.10 Td (After review and evaluation of CARB) Tj ET Q q 0 0 0 rg BT 372.96 98.10 Td (s findings and publicly available CARB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (settlements for similar matters, we accrued an expense of less than $0.1million as of December31, 2015 to resolve this matter) Tj ET Q q 0 0 0 rg BT 556.52 86.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (During 2016, CARB responded to our proposed settlement with a counter) Tj ET Q q 0 0 0 rg BT 345.03 74.10 Td (-proposal of $0.8million by cutting certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (components of their initial penalty in half and reducing certain penalties. ) Tj ET Q q 0 0 0 rg BT 343.06 62.10 Td (W) Tj ET Q q 0 0 0 rg BT 351.69 62.10 Td (e ultimately reached a settlement for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td ($0.1 million which will be paid in 2017.) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 742.25 Td (e have entered into contractual agreements in connection with past sales of certain of our assets, which may expose us to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (liability for claims for indemnification under such agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 708.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 708.25 Td (e have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (matters. Generally) Tj ET Q q 0 0 0 rg BT 123.21 696.25 Td (, these indemnification provisions provide that we agree to hold the indemnified party harmless against losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (arising from a breach of the contract terms. Payments by us under such indemnification clauses are generally conditioned on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 672.25 Td (the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (specified in the particular contract. Further) Tj ET Q q 0 0 0 rg BT 220.64 660.25 Td (, our obligations under these arrangements may be limited in terms of time and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (predict the maximum potential amount of future payments under these indemnification agreements due to the conditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 624.25 Td (nature of our obligations and the unique facts of each particular agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 604.25 Td ( Industry) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (Future growth of our business depends, in part, on market acceptance of our catalyst products, successful verification of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (our products and retention of our verifications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (While we believe that there exists a viable market for our developing catalyst products, there can be no assurance that such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (technology will succeed as an alternative to competitors) Tj ET Q q 0 0 0 rg BT 276.68 538.25 Td ( existing and new products. ) Tj ET Q q 0 0 0 rg BT 388.70 538.25 Td (The development of a market for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (products is af) Tj ET Q q 0 0 0 rg BT 103.70 526.25 Td (fected by many factors, some of which are beyond our control. ) Tj ET Q q 0 0 0 rg BT 357.04 526.25 Td (The adoption cycles of our key customers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (lengthy and require extensive interaction with the customer to develop an ef) Tj ET Q q 0 0 0 rg BT 353.88 514.25 Td (fective and reliable catalyst for a particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (application. ) Tj ET Q q 0 0 0 rg BT 99.25 502.25 Td (While we continue to develop and test products with key customers, there can be no guarantee that all such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (products will be accepted and commercialized. Our relationships with our customers are based on purchase orders rather than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (long-term formal supply agreements. Generally) Tj ET Q q 0 0 0 rg BT 239.57 478.25 Td (, once a catalyst has successfully completed the testing and certification stage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (for a particular application, it is generally the only catalyst used on that application and therefore unlikely that, unless there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (any defects, the customer will try to replace that catalyst with a competing product. However) Tj ET Q q 0 0 0 rg BT 421.69 454.25 Td (, our customers usually have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (alternate suppliers for their products and there is no assurance that we will continue to win the business. ) Tj ET Q q 0 0 0 rg BT 467.39 442.25 Td (Also, although we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (work with our customers to obtain product verifications in accordance with their projected production requirements, there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (guarantee that we will be able to receive all necessary approvals for our catalysts by the time a customer needs such products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (or that a customer will not accelerate its requirements. If we are not successful in having verified catalyst products to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (customer requirements, it will have a negative ef) Tj ET Q q 0 0 0 rg BT 244.75 394.25 Td (fect on our revenues, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 486.95 394.25 Td (fect on our results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.25 Td (If a market fails to develop or develops more slowly than anticipated, we may be unable to recover the costs we will have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.25 Td (incurred in the development of our products and may never achieve profitability) Tj ET Q q 0 0 0 rg BT 370.07 348.25 Td (. In addition, we cannot guarantee that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (continue to develop, manufacture or market our products or components if market conditions do not support the continuation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (the product or component.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 302.25 Td (e believe that it is an essential requirement of the U.S. retrofit market that emissions control products and systems are verified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (under the EP) Tj ET Q q 0 0 0 rg BT 100.74 290.25 Td (A) Tj ET Q q 0 0 0 rg BT 107.41 290.25 Td ( and/or CARB protocols to qualify for funding from the EP) Tj ET Q q 0 0 0 rg BT 343.68 290.25 Td (A) Tj ET Q q 0 0 0 rg BT 350.35 290.25 Td ( and/or CARB programs. Funding for these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (emissions control products and systems is generally limited to those products and technologies that have already been verified. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (V) Tj ET Q q 0 0 0 rg BT 56.11 266.25 Td (erification is also useful for commercial acceptability) Tj ET Q q 0 0 0 rg BT 268.71 266.25 Td (. Notably) Tj ET Q q 0 0 0 rg BT 305.28 266.25 Td (, EP) Tj ET Q q 0 0 0 rg BT 321.03 266.25 Td (A) Tj ET Q q 0 0 0 rg BT 327.70 266.25 Td ( verifications were withdrawn on two of our products in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (January 2009 because available test results were not accepted by the EP) Tj ET Q q 0 0 0 rg BT 336.47 254.25 Td (A) Tj ET Q q 0 0 0 rg BT 343.14 254.25 Td ( as meeting new emissions testing requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (nitrogen dioxide \(NO2\) measurement. ) Tj ET Q q 0 0 0 rg BT 204.68 242.25 Td (As a general matter) Tj ET Q q 0 0 0 rg BT 282.30 242.25 Td (, we have no assurance that our products will be verified by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (CARB or that such a verification will be acceptable to the EP) Tj ET Q q 0 0 0 rg BT 294.84 230.25 Td (A. If we are not able to obtain or maintain necessary product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (verifications, it will limit our ability to commercialize such products, which could have a negative ef) Tj ET Q q 0 0 0 rg BT 452.20 218.25 Td (fect on our revenues and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (on our results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (Our results may fluctuate due to certain regulatory) Tj ET Q q 0 0 0 rg BT 259.36 184.25 Td (, marketing and competitive factors over which we have little or no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 152.25 Td (The factors listed below) Tj ET Q q 0 0 0 rg BT 145.71 152.25 Td (, some of which we cannot control, may cause our revenue and results of operations to fluctuate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 140.25 Td (significantly:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 120.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 120.25 Td (Actions taken by regulatory bodies relating to the verification, registration or health ef) Tj ET Q q 0 0 0 rg BT 430.99 120.25 Td (fects of our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 100.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 100.25 Td (The extent to which our products obtain market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 80.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 80.25 Td (The timing and size of customer purchases;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 60.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 60.25 Td (Customer concerns about the stability of our business, which could cause them to seek alternatives to our solutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 48.25 Td (and products; and) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (Increases in raw material costs, particularly platinum group metals and rare earth metals.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 722.10 Td (e face constant changes in governmental standards by which our products are evaluated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 702.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 702.10 Td (e believe that, due to the constant focus on the environment and clean air standards throughout the world, requirements in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.10 Td (future to adhere to new and more stringent regulations are possible as governmental agencies seek to improve standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (required for certification of products intended to promote clean air) Tj ET Q q 0 0 0 rg BT 315.18 678.10 Td (. In the event our products fail to meet these ever) Tj ET Q q 0 0 0 rg BT 510.74 678.10 Td (-changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (standards, some or all of our products may become obsolete.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 646.10 Td (e face competition and technological advances by competitors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (There is significant competition among companies that provide solutions for pollutant emissions from internal combustion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (engines. Several companies market products that compete directly with our products. Other companies of) Tj ET Q q 0 0 0 rg BT 471.64 614.10 Td (fer products that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (potential customers may consider to be acceptable alternatives to our products and services, including products that are verified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (by the EP) Tj ET Q q 0 0 0 rg BT 87.97 590.10 Td (A, the CARB or other environmental authorities. ) Tj ET Q q 0 0 0 rg BT 285.81 590.10 Td (W) Tj ET Q q 0 0 0 rg BT 294.44 590.10 Td (e face direct competition from companies with greater financial, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (technological, manufacturing and personnel resources. Newly developed products could be more ef) Tj ET Q q 0 0 0 rg BT 447.73 578.10 Td (fective and cost-ef) Tj ET Q q 0 0 0 rg BT 521.40 578.10 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (than our current or future products. ) Tj ET Q q 0 0 0 rg BT 192.83 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 201.46 566.10 Td (e also face indirect competition from vehicles using alternative fuels, such as methanol, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (hydrogen, ethanol and electricity) Tj ET Q q 0 0 0 rg BT 180.97 554.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (New standards, lower environmental limits or stricter regulation for health reasons of platinum or cerium metals could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (adopted and af) Tj ET Q q 0 0 0 rg BT 110.93 522.10 Td (fect use of our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (New standards or environmental limits on the use of platinum or cerium metals by a governmental agency could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 490.10 Td (fect our ability to use our Platinum Plus fuel-borne catalyst in some applications. Government or regulatory bodies in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (countries where we sell our Platinum Plus fuel-borne catalyst could adopt limits or regulations with regards to platinum and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (cerium metals that could impact our ability to sell Platinum Plus and related fuel borne catalysts.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.54 446.10 Td ( Common Stock) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 426.10 Td (e could be delisted from NASDAQ, which could seriously harm the liquidity of our stock and our ability to raise capital.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (During 2016, we received two separate notifications from the Listing Qualifications staf) Tj ET Q q 0 0 0 rg BT 402.50 404.10 Td (f of ) Tj ET Q q 0 0 0 rg BT 418.97 404.10 Td (The NASDAQ Stock Market LLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (indicating that we no longer met the requirements to maintain a minimum bid price of $1 per share and a minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 103.13 380.10 Td ( equity of $2.5 million. ) Tj ET Q q 0 0 0 rg BT 200.17 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 208.81 380.10 Td (e remedied both deficiencies by ) Tj ET Q q 0 0 0 rg BT 337.92 380.10 Td (August 30, 2016 and regained compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 368.10 Td (NASDAQ) Tj ET Q q 0 0 0 rg BT 94.45 368.10 Td (s requirements for continued listing on the exchange.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (While currently we are in compliance with NASDAQ) Tj ET Q q 0 0 0 rg BT 267.99 346.10 Td (s rules for continued listing, in the future we may again fail to comply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (with the minimum bid price, minimum stockholders) Tj ET Q q 0 0 0 rg BT 261.18 334.10 Td ( equity or other NASDAQ listing requirement, in which case our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (stock will be subject to delisting. If that were to occur) Tj ET Q q 0 0 0 rg BT 267.32 322.10 Td (, there can be no assurance that we will be able to again regain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (compliance, or that we would be eligible for listing on any comparable trading market. ) Tj ET Q q 0 0 0 rg BT 401.66 310.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 427.29 310.10 Td (fects of losing the NASDAQ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (listing could materially harm our ability to raise capital, by) Tj ET Q q 0 0 0 rg BT 284.84 298.10 Td (, among other things, negatively af) Tj ET Q q 0 0 0 rg BT 423.79 298.10 Td (fecting the market liquidity of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (common stock. Investors would likely find it more dif) Tj ET Q q 0 0 0 rg BT 266.18 286.10 Td (ficult to purchase, dispose of or obtain accurate quotations as to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (market value of our common stock, and the price of our common stock may be adversely af) Tj ET Q q 0 0 0 rg BT 416.65 274.10 Td (fected. Delisting from NASDAQ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (could also result in negative publicity and a loss of confidence by investors, customers, suppliers or employees.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (The risk of dilution, perceived or actual, may contribute to downward pressure on the trading price of our stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 218.10 Td (e have outstanding warrants and stock options to purchase shares of our common stock, and additional shares or warrants or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (options to acquire shares of our common stock may be issued in the future. ) Tj ET Q q 0 0 0 rg BT 354.38 206.10 Td (At December 31, 2016, we had outstanding options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (and warrants to purchase an aggregate of approximately 2.1 million shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 443.04 194.10 Td (The exercise of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (securities will result in the issuance of additional shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 365.30 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 373.94 182.10 Td (e may also issue additional shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (common stock or securities exercisable for or convertible into shares of our common stock, whether in the public market or in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (private placement to fund our operations, or as compensation. ) Tj ET Q q 0 0 0 rg BT 299.47 158.10 Td (These issuances, particularly where the exercise price or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (purchase price is less than the current trading price for our common stock, could be viewed as dilutive to the holders of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 112.10 Td (o provide us with additional flexibility to access capital markets for general corporate purposes, we filed a shelf registration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (statement which was declared ef) Tj ET Q q 0 0 0 rg BT 179.76 100.10 Td (fective by the SEC on November17, 2015. ) Tj ET Q q 0 0 0 rg BT 354.55 100.10 Td (The shelf registration statement permits us to sell, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (from time to time, up to an aggregate $50.0million of various securities, including common stock, preferred stock, warrants to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (purchase common stock or preferred stock and units consisting of one or more of the foregoing or any combination of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (securities, not to exceed one-third of our public float in any 12-month period. ) Tj ET Q q 0 0 0 rg BT 363.81 64.10 Td (As of December 31, 2016, we had sold an ) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (aggregate of $3.1 million using the shelf registration statement. ) Tj ET Q q 0 0 0 rg BT 305.59 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 311.00 742.10 Td (o the extent that we raise additional capital by issuing equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (securities under our shelf registration statement, our stockholders may experience dilution. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 708.10 Td (The risk of dilution, perceived or actual, may cause existing stockholders to sell their shares of stock, which could contribute to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 696.10 Td (a decrease in the price of shares of our common stock. In that regard, downward pressure on the trading price of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 684.10 Td (stock may also cause investors to engage in short sales, which could further contribute to downward pressure on the trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 672.10 Td (price of our stock.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.10 Td (There has been and may continue to be significant volatility in the volume and price of our common stock on the NASDAQ ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (Capital Market and an investment in our stock could suf) Tj ET Q q 0 0 0 rg BT 282.35 636.10 Td (fer a decline in value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (Our stock historically has experienced high levels of volatility) Tj ET Q q 0 0 0 rg BT 298.17 614.10 Td (. ) Tj ET Q q 0 0 0 rg BT 305.49 614.10 Td (The trading price of our common stock may continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (fluctuate substantially) Tj ET Q q 0 0 0 rg BT 137.38 602.10 Td (, depending on many factors, some of which are beyond our control and may not be related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (operating performance. ) Tj ET Q q 0 0 0 rg BT 148.11 590.10 Td (These fluctuations could cause you to lose all or part of your investment in our common stock. Factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (that could cause fluctuations in the trading price of our common stock include, but are not limited to, the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 561.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 561.10 Td (fluctuations in demand for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 543.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 543.10 Td (product development ef) Tj ET Q q 0 0 0 rg BT 216.79 543.10 Td (forts;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 525.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 525.10 Td (the loss of any customer relationship;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 507.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 507.10 Td (the addition of a new customer relationship;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 489.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 489.10 Td (mer) Tj ET Q q 0 0 0 rg BT 137.37 489.10 Td (gers and acquisitions involving us, our customers or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 471.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 471.10 Td (price and volume fluctuations in the overall stock market from time to time;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 453.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 453.10 Td (fluctuations in the trading volume of our shares or the size of our public float;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 435.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 435.10 Td (actual or anticipated changes or fluctuations in our results of operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 417.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 417.10 Td (whether our results of operations meet the expectations of securities analysts or investors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 399.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 399.10 Td (actual or anticipated changes in the expectations of investors or securities analysts;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 381.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 381.10 Td (litigation involving us, our industry) Tj ET Q q 0 0 0 rg BT 263.29 381.10 Td (, or both;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 363.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 363.10 Td (regulatory developments in the United States, foreign countries, or both;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 345.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 345.10 Td (general economic conditions and trends;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 327.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 327.10 Td (major catastrophic events;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 309.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 309.10 Td (sales of lar) Tj ET Q q 0 0 0 rg BT 165.13 309.10 Td (ge blocks of our common stock;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 291.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 291.10 Td (departures of key employees; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 273.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 273.10 Td (an adverse impact on the company from any of the other risks cited herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.10 Td (In addition, if the stock market, in general, experiences a loss of investor confidence, the trading price of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 243.10 Td (could decline for reasons unrelated to our business, results of operations or financial condition. ) Tj ET Q q 0 0 0 rg BT 434.44 243.10 Td (The trading price of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 231.10 Td (common stock might also decline in reaction to events that af) Tj ET Q q 0 0 0 rg BT 295.31 231.10 Td (fect other companies in our industry even if these events do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.10 Td (directly af) Tj ET Q q 0 0 0 rg BT 90.63 219.10 Td (fect us. Securities class action litigation has often been instituted against companies following periods of volatility in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (the overall market and in the market price of a company) Tj ET Q q 0 0 0 rg BT 277.13 207.10 Td (s securities. ) Tj ET Q q 0 0 0 rg BT 328.60 207.10 Td (W) Tj ET Q q 0 0 0 rg BT 337.24 207.10 Td (e may be the tar) Tj ET Q q 0 0 0 rg BT 400.92 207.10 Td (get of securities-related litigation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (which could divert our management) Tj ET Q q 0 0 0 rg BT 197.18 195.10 Td (s attention and resources, result in substantial costs, and have an adverse ef) Tj ET Q q 0 0 0 rg BT 496.90 195.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (ITEM 1B.UNRESOL) Tj ET Q q 0 0 0 rg BT 150.77 135.10 Td (VED ST) Tj ET Q q 0 0 0 rg BT 185.87 135.10 Td (AFF) Tj ET Q q 0 0 0 rg BT 204.94 135.10 Td ( COMMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 115.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 87.10 Td (ITEM 2.PROPER) Tj ET Q q 0 0 0 rg BT 137.43 87.10 Td (TIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 67.10 Td (e use approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.67 67.10 Td (52,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.17 67.10 Td ( square feet of space in Oxnard, California under three separate lease agreements, one that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.10 Td (month-to-month, one that expires on ) Tj ET Q q 0 0 0 rg BT 198.31 55.10 Td (April 30, 2018 and one that expires on December 31, 2018. Our Oxnard facilities include ) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (our corporate headquarters, contain a warehouse that is used for shipping and receiving, and are also used for manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (and research and development. ) Tj ET Q q 0 0 0 rg BT 176.15 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 184.79 730.10 Td (e also lease approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.08 730.10 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.08 730.10 Td ( square feet of space in ) Tj ET Q q 0 0 0 rg BT 402.30 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 407.71 730.10 Td (okyo, Japan under a lease agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (that is month-to-month, which is used for sales and marketing purposes.; approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.82 718.10 Td (4,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.32 718.10 Td ( square feet of space in Malm, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Sweden for administrative, research and development and European sales and marketing; and an of) Tj ET Q q 0 0 0 rg BT 446.90 706.10 Td (fice in a shared of) Tj ET Q q 0 0 0 rg BT 518.35 706.10 Td (fice suite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (complex in ) Tj ET Q q 0 0 0 rg BT 97.03 694.10 Td (Whyteleafe, Surrey) Tj ET Q q 0 0 0 rg BT 174.12 694.10 Td (, United Kingdom \(outside London\) for administrative and sales and marketing which we lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (on a month-to-month basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (Although we have exited our facility in Ontario, Canada, we are under a lease agreement that expires on December31, 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.42 650.10 Td (51,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.92 650.10 Td ( square feet. ) Tj ET Q q 0 0 0 rg BT 207.82 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 216.46 650.10 Td (e are actively seeking a tenant to sublease the property) Tj ET Q q 0 0 0 rg BT 433.77 650.10 Td (, but we may be unable to find ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (a tenant. ) Tj ET Q q 0 0 0 rg BT 85.82 638.10 Td (As such, we have recorded a liability for the remaining lease obligation as of December 31, 2016. See Note 7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td ("Accrued Expenses and Other Current Liabilities.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 606.10 Td (e do not anticipate the need to acquire additional space in the near future and consider our current capacity to be suf) Tj ET Q q 0 0 0 rg BT 521.32 606.10 Td (ficient for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (current operations and projected growth. ) Tj ET Q q 0 0 0 rg BT 214.39 594.10 Td (As such, we do not expect that our rental costs will increase substantially from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (amounts historically paid in 2016. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (ITEM 3.LEGAL) Tj ET Q q 0 0 0 rg BT 131.13 554.10 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 534.10 Td (Refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.92 534.10 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.92 534.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.01 534.10 Td (Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.33 534.10 Td (".) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (ITEM 4.MINE SAFETY) Tj ET Q q 0 0 0 rg BT 165.47 506.10 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 486.10 Td (Not applicable.) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 293.22 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 307.31 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 313.80 742.25 Td ( II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 714.25 Td (ITEM 5.MARKET) Tj ET Q q 0 0 0 rg BT 141.49 714.25 Td ( FOR REGISTRANT'S COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 334.48 714.25 Td (, RELA) Tj ET Q q 0 0 0 rg BT 366.52 714.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 401.63 714.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 486.17 714.25 Td (TTERS ) Tj ET Q q 0 0 0 rg BT 520.91 714.25 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 702.25 Td (ISSUER PURCHASES OF) Tj ET Q q 0 0 0 rg BT 165.21 702.25 Td ( EQUITY) Tj ET Q q 0 0 0 rg BT 206.79 702.25 Td ( SECURITIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Market Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (Our common stock is traded on ) Tj ET Q q 0 0 0 rg BT 178.13 662.25 Td (The NASDAQ Capital Market under the symbol "CDTI". ) Tj ET Q q 0 0 0 rg BT 413.85 662.25 Td (The following table sets forth for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (periods indicated the high and low sale prices of our common stock as reported on the NASDAQ Capital Market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (On July 22, 2016, we ef) Tj ET Q q 0 0 0 rg BT 145.64 628.25 Td (fected a one-for) Tj ET Q q 0 0 0 rg BT 208.73 628.25 Td (-five reverse stock split of our common stock. ) Tj ET Q q 0 0 0 rg BT 397.02 628.25 Td (All share and per share information has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (been retroactively adjusted to reflect the reverse stock split.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 563.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 563.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 563.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 563.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 535.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 535.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 535.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 535.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 507.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 507.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 507.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 507.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 479.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 479.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 479.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 451.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 451.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 451.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 451.75 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 575.75 m 493.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 575.75 m 497.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 575.75 m 562.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 563.75 m 493.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 563.75 m 562.5 563.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 580.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.10 587.83 Td (NASDAQ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.40 579.83 Td (Capital Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 567.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.05 567.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.90 567.83 Td (Low) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 554.43 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 554.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 554.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 540.32 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 540.32 Td (st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.34 540.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 540.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 540.32 Td (5.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 540.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 540.32 Td (2.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 526.32 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 526.32 Td (nd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.00 526.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 526.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 526.32 Td (3.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 526.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 526.32 Td (1.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 512.32 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 512.32 Td (rd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.66 512.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 512.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 512.32 Td (5.21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 512.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 512.32 Td (1.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 498.32 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 498.32 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 498.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 498.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 498.32 Td (3.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 498.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 498.32 Td (1.98) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 484.43 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 484.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 484.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 470.32 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 470.32 Td (st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.34 470.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 470.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 470.32 Td (11.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 470.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 470.32 Td (8.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 456.32 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 456.32 Td (nd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.00 456.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 456.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 456.32 Td (16.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 456.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 456.32 Td (8.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 442.32 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 442.32 Td (rd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.66 442.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 442.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 442.32 Td (11.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 442.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 442.32 Td (7.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 428.32 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 428.32 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 428.32 Td (Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 428.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 428.32 Td (9.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 428.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 428.32 Td (4.15) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 404.25 Td (Holders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 384.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 384.25 Td (March6, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 384.25 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.51 384.25 Td (153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.51 384.25 Td ( holders of record of our common stock, which excludes stockholders whose shares were held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 372.25 Td (by brokerage firms, depositories and other institutional firms in "street name" for their customers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (No dividends have been paid on our common stock and we do not anticipate paying dividends in the foreseeable future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 312.25 Td (Pur) Tj ET Q q 0 0 0 rg BT 65.93 312.25 Td (chases of Equity Securities by the Issuer) Tj ET Q q 0 0 0 rg BT 236.86 312.25 Td ( and ) Tj ET Q q 0 0 0 rg BT 257.43 312.25 Td (Affiliated Pur) Tj ET Q q 0 0 0 rg BT 316.41 312.25 Td (chasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 290.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (Recent Sale of Unr) Tj ET Q q 0 0 0 rg BT 130.08 268.25 Td (egister) Tj ET Q q 0 0 0 rg BT 158.21 268.25 Td (ed Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 246.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 216.25 Td (ITEM 6.SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 208.64 216.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 224.84 216.25 Td (T) Tj ET Q q 0 0 0 rg BT 230.77 216.25 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 196.25 Td (Not applicable.) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 7.MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 246.14 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 269.76 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 297.17 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 335.42 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 394.04 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 457.39 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 513.98 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 542.23 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 730.25 Td (TIONS) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (The following discussion and analysis of our financial condition and r) Tj ET Q q 0 0 0 rg BT 330.75 710.25 Td (esults of operations should be r) Tj ET Q q 0 0 0 rg BT 456.21 710.25 Td (ead in conjunction with ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (our consolidated financial statements and r) Tj ET Q q 0 0 0 rg BT 223.78 698.25 Td (elated notes included elsewher) Tj ET Q q 0 0 0 rg BT 346.44 698.25 Td (e in this ) Tj ET Q q 0 0 0 rg BT 380.42 698.25 Td (Annual Report on Form 10-K. This ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (discussion contains forwar) Tj ET Q q 0 0 0 rg BT 157.42 686.25 Td (d-looking statements, the accuracy of which involves risks and uncertainties. See Cautionary ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Statement Concerning Forwar) Tj ET Q q 0 0 0 rg BT 171.84 674.25 Td (d-Looking Statements included elsewher) Tj ET Q q 0 0 0 rg BT 338.95 674.25 Td (e in this ) Tj ET Q q 0 0 0 rg BT 372.93 674.25 Td (Annual Report on Form 10-K. Our actual ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.52 662.25 Td (esults could differ materially fr) Tj ET Q q 0 0 0 rg BT 177.58 662.25 Td (om those anticipated in these forwar) Tj ET Q q 0 0 0 rg BT 323.59 662.25 Td (d-looking statements for many r) Tj ET Q q 0 0 0 rg BT 450.98 662.25 Td (easons, as a r) Tj ET Q q 0 0 0 rg BT 505.62 662.25 Td (esult of many ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (important factors, including those set forth in Part I-Item 1A) Tj ET Q q 0 0 0 rg BT 292.58 650.25 Td ( Risk Factors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (Refer) Tj ET Q q 0 0 0 rg BT 71.28 628.25 Td (ences to Notes ar) Tj ET Q q 0 0 0 rg BT 151.19 628.25 Td (e notes included in the consolidated financial statements included in this ) Tj ET Q q 0 0 0 rg BT 444.02 628.25 Td (Annual Report on Form 10-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (The Company is a leading provider of technology and solutions to the automotive emissions control markets. ) Tj ET Q q 0 0 0 rg BT 491.41 574.25 Td (W) Tj ET Q q 0 0 0 rg BT 500.04 574.25 Td (e possess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (market leading expertise in emissions catalyst design and engineering for automotive and of) Tj ET Q q 0 0 0 rg BT 418.05 562.25 Td (f-road applications. In particular) Tj ET Q q 0 0 0 rg BT 549.54 562.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (we have a proven ability to develop proprietary materials incorporating various base metals that replace costly platinum group ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (metals \("PGM"\) and rare earth metals in coatings on vehicle catalytic converters. Our business is driven by increasingly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (stringent global emission standards for internal combustion engines, which are major sources of a variety of harmful pollutants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 506.25 Td (e deliver our catalyst technology through the supply of materials and technology used in the catalyst coating process, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (as finished products such as coated substrates and emission control systems. ) Tj ET Q q 0 0 0 rg BT 356.99 494.25 Td (W) Tj ET Q q 0 0 0 rg BT 365.63 494.25 Td (e supply our proprietary catalyst technologies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (major automakers, heavy duty truck manufacturers, catalyst manufacturers, distributors, integrators and retrofitters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 462.25 Td (e produce coated substrates at our ISO ) Tj ET Q q 0 0 0 rg BT 214.79 462.25 Td (TS certified manufacturing facility in Oxnard, California. In some instances, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (coated substrates we produce are integrated into exhaust systems by third-party manufacturers, before being shipped to our end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (customer) Tj ET Q q 0 0 0 rg BT 86.10 438.25 Td (. ) Tj ET Q q 0 0 0 rg BT 93.42 438.25 Td (W) Tj ET Q q 0 0 0 rg BT 102.06 438.25 Td (e also supply coated substrates directly to exhaust systems manufacturers for incorporation in their own products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Over the past decade, we have developed several generations of high performance catalysts, including our low-PGM MPC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (catalysts that are used on certain new Honda vehicles. During the same period, we have developed the ability to deliver our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (catalyst technology to other catalyst manufacturers in the form of functional powders or material systems. Recently) Tj ET Q q 0 0 0 rg BT 513.37 394.25 Td (, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (expanded our of) Tj ET Q q 0 0 0 rg BT 114.79 382.25 Td (fering of material systems beyond MPC to include new syner) Tj ET Q q 0 0 0 rg BT 367.44 382.25 Td (gized-PGM diesel oxidation catalysts, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (SPGM DOCs, base-metal activated rhodium support, or BMARS, and Spinel technologies. Most catalytic systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (require significant amounts of costly PGMsto operate ef) Tj ET Q q 0 0 0 rg BT 276.99 358.25 Td (fectively) Tj ET Q q 0 0 0 rg BT 311.32 358.25 Td (. Our family of unique high-performance material systems, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (featuring inexpensive base-metals with low PGM content will enable further advances in catalyst performance. ) Tj ET Q q 0 0 0 rg BT 496.61 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 505.25 346.25 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (marketing these new catalyst technologies to other catalyst manufacturers in a proprietary powder form, which will allow them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (to capture the benefits of our advanced catalyst technology in their own manufacturing operations and will provide a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (source of revenue for the Company) Tj ET Q q 0 0 0 rg BT 190.69 310.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (Strategy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (Over more than twenty years, we have developed the emissions control technology and manufacturing know-how to allow us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.25 Td (progress to delivering enabling technology for manufacturers serving the emissions catalyst market. ) Tj ET Q q 0 0 0 rg BT 451.65 258.25 Td (The ability to deliver our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (advanced materials to other catalyst producers as functional powders allows us to achieve greater scale and higher return on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (technology investment than would be possible as a manufacturer of emission control systems. ) Tj ET Q q 0 0 0 rg BT 430.02 234.25 Td (The strategy to provide our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.25 Td (technology to other manufacturers has significantly increased the size of our addressable market and provides access to markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.25 Td (that would not be achievable as a catalyst producer) Tj ET Q q 0 0 0 rg BT 253.26 210.25 Td (. In the short term, we are focusing our ef) Tj ET Q q 0 0 0 rg BT 421.35 210.25 Td (forts and resources by pursuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.25 Td (opportunities in fast growing markets in China and India, as well as North ) Tj ET Q q 0 0 0 rg BT 348.28 198.25 Td (America, where we believe that we can rapidly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.25 Td (leverage our technology provider business model.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (The Chinese market of) Tj ET Q q 0 0 0 rg BT 141.18 166.25 Td (fers significant opportunity as the world) Tj ET Q q 0 0 0 rg BT 304.20 166.25 Td (s single lar) Tj ET Q q 0 0 0 rg BT 347.34 166.25 Td (gest automotive market with over 24 million vehicles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (in 2016. ) Tj ET Q q 0 0 0 rg BT 87.60 154.25 Td (There is an extensive emission control systems supply chain serving domestic and international automobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (manufacturers in China. Somewhat unique to China, there are many domestic catalyst manufacturers serving the automotive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (market in competition with the lar) Tj ET Q q 0 0 0 rg BT 186.17 130.25 Td (ge global catalyst producers. ) Tj ET Q q 0 0 0 rg BT 305.40 130.25 Td (This segment of the market requires technology and know-how ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (to adhere to increasingly stringent emissions standards and to deliver competitively priced catalysts. In addition, there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (significant pressure for the Chinese automotive market to address increasing air pollution, an issue that has escalated to become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (a matter of public policy) Tj ET Q q 0 0 0 rg BT 147.65 94.25 Td (. ) Tj ET Q q 0 0 0 rg BT 154.97 94.25 Td (W) Tj ET Q q 0 0 0 rg BT 163.61 94.25 Td (e believe these factors provide a highly favorable environment for our products and technology) Tj ET Q q 0 0 0 rg BT 543.66 94.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (Air quality is also an important market driver in India where annual vehicle production was over four million in 2016. India has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (a number of domestic vehicle manufacturers that are served by both global and local catalyst manufacturers. ) Tj ET Q q 0 0 0 rg BT 487.98 62.25 Td (There is ) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (significant opportunity to provide enabling technology to domestic catalyst producers with the appropriate manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (expertise. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (North ) Tj ET Q q 0 0 0 rg BT 75.28 710.10 Td (America continues to be a leading global automotive market with over 18 million vehicles produced in 2016. ) Tj ET Q q 0 0 0 rg BT 518.87 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 527.51 710.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (focused our resources in North ) Tj ET Q q 0 0 0 rg BT 175.24 698.10 Td (America on developing the growing OEM DPF and DOC replacement market. ) Tj ET Q q 0 0 0 rg BT 494.71 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 503.34 698.10 Td (e currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (serve that market directly with our DuraFit product line and through the supply of technology and products to other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (manufacturers and distributors for sale under their own brand. ) Tj ET Q q 0 0 0 rg BT 302.80 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 311.44 674.10 Td (e believe that our technology has the potential to become the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (market standard in the OEM DPF and DOC replacement market. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (In support of this strategy) Tj ET Q q 0 0 0 rg BT 152.11 642.10 Td (, we have filed approximately 215patents that underpin next-generation technology for our advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (zero-PGM and low-PGM catalysts, and during 2015 and 2016, we completed an initial series of vehicle tests to validate our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (next-generation technologies. Based on the success of these tests, we are beginning to make our new catalyst technologies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (available to OEMs, catalyst coaters and other participants in the emission reduction supply chain for use in proprietary powder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (form, and we foresee multiple paths to market our new technologies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (2016 Financial Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (For the year ended December 31, 2016 revenues were $36.8 million, a decrease of approximately $2.9 million, or 7.3% from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (the prior year) Tj ET Q q 0 0 0 rg BT 103.46 534.10 Td (, loss from continuing operations was $15.7 million, an increase of approximately $5.3 million from the prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.81 522.10 Td (, primarily due to a goodwill impairment char) Tj ET Q q 0 0 0 rg BT 249.36 522.10 Td (ge of $4.7 million in the fourth quarter of 2016 and costs associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (closure of our Canadian facility recorded during 2016, and basic and diluted net loss from continuing operations per share was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td ($\(3.84\) compared to $\(2.67\) in the prior year) Tj ET Q q 0 0 0 rg BT 229.11 498.10 Td (. ) Tj ET Q q 0 0 0 rg BT 236.43 498.10 Td (The decrease in revenues is primarily driven by the continued contraction of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (retrofit market ahead of the catalyst industries shift to an after) Tj ET Q q 0 0 0 rg BT 296.93 486.10 Td (-market model, as well as a decrease in orders for our coated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (catalyst products by our Japanese OEM. ) Tj ET Q q 0 0 0 rg BT 215.52 474.10 Td (As we continue to reposition the Company from being a niche manufacturer of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (emission control solutions for the automotive and of) Tj ET Q q 0 0 0 rg BT 258.96 462.10 Td (f-road markets to becoming an advanced provider of proprietary powder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (for manufacturers serving these markets, we recognized approximately $2.6 million of severance and other char) Tj ET Q q 0 0 0 rg BT 497.42 450.10 Td (ges primarily in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (connection with the closure of our Canadian facility) Tj ET Q q 0 0 0 rg BT 257.34 438.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (During 2016, we successfully recapitalized our balance sheet. ) Tj ET Q q 0 0 0 rg BT 301.67 414.10 Td (W) Tj ET Q q 0 0 0 rg BT 310.31 414.10 Td (e converted approximately $9.7 million of principal debt and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (accrued interest for approximately 6.0 million shares of our common stock, and raised $10.3 million in gross proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (sale of our common stock. ) Tj ET Q q 0 0 0 rg BT 160.63 390.10 Td (These transactions helped to reduce our total liabilities from $24.7 million at December 31, 2015 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td ($16.2 million at December 31, 2016, and increase our stockholders) Tj ET Q q 0 0 0 rg BT 320.85 378.10 Td ( equity from $437,000 at December 31, 2015 to $8.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (million at December 31, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (During the second and third quarter of 2016, in connection with our issuance of shares of common stock in exchange for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (promissory notes and other indebtedness, we recorded a loss of approximately $12.4 million on the extinguishment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (conversion of this debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (Net cash used in operations was $7.0 million for the year ended December31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.00 Td (Customer Dependency and Relationship with Honda) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.90 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 245.90 Td (, we have derived a significant portion of our revenues from a limited number of customers. Sales to Honda ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.90 Td (represented 59% and 57% of our revenues for the year ended December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 467.52 233.90 Td (. However) Tj ET Q q 0 0 0 rg BT 508.77 233.90 Td (, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 221.90 Td (discussions with Honda, and acceleration of our powder) Tj ET Q q 0 0 0 rg BT 274.18 221.90 Td (-to-coat strategy) Tj ET Q q 0 0 0 rg BT 338.78 221.90 Td (, we anticipate that our supply of coated catalysts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 209.90 Td (Honda will end in the first quarter of 2018, as certain current vehicle models are phased out and we fulfill a last-time buy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.90 Td (agreement with Honda. ) Tj ET Q q 0 0 0 rg BT 145.53 197.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 194.86 197.90 Td (, it will be critical that our advanced materials business strategy produces revenue from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.90 Td (new customers, which may include Honda, directly or indirectly) Tj ET Q q 0 0 0 rg BT 306.50 185.90 Td (, to replace revenues from our current core catalyst business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.90 Td (with Honda) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.85 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 149.80 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.71 149.80 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 125.70 Td (The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 113.70 Td (estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 183.68 113.70 Td (fect the reported amounts of assets and liabilities, revenues and expenses, and related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 101.70 Td (disclosures in the financial statements. Critical accounting policies are those accounting policies that may be material due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 89.70 Td (levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 77.70 Td (change, and that have a material impact on financial condition or operating performance. ) Tj ET Q q 0 0 0 rg BT 407.72 77.70 Td (While we base our estimates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 65.70 Td (judgments on our experience and on various other factors that we believe to be reasonable under the circumstances, actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 53.70 Td (results may dif) Tj ET Q q 0 0 0 rg BT 109.25 53.70 Td (fer from these estimates under dif) Tj ET Q q 0 0 0 rg BT 243.75 53.70 Td (ferent assumptions or conditions.) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.05 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 730.05 Td (e believe that the assumptions, judgments and estimates involved in the accounting for revenue recognition, allowance for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.05 Td (doubtful accounts, inventory valuation, product warranty reserves, accounting for income taxes, goodwill, impairment of long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.05 Td (lived assets other than goodwill, stock-based compensation and liability-classified warrants have the greatest potential impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.05 Td (on our unaudited condensed consolidated financial statements. Please refer to Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.34 694.05 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.34 694.05 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.42 694.05 Td (Significant ) Tj ET Q q 0 0 0 rg BT 444.25 694.05 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.07 694.05 Td (" in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.05 Td (accompanying notes to the consolidated financial statements for a more complete discussion of our critical accounting policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.05 Td (and estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 645.95 Td (Impact of Recent ) Tj ET Q q 0 0 0 rg BT 125.26 645.95 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 187.02 645.95 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 633.90 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 621.85 Td (For information with respect to recent accounting pronouncements and the impact of these pronouncements see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.41 621.85 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.41 621.85 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 609.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.44 609.85 Td (Significant ) Tj ET Q q 0 0 0 rg BT 100.27 609.85 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.09 609.85 Td ( in the accompanying notes to the consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.80 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 577.80 Td (Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 557.80 Td (In the past, the Company operated with two reportable business division segments based on the products it delivered. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.80 Td (Beginning in the last quarter of 2015, the Company had been transitioning from a niche manufacturer of emissions control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.80 Td (solutions for the automotive and heavy duty diesel markets to becoming an advanced materials technology provider of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 521.80 Td (proprietary powders for these markets. During the second quarter) Tj ET Q q 0 0 0 rg BT 313.40 521.80 Td (, the transition of the operational strategy was completed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 509.80 Td (the Company now views its operations and measures business as one reportable segment.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 485.70 Td (Comparison of Operations for the years ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 243.06 485.70 Td (December31, 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 322.21 485.70 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.77 485.70 Td (2015) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 362.77 485.70 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 465.70 Td (Revenues) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 394.20 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 394.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 394.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 394.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 394.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 394.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 394.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 364.20 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 364.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 364.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 364.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 364.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 364.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 364.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 364.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 364.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 364.20 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 364.20 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 364.20 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 433.2 m 267.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 433.2 m 271.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 433.2 m 326.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 433.2 m 330.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 433.2 m 385.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 433.2 m 389.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 433.2 m 444.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 433.2 m 448.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 433.2 m 503.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 433.2 m 507.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 433.2 m 562.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 433.2 m 326.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 433.2 m 444.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 433.2 m 503.5 433.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 420.2 m 503.5 420.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 420.2 m 507.5 420.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 420.2 m 562.5 420.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 407.2 m 267.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 407.2 m 326.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 407.2 m 385.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 407.2 m 444.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 407.2 m 503.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 407.2 m 562.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 407.2 m 267.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 407.2 m 326.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 407.2 m 385.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 407.2 m 444.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 407.2 m 503.5 407.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 349.2 m 503.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 349.2 m 267.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 335.2 m 267.5 335.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 333.2 m 267.5 333.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 349.2 m 326.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 335.2 m 326.5 335.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 333.2 m 326.5 333.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 349.2 m 385.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 335.2 m 385.5 335.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 333.2 m 385.5 333.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 349.2 m 444.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 335.2 m 444.5 335.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 333.2 m 444.5 333.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 349.2 m 503.5 349.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 335.2 m 503.5 335.2 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 333.2 m 503.5 333.2 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 437.88 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.70 437.43 Td (Year Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 424.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.45 419.43 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 411.43 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.45 419.43 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.25 411.43 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.85 424.43 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 411.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.50 411.43 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 411.43 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.50 411.43 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 411.43 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 398.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.65 398.43 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 383.87 Td (Coated catalysts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 383.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 383.87 Td (22,520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 383.87 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 383.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 383.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 383.87 Td (23,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 383.87 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 383.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 383.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 383.92 Td (\(555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 383.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.95 383.87 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 383.87 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 368.87 Td (Emission control systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 368.87 Td (12,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 368.87 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 368.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 368.87 Td (15,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 368.87 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 368.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.80 368.92 Td (\(2,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 368.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.95 368.87 Td (\(16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 368.87 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 353.87 Td (Technology and advanced materials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.15 353.87 Td (1,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 353.87 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 353.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 353.87 Td (1,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 353.87 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 353.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 353.87 Td (101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.30 353.87 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 353.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 338.87 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 338.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 338.87 Td (36,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 338.87 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 338.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 338.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 338.87 Td (39,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 338.87 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 338.87 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 338.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.80 338.92 Td (\(2,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 338.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.95 338.87 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 338.87 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.60 Td (Coated catalyst revenues are generated from the sale of our high performance catalysts which reduce emissions from gasoline, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.60 Td (diesel and natural gas combustion engines. Emission control systems revenues are generated from the sale of products in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.60 Td (extensive line of heavy duty applications including DuraFit ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.95 286.60 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.95 286.60 Td ( , OEM replacement diesel particulate filters, or DPFs, and diesel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.60 Td (oxidation catalysts, or DOCs, sold through our distribution/dealer network and direct sales. ) Tj ET Q q 0 0 0 rg BT 416.69 274.60 Td (T) Tj ET Q q 0 0 0 rg BT 422.10 274.60 Td (echnology and advanced materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.60 Td (revenues included licenses and royalties, as well as sales of our advanced materials platform. ) Tj ET Q q 0 0 0 rg BT 424.13 262.60 Td (The timing and amounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.60 Td (revenue generated from licensing agreements will fluctuate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.50 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.19 226.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.78 226.50 Td ( our lower coated catalysts revenues are lar) Tj ET Q q 0 0 0 rg BT 378.01 226.50 Td (gely attributable to decreased sales to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.50 Td (Japanese OEM customer) Tj ET Q q 0 0 0 rg BT 148.86 214.50 Td (. ) Tj ET Q q 0 0 0 rg BT 153.68 214.50 Td (The decline in revenues from our emission control systems is due to the anticipated continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.50 Td (contraction of the retrofit market. New licensing agreements drove the increase in revenue from technology and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.50 Td (materials.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 170.50 Td (Cost of r) Tj ET Q q 0 0 0 rg BT 84.64 170.50 Td (evenues) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 89.00 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 89.00 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 89.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 89.00 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 89.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 89.00 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 89.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 89.00 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 89.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 89.00 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 89.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 89.00 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 138 m 267.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 138 m 271.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 138 m 326.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 138 m 330.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 138 m 385.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 138 m 389.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 138 m 444.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 138 m 448.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 138 m 326.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 138 m 444.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 138 m 503.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 115 m 503.5 115 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 138 m 507.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 115 m 507.5 115 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 138 m 562.5 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 115 m 562.5 115 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 102 m 267.5 102 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 102 m 326.5 102 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 102 m 385.5 102 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 102 m 444.5 102 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 115 m 503.5 115 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 102 m 503.5 102 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 115 m 562.5 115 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 102 m 562.5 102 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 142.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.70 142.23 Td (Year Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 119.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.45 114.23 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.60 106.23 Td (Revenues \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.45 114.23 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.25 106.23 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.85 119.23 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 106.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.50 106.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 106.23 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.50 106.23 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 106.23 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 93.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.65 93.23 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 78.67 Td (Cost of revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 78.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 78.67 Td (28,773) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 78.67 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 78.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 78.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 78.67 Td (28,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 78.67 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 78.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 78.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.30 78.72 Td (\(73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 78.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 78.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 78.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Cost of revenues includes the costs of materials and assembly labor) Tj ET Q q 0 0 0 rg BT 319.53 742.10 Td (, as well as assembly services, and labor and overhead costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (associated with manufacturing and product procurement, planning and quality assurance.Our cost of revenues is af) Tj ET Q q 0 0 0 rg BT 511.06 730.10 Td (fected by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (various factors, including product mix, volume, and provisions for excess and obsolete inventories, materials, labor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (overhead costs, as well as manufacturing ef) Tj ET Q q 0 0 0 rg BT 223.92 706.10 Td (ficiencies. Our cost of revenues as a percentage of revenues is af) Tj ET Q q 0 0 0 rg BT 481.95 706.10 Td (fected by these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (factors, as well as customer mix, volume, pricing and competitive pricing programs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.00 Td (The increase in cost of revenues as a percentage of revenues resulted from costs associated with the shut-down of our Canadian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.00 Td (facility and the transition of manufacturing from that facility to outside parties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 638.00 Td (Operating expenses) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 566.50 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 566.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 566.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 566.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 566.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 566.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 566.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.50 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 536.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 536.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 536.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 536.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 536.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 536.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 506.50 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 506.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 506.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 506.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 506.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 506.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 506.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 506.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 506.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 506.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 506.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 506.50 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 605.5 m 267.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 605.5 m 271.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 605.5 m 326.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 605.5 m 330.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 605.5 m 385.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 605.5 m 389.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 605.5 m 444.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 605.5 m 448.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 605.5 m 503.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 605.5 m 507.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 605.5 m 562.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 605.5 m 326.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 605.5 m 444.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 605.5 m 503.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 592.5 m 503.5 592.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 592.5 m 507.5 592.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 592.5 m 562.5 592.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 579.5 m 267.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 579.5 m 326.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 579.5 m 385.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 579.5 m 444.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 579.5 m 503.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 579.5 m 562.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 579.5 m 267.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 579.5 m 326.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 579.5 m 385.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 579.5 m 444.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 579.5 m 503.5 579.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 506.5 m 267.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 492.5 m 267.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 490.5 m 267.5 490.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 506.5 m 326.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 492.5 m 326.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 490.5 m 326.5 490.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 506.5 m 385.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 492.5 m 385.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 490.5 m 385.5 490.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 506.5 m 444.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 492.5 m 444.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 490.5 m 444.5 490.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 506.5 m 503.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 492.5 m 503.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 490.5 m 503.5 490.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 610.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.70 609.73 Td (Year Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 596.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.45 591.73 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 583.73 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.45 591.73 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.25 583.73 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.85 596.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 583.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.50 583.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 583.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.50 583.73 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 583.73 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 570.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.65 570.73 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 556.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 556.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.15 556.17 Td (4,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 556.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 556.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 556.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 556.17 Td (7,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 556.17 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 556.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 556.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.80 556.22 Td (\(3,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 556.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.95 556.17 Td (\(40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 556.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 541.17 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 541.17 Td (11,837) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 541.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 541.17 Td (11,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 541.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.30 541.22 Td (\(66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 541.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.95 541.17 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 541.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 526.17 Td (Goodwill impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.15 526.17 Td (4,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 526.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 526.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 526.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 526.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 526.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 526.17 Td (4,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 526.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 511.17 Td (Severance and other charges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.15 511.17 Td (2,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 511.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 511.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 511.17 Td (1,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 511.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 511.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 511.17 Td (1,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 511.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 511.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 496.17 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 496.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.15 496.17 Td (23,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 496.17 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 496.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 496.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 496.17 Td (21,211) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 496.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 496.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 496.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 496.17 Td (2,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 496.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 496.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 482.40 Td (*Percentage not meaningful) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.30 Td (Research and development expenses consist primarily of compensation expense for employees and contractors engaged in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.30 Td (research, design and development activities, as well costs paid to outside parties for testing, validation and certification of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.30 Td (products) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.44 434.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.94 434.30 Td ( Selling, general and administrative expenses consist primarily of compensation expense, legal and professional fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.30 Td (facilities expenses, and communication expenses. Goodwill impairment char) Tj ET Q q 0 0 0 rg BT 359.17 422.30 Td (ges relates to the impact of our annual impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.30 Td (analysis. Severance and other char) Tj ET Q q 0 0 0 rg BT 187.81 410.30 Td (ges related primarily to the closure of our Canadian facility and the transfer of operations to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.30 Td (our California facility and include severance costs, equipment disposal, moving costs, and building exit costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 374.20 Td (Resear) Tj ET Q q 0 0 0 rg BT 77.40 374.20 Td (ch and development expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.15 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (The decrease is primarily a result of reduced outside testing of our advanced materials and, headcount reduction, as well as, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (the fundamental research of our new key materials, such as SPGM-DOC, BMARS and Spinel, have lar) Tj ET Q q 0 0 0 rg BT 491.90 338.10 Td (gely transitioned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (out of fundamental research into applications development for specific market opportunities. Research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (expenses can be significantly impacted by the timing of outside testing requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.05 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 290.00 Td (Selling, general and administrative expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.90 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 265.90 Td (e decreased general and administrative costs including consulting, payroll and benefits expenses, as a result of the closure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.90 Td (our Canadian facility and changes made at our California location. ) Tj ET Q q 0 0 0 rg BT 318.33 253.90 Td (The decrease was partially of) Tj ET Q q 0 0 0 rg BT 435.32 253.90 Td (fset by payroll increases for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.90 Td (sales or) Tj ET Q q 0 0 0 rg BT 80.09 241.90 Td (ganization as well as an increase in stock compensation expense as a result of awards made in 2015 and 2016.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 217.80 Td (Goodwill impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 193.70 Td (In connection with our annual impairment analysis performed during the fourth quarter of 2016, we determined that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 181.70 Td (goodwill was impaired. ) Tj ET Q q 0 0 0 rg BT 148.60 181.70 Td (As a result, we recognized an impairment char) Tj ET Q q 0 0 0 rg BT 334.45 181.70 Td (ge of $4.7 million. See Note 15 for further details.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 157.60 Td (Severance and other char) Tj ET Q q 0 0 0 rg BT 152.65 157.60 Td (ges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.50 Td (The increase was due primarily to the closure of our Canadian facility in the second quarter of 2016. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 113.50 Td (Other income \(expense\)) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 695.50 175.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 695.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 695.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 695.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 695.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 695.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 695.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 695.50 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 695.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 695.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 695.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 695.50 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 652.50 175.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 652.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 652.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 652.50 59.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 652.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 652.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 652.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 652.50 56.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 652.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 652.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 652.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 652.50 37.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 601.50 175.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 601.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 601.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 601.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 601.50 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 601.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 601.50 37.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 734.5 m 280.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 734.5 m 284.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 734.5 m 343.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 734.5 m 347.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 734.5 m 402.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 734.5 m 406.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 734.5 m 462.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 734.5 m 466.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 734.5 m 521.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 734.5 m 525.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 734.5 m 562.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 734.5 m 343.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 734.5 m 462.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 734.5 m 521.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 721.5 m 521.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 721.5 m 525.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 721.5 m 562.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 708.5 m 280.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 708.5 m 402.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 708.5 m 521.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 708.5 m 562.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 708.5 m 280.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 708.5 m 343.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 708.5 m 402.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 708.5 m 462.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 708.5 m 521.5 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 586.5 m 280.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 572.5 m 280.5 572.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 570.5 m 280.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 586.5 m 343.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 572.5 m 343.5 572.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 570.5 m 343.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 586.5 m 402.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 572.5 m 402.5 572.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 570.5 m 402.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 586.5 m 462.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 572.5 m 462.5 572.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 570.5 m 462.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 586.5 m 521.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 572.5 m 521.5 572.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 570.5 m 521.5 570.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 739.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.20 738.73 Td (Year Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 725.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.45 720.73 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.25 712.73 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.95 720.73 Td (% of Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.75 712.73 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.85 725.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.50 712.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.50 712.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.50 712.73 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 539.50 712.73 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 699.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.15 699.73 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 685.17 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.00 685.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.80 685.17 Td (\(1,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 685.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.95 685.17 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.30 685.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.00 685.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.80 685.22 Td (\(1,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 685.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.95 685.17 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.30 685.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 685.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.30 685.22 Td (\(369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 685.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 685.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 685.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 667.17 Td (Gain on change in fair value of bifurcated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 657.17 Td (derivative liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.15 657.17 Td (2,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.30 657.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 657.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 657.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 657.17 Td (2,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 657.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 642.17 Td (Loss on extinguishment of convertible) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 632.17 Td (debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.80 632.17 Td (\(12,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 632.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.95 632.17 Td (\(34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.30 632.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 632.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 632.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 632.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 632.22 Td (\(12,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 632.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 632.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 616.17 Td (Gain on change in fair value of liability-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 606.17 Td (classified warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.15 606.17 Td (1,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.30 606.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 606.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 606.17 Td (2,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.30 606.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 606.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.80 606.22 Td (\(1,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 606.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.95 606.17 Td (\(41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 606.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 591.17 Td (Other income, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.65 591.17 Td (863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.30 591.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 591.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 591.17 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 591.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 591.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 591.17 Td (816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 591.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 576.17 Td (Total other income \(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.00 576.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.80 576.17 Td (\(8,774) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 576.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.95 576.17 Td (\(24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.30 576.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.00 576.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 576.17 Td (1,498) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.30 576.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 576.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 576.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 576.22 Td (\(10,272) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 576.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.00 576.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 562.40 Td (*Percentage not meaningful) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.30 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.19 538.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.78 538.30 Td (, the decrease in other income \(expense\) was primarily due to the loss on extinguishment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.30 Td (of convertible debt partially of) Tj ET Q q 0 0 0 rg BT 172.00 526.30 Td (fset by a gains on the change in fair value of both the bifurcated derivative liability and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.30 Td (liability-classified warrants, and foreign currency exchange gains.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 494.30 Td (Income T) Tj ET Q q 0 0 0 rg BT 86.57 494.30 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.30 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 474.30 Td (e incurred income tax benefit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.14 474.30 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.03 474.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.47 474.30 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.36 474.30 Td ( during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.16 474.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.74 474.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.18 474.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.18 474.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.30 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 462.30 Td (. Our ef) Tj ET Q q 0 0 0 rg BT 128.30 462.30 Td (fective income tax rate was 4% for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.98 462.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.57 462.30 Td (, compared to 5% for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.30 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 450.30 Td (. ) Tj ET Q q 0 0 0 rg BT 133.40 450.30 Td (The dif) Tj ET Q q 0 0 0 rg BT 162.38 450.30 Td (ferences between our ef) Tj ET Q q 0 0 0 rg BT 257.42 450.30 Td (fective tax rate and the U.S. statutory tax rate were primarily related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.30 Td (valuation allowance of) Tj ET Q q 0 0 0 rg BT 140.89 438.30 Td (fsetting the deferred tax assets in both the U.S. and U.K. jurisdictions, as well as Swedish and Canadian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.30 Td (foreign tax rate dif) Tj ET Q q 0 0 0 rg BT 124.51 426.30 Td (ferentials.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.30 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.68 406.30 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.30 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 386.30 Td (, the revenue that we have generated has not been suf) Tj ET Q q 0 0 0 rg BT 309.35 386.30 Td (ficient to fund our operating requirements and debt servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.30 Td (needs. Notably) Tj ET Q q 0 0 0 rg BT 109.34 374.30 Td (, we have suf) Tj ET Q q 0 0 0 rg BT 161.91 374.30 Td (fered recurring losses since inception. ) Tj ET Q q 0 0 0 rg BT 315.20 374.30 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.64 374.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.22 374.30 Td (, we had an accumulated deficit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.30 Td ($223.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 362.30 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.59 362.30 Td ($199.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.49 362.30 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.70 362.30 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.29 362.30 Td (. ) Tj ET Q q 0 0 0 rg BT 318.11 362.30 Td (W) Tj ET Q q 0 0 0 rg BT 326.74 362.30 Td (e have also had negative cash flows from operations from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.30 Td (inception through the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.12 350.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.71 350.30 Td (. Our primary sources of liquidity in recent years have been asset sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.30 Td (credit facilities and other borrowings and equity sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.30 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 318.30 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.51 318.30 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.41 318.30 Td ( in cash at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 318.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.75 318.30 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.46 318.30 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.35 318.30 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.56 318.30 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 318.30 Td (. ) Tj ET Q q 0 0 0 rg BT 454.10 318.30 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.60 318.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.18 318.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.30 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 306.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.94 306.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.94 306.30 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.83 306.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.27 306.30 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.16 306.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 261.82 306.30 Td (, of our cash was held by foreign subsidiaries in Canada, Sweden and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.30 Td (U.K. ) Tj ET Q q 0 0 0 rg BT 71.76 294.30 Td (W) Tj ET Q q 0 0 0 rg BT 80.40 294.30 Td (e anticipate most of the cash held by foreign subsidiaries will be used to fund our subsidiaries' continued operations. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.30 Td (we decide to repatriate unremitted foreign earnings in the future, it could have negative tax implications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.30 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 262.30 Td (e have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.89 262.30 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.78 262.30 Td ( secured demand financing facility with FGI backed by our receivables and inventory that terminates on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.30 Td (August15, 2017 and may be extended at our option for additional one-year terms. However) Tj ET Q q 0 0 0 rg BT 417.28 250.30 Td (, FGI can cancel the facility at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.30 Td (time. For additional information regarding the FGI facility) Tj ET Q q 0 0 0 rg BT 283.18 238.30 Td (, refer to the "Description of Indebtedness" discussion below) Tj ET Q q 0 0 0 rg BT 525.36 238.30 Td (. ) Tj ET Q q 0 0 0 rg BT 529.81 238.30 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.30 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 226.30 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.68 226.30 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.57 226.30 Td ( in borrowings outstanding with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.85 226.30 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.74 226.30 Td ( available under our FGI credit facility) Tj ET Q q 0 0 0 rg BT 546.47 226.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.30 Td (subject to the availability of eligible accounts receivable and inventory balances for collateral. However) Tj ET Q q 0 0 0 rg BT 464.99 214.30 Td (, there is no guarantee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.30 Td (that we will be able to borrow to the full limit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.07 202.30 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.96 202.30 Td ( if FGI chooses not to finance a portion of our receivables or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.30 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.68 190.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 168.96699218749995 m 145 168.96699218749995 l s q 0 0 0 rg BT 50.00 170.30 Td (2016 Debt ) Tj ET Q q 0 0 0 rg BT 94.26 170.30 Td (T) Tj ET Q q 0 0 0 rg BT 100.01 170.30 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.20 Td (On ) Tj ET Q q 0 0 0 rg BT 64.17 146.20 Td (April1, 2016, we executed a Promissory Note \(the Kanis Note\) and entered into an amendment of existing loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.20 Td (agreements \(the Kanis ) Tj ET Q q 0 0 0 rg BT 145.80 134.20 Td (Agreement\) with Kanis S.A. Pursuant to the terms of the Kanis Note, Kanis S.A. agreed to lend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.20 Td (Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.39 122.20 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.28 122.20 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.50 122.20 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.83 122.20 Td ( per annum with a maturity date of September30, 2017. Pursuant to the terms of the Kanis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.20 Td (Agreement, we and Kanis S.A. agreed to amend prior loans with an aggregate outstanding principal balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.41 110.20 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 110.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.20 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 99.33 98.20 Td (, the Loan ) Tj ET Q q 0 0 0 rg BT 145.98 98.20 Td (Agreements\), such that: \(i\)Kanis S.A. shall have the right to convert the principal balance of the Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.20 Td (Agreements and any accrued interest thereon into common stock of the Company at any time prior to maturity at a conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.20 Td (price equal to the lower of the closing price of CDTI) Tj ET Q q 0 0 0 rg BT 263.26 74.20 Td (s common stock on the date before the date of the Kanis ) Tj ET Q q 0 0 0 rg BT 489.86 74.20 Td (Agreement or as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.20 Td (of the date when Kanis S.A. exercises its conversion right; and \(ii\)we shall have the right to mandatorily convert the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.59 62.20 Td ($7.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.20 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 50.20 Td ( principal balance and any accrued interest thereon into its common stock upon maturity of the Loan ) Tj ET Q q 0 0 0 rg BT 482.38 50.20 Td (Agreements or ) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (earlier upon the occurrence of a Liquidity Event at a conversion price equal to the lower of the closing price of CDTI as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (date immediately before the date of the Kanis ) Tj ET Q q 0 0 0 rg BT 234.38 730.10 Td (Agreement or at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.78 730.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.11 730.10 Td ( discount to the Liquidity Event price. ) Tj ET Q q 0 0 0 rg BT 480.98 730.10 Td (A) Tj ET Q q 0 0 0 rg BT 487.65 730.10 Td ( Liquidity Event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (is defined as a strategic investment in CDTI or a public stock of) Tj ET Q q 0 0 0 rg BT 305.31 718.10 Td (fering by CDTI. ) Tj ET Q q 0 0 0 rg BT 372.33 718.10 Td (The Company could prepay the principal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (any interest due on the Loan ) Tj ET Q q 0 0 0 rg BT 165.52 706.10 Td (Agreements at any time before their maturity date without penalty) Tj ET Q q 0 0 0 rg BT 429.51 706.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.00 Td (On ) Tj ET Q q 0 0 0 rg BT 64.17 682.00 Td (April1) Tj ET Q q 0 0 0 rg BT 92.41 682.00 Td (1, 2016, we executed a Convertible Promissory Note \(the Director Note\) with Lon E. Bell, Ph.D., one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.00 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 670.00 Td (s Directors. Pursuant to the terms of the Director Note, Dr) Tj ET Q q 0 0 0 rg BT 323.28 670.00 Td (.Bell agreed to lend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.58 670.00 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.47 670.00 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.69 670.00 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.02 670.00 Td ( per annum and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.00 Td (maturity date of September30, 2017. Dr) Tj ET Q q 0 0 0 rg BT 211.63 658.00 Td (.Bell had the right to convert the principal balance of the Director Note and any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.00 Td (accrued interest thereon into common stock of the Company at any time prior to maturity) Tj ET Q q 0 0 0 rg BT 406.47 646.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 621.90 Td (On June30, 2016, we also entered into a Note Purchase ) Tj ET Q q 0 0 0 rg BT 275.22 621.90 Td (Agreement with Haldor ) Tj ET Q q 0 0 0 rg BT 372.51 621.90 Td (T) Tj ET Q q 0 0 0 rg BT 377.92 621.90 Td (opse ) Tj ET Q q 0 0 0 rg BT 403.20 621.90 Td (A/S, a company or) Tj ET Q q 0 0 0 rg BT 478.01 621.90 Td (ganized under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 609.90 Td (laws of Denmark \(Haldor ) Tj ET Q q 0 0 0 rg BT 159.22 609.90 Td (T) Tj ET Q q 0 0 0 rg BT 164.63 609.90 Td (opse\). ) Tj ET Q q 0 0 0 rg BT 203.05 609.90 Td (W) Tj ET Q q 0 0 0 rg BT 211.69 609.90 Td (e agreed to sell and issue \(i\)a Senior Convertible Promissory Note \(the Senior Note\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.90 Td (in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.36 597.90 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.25 597.90 Td ( and \(ii\)a Convertible Promissory Note \(the Note, and with the Senior Note, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.90 Td (Convertible Notes\) in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.11 585.90 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.00 585.90 Td (, each of which was convertible into our equity securities.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 560.4669921875 m 194.70703125 560.4669921875 l s q 0 0 0 rg BT 50.00 561.80 Td (Change in Control/Debt Conversion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.70 Td (On ) Tj ET Q q 0 0 0 rg BT 64.17 537.70 Td (August25, 2016, we held a special meeting of our stockholders to consider and vote to approve \(i\)in exchange for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.70 Td (outstanding promissory notes and other evidences of debt in the aggregate principal amount of $7.5 million plus accrued but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.70 Td (unpaid interest thereon owed by us to Kanis S.A., the issuance of a number of shares of our common stock determined by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.70 Td (dividing the Kanis S.A. indebtedness as of the date of the exchange by $1.6215, and \(ii\)in exchange for an outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 489.70 Td (promissory note in the aggregate principal amount of $0.5 million plus accrued but unpaid interest thereon owed by us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 477.70 Td (Dr) Tj ET Q q 0 0 0 rg BT 60.00 477.70 Td (.Lon Bell, one of our directors, the issuance of a number of shares of our common stock determined by dividing the Bell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 465.70 Td (indebtedness as of the date of the exchange by $1.6215. Our stockholders approved the issuance of shares in exchange for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.70 Td (Kanis S.A. and Bell indebtedness, and we also exercised our right to mandatorily convert an additional $0.5 million in principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.70 Td (of indebtedness owed by us to Haldor ) Tj ET Q q 0 0 0 rg BT 203.40 441.70 Td (T) Tj ET Q q 0 0 0 rg BT 208.81 441.70 Td (opse ) Tj ET Q q 0 0 0 rg BT 234.09 441.70 Td (A/S at the conversion price of $1.6215 per share. ) Tj ET Q q 0 0 0 rg BT 434.97 441.70 Td (W) Tj ET Q q 0 0 0 rg BT 443.60 441.70 Td (e issued an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.70 Td (5,498,339 shares of our common stock in exchange for the extinguishment of $8.9 million of indebtedness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.65 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (Settlement of the Kanis S.A. and Bell debt exchange transactions and the conversion of the Haldor ) Tj ET Q q 0 0 0 rg BT 446.93 405.60 Td (T) Tj ET Q q 0 0 0 rg BT 452.34 405.60 Td (opse ) Tj ET Q q 0 0 0 rg BT 477.62 405.60 Td (A/S promissory note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (increased the number of shares of common stock issued and outstanding by approximately 5.5 million shares, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (substantial dilution of the percentage ownership of CDT) Tj ET Q q 0 0 0 rg BT 274.87 381.60 Td (i held by stockholders prior to the settlement. Settlement of the Kanis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (S.A) Tj ET Q q 0 0 0 rg BT 64.73 369.60 Td ( exchange also resulted in a change in control of the Company with Kanis S.A. being the lar) Tj ET Q q 0 0 0 rg BT 432.51 369.60 Td (gest owner of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (stock, our only outstanding voting securities, in an amount greater than 50% of the issued and outstanding shares of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 345.60 Td (stock. Kanis S.A.'s percentage ownership of our common stock was subsequently reduced below 50% following our issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 333.60 Td (of 6.2 million shares of our common stock in the fourth quarter of 2016. Kanis S.A. continues to hold a significant percentage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 321.60 Td (of our common stock and is our single lar) Tj ET Q q 0 0 0 rg BT 216.46 321.60 Td (gest stockholder) Tj ET Q q 0 0 0 rg BT 281.17 321.60 Td (. Consequently) Tj ET Q q 0 0 0 rg BT 343.01 321.60 Td (, Kanis S.A) Tj ET Q q 0 0 0 rg BT 388.57 321.60 Td ( will be able to influence, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.60 Td (matters presented to our stockholders for a vote, the individuals elected to our Board, and our current stockholders will have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.60 Td (limited ability to influence significant corporate decisions requiring stockholder approval. In addition, Kanis S.A.) Tj ET Q q 0 0 0 rg BT 506.84 297.60 Td (s ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.60 Td (of a significant percentage of our voting securities could, under certain circumstances, discourage or make more dif) Tj ET Q q 0 0 0 rg BT 511.87 285.60 Td (ficult and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (expensive a third party) Tj ET Q q 0 0 0 rg BT 144.14 273.60 Td (s pursuit of a change of control of the Company) Tj ET Q q 0 0 0 rg BT 334.83 273.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 249.50 Td (On December 16, 2016, Haldor ) Tj ET Q q 0 0 0 rg BT 178.39 249.50 Td (T) Tj ET Q q 0 0 0 rg BT 183.80 249.50 Td (opse elected to convert the Senior Note for which we issued an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.36 249.50 Td (462,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.86 249.50 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.50 Td (of common stock in conversion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.42 237.50 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.31 237.50 Td ( in principal amount of indebtedness.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 216.1669921875 m 152.2265625 216.1669921875 l s q 0 0 0 rg BT 50.00 217.50 Td (2016 Equity ) Tj ET Q q 0 0 0 rg BT 101.48 217.50 Td (T) Tj ET Q q 0 0 0 rg BT 107.24 217.50 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.50 Td (On May19, 2015, we filed a shelf registration statement on FormS-3 with the SEC which was declared ef) Tj ET Q q 0 0 0 rg BT 476.11 197.50 Td (fective on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.50 Td (November17, 2015. Shelf registration statements are intended to provide us with additional flexibility to access capital markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.50 Td (for general corporate purposes, subject to market conditions and our capital needs. ) Tj ET Q q 0 0 0 rg BT 381.93 173.50 Td (The form S-3 permits us to sell in one or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.50 Td (more registered transactions up to an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.14 161.50 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.04 161.50 Td ( of various securities not to exceed one-third of our public float ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.50 Td (in any 12-month period. ) Tj ET Q q 0 0 0 rg BT 151.10 149.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.54 149.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.13 149.50 Td (, we had sold an aggregate of $3.1 million using the Form S-3. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.50 Td (additional information, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.29 137.50 Td (1) Tj ET Q q 0 0 0 rg BT 202.92 137.50 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.92 137.50 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 137.50 Td (Stockholders' Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.18 137.50 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.50 Td (On November3, 2016, we entered into a securities purchase agreement with institutional and individual accredited investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.50 Td (and certain of our of) Tj ET Q q 0 0 0 rg BT 131.45 105.50 Td (ficers and directors to raise gross proceeds of approximately $10.3 million in a private placement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.50 Td (common stock at a per) Tj ET Q q 0 0 0 rg BT 140.33 93.50 Td (-share price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.57 93.50 Td ($2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.07 93.50 Td (. ) Tj ET Q q 0 0 0 rg BT 227.89 93.50 Td (The of) Tj ET Q q 0 0 0 rg BT 254.09 93.50 Td (fering was consummated in two closings. ) Tj ET Q q 0 0 0 rg BT 424.43 93.50 Td (The initial closing for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.86 93.50 Td (949,960) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.36 93.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 81.50 Td (shares of common stock, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.82 81.50 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.71 81.50 Td (, was completed on November4, 2016. ) Tj ET Q q 0 0 0 rg BT 509.44 81.50 Td (The second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.50 Td (closing for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.81 69.50 Td (4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.70 69.50 Td ( shares, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.09 69.50 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.98 69.50 Td (, was completed on December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.50 Td (16, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 45.45 Td () Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 742.10 Td (e believe the equity raise along with the debt conversions improved our overall net cash positions, however there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (assurance that we will be able to achieve projected levels of revenue and maintain access to suf) Tj ET Q q 0 0 0 rg BT 430.77 730.10 Td (ficient working capital. ) Tj ET Q q 0 0 0 rg BT 525.74 730.10 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (result there is substantial doubt as to whether our existing cash resources and working capital are suf) Tj ET Q q 0 0 0 rg BT 451.93 718.10 Td (ficient to enable it to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (continue its operations within one year from the financial statement issuance date. If necessary) Tj ET Q q 0 0 0 rg BT 428.11 706.10 Td (, we will seek to raise additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (capital from the sale of equity securities or the incurrence of indebtedness. ) Tj ET Q q 0 0 0 rg BT 349.99 694.10 Td (There can be no assurance that additional financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (will be available to us on acceptable terms, or at all. ) Tj ET Q q 0 0 0 rg BT 259.65 682.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 309.55 682.10 Td (, if we issue additional equity securities to raise funds, whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (to potential customers or other investors, the ownership percentage of our existing stockholders would be reduced. New ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (investors may demand rights, preferences or privileges senior to those of existing holders of common stock. ) Tj ET Q q 0 0 0 rg BT 485.74 658.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 535.64 658.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (may be limited as to the amount of funds we can raise pursuant to SEC rulesand the continued listing requirements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (NASDAQ. If we cannot raise needed funds, we might be forced to make substantial reductions in our operating expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (which could adversely af) Tj ET Q q 0 0 0 rg BT 150.06 622.10 Td (fect our ability to implement our business plan and ultimately our viability as a company) Tj ET Q q 0 0 0 rg BT 504.33 622.10 Td (. ) Tj ET Q q 0 0 0 rg BT 509.15 622.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (asset amounts or amounts and classification of liabilities that might result from this uncertainty) Tj ET Q q 0 0 0 rg BT 429.55 598.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (The following table and discussion summarizes our cash flows from continuing operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.78 578.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 566.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 566.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 566.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 494.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 494.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 494.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 494.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 494.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 464.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 464.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 464.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 464.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 464.60 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 533.6 m 385.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 533.6 m 389.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 533.6 m 444.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 533.6 m 448.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 533.6 m 503.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 533.6 m 507.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 533.6 m 562.5 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 520.6 m 503.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 520.6 m 507.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 520.6 m 562.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 507.6 m 385.5 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 507.6 m 444.5 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 507.6 m 503.5 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 507.6 m 562.5 507.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 538.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.70 537.83 Td (Year Ended December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 524.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.00 524.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.00 524.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.85 524.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 511.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 511.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 511.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.50 511.83 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 511.83 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 498.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.65 498.83 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 484.27 Td (Cash provided by \(used in\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.00 484.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 484.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 484.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 484.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 469.27 Td (Operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 469.32 Td (\(7,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 469.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 469.32 Td (\(10,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 469.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 469.27 Td (3,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.95 469.27 Td (\(36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 469.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 454.27 Td (Investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.30 454.32 Td (\(67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 454.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 454.32 Td (\(453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 454.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 454.27 Td (386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.95 454.27 Td (\(85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 454.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 439.27 Td (Financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 439.27 Td (12,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 439.27 Td (7,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 439.27 Td (4,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 439.27 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 439.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 411.00 Td (Cash used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.90 Td (Our lar) Tj ET Q q 0 0 0 rg BT 78.42 386.90 Td (gest source of operating cash flows is cash collections from our customers following the sale of our products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.90 Td (services. Our primary uses of cash for operating activities are for purchasing inventory in support of the products that we sell, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.90 Td (personnel related expenditures, facilities costs and payments for general operating matters. During the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.90 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 350.90 Td (, cash used in operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.17 350.90 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.06 350.90 Td (. Cash flows were lar) Tj ET Q q 0 0 0 rg BT 380.58 350.90 Td (gely impacted by the loss from operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.90 Td (adjusted for non-cash items, including depreciation and amortization, stock-based compensation, goodwill impairment change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.90 Td (in fair value of the liability-classified warrants and embedded bifurcated derivative, loss on extinguishment of convertible debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.90 Td (and foreign currency gains as well as the net ef) Tj ET Q q 0 0 0 rg BT 237.80 314.90 Td (fect of changes in net working capital and other balance sheet accounts. ) Tj ET Q q 0 0 0 rg BT 531.67 314.90 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.90 Td (changes include decreases in operating cash flows associated with accounts receivable \(primarily due to the timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.90 Td (collections from our customers\). ) Tj ET Q q 0 0 0 rg BT 184.79 290.90 Td (This decrease was partially of) Tj ET Q q 0 0 0 rg BT 304.00 290.90 Td (fset by increases in operating cash flows associated with higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.90 Td (accrued expenses \(primarily due to increases severance and other char) Tj ET Q q 0 0 0 rg BT 330.51 278.90 Td (ges as well as consigned metals\) and lower inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.90 Td (\(due to ef) Tj ET Q q 0 0 0 rg BT 88.13 266.90 Td (forts to improve the purchasing cycle\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 242.80 Td (Cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.70 Td (Cash used in investing activities in the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.45 218.70 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.04 218.70 Td ( related to the sale of property and equipment resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.70 Td (from the closure of our Canadian facility and the completion of certain product testing projects partially of) Tj ET Q q 0 0 0 rg BT 475.79 206.70 Td (fset by capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.70 Td (expenditures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.65 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 170.60 Td (Cash pr) Tj ET Q q 0 0 0 rg BT 81.58 170.60 Td (ovided by financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.50 Td (Cash provided by financing activities was due to $2.0 million generated from the promissory note entered into with Kanis S.A. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.50 Td (on ) Tj ET Q q 0 0 0 rg BT 61.95 134.50 Td (April1, 2016, $0.5 million generated from the promissory note entered into with Lon E. Bell, Ph.D., one of CDT) Tj ET Q q 0 0 0 rg BT 514.02 134.50 Td (i) Tj ET Q q 0 0 0 rg BT 519.58 134.50 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.50 Td (directors, on ) Tj ET Q q 0 0 0 rg BT 101.93 122.50 Td (April1) Tj ET Q q 0 0 0 rg BT 130.17 122.50 Td (1, 2016 and $1.3 million generated from the convertible notes entered into with Haldor ) Tj ET Q q 0 0 0 rg BT 480.45 122.50 Td (T) Tj ET Q q 0 0 0 rg BT 485.86 122.50 Td (opse on June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.50 Td (2016. ) Tj ET Q q 0 0 0 rg BT 77.32 110.50 Td (The Company also received $0.2 million from the exercise of outstanding warrants during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.36 110.50 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.50 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 98.50 Td (. Cash provided by financing was partially of) Tj ET Q q 0 0 0 rg BT 252.83 98.50 Td (fset by a $2.1 million decrease in net borrowings under our demand line of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.50 Td (credit during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.67 86.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.26 86.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.40 Td (On November3, 2016, we entered into a securities purchase agreement with institutional and individual accredited investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.40 Td (and certain of our of) Tj ET Q q 0 0 0 rg BT 131.45 50.40 Td (ficers and directors to raise gross proceeds of approximately $10.3 million in a private placement of ) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (common stock at a per) Tj ET Q q 0 0 0 rg BT 140.33 742.10 Td (-share price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.57 742.10 Td ($2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.07 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 227.89 742.10 Td (The of) Tj ET Q q 0 0 0 rg BT 254.09 742.10 Td (fering was consummated in two closings. ) Tj ET Q q 0 0 0 rg BT 424.43 742.10 Td (The initial closing for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.86 742.10 Td (949,960) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.36 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (shares of common stock, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.82 730.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.71 730.10 Td (, was completed on November4, 2016. ) Tj ET Q q 0 0 0 rg BT 509.44 730.10 Td (The second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (closing for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.81 718.10 Td (4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.70 718.10 Td ( shares, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.09 718.10 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.98 718.10 Td (, was completed on December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (16, 2016. ) Tj ET Q q 0 0 0 rg BT 92.32 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 100.96 706.10 Td (e paid approximately $0.1 million of transaction costs related to the equity of) Tj ET Q q 0 0 0 rg BT 409.31 706.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (Description of Indebtedness) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 627.60 398.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 627.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 627.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 627.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 597.60 398.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 597.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 597.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 597.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 567.60 398.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 567.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 567.60 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 653.6 m 503.5 653.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 653.6 m 507.5 653.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 653.6 m 562.5 653.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 640.6 m 503.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 640.6 m 562.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 552.6 m 503.5 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 538.6 m 503.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 536.6 m 503.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 552.6 m 562.5 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 538.6 m 562.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 536.6 m 562.5 536.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 658.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.75 657.83 Td (December31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 644.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.50 644.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.50 644.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 631.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.65 631.83 Td (\($ in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 617.27 Td (Line of credit with FGI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 617.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 617.27 Td (1,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.00 617.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 617.27 Td (3,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 602.27 Td ($2.0 million, 8% shareholder note due 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 602.27 Td (1,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 602.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 587.27 Td ($1.5million, 8% shareholder note due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 587.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 587.27 Td (1,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 572.27 Td ($3.0million, 8% subordinated convertible shareholder notes due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 572.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 572.27 Td (2,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 557.27 Td ($3.0million, 8% shareholder note due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 557.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 557.27 Td (2,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 542.27 Td (Total borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 542.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 542.27 Td (3,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.00 542.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 542.27 Td (11,072) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 518.10 Td (e have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.89 518.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.78 518.10 Td ( secured demand facility with FGI backed by our receivables and inventory) Tj ET Q q 0 0 0 rg BT 443.42 518.10 Td (. FGI can cancel the facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (Under the FGI facility) Tj ET Q q 0 0 0 rg BT 138.49 486.10 Td (, FGI can elect to purchase eligible accounts receivables from us and certain of our subsidiaries at up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 474.10 Td ( of the value of such receivables \(retaining a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.97 474.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.30 474.10 Td ( reserve\). ) Tj ET Q q 0 0 0 rg BT 305.45 474.10 Td (At FGI's election, FGI may advance us up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.66 474.10 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.99 474.10 Td ( of the value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (of any purchased accounts receivable, subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.19 462.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.08 462.10 Td ( limit. Reserves retained by FGI on any purchased receivable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (are expected to be refunded to us net of interest and fees on advances once the receivables are collected from customers. ) Tj ET Q q 0 0 0 rg BT 533.49 450.10 Td (W) Tj ET Q q 0 0 0 rg BT 542.13 450.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (may also borrow against eligible inventory up to the inventory sublimit as determined by FGI subject to the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.06 438.10 Td ($7.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 426.10 Td ( limit under the FGI facility and certain other conditions. ) Tj ET Q q 0 0 0 rg BT 308.00 426.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.50 426.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.09 426.10 Td (, the inventory sublimit was the lesser of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 414.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.22 414.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.55 414.10 Td ( of the aggregate purchase price paid for accounts receivable purchased under the FGI facility) Tj ET Q q 0 0 0 rg BT 504.73 414.10 Td (. ) Tj ET Q q 0 0 0 rg BT 509.55 414.10 Td (While the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (overall credit limit and inventory sublimit were not changed, in the first quarter of 2015, borrowing against Honda inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (has been limited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.32 390.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.21 390.10 Td ( by FGI due to their concerns about customer concentration.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (The interest rate on advances or borrowings under the FGI facility is the greater of \(i\)6.50% perannum and \(ii\)2.50% per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (annum above the prime rate, as defined in the FGI facility) Tj ET Q q 0 0 0 rg BT 281.22 358.10 Td (, and was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.21 358.10 Td (6.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.04 358.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 358.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.84 358.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.28 358.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.28 358.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 338.10 Td (e were in compliance with the terms of the FGI facility at December31, 2016. However) Tj ET Q q 0 0 0 rg BT 410.62 338.10 Td (, there is no guarantee that we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (able to borrow the full limit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.14 326.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.03 326.10 Td ( if FGI chooses not to finance a portion of our receivables or inventory) Tj ET Q q 0 0 0 rg BT 505.36 326.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (For additional information regarding our indebtedness, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.48 306.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.48 306.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.56 306.10 Td (Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.00 306.10 Td (".) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Capital Expenditur) Tj ET Q q 0 0 0 rg BT 132.89 286.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 266.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 266.10 Td (, we had no material commitments for capital expenditures and no material commitments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (anticipated in the near future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 129.43 234.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 214.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 214.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.47 214.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.47 214.10 Td (, we had no of) Tj ET Q q 0 0 0 rg BT 249.21 214.10 Td (f-balance sheet arrangements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 174.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 174.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.47 174.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.47 174.10 Td (, other than of) Tj ET Q q 0 0 0 rg BT 248.38 174.10 Td (fice leases, we had no material commitments other than the liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (reflected in our consolidated financial statements included elsewhere in this ) Tj ET Q q 0 0 0 rg BT 354.90 162.10 Td (Annual Report on Form10-K. For additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (information, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.80 150.10 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.80 150.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.88 150.10 Td (Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.20 150.10 Td (".) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (ITEM 7A.QUANTIT) Tj ET Q q 0 0 0 rg BT 149.82 122.10 Td (A) Tj ET Q q 0 0 0 rg BT 156.30 122.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 182.71 122.10 Td (AN QUALIT) Tj ET Q q 0 0 0 rg BT 238.36 122.10 Td (A) Tj ET Q q 0 0 0 rg BT 244.84 122.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 344.32 122.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 379.70 122.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 427.02 122.10 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (ITEM 8.FINANCIAL) Tj ET Q q 0 0 0 rg BT 152.79 74.10 Td ( ST) Tj ET Q q 0 0 0 rg BT 166.78 74.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.26 74.10 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 224.11 74.10 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 315.87 74.10 Td (AR) Tj ET Q q 0 0 0 rg BT 329.96 74.10 Td (Y) Tj ET Q q 0 0 0 rg BT 336.81 74.10 Td ( DA) Tj ET Q q 0 0 0 rg BT 353.01 74.10 Td (T) Tj ET Q q 0 0 0 rg BT 358.94 74.10 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (See "Index to Financial Statements", located on pageF-1 of this ) Tj ET Q q 0 0 0 rg BT 308.11 54.10 Td (Annual Report on Form10-K.) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 9.CHANGES IN ) Tj ET Q q 0 0 0 rg BT 161.68 742.25 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 275.97 742.25 Td (WITH ) Tj ET Q q 0 0 0 rg BT 306.25 742.25 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 356.07 742.25 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 402.19 742.25 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 473.59 742.25 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 553.87 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (ITEM 9A.CONTROLS ) Tj ET Q q 0 0 0 rg BT 161.96 682.25 Td (AND PROCEDURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 149.83 662.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 182.14 662.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 225.30 662.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 254.56 662.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (The phrase disclosure controls and procedures refers to controls and procedures designed to ensure that information required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (to be disclosed in our reports filed or submitted under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 365.20 628.25 Td (Act of 1934, as amended, or the Exchange ) Tj ET Q q 0 0 0 rg BT 536.81 628.25 Td (Act, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (such as this ) Tj ET Q q 0 0 0 rg BT 98.06 616.25 Td (Annual Report on Form 10-K, is recorded, processed, summarized and reported within the time periods specified in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (the rules and forms of the U.S. Securities and Exchange Commission, or SEC. Disclosure controls and procedures are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.25 Td (designed to ensure that such information is accumulated and communicated to our management, including our chief executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 580.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 76.06 580.25 Td (, or CEO, and chief financial of) Tj ET Q q 0 0 0 rg BT 201.95 580.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 219.86 580.25 Td (, or CFO, as appropriate to allow timely decision regarding required disclosure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.25 Td (Our management, with the participation of our CEO and CFO, has evaluated the ef) Tj ET Q q 0 0 0 rg BT 381.67 558.25 Td (fectiveness of our disclosure controls and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (procedures \(as defined in Rules 13a- 15\(e\) and 15d- 15\(e\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 365.16 546.25 Td (Act\), as of December 31, 2016, the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.25 Td (period covered by this ) Tj ET Q q 0 0 0 rg BT 141.09 534.25 Td (Annual Report on Form 10-K. Based on such evaluation, our CEO and CFO have concluded that as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (December 31, 2016, our disclosure controls and procedures were designed at a reasonable assurance level and were ef) Tj ET Q q 0 0 0 rg BT 522.12 522.25 Td (fective to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (allow timely decisions regarding required disclosure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 452.25 Td (Management) Tj ET Q q 0 0 0 rg BT 109.06 452.25 Td (s Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 223.87 452.25 Td (ol over) Tj ET Q q 0 0 0 rg BT 252.85 452.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Rules 13a-15\(f\) and 15d-15\(f\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 254.65 418.25 Td (Act. Our internal control over financial reporting is designed to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (external purposes in accordance with generally accepted accounting principles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 372.25 Td (Our management, with the participation of our CEO and CFO, has assessed the ef) Tj ET Q q 0 0 0 rg BT 377.24 372.25 Td (fectiveness of the internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.25 Td (financial reporting as of December 31, 2016. In making this assessment, our management used the criteria set forth by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.25 Td (Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 166.20 348.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 239.61 348.25 Td (T) Tj ET Q q 0 0 0 rg BT 245.37 348.25 Td (readway Commission \(COSO\) in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 389.79 348.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 447.48 348.25 Td (ol - Integrated Framework ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (\(2013 Framework\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.82 336.25 Td (. Based on this evaluation, our management has concluded that our internal control over financial reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (was ef) Tj ET Q q 0 0 0 rg BT 75.64 324.25 Td (fective as of December 31, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (This ) Tj ET Q q 0 0 0 rg BT 69.73 302.25 Td (Annual Report on Form 10-K does not include an attestation report of our registered public accounting firm regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (internal control over financial reporting. Management) Tj ET Q q 0 0 0 rg BT 268.25 290.25 Td (s report was not subject to attestation by our registered public accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (firm pursuant to rules of the SEC that permit us to provide only management) Tj ET Q q 0 0 0 rg BT 360.22 278.25 Td (s report in this ) Tj ET Q q 0 0 0 rg BT 419.66 278.25 Td (Annual Report on Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 256.25 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 162.89 256.25 Td (ols over) Tj ET Q q 0 0 0 rg BT 195.75 256.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.25 Td (Other than with respect to the material weaknesses discussed below that were identified during the quarter ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (2015 \(related to inventory costing and capitalization of manufacturing variances\) and the quarter ended June 30, 2016 \(related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (to embedded derivatives\), and subsequently remediated as of December 31, 2016, there was no change in our internal control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (over financial reporting identified in management) Tj ET Q q 0 0 0 rg BT 251.87 196.25 Td (s evaluation pursuant to Rules13a-15\(d\)or 15d-15\(d\)of the Exchange ) Tj ET Q q 0 0 0 rg BT 537.08 196.25 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (during the quarter ended December31, 2016 that materially af) Tj ET Q q 0 0 0 rg BT 299.72 184.25 Td (fected, or is reasonable likely to materially af) Tj ET Q q 0 0 0 rg BT 480.58 184.25 Td (fect, our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (control over financial reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (Remediation of a Material ) Tj ET Q q 0 0 0 rg BT 164.79 148.25 Td (W) Tj ET Q q 0 0 0 rg BT 174.24 148.25 Td (eakness in Internal Contr) Tj ET Q q 0 0 0 rg BT 283.23 148.25 Td (ol over) Tj ET Q q 0 0 0 rg BT 312.21 148.25 Td ( Financial Reporting) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (Material ) Tj ET Q q 0 0 0 rg BT 87.88 124.25 Td (W) Tj ET Q q 0 0 0 rg BT 96.03 124.25 Td (eakness Related to Inventory Costing and Capitalization of Manufacturing V) Tj ET Q q 0 0 0 rg BT 411.91 124.25 Td (ariances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.25 Td (During the fourth fiscal quarter of 2015, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 306.68 100.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 419.24 100.25 Td (ficer identified a material weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.25 Td (related to our inventory costing and the capitalization of certain manufacturing variances at our former Canadian manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.25 Td (facility that we closed in early 2016. ) Tj ET Q q 0 0 0 rg BT 197.73 76.25 Td (A) Tj ET Q q 0 0 0 rg BT 204.40 76.25 Td ( material weakness is a deficiency) Tj ET Q q 0 0 0 rg BT 340.08 76.25 Td (, or a combination of deficiencies, in internal control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.25 Td (over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.25 Td (financial statements will not be prevented or detected on a timely basis. ) Tj ET Q q 0 0 0 rg BT 338.34 52.25 Td (This control deficiency resulted in the reasonable ) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (possibility that a material misstatement in the valuation of inventory would not be prevented or detected on a timely basis. ) Tj ET Q q 0 0 0 rg BT 541.09 742.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (material weakness was identified and any resulting errors corrected prior to the completion of our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (statements included in our ) Tj ET Q q 0 0 0 rg BT 157.20 718.10 Td (Annual Report on Form 10-K for the year ended December 31, 2015.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Remediation of Material W) Tj ET Q q 0 0 0 rg BT 158.23 694.10 Td (eakness) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 670.10 Td (e initiated a plan to enhance our control procedures over the accounting for inventory costing and capitalization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (manufacturing variances. During the first quarter of 2016, we ceased to manufacture at the Canadian manufacturing facility and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (outsourced the manufacturing previously done at this location. ) Tj ET Q q 0 0 0 rg BT 301.88 646.10 Td (As the material weakness related to the valuation of inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (our Canadian manufacturing facility) Tj ET Q q 0 0 0 rg BT 194.58 634.10 Td (, management has concluded that the closure of the facility and outsourcing of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (manufacturing activities eliminated the manufacturing labor and overhead variance component of the capitalization, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (contributed to the remediation of the material weakness in internal controls related to the inventory costing and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (capitalization of certain manufacturing variances at the facility) Tj ET Q q 0 0 0 rg BT 300.06 598.10 Td (. ) Tj ET Q q 0 0 0 rg BT 304.51 598.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 354.41 598.10 Td (, management remediated this material weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (by:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 562.10 Td (adding additional resources with technical expertise in inventory cost accounting; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 550.10 Td (re-designing controls to ensure proper inventory costing and the capitalization of certain manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 538.10 Td (variances.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (Material ) Tj ET Q q 0 0 0 rg BT 87.88 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.03 514.10 Td (eakness Related to Embedded Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (During the second fiscal quarter of 2016, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 310.01 490.10 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 422.57 490.10 Td (ficer identified a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (weakness in our controls over accounting for embedded derivatives requiring bifurcation and valuation modeling. ) Tj ET Q q 0 0 0 rg BT 509.68 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 518.32 478.10 Td (e did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (design ef) Tj ET Q q 0 0 0 rg BT 86.20 466.10 Td (fective controls to adequately assess the related accounting. ) Tj ET Q q 0 0 0 rg BT 326.76 466.10 Td (This control deficiency resulted in the reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (possibility that a material misstatement in the valuation of certain modified convertible debt would not be prevented or detected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (on a timely basis. ) Tj ET Q q 0 0 0 rg BT 124.81 442.10 Td (This material weakness was identified prior to the completion of Form 10-Q for the quarter ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (2016.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (Remediation of Material W) Tj ET Q q 0 0 0 rg BT 158.23 406.10 Td (eakness) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (During the fourth quarter of 2016, our management remediated this material weakness by supplementing its accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (professionals with additional resources that have technical expertise in accounting for complex, significant and unusual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (transactions including but not limited to embedded derivatives requiring bifurcation and valuation modeling.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (Management believes that the actions described above to address the material weaknesses related to inventory costing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (capitalization of manufacturing variances and embedded derivatives requiring bifurcation and valuation modeling, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (actions were completed during the fourth quarter of 2016, have remediated such material weaknesses in internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (financial reporting as of December 31, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Limitations on Effectiveness of Contr) Tj ET Q q 0 0 0 rg BT 209.25 274.10 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 252.41 274.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 281.67 274.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td (In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (ITEM 9B.OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 190.10 196.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 176.10 Td (None) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.27 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.36 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 742.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 714.25 Td (ITEM 10.DIRECT) Tj ET Q q 0 0 0 rg BT 140.39 714.25 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 0 rg BT 280.42 714.25 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 354.39 714.25 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (The information required by this item is incorporated by reference to the disclosure appearing under the headings Election of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 153.94 682.25 Td (ficers, Board of Directors and Corporate Governance and Other Matters in our Proxy Statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (for our 2017 ) Tj ET Q q 0 0 0 rg BT 101.94 670.25 Td (Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (ITEM 1) Tj ET Q q 0 0 0 rg BT 83.62 628.25 Td (1.EXECUTIVE COMPENSA) Tj ET Q q 0 0 0 rg BT 219.56 628.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (The information required by this item is incorporated by reference to the disclosure appearing under the heading Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 596.25 Td (Compensation in our Proxy Statement for the 2017 ) Tj ET Q q 0 0 0 rg BT 260.53 596.25 Td (Annual Meeting of Stockholders to be filed with the SEC within 120 days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (of the fiscal year ended December 31, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (ITEM 12.SECURITY) Tj ET Q q 0 0 0 rg BT 152.98 554.25 Td ( OWNERSHIP) Tj ET Q q 0 0 0 rg BT 217.16 554.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 233.17 554.25 Td ( CER) Tj ET Q q 0 0 0 rg BT 256.44 554.25 Td (T) Tj ET Q q 0 0 0 rg BT 262.36 554.25 Td (AIN BENEFICIAL) Tj ET Q q 0 0 0 rg BT 344.88 554.25 Td ( OWNERS ) Tj ET Q q 0 0 0 rg BT 393.78 554.25 Td (AND MANAGEMENT) Tj ET Q q 0 0 0 rg BT 493.32 554.25 Td ( ) Tj ET Q q 0 0 0 rg BT 495.27 554.25 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (RELA) Tj ET Q q 0 0 0 rg BT 77.04 542.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 112.15 542.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 196.69 542.25 Td (TTERS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (The information required by this item is incorporated by reference to the disclosure appearing under the heading Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (Compensation in our Proxy Statement for the 2017 ) Tj ET Q q 0 0 0 rg BT 260.53 510.25 Td (Annual Meeting of Stockholders to be filed with the SEC within 120 days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (of the fiscal year ended December 31, 2016.) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 13.CER) Tj ET Q q 0 0 0 rg BT 122.43 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.36 742.25 Td (AIN RELA) Tj ET Q q 0 0 0 rg BT 176.24 742.25 Td (TIONSHIPS ) Tj ET Q q 0 0 0 rg BT 232.65 742.25 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 283.85 742.25 Td (TED ) Tj ET Q q 0 0 0 rg BT 306.73 742.25 Td (TRANSACTIONS, ) Tj ET Q q 0 0 0 rg BT 390.64 742.25 Td (AND DIRECT) Tj ET Q q 0 0 0 rg BT 453.53 742.25 Td (OR INDEPENDENCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (The information required by this item is incorporated by reference to the disclosure appearing under the heading Certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (Relationships and Related Party ) Tj ET Q q 0 0 0 rg BT 180.35 710.25 Td (T) Tj ET Q q 0 0 0 rg BT 186.11 710.25 Td (ransactions and Board of Directors and Corporate Governance -- Director Independence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (in our Proxy Statement for the 2017 ) Tj ET Q q 0 0 0 rg BT 195.82 698.25 Td (Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (ended December 31, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (ITEM 14.PRINCIP) Tj ET Q q 0 0 0 rg BT 142.59 656.25 Td (AL) Tj ET Q q 0 0 0 rg BT 155.93 656.25 Td ( ) Tj ET Q q 0 0 0 rg BT 157.88 656.25 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 207.70 656.25 Td (ANT) Tj ET Q q 0 0 0 rg BT 228.63 656.25 Td ( FEES ) Tj ET Q q 0 0 0 rg BT 258.09 656.25 Td (AND SER) Tj ET Q q 0 0 0 rg BT 301.35 656.25 Td (VICES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.25 Td (The information required by this item is incorporated by reference to the disclosure appearing under the heading Ratification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 624.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.28 624.25 Td (Appointment of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 251.07 624.25 Td (Accounting Firm in our Proxy Statement for the 2017 ) Tj ET Q q 0 0 0 rg BT 472.43 624.25 Td (Annual Meeting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 612.25 Td (Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2016.) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.30 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.67 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.76 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 312.25 742.25 Td ( IV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 714.25 Td (ITEM 15.EXHIBITS, FINANCIAL) Tj ET Q q 0 0 0 rg BT 211.14 714.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 225.13 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 231.61 714.25 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 274.77 714.25 Td ( SCHEDULES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 94.64 694.25 Td (e have filed the following documents as part of this ) Tj ET Q q 0 0 0 rg BT 301.81 694.25 Td (Annual Report on Form 10-K:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 672.25 Td (1. ) Tj ET Q q 0 0 0 rg BT 122.00 672.25 Td (Consolidated Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 650.25 Td (Our consolidated financial statements are listed in the Index to Consolidated Financial Statements under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 638.25 Td (Part II, Item 8 of this ) Tj ET Q q 0 0 0 rg BT 207.82 638.25 Td (Annual Report on Form 10-K.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 616.25 Td (2. ) Tj ET Q q 0 0 0 rg BT 122.00 616.25 Td (Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 594.25 Td (All schedules have been omitted because they are not required, not applicable, not present in amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 582.25 Td (suf) Tj ET Q q 0 0 0 rg BT 134.04 582.25 Td (ficient to require submission of the schedule, or the required information is otherwise included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 570.25 Td (consolidated financial statements and related notes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 548.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 122.00 548.25 Td (Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 526.25 Td (See the Exhibit Index immediately following the signature pages of this ) Tj ET Q q 0 0 0 rg BT 411.11 526.25 Td (Annual Report on Form 10-K.) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 16.FORM 10-K SUMMAR) Tj ET Q q 0 0 0 rg BT 204.08 742.25 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (None) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 690.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 690.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Pursuant to the requirements of Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 366.87 670.25 Td (Act of 1934, the registrant has duly caused this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (report to be signed on its behalf by the undersigned, thereunto duly authorized.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 609.75 m 562.5 609.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 630.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.00 630.32 Td (CLEAN DIESEL TECHNOLOGIES,INC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 615.32 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.00 615.32 Td (By:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 615.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.60 614.42 Td (/s/ Matthew Beale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.55 599.42 Td (Matthew Beale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.80 589.42 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 408.30 589.42 Td (Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 551.25 Td (KNOW) Tj ET Q q 0 0 0 rg BT 80.92 551.25 Td ( ) Tj ET Q q 0 0 0 rg BT 82.87 551.25 Td (ALL) Tj ET Q q 0 0 0 rg BT 101.94 551.25 Td ( PERSONS BY) Tj ET Q q 0 0 0 rg BT 164.37 551.25 Td ( ) Tj ET Q q 0 0 0 rg BT 166.68 551.25 Td (THESE PRESENTS, that each person whose signature appears below constitutes and appoints ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 539.25 Td (Matthew Beale and ) Tj ET Q q 0 0 0 rg BT 130.07 539.25 Td (T) Tj ET Q q 0 0 0 rg BT 135.83 539.25 Td (racy Kern, and each of them, as his true and lawful attorneys-in-fact and agents, with full power of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 527.25 Td (substitution for him, and in his name in any and all capacities, to sign any and all amendments to this ) Tj ET Q q 0 0 0 rg BT 456.04 527.25 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.25 Td (Form10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 503.25 Td (Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (perform each and every act and thing requisite and necessary to be done therewith, as fully to all intents and purposes as he ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, and any of them or his or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 445.25 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 312.05 445.25 Td (Act of 1934, this report has been signed below by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (following persons on behalf of the registrant and in the capacities and on the dates indicated.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 387.75 m 228.5 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 337.75 m 228.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 297.75 m 228.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 297.75 m 228.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 257.75 m 228.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 217.75 m 228.5 217.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.60 392.42 Td (/s/ Matthew Beale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 392.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 402.42 Td (Chief Executive Officer and Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 392.42 Td (\(Principal Executive Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 392.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 392.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.55 377.42 Td (Matthew Beale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.35 342.42 Td (/s/ Tracy Kern) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 342.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 352.42 Td (Chief Financial Officer \(Principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 342.42 Td (Financial and Accounting Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 342.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 342.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.25 327.42 Td (Tracy Kern) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.90 302.42 Td (/s/ Lon E. Bell, Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 302.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 302.42 Td (Chairman of the Board) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 302.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 302.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.90 287.42 Td (Lon E. Bell, Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.95 262.42 Td (/s/ Till Becker, Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 262.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 262.42 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 262.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 262.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.85 247.42 Td (Till Becker, Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.15 222.42 Td (/s/ Mungo Park) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 222.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 222.42 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 222.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.00 222.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.10 207.42 Td (Mungo Park) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.25 722.25 Td (Index to Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 694.48 Td (Audited Consolidated Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 693.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 669.32 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 218.24 669.32 Td (Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 644.32 Td (Consolidated Balance Sheets as of December31, 2016 and 2015) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 619.32 Td (Consolidated Statements of Comprehensive Loss for the years ended December31, 2016 and 2015) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 594.32 Td (Consolidated Statements of Stockholders' Equity for the years ended December31, 2016 and 2015) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 569.32 Td (Consolidated Statements of Cash Flows for the years ended December31, 2016 and 2015) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 544.32 Td (Notes to Consolidated Financial Statements) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 668.42 Td (F-2) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 643.42 Td (F-3) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 618.42 Td (F-4) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 593.42 Td (F-5) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 568.42 Td (F-6) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.10 543.42 Td (F-7) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.05 742.25 Td (Report of Independent Register) Tj ET Q q 0 0 0 rg BT 316.13 742.25 Td (ed Public ) Tj ET Q q 0 0 0 rg BT 357.81 742.25 Td (Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Board of Directors and Stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (Clean Diesel ) Tj ET Q q 0 0 0 rg BT 103.69 710.25 Td (T) Tj ET Q q 0 0 0 rg BT 109.10 710.25 Td (echnologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (Oxnard, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 678.25 Td (e have audited the accompanying consolidated balance sheets of Clean Diesel ) Tj ET Q q 0 0 0 rg BT 371.95 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 377.36 678.25 Td (echnologies, Inc. \(the "Company"\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 666.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.02 666.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.02 666.25 Td ( and the related consolidated statements of comprehensive loss, stockholders' equity) Tj ET Q q 0 0 0 rg BT 503.25 666.25 Td (, and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (flows for the years then ended. ) Tj ET Q q 0 0 0 rg BT 175.61 654.25 Td (These financial statements are the responsibility of the Company's management. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (responsibility is to express an opinion on these financial statements based on our audits.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 622.25 Td (e conducted our audits in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 378.83 622.25 Td (Accounting Oversight Board \(United States\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 231.13 598.25 Td (The Company is not required to have, nor were we engaged to perform, an audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (on the ef) Tj ET Q q 0 0 0 rg BT 84.80 562.25 Td (fectiveness of the Company's internal control over financial reporting. ) Tj ET Q q 0 0 0 rg BT 367.08 562.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 416.41 562.25 Td (, we express no such opinion. ) Tj ET Q q 0 0 0 rg BT 536.40 562.25 Td (An ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (financial statement presentation. ) Tj ET Q q 0 0 0 rg BT 181.99 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 190.63 526.25 Td (e believe that our audits provide a reasonable basis for our opinion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (In our opinion, the consolidated financial statements referred to above present fairly) Tj ET Q q 0 0 0 rg BT 385.34 506.25 Td (, in all material respects, the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (position of Clean Diesel ) Tj ET Q q 0 0 0 rg BT 149.25 494.25 Td (T) Tj ET Q q 0 0 0 rg BT 154.66 494.25 Td (echnologies, Inc. at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.91 494.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.49 494.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.93 494.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.93 494.25 Td (, and the results of its operations and its cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (for the years then ended, in conformity with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 485.42 482.25 Td (America.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (concern. ) Tj ET Q q 0 0 0 rg BT 86.09 450.25 Td (As described in Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.74 450.25 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.74 450.25 Td ( to the consolidated financial statements, the Company has suf) Tj ET Q q 0 0 0 rg BT 426.94 450.25 Td (fered recurring losses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (operations and negative cash flows from operations since inception, resulting in an accumulated deficit of $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.42 438.25 Td (\(223\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.47 438.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 426.25 Td (, that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.25 Td (to these matters are also described in Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.61 414.25 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.61 414.25 Td (. ) Tj ET Q q 0 0 0 rg BT 231.43 414.25 Td (The consolidated financial statements do not include any adjustments that might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (result from the outcome of this uncertainty) Tj ET Q q 0 0 0 rg BT 220.42 402.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (As ) Tj ET Q q 0 0 0 rg BT 63.20 378.25 Td (discussed ) Tj ET Q q 0 0 0 rg BT 103.62 378.25 Td (in ) Tj ET Q q 0 0 0 rg BT 113.48 378.25 Td (Note ) Tj ET Q q 0 0 0 rg BT 135.01 378.25 Td (3 ) Tj ET Q q 0 0 0 rg BT 142.09 378.25 Td (to ) Tj ET Q q 0 0 0 rg BT 151.96 378.25 Td (the ) Tj ET Q q 0 0 0 rg BT 166.26 378.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 218.89 378.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 255.96 378.25 Td (statements, ) Tj ET Q q 0 0 0 rg BT 302.75 378.25 Td (the ) Tj ET Q q 0 0 0 rg BT 317.06 378.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 358.03 378.25 Td (changed ) Tj ET Q q 0 0 0 rg BT 393.43 378.25 Td (its ) Tj ET Q q 0 0 0 rg BT 404.97 378.25 Td (method ) Tj ET Q q 0 0 0 rg BT 437.05 378.25 Td (of ) Tj ET Q q 0 0 0 rg BT 447.46 378.25 Td (presentation ) Tj ET Q q 0 0 0 rg BT 498.42 378.25 Td (of ) Tj ET Q q 0 0 0 rg BT 508.84 378.25 Td (debt ) Tj ET Q q 0 0 0 rg BT 528.14 378.25 Td (issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (costs ) Tj ET Q q 0 0 0 rg BT 73.37 366.25 Td (in ) Tj ET Q q 0 0 0 rg BT 84.51 366.25 Td (2016 ) Tj ET Q q 0 0 0 rg BT 107.88 366.25 Td (due ) Tj ET Q q 0 0 0 rg BT 125.68 366.25 Td (to ) Tj ET Q q 0 0 0 rg BT 136.83 366.25 Td (the ) Tj ET Q q 0 0 0 rg BT 152.41 366.25 Td (adoption ) Tj ET Q q 0 0 0 rg BT 190.77 366.25 Td (of ) Tj ET Q q 0 0 0 rg BT 202.47 366.25 Td (Financial ) Tj ET Q q 0 0 0 rg BT 242.31 366.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 292.33 366.25 Td (Standards ) Tj ET Q q 0 0 0 rg BT 335.13 366.25 Td (Board ) Tj ET Q q 0 0 0 rg BT 362.20 366.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 412.22 366.25 Td (Standards ) Tj ET Q q 0 0 0 rg BT 455.02 366.25 Td (Update ) Tj ET Q q 0 0 0 rg BT 487.27 366.25 Td (\(ASU\) ) Tj ET Q q 0 0 0 rg BT 526.17 366.25 Td (2015-03, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (Interest-Imputation ) Tj ET Q q 0 0 0 rg BT 129.59 354.25 Td (of ) Tj ET Q q 0 0 0 rg BT 140.32 354.25 Td (Interest ) Tj ET Q q 0 0 0 rg BT 172.69 354.25 Td (\(Subtopic ) Tj ET Q q 0 0 0 rg BT 213.98 354.25 Td (835-30\): ) Tj ET Q q 0 0 0 rg BT 250.81 354.25 Td (Simplifying ) Tj ET Q q 0 0 0 rg BT 300.99 354.25 Td (the ) Tj ET Q q 0 0 0 rg BT 315.60 354.25 Td (Presentation ) Tj ET Q q 0 0 0 rg BT 367.42 354.25 Td (of ) Tj ET Q q 0 0 0 rg BT 378.15 354.25 Td (Debt ) Tj ET Q q 0 0 0 rg BT 399.98 354.25 Td (Issuance ) Tj ET Q q 0 0 0 rg BT 436.80 354.25 Td (Costs. ) Tj ET Q q 0 0 0 rg BT 463.76 354.25 Td (This ) Tj ET Q q 0 0 0 rg BT 483.93 354.25 Td (change ) Tj ET Q q 0 0 0 rg BT 514.64 354.25 Td (was ) Tj ET Q q 0 0 0 rg BT 532.58 354.25 Td (applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (retrospectively ) Tj ET Q q 0 0 0 rg BT 111.92 342.25 Td (to ) Tj ET Q q 0 0 0 rg BT 122.20 342.25 Td (all ) Tj ET Q q 0 0 0 rg BT 134.69 342.25 Td (periods ) Tj ET Q q 0 0 0 rg BT 166.63 342.25 Td (presented.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 292.75 m 295.5 292.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 297.42 Td (/s/ BDO USA, LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 282.42 Td (BDO USA, LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 272.42 Td (Los ) Tj ET Q q 0 0 0 rg BT 69.95 272.42 Td (Angeles, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 257.42 Td (April 7, 2017) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.85 722.25 Td (Consolidated Balance Sheets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.50 702.25 Td (\(in thousands, except shar) Tj ET Q q 0 0 0 rg BT 307.45 702.25 Td (e and per) Tj ET Q q 0 0 0 rg BT 347.27 702.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 368.48 702.25 Td (e amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 656.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 656.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 656.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 656.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 626.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 626.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 626.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 626.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 596.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 596.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 596.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 596.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 566.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 566.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 566.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 566.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 536.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 536.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 536.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 506.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 506.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 506.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 506.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 476.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 476.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 476.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 476.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 446.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 446.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 446.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 446.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 416.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 416.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 416.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 416.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 386.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 386.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 386.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 356.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 356.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 356.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 326.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 326.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 326.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 296.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 296.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 296.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 266.75 378.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 266.75 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 266.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 266.75 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 206.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 206.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 206.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 206.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 176.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 176.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 176.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 176.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 146.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 146.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 146.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 146.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 669.75 m 493.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 669.75 m 497.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 669.75 m 562.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 656.75 m 493.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 656.75 m 562.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 566.75 m 493.5 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 566.75 m 562.5 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 476.75 m 493.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 476.75 m 562.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 462.75 m 493.5 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 460.75 m 493.5 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 462.75 m 562.5 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 460.75 m 562.5 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 356.75 m 493.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 356.75 m 562.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 311.75 m 493.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 311.75 m 562.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 296.75 m 493.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 296.75 m 562.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 161.75 m 493.5 161.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 161.75 m 562.5 161.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 146.75 m 493.5 146.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 146.75 m 562.5 146.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 132.75 m 493.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 130.75 m 493.5 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 132.75 m 562.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 130.75 m 562.5 130.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.75 673.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 660.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.50 660.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 660.98 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 646.43 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 646.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 646.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 631.42 Td (Current assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 631.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 631.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 616.42 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 616.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 616.42 Td (7,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 616.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 616.42 Td (2,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 601.42 Td (Accounts receivable, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 601.42 Td (5,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 601.42 Td (4,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 586.42 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 586.42 Td (7,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 586.42 Td (7,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 571.42 Td (Prepaid expenses and other current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 571.42 Td (968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 571.42 Td (1,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 556.42 Td (Total current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 556.42 Td (21,330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 556.42 Td (16,699) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 541.42 Td (Property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 541.42 Td (1,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 541.42 Td (1,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 526.42 Td (Intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 526.42 Td (1,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 526.42 Td (1,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 511.42 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 511.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 511.42 Td (4,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 496.42 Td (Deferred tax asset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 496.42 Td (554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 481.42 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 481.42 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 481.42 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 466.42 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 466.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 466.42 Td (24,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 466.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 466.42 Td (25,102) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 451.43 Td (LIABILITIES AND STOCKHOLDERS' EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 436.42 Td (Current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 421.42 Td (Line of credit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 421.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 421.42 Td (1,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 421.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 421.42 Td (3,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 406.42 Td (Shareholder notes payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 406.42 Td (1,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 406.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 391.42 Td (Accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 391.42 Td (5,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 391.42 Td (5,012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 376.42 Td (Accrued expenses and other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 376.42 Td (6,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 376.42 Td (7,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 361.42 Td (Income taxes payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 361.42 Td (642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 361.42 Td (534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 346.42 Td (Total current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 346.42 Td (16,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 346.42 Td (16,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 331.42 Td (Shareholder notes payable, noncurrent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 331.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 331.42 Td (7,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 316.42 Td (Deferred tax liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 316.42 Td (193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 301.42 Td (Total liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 301.42 Td (16,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 301.42 Td (24,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 286.42 Td (Commitments and contingencies \(Note17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 271.42 Td (Stockholders' equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 271.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 271.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 256.42 Td (Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 246.42 Td (outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 246.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 246.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 231.42 Td (Common stock, par value $0.01 per share: authorized 50,000,000 and 4,800,000 at) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 221.42 Td (December 31, 2016 and 2015, respectively; issued and outstanding 15,703,301 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 211.42 Td (3,559,530 shares at December31, 2016 and 2015, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 211.42 Td (157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 211.42 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 196.42 Td (Additional paid-in capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 196.42 Td (237,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 196.42 Td (205,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 181.42 Td (Accumulated other comprehensive loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 181.47 Td (\(6,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 181.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 181.47 Td (\(5,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 181.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 166.42 Td (Accumulated deficit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 166.47 Td (\(223,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 166.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 166.47 Td (\(199,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 166.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 151.42 Td (Total stockholders' equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 151.42 Td (8,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 151.42 Td (437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 136.42 Td (Total liabilities and stockholders' equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 136.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 136.42 Td (24,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 136.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 136.42 Td (25,102) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.20 112.25 Td (See accompanying notes to the consolidated financial statements.) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.20 722.25 Td (Consolidated Statements of Compr) Tj ET Q q 0 0 0 rg BT 351.74 722.25 Td (ehensive Loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.65 702.25 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 325.14 702.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 346.36 702.25 Td (e amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 656.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 656.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 656.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 656.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 626.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 626.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 626.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 626.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 596.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 596.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 596.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 596.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 566.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 566.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 566.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 566.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 536.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 536.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 536.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 506.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 506.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 506.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 506.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 476.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 476.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 476.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 476.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 446.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 446.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 446.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 446.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 416.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 416.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 416.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 416.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 386.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 386.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 386.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 356.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 356.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 356.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 326.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 326.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 326.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 296.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 296.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 296.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 266.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 266.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 266.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 266.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 236.75 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 236.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 236.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 236.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 669.75 m 493.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 669.75 m 497.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 669.75 m 562.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 656.75 m 493.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 656.75 m 562.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 656.75 m 493.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 656.75 m 562.5 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 626.75 m 493.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 626.75 m 562.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 536.75 m 493.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 536.75 m 562.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 521.75 m 493.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 521.75 m 562.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 416.75 m 493.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 416.75 m 562.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 401.75 m 493.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 401.75 m 562.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 371.75 m 493.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 371.75 m 562.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 341.75 m 493.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 341.75 m 562.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 311.75 m 493.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 311.75 m 562.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 297.75 m 493.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 295.75 m 493.5 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 297.75 m 562.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 295.75 m 562.5 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 251.75 m 493.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 251.75 m 562.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 237.75 m 493.5 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 235.75 m 493.5 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 237.75 m 562.5 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 235.75 m 562.5 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 222.75 m 493.5 222.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 220.75 m 493.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 222.75 m 562.5 222.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 220.75 m 562.5 220.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.05 673.98 Td (Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 660.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.50 660.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 660.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 646.42 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 646.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 646.42 Td (36,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 646.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 646.42 Td (39,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 631.42 Td (Cost of revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 631.42 Td (28,773) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 631.42 Td (28,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 616.42 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 616.42 Td (8,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 616.42 Td (10,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 601.42 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 601.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 601.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 586.42 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 586.42 Td (4,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 586.42 Td (7,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 571.42 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 571.42 Td (11,837) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 571.42 Td (11,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 556.42 Td (Goodwill Impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 556.42 Td (4,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 556.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 541.42 Td (Severance and other charges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 541.42 Td (2,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 541.42 Td (1,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 526.42 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 526.42 Td (23,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 526.42 Td (21,211) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 511.42 Td (Loss from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 511.47 Td (\(15,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 511.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 511.47 Td (\(10,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 511.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 496.42 Td (Other \(expense\) income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 481.42 Td (Interest expense, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 481.47 Td (\(1,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 481.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 481.47 Td (\(1,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 481.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 466.42 Td (Gain on change in fair value of bifurcated derivative liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 466.42 Td (2,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 466.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 451.42 Td (Loss on extinguishment of convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 451.47 Td (\(12,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 451.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 436.42 Td (Gain on change in fair value of liability-classified warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 436.42 Td (1,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 436.42 Td (2,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 421.42 Td (Other income, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 421.42 Td (863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 421.42 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 406.42 Td (Total other \(expense\) income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 406.47 Td (\(8,774) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 406.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 406.42 Td (1,498) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 391.42 Td (Loss from continuing operations before income tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 391.47 Td (\(24,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 391.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 391.47 Td (\(8,821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 391.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 376.42 Td (Income tax benefit from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 376.47 Td (\(958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 376.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 376.47 Td (\(399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 376.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 361.42 Td (Net loss from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 361.47 Td (\(23,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 361.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 361.47 Td (\(8,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 361.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 346.42 Td (Net loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 346.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 346.47 Td (\(112) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 346.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 331.42 Td (Net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 331.47 Td (\(23,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 331.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 331.47 Td (\(8,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 331.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 316.42 Td (Foreign currency translation adjustments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 316.47 Td (\(942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 316.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 316.47 Td (\(2,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 316.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 301.42 Td (Comprehensive loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 301.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 301.47 Td (\(24,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 301.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 301.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 301.47 Td (\(11,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 301.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 286.42 Td (Basic and diluted net loss per share:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 286.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 286.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 271.42 Td (Net loss from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 271.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.80 271.47 Td (\(3.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 271.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 271.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 271.47 Td (\(2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 271.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 256.42 Td (Net loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 256.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 256.47 Td (\(0.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 256.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 241.42 Td (Net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 241.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.80 241.47 Td (\(3.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 241.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 241.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 241.47 Td (\(2.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 241.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 226.42 Td (Weighted-average number of common shares outstandingbasic and diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 226.42 Td (6,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 226.42 Td (3,151) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.20 202.25 Td (See accompanying notes to the consolidated financial statements.) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.50 722.25 Td (Consolidated Statements of Stockholders' Equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.55 702.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 639.75 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 639.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 609.75 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 609.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 609.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 609.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 609.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 609.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 609.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 559.75 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 559.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 559.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 559.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 559.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 559.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 559.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 529.75 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 529.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 529.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 529.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 529.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 529.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 529.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 499.75 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 499.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 499.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 499.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 499.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 499.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 499.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 449.75 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 449.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 449.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 449.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 449.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 449.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 449.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 399.75 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 399.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 399.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 399.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 399.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 399.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 399.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 369.75 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 369.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 369.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 369.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 369.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 369.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 369.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 369.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 369.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 369.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 369.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 369.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 661.75 m 242.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 661.75 m 246.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 661.75 m 306.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 639.75 m 242.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 639.75 m 306.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 639.75 m 370.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 639.75 m 434.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 639.75 m 498.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 639.75 m 562.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 639.75 m 242.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 639.75 m 306.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 639.75 m 370.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 639.75 m 434.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 639.75 m 498.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 639.75 m 562.5 639.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 529.75 m 242.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 529.75 m 306.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 529.75 m 370.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 529.75 m 434.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 529.75 m 498.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 529.75 m 562.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 354.75 m 242.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 354.75 m 306.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 354.75 m 370.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 354.75 m 434.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 354.75 m 498.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 354.75 m 562.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 340.75 m 242.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 338.75 m 242.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 340.75 m 306.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 338.75 m 306.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 340.75 m 370.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 338.75 m 370.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 340.75 m 434.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 338.75 m 434.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 340.75 m 498.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 338.75 m 498.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 340.75 m 562.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 338.75 m 562.5 338.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 666.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.65 665.98 Td (Common Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.75 659.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.10 651.98 Td (Paid-In) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.30 643.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.30 667.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.85 659.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.40 651.98 Td (Compr) Tj ET Q q 0 0 0 rg BT 401.70 651.98 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.20 643.98 Td (Loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.30 651.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.65 643.98 Td (Deficit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.25 659.98 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 651.98 Td (Stockholders') Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.40 643.98 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 643.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 200.50 643.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.95 643.98 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 629.42 Td (Balance at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 629.42 Td (2,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 629.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 629.42 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 629.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 629.42 Td (200,885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.00 629.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 629.47 Td (\(2,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 629.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 629.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 629.47 Td (\(191,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 629.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.00 629.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 629.42 Td (6,993) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 614.42 Td (Net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 614.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.80 614.47 Td (\(8,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 614.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 614.47 Td (\(8,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 614.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 599.42 Td (Foreign currency translation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 589.42 Td (adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 589.47 Td (\(2,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 589.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 589.47 Td (\(2,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 589.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 574.42 Td (Proceeds from equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 564.42 Td (offerings, net of costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.65 564.42 Td (677) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 564.42 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 564.42 Td (3,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 564.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 564.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 564.42 Td (3,731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 549.42 Td (Restricted stock unit vesting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 549.42 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 549.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 549.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 549.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 549.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 549.42 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 534.42 Td (Stock-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 534.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 534.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 534.42 Td (767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 534.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 534.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 534.42 Td (767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 519.42 Td (Balance at December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 519.42 Td (3,560) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 519.42 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 519.42 Td (205,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 519.47 Td (\(5,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 519.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 519.47 Td (\(199,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 519.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 519.42 Td (437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 504.42 Td (Net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 504.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 504.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 504.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 504.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 504.47 Td (\(23,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 504.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 504.47 Td (\(23,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 504.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 489.42 Td (Foreign currency translation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 479.42 Td (adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 479.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 479.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 479.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 479.47 Td (\(942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 479.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 479.47 Td (\(942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 464.42 Td (Issuance of stock for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 454.42 Td (settlement of accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 454.42 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 454.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 454.42 Td (183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 454.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 454.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 454.42 Td (184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 439.42 Td (Proceeds from equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 429.42 Td (offerings, net of costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 429.42 Td (5,662) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 429.42 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 429.42 Td (9,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 429.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 429.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 429.42 Td (9,343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 414.42 Td (Issuance of common stock on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 404.42 Td (conversion of debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 404.42 Td (5,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 404.42 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.15 404.42 Td (19,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 404.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 404.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 404.42 Td (20,038) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 389.42 Td (Exercise of warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.65 389.42 Td (411) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 389.42 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 389.42 Td (1,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 389.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 389.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 389.42 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 374.42 Td (Restricted stock unit vesting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 374.42 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 359.42 Td (Stock-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 359.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 359.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 359.42 Td (1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 359.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 359.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 359.42 Td (1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 344.42 Td (Balance at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 344.42 Td (15,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 344.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 344.42 Td (157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 344.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 344.42 Td (237,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.00 344.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 344.47 Td (\(6,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 344.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 344.47 Td (\(223,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.00 344.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 344.42 Td (8,603) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.20 320.25 Td (See accompanying notes to the consolidated financial statements.) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.80 722.25 Td (Consolidated Statements of Cash Flows) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.55 702.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 655.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 655.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 655.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 655.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 627.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 627.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 627.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 627.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 599.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 599.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 599.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 571.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 571.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 571.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 543.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 543.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 543.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 543.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 515.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 515.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 515.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 515.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 487.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 487.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 487.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 487.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 459.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 459.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 459.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 459.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 431.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 431.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 431.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 431.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 403.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 403.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 403.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 403.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 375.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 375.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 375.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 375.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 347.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 347.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 347.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 347.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 319.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 319.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 319.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 319.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 291.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 291.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 291.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 291.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 263.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 263.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 263.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 263.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 235.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 235.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 235.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 235.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 207.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 207.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 207.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 207.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 179.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 179.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 179.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 179.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 151.75 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 151.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 151.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 151.75 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 669.75 m 493.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 669.75 m 497.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 669.75 m 562.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 655.75 m 493.5 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 655.75 m 562.5 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 375.75 m 493.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 375.75 m 562.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 347.75 m 493.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 347.75 m 562.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 333.75 m 493.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 333.75 m 562.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 291.75 m 493.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 291.75 m 562.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 207.75 m 493.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 207.75 m 562.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 179.75 m 493.5 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 179.75 m 562.5 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 151.75 m 493.5 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 151.75 m 562.5 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 138.75 m 493.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 136.75 m 493.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 138.75 m 562.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 136.75 m 562.5 136.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.05 673.98 Td (Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 659.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.50 659.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 659.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 646.32 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 646.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 646.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 632.32 Td (Net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 632.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 632.37 Td (\(23,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 632.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 632.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 632.37 Td (\(8,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 632.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 618.32 Td (Net loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 618.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 618.32 Td (112) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 604.32 Td (Adjustments to reconcile net loss to cash used in operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 604.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 604.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 590.32 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 590.32 Td (780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 590.32 Td (924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 576.32 Td (Stock-based compensation expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 576.32 Td (1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 576.32 Td (767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 562.32 Td (Gain on change in fair value of liability-classified warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 562.37 Td (\(1,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 562.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 562.37 Td (\(2,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 562.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 548.32 Td (Gain on change in fair value of bifurcated derivative liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 548.37 Td (\(2,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 548.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 548.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 534.32 Td (Loss on extinguishment of convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 534.32 Td (12,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 534.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 520.32 Td (Gain on foreign currency transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 520.37 Td (\(965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 520.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 520.37 Td (\(718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 520.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 506.32 Td (Amortization of debt discount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 506.32 Td (460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 506.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 492.32 Td (Impairment of goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 492.32 Td (4,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 492.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 478.32 Td (Offering costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 478.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 478.32 Td (833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 464.32 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 464.32 Td (150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 464.37 Td (\(256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 464.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 450.32 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 450.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 450.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 436.32 Td (Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 436.37 Td (\(1,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 436.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 436.37 Td (\(1,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 436.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 422.32 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 422.32 Td (965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 422.37 Td (\(2,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 422.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 408.32 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 408.32 Td (571) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 408.37 Td (\(294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 408.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 394.32 Td (Accounts payable, accrued expenses and other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 394.32 Td (1,894) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 394.32 Td (2,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 380.32 Td (Income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 380.37 Td (\(669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 380.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 380.32 Td (312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 366.32 Td (Cash used in operating activities of continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 366.37 Td (\(7,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 366.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 366.37 Td (\(10,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 366.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 352.32 Td (Cash used in operating activities of discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 352.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 352.37 Td (\(712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 352.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 338.32 Td (Net cash used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 338.37 Td (\(7,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 338.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 338.37 Td (\(11,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 338.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 324.32 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 324.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 324.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 310.32 Td (Purchases of property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 310.37 Td (\(146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 310.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 310.37 Td (\(661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 310.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 296.32 Td (Proceeds from sale of property, equipment and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 296.32 Td (79) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 296.32 Td (208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 282.32 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 282.37 Td (\(67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 282.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 282.37 Td (\(453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 282.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 268.32 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 268.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 268.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 254.32 Td (Net payments under demand line of credit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 254.37 Td (\(2,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 254.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 254.32 Td (671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 240.32 Td (Proceeds from issuance of common stock and warrants, net of offering costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 240.32 Td (10,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 240.32 Td (7,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 226.32 Td (Proceeds from exercise of warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 226.32 Td (240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 226.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 212.32 Td (Proceeds from debt offerings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 212.32 Td (3,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 212.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 198.32 Td (Net cash provided by financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 198.32 Td (12,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 198.32 Td (7,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 184.32 Td (Effect of exchange rates on cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 184.37 Td (\(183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 184.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.30 184.37 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 184.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 170.32 Td (Net change in cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 170.32 Td (4,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 170.37 Td (\(4,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 170.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 156.32 Td (Cash at beginning of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 156.32 Td (2,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 156.32 Td (7,220) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 142.32 Td (Cash at end of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 142.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 142.32 Td (7,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 142.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 142.32 Td (2,958) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.20 118.25 Td (See accompanying notes to the consolidated financial statements.) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 31.60 Td (F-7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.25 742.25 Td (CLEAN DIESEL) Tj ET Q q 0 0 0 rg BT 287.89 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 290.21 742.25 Td (TECHNOLOGIES,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.20 722.25 Td (Notes to Consolidated Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (1. Description of Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Clean Diesel ) Tj ET Q q 0 0 0 rg BT 103.69 674.25 Td (T) Tj ET Q q 0 0 0 rg BT 109.10 674.25 Td (echnologies,Inc. \("CDT) Tj ET Q q 0 0 0 rg BT 206.69 674.25 Td (i" or the "Company"\) is a leading provider of technology and solutions to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (automotive emissions control markets. ) Tj ET Q q 0 0 0 rg BT 209.24 662.25 Td (The Company possesses market leading expertise in emissions catalyst design and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (engineering for automotive and of) Tj ET Q q 0 0 0 rg BT 186.44 650.25 Td (f-road applications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (The Company is transitioning its business from being a niche manufacturer of emissions control solutions for the automotive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (and heavy duty diesel markets to becoming an advanced materials technology provider for these markets. ) Tj ET Q q 0 0 0 rg BT 474.12 618.25 Td (The Company has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (proven ability to develop proprietary materials incorporating various base metals that replace costly platinum group metals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (\("PGMs"\) in coatings on vehicle catalytic converters. Recently) Tj ET Q q 0 0 0 rg BT 300.77 594.25 Td (, the Company has expanded its materials platform to include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (new syner) Tj ET Q q 0 0 0 rg BT 90.64 582.25 Td (gized-PGM diesel oxidation catalysts \(SPGM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.40 582.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.24 582.25 Td ( DOC\), Base-Metal ) Tj ET Q q 0 0 0 rg BT 361.22 582.25 Td (Activated Rhodium Support \(BMARS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 514.84 582.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.68 582.25 Td (\), and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.25 Td (Spinel technologies, and it is in the process of introducing these new catalyst technologies to OEMsand other vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.25 Td (catalyst manufacturers in a proprietary powder form. ) Tj ET Q q 0 0 0 rg BT 263.62 558.25 Td (The Company believes that this powder) Tj ET Q q 0 0 0 rg BT 422.55 558.25 Td (-to-coat business model will allow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (it to achieve greater scale and higher return on its technology investment than in the past.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (The Company's business is driven by increasingly stringent global emission standards for internal combustion engines, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (are major sources of a variety of harmful pollutants. It has operations in the United States \("U.S."\), Canada, the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (Kingdom, France, Japan and Sweden as well as an ) Tj ET Q q 0 0 0 rg BT 254.12 502.25 Td (Asian investment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 474.25 Td (. Liquidity and Going Concern) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (concern. ) Tj ET Q q 0 0 0 rg BT 85.96 442.25 Td (Therefore, the consolidated financial statements contemplate the realization of assets and liquidation of liabilities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 178.73 430.25 Td (The Company has suf) Tj ET Q q 0 0 0 rg BT 266.04 430.25 Td (fered recurring losses and negative cash flows from operations since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (inception, resulting in an accumulated deficit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.32 418.25 Td ($223.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.21 418.25 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.43 418.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.02 418.25 Td (. ) Tj ET Q q 0 0 0 rg BT 397.83 418.25 Td (The Company has funded its operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (through asset sales, credit facilities and other borrowings and equity sales. ) Tj ET Q q 0 0 0 rg BT 348.04 406.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.54 406.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.12 406.25 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.16 406.25 Td ($7.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 394.25 Td ( in cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 374.25 Td (s continuation as a going concern is dependent upon its ability to obtain adequate financing, which the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (has successfully secured since inception, including financing from equity sales and asset divestitures. However) Tj ET Q q 0 0 0 rg BT 493.14 362.25 Td (, there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (assurance that the Company will be able to achieve projected levels of revenue and maintain access to suf) Tj ET Q q 0 0 0 rg BT 472.21 350.25 Td (ficient working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (capital, and accordingly) Tj ET Q q 0 0 0 rg BT 144.64 338.25 Td (, there is substantial doubt as to whether the Company) Tj ET Q q 0 0 0 rg BT 364.05 338.25 Td (s existing cash resources and working capital are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 326.25 Td (ficient to enable it to continue its operations within one year from the financial statement issuance date. ) Tj ET Q q 0 0 0 rg BT 477.34 326.25 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (currently working towards obtaining a new credit facility that would provide the Company the flexibility it needs as it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (implements its new business strategy) Tj ET Q q 0 0 0 rg BT 197.17 302.25 Td (. If the Company is unable to obtain the necessary capital, it will be forced to license or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (liquidate its assets, significantly curtail or cease its operations and/or seek reor) Tj ET Q q 0 0 0 rg BT 363.11 290.25 Td (ganization under the U.S. Bankruptcy Code.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (The Company has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.70 270.25 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.59 270.25 Td ( secured demand facility backed by its receivables and inventory with Faunus Group ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (International,Inc. \("FGI"\). ) Tj ET Q q 0 0 0 rg BT 158.74 258.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.24 258.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.83 258.25 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.87 258.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.76 258.25 Td ( in borrowings outstanding under this facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.78 246.25 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.67 246.25 Td ( available, subject to the availability of eligible accounts receivable and inventory balances for collateral. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (There is no guarantee that the Company will be able to borrow to the full limit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.36 234.25 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.25 234.25 Td ( if FGI chooses not to finance a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.25 Td (portion of its receivables or inventory) Tj ET Q q 0 0 0 rg BT 199.64 222.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.09 222.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 253.99 222.25 Td (, FGI can cancel the facility at any time. For additional information, refer to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.25 Td (Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.44 210.25 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.44 210.25 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.52 210.25 Td (Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.96 210.25 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (On May19, 2015, the Company filed a shelf registration statement on FormS-3 with the SEC, which was declared ef) Tj ET Q q 0 0 0 rg BT 520.06 190.25 Td (fective on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (November17, 2015. ) Tj ET Q q 0 0 0 rg BT 136.53 178.25 Td (The FormS-3 permits the Company to sell in one or more registered transactions up to an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 166.25 Td ( of various securities not to exceed one-third of the Company) Tj ET Q q 0 0 0 rg BT 351.10 166.25 Td (s public float in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.03 166.25 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.03 166.25 Td (-month period. ) Tj ET Q q 0 0 0 rg BT 506.91 166.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 154.25 Td (, the Company had sold an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.43 154.25 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.32 154.25 Td ( using the FormS-3.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.20 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.15 Td (During the twelve months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 130.15 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.11 130.15 Td (, the Company entered into the following agreements or made amendments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.15 Td (to existing debt in order to address cash requirements and improve the Company) Tj ET Q q 0 0 0 rg BT 374.42 118.15 Td (s capital structure:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.05 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 94.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 94.05 Td ( ) Tj ET Q q 0 0 0 rg BT 96.53 94.05 Td (April1, 2016 Kanis Promissory Note: Kanis S.A) Tj ET Q q 0 0 0 rg BT 291.81 94.05 Td ( agreed to lend the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.55 94.05 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.44 94.05 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.66 94.05 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.99 94.05 Td ( per annum.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 69.95 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 69.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 69.95 Td ( ) Tj ET Q q 0 0 0 rg BT 96.53 69.95 Td (April1, 2016 Kanis ) Tj ET Q q 0 0 0 rg BT 177.92 69.95 Td (Amendment to Loan ) Tj ET Q q 0 0 0 rg BT 262.62 69.95 Td (Agreement: ) Tj ET Q q 0 0 0 rg BT 312.14 69.95 Td (The Company amended all prior conversion rights in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.25 69.95 Td ($7.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 57.95 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.39 57.95 Td ( Kanis loan agreement to provide Kanis the right to convert the loan and accrued interest at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.21 57.95 Td ($3.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.71 57.95 Td ( or market ) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 33.60 Td (F-8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 686.10 Td (price. ) Tj ET Q q 0 0 0 rg BT 110.30 686.10 Td (The amendment further allowed the Company to mandatorily convert the loan and accrued interest upon a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 674.10 Td (Liquidity Event at a discount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.92 674.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.25 674.10 Td ( below the Liquidity Event price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 650.00 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 650.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 650.00 Td ( ) Tj ET Q q 0 0 0 rg BT 96.53 650.00 Td (April1) Tj ET Q q 0 0 0 rg BT 124.77 650.00 Td (1, 2016 Bell Director Note: Lon E. Bell, Ph.D. one of the Company) Tj ET Q q 0 0 0 rg BT 400.28 650.00 Td (s directors, agreed to lend the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 638.00 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.39 638.00 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.61 638.00 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.94 638.00 Td ( per annum.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 613.90 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 613.90 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 613.90 Td ( June30, 2016 Kanis Exchange ) Tj ET Q q 0 0 0 rg BT 222.61 613.90 Td (Agreement: Kanis S.A) Tj ET Q q 0 0 0 rg BT 312.88 613.90 Td ( agreed to an exchange of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.82 613.90 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.71 613.90 Td ( in principal plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 601.90 Td (accrued interest for shares of the Company) Tj ET Q q 0 0 0 rg BT 259.88 601.90 Td (s common stock, conditional upon receipt of shareholder approval.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 577.80 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 577.80 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 577.80 Td ( June30, 2016 Bell Exchange ) Tj ET Q q 0 0 0 rg BT 215.95 577.80 Td (Agreement: Dr) Tj ET Q q 0 0 0 rg BT 278.15 577.80 Td (.Bell agreed to an exchange of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.76 577.80 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 577.80 Td ( in principal plus accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 565.80 Td (interest for shares of the Company) Tj ET Q q 0 0 0 rg BT 226.30 565.80 Td (s common stock, conditional upon receipt of shareholder approval.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 541.70 Td ( ) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 73.33 541.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.58 541.70 Td ( June30, 2016 Haldor ) Tj ET Q q 0 0 0 rg BT 185.50 541.70 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 541.70 Td (opse Convertible Notes: ) Tj ET Q q 0 0 0 rg BT 297.38 541.70 Td (The Company agreed to sell and issue \(i\)a Senior Convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 529.70 Td (Promissory Note in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.86 529.70 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.75 529.70 Td ( and a Convertible Promissory Note in the principal amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 517.70 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.33 517.70 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.22 517.70 Td (, each of which is convertible into the Company) Tj ET Q q 0 0 0 rg BT 339.89 517.70 Td (s equity securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.65 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.60 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 493.60 Td (August25, 2016, the Company) Tj ET Q q 0 0 0 rg BT 191.44 493.60 Td (s shareholders approved debt conversion transactions with Kanis S.A. and Lon E. Bell. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.60 Td (Combined with the conversion of convertible debt held by Haldor ) Tj ET Q q 0 0 0 rg BT 315.37 481.60 Td (T) Tj ET Q q 0 0 0 rg BT 320.78 481.60 Td (opse ) Tj ET Q q 0 0 0 rg BT 346.06 481.60 Td (A/S, the Company issued approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.48 481.60 Td (5.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.37 481.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.60 Td (shares of common stock in exchange for the extinguishment of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.58 469.60 Td ($8.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.47 469.60 Td ( of total indebtedness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.50 Td (On November3, 2016, the Company entered into a securities purchase agreement with institutional and individual accredited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.50 Td (investors and certain of its of) Tj ET Q q 0 0 0 rg BT 165.68 433.50 Td (ficers and directors to raise gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.20 433.50 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.09 433.50 Td ( in a private placement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.50 Td (of common stock at a per) Tj ET Q q 0 0 0 rg BT 150.66 421.50 Td (-share price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.90 421.50 Td ($2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.40 421.50 Td (. ) Tj ET Q q 0 0 0 rg BT 238.22 421.50 Td (The of) Tj ET Q q 0 0 0 rg BT 264.42 421.50 Td (fering was consummated in two closings. ) Tj ET Q q 0 0 0 rg BT 434.76 421.50 Td (The initial closing for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.19 421.50 Td (949,960) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.69 421.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.50 Td (shares of common stock, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.32 409.50 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.21 409.50 Td (, was completed on November4, 2016. ) Tj ET Q q 0 0 0 rg BT 508.94 409.50 Td (The second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.50 Td (closing for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.31 397.50 Td (4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.20 397.50 Td ( shares, for gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.59 397.50 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.48 397.50 Td (, was completed on December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.50 Td (16, 2016. ) Tj ET Q q 0 0 0 rg BT 89.32 385.50 Td (The Company paid approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.73 385.50 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.62 385.50 Td ( of transaction costs related to the equity of) Tj ET Q q 0 0 0 rg BT 450.16 385.50 Td (ferings. In addition, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.50 Td (Company issued common stock and warrants to the placement agent of the equity of) Tj ET Q q 0 0 0 rg BT 387.29 373.50 Td (fering as payment for their services \(see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.50 Td (Note 1) Tj ET Q q 0 0 0 rg BT 76.07 361.50 Td (1 for further information\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.40 Td (In addition, on December 16, 2016, Haldor ) Tj ET Q q 0 0 0 rg BT 224.28 337.40 Td (T) Tj ET Q q 0 0 0 rg BT 229.69 337.40 Td (opsoe elected to convert the Senior Note, and issued to Haldor ) Tj ET Q q 0 0 0 rg BT 481.66 337.40 Td (T) Tj ET Q q 0 0 0 rg BT 487.07 337.40 Td (opse and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.40 Td (aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.69 325.40 Td (462,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.19 325.40 Td ( shares of common stock in conversion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 325.40 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.49 325.40 Td ( in principal amount of indebtedness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.35 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.30 Td (The Company intends to use the net proceeds from the of) Tj ET Q q 0 0 0 rg BT 278.70 301.30 Td (fering for general corporate purposes, including, but not limited to, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.30 Td (working capital, general and administrative expenses, capital expenditures, implementation of strategic priorities, and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.30 Td (corporate uses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.30 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 257.30 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 257.30 Td (Significant ) Tj ET Q q 0 0 0 rg BT 107.57 257.30 Td (Accounting Policies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.17 257.30 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 237.30 Td (Principles of Consolidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.30 Td (The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 538.55 217.30 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.30 Td (intercompany transactions, including intercompany profits and losses and intercompany balances, have been eliminated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.30 Td (consolidation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 173.30 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.30 Td (When the Company commits to a plan to dispose of a component of the Company or a group of components of the Company) Tj ET Q q 0 0 0 rg BT 549.31 153.30 Td (, it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.30 Td (is required to be reported in discontinued operations if the disposal represents a strategic shift that has \(or will have\) a major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.30 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 129.30 Td (fect on the Company's operations and financial results when certain events have occurred as defined by ) Tj ET Q q 0 0 0 rg BT 472.08 129.30 Td (ASU 2014-08 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.30 Td ("Presentation of Financial Statements \(T) Tj ET Q q 0 0 0 rg BT 211.18 117.30 Td (opic 205\) and Property) Tj ET Q q 0 0 0 rg BT 302.45 117.30 Td (, Plant, and Equipment \(T) Tj ET Q q 0 0 0 rg BT 405.07 117.30 Td (opic 360\): Reporting Discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.30 Td (Operations and Disclosures of Disposals of Components of an Entity) Tj ET Q q 0 0 0 rg BT 324.65 105.30 Td (." ) Tj ET Q q 0 0 0 rg BT 335.68 105.30 Td (A) Tj ET Q q 0 0 0 rg BT 342.35 105.30 Td ( business' operations are classified as discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.30 Td (operations for all periods that would be presented. In the statements of cash flows, the cash flows of discontinued operations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.30 Td (separately classified and aggregated.) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 33.60 Td (F-9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Discontinued operations includes accruals and related costs for the Company's estimated liability to settle its ongoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (indemnification matters with Johnson Matthey \("JM"\) associated with the sale of ) Tj ET Q q 0 0 0 rg BT 375.66 674.10 Td (Applied Utility Systems,Inc. \("AUS"\), a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (former subsidiary of the Company) Tj ET Q q 0 0 0 rg BT 186.60 662.10 Td (, in 2009.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (For additional information, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.18 642.10 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.18 642.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.26 642.10 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.96 642.10 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (All discussions and amounts in the consolidated financial statements and related notes for all periods presented relate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (continuing operations only) Tj ET Q q 0 0 0 rg BT 156.06 610.10 Td (, unless otherwise noted.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (The preparation of financial statements in conformity with accounting principles generally accepted in the U.S requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (management of the Company to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 338.14 558.10 Td (fect the reported amounts of assets, liabilities, revenues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (and expenses, and related disclosure of contingent liabilities. ) Tj ET Q q 0 0 0 rg BT 294.80 546.10 Td (These estimates and assumptions are based on management's best ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (estimates and judgment. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (impairment of goodwill and long-lived assets, stock-based compensation, the fair value of financial instruments including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (warrants, allowance for doubtful accounts, inventory valuation, taxes and contingent and accrued liabilities. ) Tj ET Q q 0 0 0 rg BT 482.79 510.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (bases its estimates on historical experience and various other factors, including the current economic environment, which it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (believes to be reasonable under the circumstances. Estimates and assumptions are adjusted when facts and circumstances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (dictate. ) Tj ET Q q 0 0 0 rg BT 80.60 474.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 169.01 474.10 Td (fer from these estimates under dif) Tj ET Q q 0 0 0 rg BT 303.50 474.10 Td (ferent assumptions and conditions. Management believes that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (the estimates are reasonable.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (Cash consists of cash balances on hand and on deposit at banks. Cash on deposit at banks at times may exceed the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (Deposit Insurance Corporation \(FDIC\) limits. ) Tj ET Q q 0 0 0 rg BT 234.85 410.10 Td (The Company believes no significant concentration of credit risk exists with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (respect to these cash balances.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (Accounts Receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (Accounts receivable are recorded at the invoiced amount and do not bear interest. ) Tj ET Q q 0 0 0 rg BT 377.70 358.10 Td (Accounts receivable are presented net of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (reserve for doubtful accounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.73 346.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.62 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.06 346.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.95 346.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.17 346.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.75 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.19 346.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.19 346.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 479.85 346.10 Td (. ) Tj ET Q q 0 0 0 rg BT 484.67 346.10 Td (The allowance for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (receivable. ) Tj ET Q q 0 0 0 rg BT 95.40 322.10 Td (The Company determines the allowance based on historical write-of) Tj ET Q q 0 0 0 rg BT 368.46 322.10 Td (f experience and past due balances over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.77 322.10 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.77 322.10 Td (days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (that are reviewed individually for collectability) Tj ET Q q 0 0 0 rg BT 237.39 310.10 Td (. ) Tj ET Q q 0 0 0 rg BT 241.84 310.10 Td (Account balances are char) Tj ET Q q 0 0 0 rg BT 346.87 310.10 Td (ged of) Tj ET Q q 0 0 0 rg BT 371.96 310.10 Td (f against the allowance after all means of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (collection have been exhausted and the potential for recovery is considered remote. ) Tj ET Q q 0 0 0 rg BT 385.02 298.10 Td (The Company does not have any of) Tj ET Q q 0 0 0 rg BT 527.02 298.10 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (balance sheet credit exposure related to its customer) Tj ET Q q 0 0 0 rg BT 257.47 286.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (Inventories are stated at the lower of cost \(FIFO method\) or market \(net realizable value\). Finished goods inventory includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (materials, labor and manufacturing overhead. ) Tj ET Q q 0 0 0 rg BT 233.41 234.10 Td (The Company establishes provisions for inventory that is obsolete or when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (quantities on hand are in excess of estimated forecasted demand. ) Tj ET Q q 0 0 0 rg BT 310.61 222.10 Td (The creation of such provisions results in a write-down of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (inventory to net realizable value and a char) Tj ET Q q 0 0 0 rg BT 221.74 210.10 Td (ge to cost of sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (The Company's inventory includes precious metals \(platinum, palladium and rhodium\) for use in the manufacturing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (catalysts. ) Tj ET Q q 0 0 0 rg BT 88.75 178.10 Td (The precious metals are valued at the lower of cost or market, consistent with the Company's other inventory) Tj ET Q q 0 0 0 rg BT 523.67 178.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (Property and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (Property and equipment is capitalized at cost and is stated at cost less accumulated depreciation and amortization. Depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (and amortization is determined using the straight line method over the estimated useful lives of the various asset classes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td (Machinery and equipment are depreciated over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.52 114.10 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.52 114.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.30 114.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.30 114.10 Td (years; furniture and fixtures, computer hardware and software and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (vehicles are depreciated over 2 to 5years. Property and equipment held under capital leases and leasehold improvements are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (amortized over the shorter of estimated useful lives or the lease term. Repairs and maintenance are char) Tj ET Q q 0 0 0 rg BT 463.31 90.10 Td (ged to expense as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (incurred and major replacements or betterments are capitalized.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 152.21 686.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Goodwill is the excess of the purchase price of an acquired entity over the fair value of net identified tangible and intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (assets acquired and is recorded in the reporting unit \(operating segment or one level below operating segment\) that is expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (to benefit from the business combination. Goodwill is not amortized, but rather tested for impairment at least annually or more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (often whenever events or circumstances indicate that goodwill might be impaired. ) Tj ET Q q 0 0 0 rg BT 379.77 630.25 Td (The Company performs its annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (impairment test as of October31.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (Goodwill is tested at the reporting unit level using a two-step impairment test. ) Tj ET Q q 0 0 0 rg BT 363.70 598.25 Td (The first step is to compare the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the fair value, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (second step is performed in order to determine the amount of impairment loss, if any) Tj ET Q q 0 0 0 rg BT 387.93 574.25 Td (. ) Tj ET Q q 0 0 0 rg BT 392.75 574.25 Td (The second step compares the implied fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (goodwill exceeds its implied fair value, an impairment char) Tj ET Q q 0 0 0 rg BT 287.30 550.25 Td (ge is recognized in an amount equal to that excess. Prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (performing the two-step impairment test, the Company may make a qualitative assessment of the likelihood of goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (impairment in order to determine whether a detailed quantitative analysis is required.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (The Company's Engine Control Systems reporting unit, contains all of the Company's allocated goodwill. See note 15 for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (further discussion of the impairment which occurred in 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (The Company's intangible assets consist of trade names, acquired patents and technology) Tj ET Q q 0 0 0 rg BT 405.56 474.25 Td (, and customer relationships and have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (finite lives. Intangible assets are carried at cost, less accumulated amortization. ) Tj ET Q q 0 0 0 rg BT 367.16 462.25 Td (Amortization is computed on a straight-line or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (accelerated basis over the estimated useful lives of the respective assets, ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.48 450.25 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.48 450.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.26 450.25 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.26 450.25 Td (years.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (Long Lived ) Tj ET Q q 0 0 0 rg BT 98.56 430.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Assets such as property and equipment and amortizable intangible assets are reviewed for impairment whenever events or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 431.02 398.25 Td (An impairment loss is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (recognized when the sum of the expected undiscounted future net cash flows of an asset or asset group is less than its carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (amount and is measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 354.25 Td (arrants and Derivative Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (The Company accounts for the issuance of Company derivative equity instruments in accordance with ) Tj ET Q q 0 0 0 rg BT 460.50 334.25 Td (Accounting Standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (Codification \("ASC"\) 815-40 "Derivative and Hedging". ) Tj ET Q q 0 0 0 rg BT 278.66 322.25 Td (The Company reviews common stock purchase warrants at each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (balance sheet date based upon the characteristics and provision of each particular instrument and classifies them on the balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (sheet as equity or a liability) Tj ET Q q 0 0 0 rg BT 159.10 298.25 Td (. Below are some of the factors the Company considers with the corresponding balance sheet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (classification:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 266.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.25 Td (Equity if the awards \(i\)require physical settlement or net-share settlement, or \(ii\)give the Company a choice of net-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 254.25 Td (cash settlement or settlement in the Company's own shares \(physical settlement or net-share settlement\), or as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 234.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 234.25 Td (Liabilities if the awards \(i\)require net-cash settlement \(including a requirement to net-cash settle the contract if an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 222.25 Td (event occurs and if that event is outside the Company's control\), or \(ii\)give the counterparty a choice of net-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 210.25 Td (settlement or settlement in shares \(physical settlement of net-share settlement\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (The Company assesses classification of common stock purchase warrants and other freestanding derivatives at each reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (date to determine whether a change in classification between assets and liabilities and equity is required.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 158.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (future tax consequences attributable to dif) Tj ET Q q 0 0 0 rg BT 217.31 126.25 Td (ferences between the financial statement carrying amounts of existing assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (measured using enacted tax rates expected to apply to taxable income in the years in which those temporary dif) Tj ET Q q 0 0 0 rg BT 494.16 102.25 Td (ferences are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (expected to be recovered or settled. ) Tj ET Q q 0 0 0 rg BT 193.42 90.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 219.05 90.25 Td (fect on deferred tax assets and liabilities of a change in tax rates is recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (income in the period that includes the enactment date. ) Tj ET Q q 0 0 0 rg BT 267.21 78.25 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 78.25 Td ( valuation allowance against deferred tax assets is required if, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.25 Td (the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.70 33.60 Td (F-1) Tj ET Q q 0 0 0 rg BT 310.22 33.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (The valuation allowance should be suf) Tj ET Q q 0 0 0 rg BT 203.44 686.10 Td (ficient to reduce the deferred tax assets to the amount that is more likely than not to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (realized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (The Company recognizes the ef) Tj ET Q q 0 0 0 rg BT 176.49 654.10 Td (fect of income tax positions only if those positions are more likely than not of being sustained. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (Changes in recognition or measurement are reflected in the period in which the change occurs. ) Tj ET Q q 0 0 0 rg BT 430.29 642.10 Td (The Company records interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (and penalties related to unrecognized tax benefit in income tax expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Revenues are derived primarily from the sale of products. ) Tj ET Q q 0 0 0 rg BT 282.57 590.10 Td (The Company generally recognizes revenue when products are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (shipped and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is reasonably assured, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (persuasive evidence of an arrangement exists and the sales price is fixed or determinable. ) Tj ET Q q 0 0 0 rg BT 408.90 566.10 Td (There are certain customers where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (risk of loss transfers at destination point and revenue is recognized when product is delivered to the destination. For these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (customers, revenue is recognized upon receipt at the customer's warehouse. ) Tj ET Q q 0 0 0 rg BT 353.79 542.10 Td (When terms of sale include subjective customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (acceptance criteria, the Company defers revenue until the acceptance criteria are met. ) Tj ET Q q 0 0 0 rg BT 393.57 530.10 Td (The determination of whether or not the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (customer acceptance terms are perfunctory or inconsequential impacts the amount and timing of the revenue recognized.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (Research and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Research and development costs are generally expensed as incurred. ) Tj ET Q q 0 0 0 rg BT 325.32 478.10 Td (These expenses include the salary and benefits for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (research and development staf) Tj ET Q q 0 0 0 rg BT 170.65 466.10 Td (f as well as travel, research materials, testing and legal expense related to patenting intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 87.18 454.10 Td (Also included is any depreciation related to assets utilized in the development of new products.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (Equity awards consist of stock options and restricted stock units \("RSUs"\). ) Tj ET Q q 0 0 0 rg BT 351.34 414.10 Td (The Company measures the compensation cost for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (all stock-based awards at fair value on the date of grant and recognizes it on a straight-line basis over the service period for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (awards expected to vest, which is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.55 390.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.54 390.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (The Company measures the fair value of stock options using the Black-Scholes option-pricing model and certain assumptions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (including the expected life of the stock options, an expected forfeiture rate and the expected volatility of its common stock. ) Tj ET Q q 0 0 0 rg BT 544.16 358.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (fair value of RSUs is based on the closing price of the Company's common stock on the grant date.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (Product ) Tj ET Q q 0 0 0 rg BT 84.60 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 92.75 326.10 Td (arranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (The Company provides for the estimated cost of product warranties in cost of sales, at the time product revenue is recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 294.10 Td (arranty costs are estimated primarily using historical warranty information in conjunction with current engineering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (assessments applied to the Company's expected repair or replacement costs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Foreign Currency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (The functional currency of the Heavy Duty Diesel Systems division's Engine Control Systems Limited subsidiary in Canada is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (the Canadian dollar) Tj ET Q q 0 0 0 rg BT 127.41 230.10 Td (, while that of its subsidiary Engine Control Systems Europe ) Tj ET Q q 0 0 0 rg BT 371.55 230.10 Td (AB in Sweden is the Swedish krona and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (division's Clean Diesel ) Tj ET Q q 0 0 0 rg BT 143.61 218.10 Td (T) Tj ET Q q 0 0 0 rg BT 149.02 218.10 Td (echnologies Limited U.K. subsidiary) Tj ET Q q 0 0 0 rg BT 295.85 218.10 Td (, is the British pound sterling. ) Tj ET Q q 0 0 0 rg BT 416.78 218.10 Td (The functional currency of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (Catalyst division's Japanese branch of) Tj ET Q q 0 0 0 rg BT 201.09 206.10 Td (fice and ) Tj ET Q q 0 0 0 rg BT 234.96 206.10 Td (Asian investment is the Japanese ) Tj ET Q q 0 0 0 rg BT 368.72 206.10 Td (Y) Tj ET Q q 0 0 0 rg BT 374.94 206.10 Td (en. ) Tj ET Q q 0 0 0 rg BT 388.83 206.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 438.17 206.10 Td (, the assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (the foreign locations are translated into U.S. dollars at period-end exchange rates. Revenue and expense accounts are translated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (at the average exchange rates for the period. ) Tj ET Q q 0 0 0 rg BT 228.39 182.10 Td (The resulting foreign currency exchange adjustments are char) Tj ET Q q 0 0 0 rg BT 475.05 182.10 Td (ged or credited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (directly to other comprehensive income or loss as a separate component of stockholders' equity) Tj ET Q q 0 0 0 rg BT 429.71 170.10 Td (. Unrealized foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (exchange gains and losses on certain intercompany transactions that are of a long-term investment nature \(i.e.settlement is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (planned or anticipated in the foreseeable future\) are also recorded in other comprehensive income or loss in stockholders' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (equity) Tj ET Q q 0 0 0 rg BT 73.85 134.10 Td (. ) Tj ET Q q 0 0 0 rg BT 78.29 134.10 Td (Accumulated other comprehensive loss contained only foreign currency translation adjustments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.39 134.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 122.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 122.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 122.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (The Company has exposure to multiple currencies. ) Tj ET Q q 0 0 0 rg BT 255.37 102.10 Td (The primary exposure is between the U.S. dollar) Tj ET Q q 0 0 0 rg BT 449.08 102.10 Td (, the Canadian dollar) Tj ET Q q 0 0 0 rg BT 531.99 102.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (Euro, British pound sterling and Swedish krona. Gains and losses arising from transactions denominated in currencies other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (than the functional currency of the entity are included in other income \(expense\) in the consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (comprehensive loss. Gains and losses arising from transactions denominated in foreign currencies are primarily related to inter) Tj ET Q q 0 0 0 rg BT 556.09 66.10 Td (-) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (company loans that have been determined to be temporary in nature, cash, accounts receivable and accounts payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (denominated in non-functional currencies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (Net Loss per Share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (Diluted net loss per share is computed using the weighted average number of common shares and dilutive potential common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (shares. Dilutive potential common shares include employee stock options, RSUs, warrants and debt that are convertible into the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Company's common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Diluted net loss per share excludes certain dilutive potential common shares outstanding as their ef) Tj ET Q q 0 0 0 rg BT 444.76 578.10 Td (fect is anti-dilutive. Because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (the Company incurred net losses in the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.50 566.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.08 566.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.52 566.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.52 566.10 Td (, the ef) Tj ET Q q 0 0 0 rg BT 402.83 566.10 Td (fect of potentially dilutive securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (has been excluded in the computation of net loss per share as their impact would be anti-dilutive. Potentially dilutive common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (stock equivalents excluded were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.67 542.10 Td (2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.56 542.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 542.10 Td (1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.89 542.10 Td ( shares during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.19 542.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.77 542.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.21 542.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.21 542.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 530.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 510.10 Td (alue Measurements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (liability in an orderly transaction between market participants. ) Tj ET Q q 0 0 0 rg BT 300.25 478.10 Td (As such, fair value is a market-based measurement that should be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (determined based on assumptions that market participants would use in pricing an asset and liability) Tj ET Q q 0 0 0 rg BT 449.31 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 453.76 466.10 Td (As a basis for considering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (such assumptions, a fair value hierarchy has been established that prioritizes the inputs used to measure fair value. ) Tj ET Q q 0 0 0 rg BT 508.62 454.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities \(level1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (measurement\) and the lowest priority to unobservable inputs \(level3 measurements\). ) Tj ET Q q 0 0 0 rg BT 392.56 430.10 Td (The three levels of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (hierarchy are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 398.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 398.10 Td (Level1: Quoted prices \(unadjusted\) in active markets for identical assets or liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 378.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 378.10 Td (Level2: Inputs other than quoted prices included within Level1 that are either directly or indirectly observable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 366.10 Td (including quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 354.10 Td (in markets that are not active; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.10 Td (Level3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 322.10 Td (own assumptions about the assumptions that market participants would use in pricing.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 302.10 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (ASC ) Tj ET Q q 0 0 0 rg BT 71.27 282.10 Td (T) Tj ET Q q 0 0 0 rg BT 76.68 282.10 Td (opic 825, "Financial Instruments", requires disclosure of the fair value of financial instruments for which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (determination of fair value is practicable. ) Tj ET Q q 0 0 0 rg BT 216.75 270.10 Td (The fair values of the Company's cash, trade accounts receivable, prepaid expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (and other current assets, accounts payable and accrued expenses and other current liabilities approximate carrying values due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (the short maturity of these instruments. ) Tj ET Q q 0 0 0 rg BT 208.46 246.10 Td (The fair value of borrowings under the line of credit approximates their carrying value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (due to the variable interest rates. ) Tj ET Q q 0 0 0 rg BT 181.77 234.10 Td (The fair value of shareholder notes payable, calculated using level3 inputs, and a net present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (value model, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.70 222.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.59 222.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 222.10 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.92 222.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.14 222.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.72 222.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.16 222.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.16 222.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 421.82 222.10 Td (. ) Tj ET Q q 0 0 0 rg BT 429.14 222.10 Td (The fair value for the warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (classified as liability and the bifurcated derivative liabilities were calculated using level 3 inputs, including Black-Scholes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (option-pricing model as well as Monte Carlo Simulation model. ) Tj ET Q q 0 0 0 rg BT 310.12 198.10 Td (These inputs are disclosed in Note 13 "Fair ) Tj ET Q q 0 0 0 rg BT 485.09 198.10 Td (V) Tj ET Q q 0 0 0 rg BT 491.20 198.10 Td (alue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (Measurements") Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (Reclassifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (Certain prior) Tj ET Q q 0 0 0 rg BT 100.67 146.10 Td (-period amounts have been reclassified to conform to the current period presentation. ) Tj ET Q q 0 0 0 rg BT 443.43 146.10 Td (These changes had no impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (on the previously reported consolidated results of operations or stockholders' equity) Tj ET Q q 0 0 0 rg BT 383.91 134.10 Td (. ) Tj ET Q q 0 0 0 rg BT 388.73 134.10 Td (The Company had been transitioning from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (a niche manufacturer of emission control solutions for the automotive and heavy duty diesel markets to becoming an advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (materials technology provider for these markets. During the second quarter of 2016, the transition of the operational strategy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (was completed and the Company now views its operations and measures its business as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.21 98.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 98.10 Td ( reportable segment. ) Tj ET Q q 0 0 0 rg BT 499.96 98.10 Td (As a result, all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (segment disclosure has been modified to reflect the current year presentations.) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 116.35 686.25 Td (Accounting Guidance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (In May 2014, the Financial ) Tj ET Q q 0 0 0 rg BT 160.04 666.25 Td (Accounting Standards Board \("F) Tj ET Q q 0 0 0 rg BT 290.30 666.25 Td (ASB"\) issued ) Tj ET Q q 0 0 0 rg BT 346.61 666.25 Td (ASU No.2014-9, "Revenue from Contracts with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (Customers \(T) Tj ET Q q 0 0 0 rg BT 103.52 654.25 Td (opic 606\)". ) Tj ET Q q 0 0 0 rg BT 150.10 654.25 Td (ASU No.2014-9 supersedes the revenue recognition requirements in "Revenue Recognition \(T) Tj ET Q q 0 0 0 rg BT 530.05 654.25 Td (opic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (605\)". ) Tj ET Q q 0 0 0 rg BT 76.36 642.25 Td (ASU No.2014-9 requires entities to recognize revenue when it transfers promised goods or services to customers in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (July 2015, the F) Tj ET Q q 0 0 0 rg BT 113.21 618.25 Td (ASB finalized the delay of the ef) Tj ET Q q 0 0 0 rg BT 244.65 618.25 Td (fective date by one year) Tj ET Q q 0 0 0 rg BT 339.75 618.25 Td (, making the new standard ef) Tj ET Q q 0 0 0 rg BT 455.09 618.25 Td (fective for interim periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (and annual periods beginning after December15, 2017. Early adoption is permitted, but it is not permitted earlier than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (original ef) Tj ET Q q 0 0 0 rg BT 90.69 594.25 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 141.50 594.25 Td (ASU No.2014-9 provides for either full retrospective adoption or a modified retrospective adoption by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (which it is applied only to the most current period presented. ) Tj ET Q q 0 0 0 rg BT 294.82 582.25 Td (While the Company has not finalized the impact of the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (ASU No.2014-9 on its consolidated financial statements, the Company does not expect the adoption to have a material impact.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (In ) Tj ET Q q 0 0 0 rg BT 59.78 550.25 Td (August 2014, the F) Tj ET Q q 0 0 0 rg BT 135.71 550.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 184.61 550.25 Td (ASU No.2014-15, "Presentation of Financial Statements-Going Concern \(Subtopic 205-40\): ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (Disclosure of Uncertainties about an Entity's ) Tj ET Q q 0 0 0 rg BT 230.15 538.25 Td (Ability to Continue as a Going Concern". ) Tj ET Q q 0 0 0 rg BT 398.10 538.25 Td (ASU No.2014-15 defines management's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (circumstances. It is ef) Tj ET Q q 0 0 0 rg BT 136.51 514.25 Td (fective for annual reporting periods ending after December15, 2016, and for annual and interim reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (periods thereafter) Tj ET Q q 0 0 0 rg BT 119.19 502.25 Td (. Early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 238.15 502.25 Td (The Company has elected to early adopt the provision and has provided the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (appropriate disclosure in Note 2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (In ) Tj ET Q q 0 0 0 rg BT 59.78 470.25 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 127.92 470.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 176.82 470.25 Td (ASU No. 2015-03, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 254.88 470.25 Td (") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.08 470.25 Td (Imputation of Interest \(Subtopic 835-30\): Simplifying the Presentation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Debt Issuance Costs" which requires companies to present debt issuance costs the same way they currently present debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (discounts, as a direct deduction from the carrying value of that debt liability) Tj ET Q q 0 0 0 rg BT 352.37 446.25 Td (. ) Tj ET Q q 0 0 0 rg BT 356.82 446.25 Td (ASU No. 2015-03 does not impact the recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (and measurement guidance for debt issuance costs. ) Tj ET Q q 0 0 0 rg BT 260.92 434.25 Td (The provisions in this ) Tj ET Q q 0 0 0 rg BT 349.81 434.25 Td (ASU are ef) Tj ET Q q 0 0 0 rg BT 394.61 434.25 Td (fective for fiscal years, and interim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (periods within those fiscal years, beginning after December 15, 2015. Early adoption is allowed for all entities for financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods \(i.e., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (the balance sheet for each period is adjusted\). ) Tj ET Q q 0 0 0 rg BT 236.46 398.25 Td (The adoption of this provision did not have a material impact on the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (In July 2015, the F) Tj ET Q q 0 0 0 rg BT 124.04 366.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 172.94 366.25 Td (ASU No.2015-1) Tj ET Q q 0 0 0 rg BT 240.62 366.25 Td (1, "Inventory \(T) Tj ET Q q 0 0 0 rg BT 304.82 366.25 Td (opic 330\): Simplifying the Measurement of Inventory". ) Tj ET Q q 0 0 0 rg BT 528.31 366.25 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (No.2015-1) Tj ET Q q 0 0 0 rg BT 94.68 354.25 Td (1 changes the measurement principle for inventory from the "lower of cost or market" to "lower of cost and net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (realizable value." Net realizable value is defined as the "estimated selling prices in the ordinary course of business, less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (reasonably predictable costs of completion, disposal and transportation." ) Tj ET Q q 0 0 0 rg BT 341.84 330.25 Td (ASU No.2015-1) Tj ET Q q 0 0 0 rg BT 409.53 330.25 Td (1 eliminates the guidance that entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (consider replacement cost or net realizable value less an approximately normal profit mar) Tj ET Q q 0 0 0 rg BT 407.51 318.25 Td (gin in the subsequent measurement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (inventory when cost is determined on a first-in, first-out or average cost basis. It is ef) Tj ET Q q 0 0 0 rg BT 389.50 306.25 Td (fective for annual reporting periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (beginning after December15, 2016, including interim periods within those fiscal years. Early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 515.87 294.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (Company has not yet determined whether it will elect to early adopt ) Tj ET Q q 0 0 0 rg BT 323.31 282.25 Td (ASU No.2015-1) Tj ET Q q 0 0 0 rg BT 391.00 282.25 Td (1, and it is currently in the process of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (evaluating the impact of the adoption of ) Tj ET Q q 0 0 0 rg BT 211.40 270.25 Td (ASU No.2015-1) Tj ET Q q 0 0 0 rg BT 279.08 270.25 Td (1 on its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (In January 2016, F) Tj ET Q q 0 0 0 rg BT 123.75 250.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 172.65 250.25 Td (ASU No.2016-1, "Recognition and Measurement of Financial ) Tj ET Q q 0 0 0 rg BT 425.02 250.25 Td (Assets and Financial Liabilities". ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (ASU No.2016-1 requires equity investments to be measured at fair value with changes in fair value recognized in net income; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (assessment to identify impairment; eliminates the requirement for public business entities to disclose the method\(s\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (for a valuation allowance on a deferred tax asset related to available-for) Tj ET Q q 0 0 0 rg BT 336.10 118.25 Td (-sale securities in combination with the entity's other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (deferred tax assets. ) Tj ET Q q 0 0 0 rg BT 127.80 106.25 Td (ASU No.2016-1 is ef) Tj ET Q q 0 0 0 rg BT 215.12 106.25 Td (fective for financial statements issued for fiscal years beginning after December15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (2017, and interim periods within those fiscal years. ) Tj ET Q q 0 0 0 rg BT 256.50 94.25 Td (The Company is currently in the process of evaluating the impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.27 82.25 Td (ASU No.2016-1 on its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 143.46 62.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 192.37 62.25 Td (ASU 2016-2, "Leases \(T) Tj ET Q q 0 0 0 rg BT 290.73 62.25 Td (opic 842\)." ) Tj ET Q q 0 0 0 rg BT 337.31 62.25 Td (ASU No.2016-2 requires the recognition of lease assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.25 Td (and lease liabilities by lessees for those leases classified as operating leases under previous U.S. generally accepted accounting ) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (principles. It is ef) Tj ET Q q 0 0 0 rg BT 119.30 686.10 Td (fective for fiscal years beginning after December15, 2018, including interim periods within those fiscal years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Early adoption is permitted. Entities are required to recognize and measure leases at the beginning of the earliest period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (presented using a modified retrospective approach. ) Tj ET Q q 0 0 0 rg BT 255.63 662.10 Td (The Company is evaluating the impact of adoption of ) Tj ET Q q 0 0 0 rg BT 471.42 662.10 Td (ASU No.2016-2 on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (In March2016, the F) Tj ET Q q 0 0 0 rg BT 133.46 630.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 182.37 630.10 Td (ASU 2016-09,Compensation - Stock Compensation:Improvements to Employee Share-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (Based Payment ) Tj ET Q q 0 0 0 rg BT 113.38 618.10 Td (Accounting.) Tj ET Q q 0 0 0 rg BT 168.92 618.10 Td (ASU No.2016-09 will change how companies account for certain aspects of share-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (payments to employees. Entities will be required to recognize the income tax ef) Tj ET Q q 0 0 0 rg BT 367.83 606.10 Td (fects of awards in the statement of income when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (the awards vest or are settled, the guidance on employers) Tj ET Q q 0 0 0 rg BT 280.34 594.10 Td ( accounting for an employee) Tj ET Q q 0 0 0 rg BT 396.96 594.10 Td (s use of shares to satisfy the employer) Tj ET Q q 0 0 0 rg BT 549.24 594.10 Td () Tj ET Q q 0 0 0 rg BT 552.02 594.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (statutory income tax withholding obligation and for forfeitures is changing and the update requires companies to present excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (tax benefits as an operating activity on the statement of cash flows rather than as a financing activity) Tj ET Q q 0 0 0 rg BT 450.66 570.10 Td (. ) Tj ET Q q 0 0 0 rg BT 455.11 570.10 Td (ASU No.2016-09 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 558.10 Td (fective for annual periods beginning afterDecember15, 2016and interim periods within those annual periods. Early adoption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (is permitted. ) Tj ET Q q 0 0 0 rg BT 101.81 546.10 Td (The Company adopted ) Tj ET Q q 0 0 0 rg BT 194.85 546.10 Td (ASU No.2016-09 in the first quarter of 2017. ) Tj ET Q q 0 0 0 rg BT 382.97 546.10 Td (The adoption of this provision did not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (a material impact on its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.00 Td (In ) Tj ET Q q 0 0 0 rg BT 59.78 510.00 Td (August2016, the F) Tj ET Q q 0 0 0 rg BT 135.71 510.00 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 184.61 510.00 Td (ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments: a consensus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.00 Td (the Emer) Tj ET Q q 0 0 0 rg BT 85.69 498.00 Td (ging ) Tj ET Q q 0 0 0 rg BT 105.79 498.00 Td (T) Tj ET Q q 0 0 0 rg BT 111.20 498.00 Td (ask Force. ) Tj ET Q q 0 0 0 rg BT 158.68 498.00 Td (ASU 2016-15 provides guidance on how certain cash receipts and payments are presented and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.00 Td (classified in the statement of cash flows, including debt prepayment or debt extinguishment costs, contingent consideration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.00 Td (payments made after a business combination, and separately identifiable cash flows and application of the predominance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.00 Td (principle. ) Tj ET Q q 0 0 0 rg BT 89.86 462.00 Td (The standard is intended to reduce current diversity in practice. ) Tj ET Q q 0 0 0 rg BT 344.86 462.00 Td (The standard will be ef) Tj ET Q q 0 0 0 rg BT 436.87 462.00 Td (fective for annual reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.00 Td (periods beginning after December15, 2017, including interim periods within those reporting periods. Early adoption is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.00 Td (permitted. ) Tj ET Q q 0 0 0 rg BT 92.64 438.00 Td (The Company has not yet evaluated the impact of the adoption of this accounting standard update on its consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.00 Td (financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.90 Td (In October2016, the F) Tj ET Q q 0 0 0 rg BT 139.57 401.90 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 188.47 401.90 Td (ASU 2016-16, Intra-Entity ) Tj ET Q q 0 0 0 rg BT 302.72 401.90 Td (T) Tj ET Q q 0 0 0 rg BT 308.47 401.90 Td (ransfers of ) Tj ET Q q 0 0 0 rg BT 352.90 401.90 Td (Assets of Other ) Tj ET Q q 0 0 0 rg BT 417.43 401.90 Td (Than Inventory) Tj ET Q q 0 0 0 rg BT 478.71 401.90 Td (. Current GAAP) Tj ET Q q 0 0 0 rg BT 548.05 401.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.90 Td (prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.90 Td (outside party) Tj ET Q q 0 0 0 rg BT 100.78 377.90 Td (. ) Tj ET Q q 0 0 0 rg BT 105.23 377.90 Td (ASU 2016-16 updates the current guidance by requiring that entities recognize the income tax consequences of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.90 Td (intra-entity transfer of an asset other than inventory when the transfer occurs. ) Tj ET Q q 0 0 0 rg BT 360.59 365.90 Td (The amendments in this ) Tj ET Q q 0 0 0 rg BT 458.36 365.90 Td (ASU do not change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.90 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 353.90 Td ( for the pre-tax ef) Tj ET Q q 0 0 0 rg BT 146.14 353.90 Td (fects of an intra-entity asset transfer under ) Tj ET Q q 0 0 0 rg BT 317.27 353.90 Td (T) Tj ET Q q 0 0 0 rg BT 322.68 353.90 Td (opic 810, Consolidation, or for the income tax ef) Tj ET Q q 0 0 0 rg BT 517.46 353.90 Td (fects of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.90 Td (intra-entity transfer of inventory) Tj ET Q q 0 0 0 rg BT 177.97 341.90 Td (. ) Tj ET Q q 0 0 0 rg BT 182.79 341.90 Td (The standard will be ef) Tj ET Q q 0 0 0 rg BT 274.80 341.90 Td (fective for annual reporting periods beginning after December15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.90 Td (2017, including interim periods within those reporting periods. Early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 417.31 329.90 Td (The Company is currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.90 Td (evaluating the impact of the adoption of this accounting standard on its consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 297.90 Td (4. Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.90 Td (Inventories consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 234.40 379.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 234.40 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 234.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 234.40 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 206.40 379.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 206.40 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 206.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 206.40 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 246.39999999999998 m 494 246.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 246.39999999999998 m 498 246.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 246.39999999999998 m 563 246.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 234.39999999999998 m 494 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 234.39999999999998 m 563 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 192.39999999999998 m 494 192.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 179.39999999999998 m 494 179.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 177.39999999999998 m 494 177.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 192.39999999999998 m 563 192.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 179.39999999999998 m 563 179.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 177.39999999999998 m 563 177.39999999999998 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 250.13 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 250.63 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 238.48 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 238.48 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 238.48 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 224.97 Td (Raw materials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 224.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 224.97 Td (3,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 224.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 224.97 Td (3,894) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 210.97 Td (Work in process) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 210.97 Td (790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 210.97 Td (844) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 196.97 Td (Finished goods) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 196.97 Td (3,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 196.97 Td (3,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 182.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 182.97 Td (7,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 182.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 182.97 Td (7,918) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (5. Pr) Tj ET Q q 0 0 0 rg BT 69.87 686.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Property and equipment consists of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 620.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 620.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 620.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 620.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 590.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 590.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 590.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 590.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 560.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 560.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 560.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 560.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 530.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 530.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 530.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 530.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 633.75 m 494 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 633.75 m 498 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 633.75 m 563 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 620.75 m 494 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 620.75 m 563 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 545.75 m 494 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 545.75 m 563 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 515.75 m 494 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 501.75 m 494 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 499.75 m 494 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 515.75 m 563 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 501.75 m 563 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 499.75 m 563 499.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 638.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 637.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 624.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 624.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 624.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 610.42 Td (Buildings and improvements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 610.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 610.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 610.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 610.42 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 595.42 Td (Furniture and fixtures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 595.42 Td (2,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 595.42 Td (2,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 580.42 Td (Computer hardware and software) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 580.42 Td (1,228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 580.42 Td (1,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 565.42 Td (Machinery and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 565.42 Td (11,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 565.42 Td (11,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 550.42 Td (Vehicles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 550.42 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 550.42 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 535.42 Td (14,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 535.42 Td (15,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 520.42 Td (Less accumulated depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 520.47 Td (\(13,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 520.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 520.47 Td (\(14,322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 520.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 505.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 505.42 Td (1,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 505.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 505.42 Td (1,538) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.25 Td (Depreciation expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.40 481.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.29 481.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.73 481.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.62 481.25 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.97 481.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.56 481.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 481.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.00 481.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 525.66 481.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 453.25 Td (6. Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 165.37 453.25 Td (Assets) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 433.25 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (The balance of goodwill as of December 31, 2016 and 2015 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.70 413.25 Td ($0.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.20 413.25 Td ( million and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.03 413.25 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.92 413.25 Td (. In connection with the annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (impairment analysis performed during the fourth quarter) Tj ET Q q 0 0 0 rg BT 275.14 401.25 Td (, the Company recognized an impairment char) Tj ET Q q 0 0 0 rg BT 460.17 401.25 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.94 401.25 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.83 401.25 Td ( \(see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (Note 15 for further details\). ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 92.92 369.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (Intangible assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 304.75 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 304.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 304.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 304.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 304.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 304.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 274.75 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 274.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 274.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 274.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 274.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 274.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 244.75 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 244.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 244.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 244.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 244.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 244.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 317.75 m 494 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 317.75 m 498 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 317.75 m 563 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 304.75 m 425 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 304.75 m 494 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 304.75 m 498 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 304.75 m 563 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 259.75 m 494 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 259.75 m 563 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 229.75 m 494 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 229.75 m 563 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 229.75 m 494 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 215.75 m 494 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 213.75 m 494 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 215.75 m 563 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 213.75 m 563 213.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 321.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.20 316.98 Td (Useful Life) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.25 308.98 Td (in ) Tj ET Q q 0 0 0 rg BT 386.63 308.98 Td (Y) Tj ET Q q 0 0 0 rg BT 391.52 308.98 Td (ears) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 321.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 308.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 308.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 308.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 294.42 Td (Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.80 294.42 Td (15-20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 294.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 294.42 Td (1,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 294.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 294.42 Td (1,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 279.42 Td (Patents and know-how) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.30 279.42 Td (5-12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 279.42 Td (4,090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 279.42 Td (4,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 264.42 Td (Customer relationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.80 264.42 Td (4-8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 264.42 Td (721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 264.42 Td (724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 249.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 249.42 Td (6,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 249.42 Td (5,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 234.42 Td (Less accumulated amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 234.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 234.47 Td (\(4,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 234.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 234.47 Td (\(4,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 234.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 219.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 219.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 219.42 Td (1,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 219.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 219.42 Td (1,901) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (The Company recorded amortization expense related to amortizable intangible assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.98 195.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.87 195.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.31 195.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.20 195.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.48 183.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 183.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.50 183.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.50 183.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 270.16 183.25 Td (. ) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Estimated amortization expense for existing intangible assets for each of the next five years is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 660.60 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 660.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 631.60 448.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 631.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 603.60 448.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 603.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 448.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 575.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 575.6 m 563 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 562.6 m 563 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 560.6 m 563 560.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 665.27 Td (Years ending December31:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 665.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 650.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 650.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 650.27 Td (435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 636.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 636.17 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 622.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 622.17 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 608.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 608.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 608.17 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 594.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 594.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 594.17 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 580.17 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 580.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 580.17 Td (404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 566.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 566.17 Td (1,483) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (7. ) Tj ET Q q 0 0 0 rg BT 58.95 534.10 Td (Accrued Expenses and Other) Tj ET Q q 0 0 0 rg BT 183.49 534.10 Td ( Curr) Tj ET Q q 0 0 0 rg BT 207.47 534.10 Td (ent Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (Accrued expenses and other current liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 468.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 468.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 468.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 468.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 438.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 438.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 438.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 438.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 408.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 408.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 408.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 408.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 481.6 m 494 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 481.6 m 498 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 481.6 m 563 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 468.6 m 494 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 468.6 m 563 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 378.6 m 494 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 364.6 m 494 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 362.6 m 494 362.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 378.6 m 563 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 364.6 m 563 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 362.6 m 563 362.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 486.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 485.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 472.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 472.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 472.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 458.27 Td (Accrued salaries and benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 458.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 458.27 Td (759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 458.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 458.27 Td (1,332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 443.27 Td (Accrued severance and other charges\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 443.27 Td (1,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 443.27 Td (1,092) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 428.27 Td (Accrued warranty\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 428.27 Td (338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 428.27 Td (228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.27 Td (Warrant liability\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 413.27 Td (1,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 413.27 Td (3,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.27 Td (Liability for consigned precious metals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 398.27 Td (1,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 398.27 Td (543) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 383.27 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 383.27 Td (1,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 383.27 Td (1,587) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 368.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 368.27 Td (6,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 368.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 368.27 Td (7,854) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 354.50 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 342.50 Td (For additional information, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.18 342.50 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.18 342.50 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.26 342.50 Td (Severance and Other Char) Tj ET Q q 0 0 0 rg BT 351.31 342.50 Td (ges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.64 342.50 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.50 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.50 Td (For additional information, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.18 322.50 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.18 322.50 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.26 322.50 Td (Accrued ) Tj ET Q q 0 0 0 rg BT 282.45 322.50 Td (W) Tj ET Q q 0 0 0 rg BT 291.08 322.50 Td (arranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.40 322.50 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.50 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 302.50 Td (For additional information, refer to Note13, "Fair ) Tj ET Q q 0 0 0 rg BT 269.69 302.50 Td (V) Tj ET Q q 0 0 0 rg BT 275.80 302.50 Td (alue Measurements".) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 274.50 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 274.50 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 274.50 Td (Severance and Other) Tj ET Q q 0 0 0 rg BT 149.30 274.50 Td ( Charges) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.36 274.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.50 Td (Severance, exit and other char) Tj ET Q q 0 0 0 rg BT 170.09 254.50 Td (ges consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 202.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 202.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 202.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 202.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 172.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 172.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 172.00 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 215 m 494 215 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 215 m 498 215 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 215 m 563 215 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 202 m 494 202 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 202 m 563 202 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 157 m 494 157 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 143 m 494 143 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 141 m 494 141 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 157 m 563 157 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 143 m 563 143 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 141 m 563 141 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 219.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 227.23 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 219.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 206.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 206.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 206.23 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 191.67 Td (Employee severance expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 191.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 191.67 Td (1,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 191.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 191.67 Td (1,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 176.67 Td (Other closure costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 176.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 176.67 Td (272) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 161.67 Td (Lease exit costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 161.67 Td (1,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 161.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 146.67 Td (Total severance and other charges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 146.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 146.67 Td (2,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 146.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 146.67 Td (1,482) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.50 Td (The Company incurred severance costs in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.44 122.50 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.44 122.50 Td ( related to its North ) Tj ET Q q 0 0 0 rg BT 319.15 122.50 Td (American locations, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.45 122.50 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.34 122.50 Td ( of severance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.50 Td (benefits covering a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 110.50 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.52 110.50 Td ( year period for our former president and chief operating of) Tj ET Q q 0 0 0 rg BT 379.46 110.50 Td (ficer and our former general counsel, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.50 Td (corporate secretary and vice president, administration, pursuant to separation and release agreements. ) Tj ET Q q 0 0 0 rg BT 456.84 98.50 Td (Additionally) Tj ET Q q 0 0 0 rg BT 506.74 98.50 Td (, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.50 Td (December1) Tj ET Q q 0 0 0 rg BT 97.71 86.50 Td (1, 2015, the Company announced its intention to close its Canadian manufacturing facility) Tj ET Q q 0 0 0 rg BT 458.65 86.50 Td (. Costs associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.50 Td (this closure, primarily severance costs, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.78 74.50 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 74.50 Td ( have been accrued as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.17 74.50 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.75 74.50 Td (.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (During 2016, the Company accrued approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.28 686.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.17 686.10 Td ( of lease exit costs associated with its manufacturing facility in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Canada. In addition, the Company incurred additional severance costs of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 674.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.89 674.10 Td ( associated its Canadian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (manufacturing facility as well as other North ) Tj ET Q q 0 0 0 rg BT 230.83 662.10 Td (American locations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (The following summarizes the activity in the Company's accrual for severance and other exit costs \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 603.60 310.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 603.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 603.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 603.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 603.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 603.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 310.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 575.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 575.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 575.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 547.60 310.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 547.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 547.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 547.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 547.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 547.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.60 310.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 519.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 519.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 519.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 603.6 m 425 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 603.6 m 494 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 603.6 m 563 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 561.6 m 425 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 561.6 m 494 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 561.6 m 563 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 519.6 m 425 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 506.6 m 425 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 504.6 m 425 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 519.6 m 494 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 506.6 m 494 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 504.6 m 494 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 506.6 m 563 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 504.6 m 563 504.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 608.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.65 607.83 Td (Severance) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.10 615.68 Td (Lease Exit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.65 607.68 Td (Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.25 607.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 594.17 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 594.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 594.17 Td (293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 594.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 594.17 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 594.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 594.17 Td (335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 580.17 Td (Provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 580.17 Td (1,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 580.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 580.17 Td (1,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 566.17 Td (Payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 566.22 Td (\(411) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 566.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.80 566.22 Td (\(42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 566.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 566.22 Td (\(453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 566.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 552.17 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 552.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 552.17 Td (1,092) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 552.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 552.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 552.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 552.17 Td (1,092) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 538.17 Td (Provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 538.17 Td (1,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 538.17 Td (1,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 538.17 Td (2,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 524.17 Td (Payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.30 524.22 Td (\(1,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 524.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 524.22 Td (\(308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 524.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 524.22 Td (\(1,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 524.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 510.17 Td (December 31, 2016\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 510.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 510.17 Td (718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 510.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 510.17 Td (1,020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 510.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 510.17 Td (1,738) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 496.50 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 484.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 484.50 Td (The Company expects to pay this accrual during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.36 484.50 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.94 484.50 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 464.50 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 464.50 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.95 464.50 Td (Accrued ) Tj ET Q q 0 0 0 rg BT 97.37 464.50 Td (W) Tj ET Q q 0 0 0 rg BT 106.81 464.50 Td (arranty) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.58 464.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.50 Td (The Company establishes reserves for future product warranty costs that are expected to be incurred pursuant to specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.50 Td (warranty provisions with its customers. ) Tj ET Q q 0 0 0 rg BT 209.30 432.50 Td (The Company generally warrants its products against defects between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.71 432.50 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 432.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.58 432.50 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.13 432.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.50 Td (years from date of shipment, depending on the product. ) Tj ET Q q 0 0 0 rg BT 273.43 420.50 Td (The warranty reserves are established at the time of sale and updated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.50 Td (throughout the warranty period based upon numerous factors including historical warranty return rates and expenses over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.50 Td (various warranty periods. Historically) Tj ET Q q 0 0 0 rg BT 200.48 396.50 Td (, warranty returns have not been material.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.50 Td (The following summarizes the activity in the Company's accrual for product warranty \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 324.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 324.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 324.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 324.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 294.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 294.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 294.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 294.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 264.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 264.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 264.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 264.00 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 337 m 494 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 337 m 498 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 337 m 563 337 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 324 m 494 324 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 324 m 563 324 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 264 m 494 264 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 250 m 494 250 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 248 m 494 248 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 264 m 563 264 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 250 m 563 250 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 248 m 563 248 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 341.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 349.23 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 341.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 328.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 328.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 328.23 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 313.67 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 313.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 313.67 Td (228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 313.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 313.67 Td (373) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 298.67 Td (Accrued warranty expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 298.67 Td (431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 298.67 Td (301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 283.67 Td (Warranty claims paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 283.72 Td (\(324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 283.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 283.72 Td (\(389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 283.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 268.67 Td (Translation adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 268.67 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 268.72 Td (\(57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 268.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 253.67 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 253.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 253.67 Td (338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 253.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 253.67 Td (228) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 229.50 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 229.50 Td (Debt) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.05 229.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.50 Td (Debt consists of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 170.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 170.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 170.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 170.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 140.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 140.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 140.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 140.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 110.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 110.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 110.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 110.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 80.00 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 80.00 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 80.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 80.00 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 170 m 494 170 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 170 m 563 170 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 95 m 494 95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 95 m 563 95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 65 m 494 65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 51 m 494 51 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 49 m 494 49 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 65 m 563 65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 51 m 563 51 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 49 m 563 49 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 174.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.75 182.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 174.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.75 182.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 174.23 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 159.67 Td (Line of credit with FGI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 159.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 159.67 Td (1,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 159.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 159.67 Td (3,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 144.67 Td ($2.0 million, 8% shareholder note due 2017 \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 144.67 Td (1,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 144.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 129.67 Td ($1.5million, 8% shareholder note due 2018 \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 129.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 129.67 Td (1,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 114.67 Td ($3.0million, 8% subordinated convertible shareholder notes due 2018 \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 114.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 114.67 Td (2,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 99.67 Td ($3.0million, 8% shareholder note due 2018 \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 99.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 99.67 Td (2,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 84.67 Td (3,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 84.67 Td (11,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 69.67 Td (Less current portion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 69.72 Td (\(3,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 69.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 69.72 Td (\(3,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 69.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 54.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 54.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 54.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 54.67 Td (7,559) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 687.50 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 675.50 Td (Debt discount related to extinguishment and amendment of previous outstanding debt. ) Tj ET Q q 0 0 0 rg BT 417.52 675.50 Td (The aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 663.50 Td (unamortized debt discount was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.14 663.50 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.03 663.50 Td ( at December 31, 2016. For additional information, refer to the respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 651.50 Td (discussions below) Tj ET Q q 0 0 0 rg BT 139.35 651.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.50 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 639.50 Td (Debt discounts relate to warrants issued with shareholder notes and amendments. ) Tj ET Q q 0 0 0 rg BT 394.46 639.50 Td (The aggregate amount of unamortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 627.50 Td (debt discount was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.66 627.50 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.55 627.50 Td ( at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.35 627.50 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.35 627.50 Td (. For additional information, refer to the respective discussions below) Tj ET Q q 0 0 0 rg BT 558.69 627.50 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 607.50 Td (Line of Cr) Tj ET Q q 0 0 0 rg BT 90.25 607.50 Td (edit with FGI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.50 Td (The Company maintains a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.25 587.50 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.15 587.50 Td ( secured demand facility with FGI backed by its receivables and inventory) Tj ET Q q 0 0 0 rg BT 502.90 587.50 Td (. ) Tj ET Q q 0 0 0 rg BT 507.72 587.50 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.50 Td (Company also granted FGI a first lien collateral interest in substantially all of its assets. ) Tj ET Q q 0 0 0 rg BT 404.52 575.50 Td (The current termination date is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.50 Td (August15, 2017, however) Tj ET Q q 0 0 0 rg BT 154.92 563.50 Td (, FGI can cancel the facility at any time and demand payment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.50 Td (Under the FGI facility) Tj ET Q q 0 0 0 rg BT 137.99 543.50 Td (, FGI can elect to purchase eligible accounts receivable from the Company and the Credit Subsidiaries at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.50 Td (up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.28 531.50 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.61 531.50 Td ( of the value of such receivables \(retaining a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.25 531.50 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.58 531.50 Td ( reserve\). Purchased receivables are subject to full recourse to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.50 Td (Company in the event of nonpayment by the customer) Tj ET Q q 0 0 0 rg BT 266.12 519.50 Td (. FGI becomes responsible for the servicing and administration of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.50 Td (accounts receivable purchased. ) Tj ET Q q 0 0 0 rg BT 175.92 507.50 Td (The Company is not obligated to of) Tj ET Q q 0 0 0 rg BT 317.94 507.50 Td (fer accounts in any month and FGI has the right to decline to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.50 Td (purchase any accounts. ) Tj ET Q q 0 0 0 rg BT 143.91 495.50 Td (At FGI's election, FGI may advance the Company up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.83 495.50 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.16 495.50 Td ( of the value of any purchased accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.50 Td (receivable, subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.40 483.50 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.29 483.50 Td ( limit. Reserves retained by FGI on any purchased receivable are expected to be refunded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.50 Td (to the Company net of interest and fees on advances once the receivables are collected from customers. ) Tj ET Q q 0 0 0 rg BT 464.71 471.50 Td (The Company may also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.50 Td (borrow against eligible inventory up to the inventory sublimit, as determined by FGI, subject to the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.23 459.50 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.12 459.50 Td ( limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.50 Td (under the FGI facility and certain other conditions. ) Tj ET Q q 0 0 0 rg BT 254.72 447.50 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.22 447.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.80 447.50 Td (, the inventory sublimit amount was the lesser of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.99 447.50 Td ($1.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.50 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 435.50 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.72 435.50 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.05 435.50 Td ( of the aggregate purchase price paid for accounts receivable purchased under the FGI facility) Tj ET Q q 0 0 0 rg BT 484.23 435.50 Td (. ) Tj ET Q q 0 0 0 rg BT 489.05 435.50 Td (While the overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.50 Td (credit limit and the inventory sublimit were not changed, borrowing against the Company's significant OEM customer's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.50 Td (inventory has been limited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 411.50 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.53 411.50 Td ( by FGI due to their concerns about customer concentration as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.68 411.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.26 411.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.50 Td (The interest rate on advances or borrowings under the FGI facility is the greater of \(i\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.82 391.50 Td (6.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 391.50 Td ( per annum and \(ii\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.79 391.50 Td (2.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.62 391.50 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.50 Td (annum above the prime rate, as defined in the FGI facility and was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.86 379.50 Td (6.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.69 379.50 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.90 379.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.49 379.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.92 379.50 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.92 379.50 Td (. ) Tj ET Q q 0 0 0 rg BT 479.37 379.50 Td (Any advances or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.50 Td (borrowings under the FGI facility are due on demand. ) Tj ET Q q 0 0 0 rg BT 267.59 367.50 Td (The Company also agreed to pay FGI collateral management fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.50 Td (0.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 355.50 Td ( per month on the face amount of eligible receivables as to which advances have been made and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.84 355.50 Td (0.38%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.67 355.50 Td ( per month on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.50 Td (borrowings against inventory) Tj ET Q q 0 0 0 rg BT 166.05 343.50 Td (, if any) Tj ET Q q 0 0 0 rg BT 193.45 343.50 Td (. ) Tj ET Q q 0 0 0 rg BT 197.90 343.50 Td (At any time outstanding advances or borrowings under the FGI facility are less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 343.50 Td ($2.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.50 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 331.50 Td (, the Company agreed to pay FGI standby fees of \(i\)the interest rate on the dif) Tj ET Q q 0 0 0 rg BT 391.73 331.50 Td (ference between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.46 331.50 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.35 331.50 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.50 Td (average outstanding amounts and \(ii\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.29 319.50 Td (0.44%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.12 319.50 Td ( per month on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.45 319.50 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.78 319.50 Td ( of the amount by which advances or borrowings are less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.50 Td (the agreed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.36 307.50 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.25 307.50 Td ( minimum.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.50 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 287.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.58 287.50 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.63 287.50 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.52 287.50 Td ( of gross accounts receivable pledged to FGI as collateral for short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.50 Td (debt well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.76 275.50 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.66 275.50 Td ( in borrowings outstanding against eligible inventory) Tj ET Q q 0 0 0 rg BT 359.64 275.50 Td (. ) Tj ET Q q 0 0 0 rg BT 364.46 275.50 Td (The Company was in compliance with the terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.50 Td (of the FGI facility at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.20 263.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.78 263.50 Td (. However) Tj ET Q q 0 0 0 rg BT 254.03 263.50 Td (, there is no guarantee that the Company will be able to borrow to the full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.50 Td (limit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.72 251.50 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.61 251.50 Td ( if FGI chooses not to finance a portion of its receivables or inventory) Tj ET Q q 0 0 0 rg BT 409.06 251.50 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 231.50 Td (Kanis S. ) Tj ET Q q 0 0 0 rg BT 85.16 231.50 Td (A. Indebtedness) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.40 Td (As of December 31, 2015, the Company had entered into various loan commitments with Kanis S.A) Tj ET Q q 0 0 0 rg BT 449.98 207.40 Td ( with an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.40 Td (outstanding principal balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.57 195.40 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.46 195.40 Td (. ) Tj ET Q q 0 0 0 rg BT 234.28 195.40 Td (These loans are described in the table above as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 171.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 171.30 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.39 171.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.39 171.30 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.72 171.30 Td ( shareholder note due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 159.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 159.25 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.39 159.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.39 159.25 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.72 159.25 Td ( subordinated convertible shareholder note due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 147.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 147.20 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.39 147.20 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.39 147.20 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.72 147.20 Td ( shareholder note due 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 123.10 Td (April1, 2016, the Company executed a Promissory Note \(the Kanis Note\) and entered into an amendment of existing loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (agreements \(the Kanis ) Tj ET Q q 0 0 0 rg BT 145.30 111.10 Td (Agreement\) with Kanis S.A. Pursuant to the terms of the Kanis Note, Kanis S.A. agreed to lend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.89 99.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.78 99.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 99.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.33 99.10 Td ( per annum with a maturity date of September30, 2017. Pursuant to the terms of the Kanis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (Agreement, the Company and Kanis S.A. agreed to amend prior loans with an aggregate outstanding principal balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.85 87.10 Td ($7.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 75.10 Td ( \(collectively) Tj ET Q q 0 0 0 rg BT 130.22 75.10 Td (, the Loan ) Tj ET Q q 0 0 0 rg BT 176.87 75.10 Td (Agreements\), such that: \(i\)Kanis S.A. had the right to convert the principal balance of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (Loan ) Tj ET Q q 0 0 0 rg BT 72.00 63.10 Td (Agreements and any accrued interest thereon into common stock of the Company at any time prior to maturity at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.10 Td (conversion price equal to the lower of the closing price of CDT) Tj ET Q q 0 0 0 rg BT 302.68 51.10 Td (i) Tj ET Q q 0 0 0 rg BT 308.24 51.10 Td (s common stock on the date before the date of the Kanis ) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Agreement or as of the date when Kanis S.A. exercises its conversion right; and \(ii\)the Company had the right to mandatorily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (convert the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.70 674.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.59 674.10 Td ( principal balance and any accrued interest thereon into its common stock upon maturity of the Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Agreements or earlier upon the occurrence of a Liquidity Event at a conversion price equal to the lower of the closing price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (CDTI as of the date immediately before the date of the Kanis ) Tj ET Q q 0 0 0 rg BT 296.08 650.10 Td (Agreement or at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.49 650.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.82 650.10 Td ( discount to the Liquidity Event price. ) Tj ET Q q 0 0 0 rg BT 542.68 650.10 Td (A) Tj ET Q q 0 0 0 rg BT 549.35 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (Liquidity Event is defined as a strategic investment in CDT) Tj ET Q q 0 0 0 rg BT 287.15 638.10 Td (i or a public stock of) Tj ET Q q 0 0 0 rg BT 369.45 638.10 Td (fering by CDT) Tj ET Q q 0 0 0 rg BT 427.98 638.10 Td (i. ) Tj ET Q q 0 0 0 rg BT 435.57 638.10 Td (The Company could prepay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (principal and any interest due on the Loan ) Tj ET Q q 0 0 0 rg BT 220.00 626.10 Td (Agreements at any time before their maturity date without penalty) Tj ET Q q 0 0 0 rg BT 483.99 626.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.00 Td (Certain features of the Kanis Note resulting from the Kanis ) Tj ET Q q 0 0 0 rg BT 288.32 602.00 Td (Agreement required bifurcation and were determined to be an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.00 Td (embedded derivative comprised of a conversion feature and a call option. ) Tj ET Q q 0 0 0 rg BT 347.82 590.00 Td (The embedded derivative was separated from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.00 Td (Kanis Note and carried as a derivative liability on the balance sheet at fair value, with changes in fair value reported through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.00 Td (earnings. ) Tj ET Q q 0 0 0 rg BT 90.70 566.00 Td (The conversion feature could have been exercised at either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.08 566.00 Td ($3.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.58 566.00 Td (, which is the closing stock price the day prior to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.00 Td (original agreement or at the market price when the conversion was exercised. ) Tj ET Q q 0 0 0 rg BT 363.64 554.00 Td (The call option could have been executed by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.00 Td (Company in the event the Company completes a Liquidity Event. ) Tj ET Q q 0 0 0 rg BT 316.49 542.00 Td (The call option would be settled at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.22 542.00 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.55 542.00 Td ( discount to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.00 Td (Liquidity Event pricing. In addition, the Kanis ) Tj ET Q q 0 0 0 rg BT 239.47 530.00 Td (Agreement was considered to trigger an extinguishment of the debt. ) Tj ET Q q 0 0 0 rg BT 515.51 530.00 Td (As a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.00 Td (the Company recorded a loss of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.17 518.00 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.06 518.00 Td ( for the three and six months ended June 30, 2016 in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.00 Td (with the Kanis agreement. For additional information on the bifurcated derivative liability) Tj ET Q q 0 0 0 rg BT 411.25 506.00 Td (, please see Note 13, Fair ) Tj ET Q q 0 0 0 rg BT 518.81 506.00 Td (V) Tj ET Q q 0 0 0 rg BT 524.92 506.00 Td (alue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.00 Td (Measurements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.90 Td (On June30, 2016, the Company entered into a Letter ) Tj ET Q q 0 0 0 rg BT 263.89 469.90 Td (Agreement \(the Kanis Exchange ) Tj ET Q q 0 0 0 rg BT 400.51 469.90 Td (Agreement\) with Kanis S.A. ) Tj ET Q q 0 0 0 rg BT 523.91 469.90 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.90 Td (Company agreed to an exchange with Kanis of an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.57 457.90 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.46 457.90 Td ( in principal amount of promissory notes and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.90 Td (indebtedness \(collectively) Tj ET Q q 0 0 0 rg BT 152.98 445.90 Td (, the Kanis Notes\) held by Kanis, plus accrued interest, for a number of shares of the Company) Tj ET Q q 0 0 0 rg BT 543.98 445.90 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.90 Td (common stock equal to \(a\)the principal amount of the Kanis Notes plus the accrued interest thereon through and including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.90 Td (date of the settlement of the exchange contemplated by the Kanis Exchange ) Tj ET Q q 0 0 0 rg BT 354.39 421.90 Td (Agreement, divided by \(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.97 421.90 Td ($1.6215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.47 421.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.80 Td (At a special meeting of stockholders held on ) Tj ET Q q 0 0 0 rg BT 229.46 397.80 Td (August25, 2016, the Company's stockholders approved the transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.80 Td (contemplated by the Kanis Exchange ) Tj ET Q q 0 0 0 rg BT 200.29 385.80 Td (Agreement. On ) Tj ET Q q 0 0 0 rg BT 266.38 385.80 Td (August30, 2016, the Company consummated the Kanis Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.80 Td (Agreement, pursuant to which an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.21 373.80 Td (4,872,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.21 373.80 Td ( shares of common stock was issued to Kanis in exchange for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.80 Td (delivery to the Company of the Kanis Notes and the extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 361.80 Td ($7.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.89 361.80 Td ( of indebtedness, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 361.80 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.04 361.80 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.80 Td (accrued interest and the bifurcated derivative liability) Tj ET Q q 0 0 0 rg BT 262.64 349.80 Td (. ) Tj ET Q q 0 0 0 rg BT 269.96 349.80 Td (The exchange resulted in a loss on extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.19 349.80 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.08 349.80 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.80 Td (Subsequent to the ) Tj ET Q q 0 0 0 rg BT 122.55 337.80 Td (August30, 2016 conversion, the Company) Tj ET Q q 0 0 0 rg BT 296.70 337.80 Td (s sole remaining debt with Kanis S.A. was the loan agreement for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.80 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 325.80 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.11 325.80 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.44 325.80 Td ( interest per annum with a maturity date of September30, 2017, entered into on ) Tj ET Q q 0 0 0 rg BT 446.63 325.80 Td (April1, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.70 Td (In January 2017, the Company repaid the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 301.70 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.39 301.70 Td ( balance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.65 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 277.60 Td (Dir) Tj ET Q q 0 0 0 rg BT 63.02 277.60 Td (ector note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.50 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 253.50 Td (April1) Tj ET Q q 0 0 0 rg BT 91.91 253.50 Td (1, 2016, the Company executed a Convertible Promissory Note \(the Director Note\) with Lon E. Bell, Ph.D., one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.50 Td (the Company) Tj ET Q q 0 0 0 rg BT 105.88 241.50 Td (s Directors. Pursuant to the terms of the Director Note, Dr) Tj ET Q q 0 0 0 rg BT 337.49 241.50 Td (.Bell agreed to lend the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.90 241.50 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.79 241.50 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.01 241.50 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.34 241.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (per annum and a maturity date of September30, 2017. Dr) Tj ET Q q 0 0 0 rg BT 279.99 229.50 Td (.Bell had the right to convert the principal balance of the Director ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.50 Td (Note and any accrued interest thereon into common stock of the Company at any time prior to maturity at a conversion price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.50 Td (equal to the lower of the closing price of CDT) Tj ET Q q 0 0 0 rg BT 233.82 205.50 Td (i on the date before the date of the Director Note or as of the date when Dr) Tj ET Q q 0 0 0 rg BT 531.20 205.50 Td (.Bell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.50 Td (exercises his conversion right. ) Tj ET Q q 0 0 0 rg BT 172.90 193.50 Td (The Company had the right to mandatorily convert the principal balance of the Director Note and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.50 Td (any accrued interest thereon into its common stock upon maturity at a conversion price equal to the lower of the closing price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.50 Td (CDT) Tj ET Q q 0 0 0 rg BT 69.15 169.50 Td (i on the date before the date of the Director Note or on the maturity date. ) Tj ET Q q 0 0 0 rg BT 361.91 169.50 Td (The Company also had the right to mandatorily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.50 Td (convert the principal amount of the Director Note plus accrued interest thereon into its common stock concurrently with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.50 Td (closing of a Liquidity Event, as defined, at a conversion price equal to the lower of the closing price of CDT) Tj ET Q q 0 0 0 rg BT 482.35 145.50 Td (i as of the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.50 Td (immediately before the date of this Director Note or at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.91 133.50 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.24 133.50 Td ( discount to the Liquidity Event price. ) Tj ET Q q 0 0 0 rg BT 449.10 133.50 Td (A) Tj ET Q q 0 0 0 rg BT 455.77 133.50 Td ( Liquidity Event is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.50 Td (defined as a strategic investment in CDT) Tj ET Q q 0 0 0 rg BT 212.43 121.50 Td (i or a public stock of) Tj ET Q q 0 0 0 rg BT 294.73 121.50 Td (fering by CDT) Tj ET Q q 0 0 0 rg BT 353.26 121.50 Td (i.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.40 Td (Ef) Tj ET Q q 0 0 0 rg BT 58.76 97.40 Td (fective May12, 2016, the Director Note was amended and restated to amend the conversion features contained therein. ) Tj ET Q q 0 0 0 rg BT 537.57 97.40 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.40 Td (Director Note, which originally had a floating conversion price, allowed Dr) Tj ET Q q 0 0 0 rg BT 351.07 85.40 Td (.Bell to convert the principal balance of the note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.40 Td (and any accrued interest thereon at any time before payment into shares of the Company) Tj ET Q q 0 0 0 rg BT 406.04 73.40 Td (s common stock at a fixed conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.40 Td (price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.82 61.40 Td ($3.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.32 61.40 Td ( per share \(subject to adjustment for stock splits, reverse stock splits, and similar events\) \(the Conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.40 Td (Price\), which was the closing consolidated bid price of the Company) Tj ET Q q 0 0 0 rg BT 331.93 49.40 Td (s common stock on the trading day immediately prior to ) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (the date of issuance. In addition, the Company had the right to mandatorily convert the principal balance of the Director Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (plus any accrued interest into shares of the Company) Tj ET Q q 0 0 0 rg BT 263.88 674.10 Td (s common stock at the Conversion Price upon the earlier of the Maturity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Date and the closing of a Liquidity Event if, and only if, the Conversion Price was less than the average closing price of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 650.10 Td (s common stock for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.54 650.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.08 650.10 Td ( consecutive trading days ending on the trading day immediately preceding the date the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (Company exercises its conversion rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.00 Td (On June30, 2016, the Company entered into a Letter ) Tj ET Q q 0 0 0 rg BT 263.89 614.00 Td (Agreement \(the Bell Exchange ) Tj ET Q q 0 0 0 rg BT 393.84 614.00 Td (Agreement\) with Dr) Tj ET Q q 0 0 0 rg BT 478.81 614.00 Td (.Bell. ) Tj ET Q q 0 0 0 rg BT 507.80 614.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.00 Td (Company agreed to an exchange with Dr) Tj ET Q q 0 0 0 rg BT 212.78 602.00 Td (.Bell of the Director Note for a number of shares of the Company) Tj ET Q q 0 0 0 rg BT 479.92 602.00 Td (s common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.00 Td (equal to \(a\)the principal amount of the Bell Note plus the accrued interest thereon through and including the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.00 Td (settlement of the exchange contemplated by the Bell Exchange ) Tj ET Q q 0 0 0 rg BT 303.02 578.00 Td (Agreement, divided by \(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.60 578.00 Td ($1.6215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.10 578.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.95 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.90 Td (At a special meeting of stockholders held on ) Tj ET Q q 0 0 0 rg BT 229.46 553.90 Td (August25, 2016, the stockholders approved the transactions contemplated by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.90 Td (Bell Exchange ) Tj ET Q q 0 0 0 rg BT 110.04 541.90 Td (Agreement. On ) Tj ET Q q 0 0 0 rg BT 176.13 541.90 Td (August30, 2016, the Company consummated the Bell Exchange ) Tj ET Q q 0 0 0 rg BT 436.92 541.90 Td (Agreement transaction, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.90 Td (pursuant to which an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.79 529.90 Td (317,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.29 529.90 Td ( shares of common stock was issued to Dr) Tj ET Q q 0 0 0 rg BT 388.04 529.90 Td (. Bell in exchange for the delivery to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.90 Td (Company of the Bell Note and the extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.18 517.90 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.07 517.90 Td ( of indebtedness, including accrued interest. ) Tj ET Q q 0 0 0 rg BT 491.17 517.90 Td (The exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.90 Td (resulted in a loss on extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.42 505.90 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.32 505.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.85 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 481.80 Td (Note Pur) Tj ET Q q 0 0 0 rg BT 85.52 481.80 Td (chase ) Tj ET Q q 0 0 0 rg BT 110.60 481.80 Td (Agr) Tj ET Q q 0 0 0 rg BT 125.23 481.80 Td (eement and Convertible Notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.70 Td (On June30, 2016, the Company also entered into a Note Purchase ) Tj ET Q q 0 0 0 rg BT 316.67 457.70 Td (Agreement \(the Note Purchase ) Tj ET Q q 0 0 0 rg BT 446.06 457.70 Td (Agreement\) with Haldor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.70 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 445.70 Td (opse ) Tj ET Q q 0 0 0 rg BT 80.19 445.70 Td (A/S, a company or) Tj ET Q q 0 0 0 rg BT 154.99 445.70 Td (ganized under the laws of Denmark \(Haldor ) Tj ET Q q 0 0 0 rg BT 337.80 445.70 Td (T) Tj ET Q q 0 0 0 rg BT 343.21 445.70 Td (opse\). ) Tj ET Q q 0 0 0 rg BT 381.62 445.70 Td (The Company agreed to sell and issue \(i\)a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.70 Td (Senior Convertible Promissory Note \(the Senior Note\) in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.98 433.70 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.88 433.70 Td ( and \(ii\)a Convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.70 Td (Promissory Note \(the Note, and with the Senior Note, the Convertible Notes\) in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.67 421.70 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.56 421.70 Td (, each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.70 Td (of which is convertible into the Company) Tj ET Q q 0 0 0 rg BT 218.36 409.70 Td (s equity securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.65 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.60 Td (The Convertible Notes provided for interest at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.20 385.60 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.53 385.60 Td ( per annum, matured on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.28 385.60 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.86 385.60 Td ( and bore no prepayment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.60 Td (penalty) Tj ET Q q 0 0 0 rg BT 78.28 373.60 Td (. ) Tj ET Q q 0 0 0 rg BT 83.10 373.60 Td (The Convertible Notes provided that they shall at no time be convertible into more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.07 373.60 Td (779,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.57 373.60 Td ( shares \(subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.60 Td (adjustment for stock splits, reverse stock splits, and similar events\) of the Company) Tj ET Q q 0 0 0 rg BT 386.66 361.60 Td (s common stock and/or other securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.60 Td (convertible or exercisable for such number of shares of the Company) Tj ET Q q 0 0 0 rg BT 328.85 349.60 Td (s common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.50 Td (The Convertible Notes permitted Haldor ) Tj ET Q q 0 0 0 rg BT 214.00 325.50 Td (T) Tj ET Q q 0 0 0 rg BT 219.41 325.50 Td (opse to convert the principal balance of the Convertible Notes into shares of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.50 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 313.50 Td (s common stock at a fixed conversion price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 313.50 Td ($1.6215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.55 313.50 Td ( per share at any time. In addition, the Senior Note permitted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.50 Td (Haldor ) Tj ET Q q 0 0 0 rg BT 79.59 301.50 Td (T) Tj ET Q q 0 0 0 rg BT 85.00 301.50 Td (opse to convert the principal balance of the Senior Note into equity securities that the Company may issue in a future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.50 Td (financing including any instruments or securities exchangeable for or convertible into equity securities, at the same price and on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.50 Td (the same terms at which the Company sells equity securities in such future financing. ) Tj ET Q q 0 0 0 rg BT 395.34 277.50 Td (The Company had the right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.50 Td (mandatorily convert the Convertible Notes. ) Tj ET Q q 0 0 0 rg BT 227.51 265.50 Td (As long as the Company) Tj ET Q q 0 0 0 rg BT 328.62 265.50 Td (s common stock continued to be listed on ) Tj ET Q q 0 0 0 rg BT 496.75 265.50 Td (The NASDAQ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.50 Td (Stock Market, LLC \(NASDAQ\) and the Company was not in default under the Note, the Company had the right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.50 Td (mandatorily convert the principal balance of the Note into shares of its common stock at the conversion price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.64 241.50 Td ($1.6215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.14 241.50 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (share at any time before payment and following the date of conversion of the Kanis Notes into the Company) Tj ET Q q 0 0 0 rg BT 486.05 229.50 Td (s common stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.50 Td (The Company has the right to mandatorily convert the Senior Note, subject to satisfaction of the same conditions to conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.50 Td (of the Note, upon consummation of a Qualified Financing into the equity securities the Company issues in the Qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.50 Td (Financing at the same price and on the same terms at which it sells such equity securities in the Qualified Financing. ) Tj ET Q q 0 0 0 rg BT 519.66 193.50 Td (A) Tj ET Q q 0 0 0 rg BT 526.33 193.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.50 Td (Qualified Financing is defined as an equity or equity-linked financing in which the Company received aggregate gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.50 Td (proceeds of at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.91 169.50 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.80 169.50 Td ( \(including the principal amount of the Senior Note converted in such financing\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.45 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.40 Td (Accrued interest under the Convertible Notes is not convertible into the Company) Tj ET Q q 0 0 0 rg BT 379.70 145.40 Td (s equity securities and any interest that has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.40 Td (accrued on principal amount converted into equity securities will be paid in cash at the time of such conversion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.35 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.30 Td (Pursuant to the Note Purchase ) Tj ET Q q 0 0 0 rg BT 171.98 109.30 Td (Agreement, the Company agreed, if requested by Haldor ) Tj ET Q q 0 0 0 rg BT 401.17 109.30 Td (T) Tj ET Q q 0 0 0 rg BT 406.58 109.30 Td (opse, to expand the size of its board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.30 Td (of directors by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.32 97.30 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.75 97.30 Td ( member and appoint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.95 97.30 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.39 97.30 Td ( person designated by Haldor ) Tj ET Q q 0 0 0 rg BT 345.90 97.30 Td (T) Tj ET Q q 0 0 0 rg BT 351.31 97.30 Td (opse. ) Tj ET Q q 0 0 0 rg BT 379.46 97.30 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 420.69 97.30 Td (, until the later of \(i\)the date that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.30 Td (the Convertible Notes have been paid in full or \(ii\)if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.05 85.30 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.38 85.30 Td ( of the principal amount of the Convertible Notes have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.30 Td (converted into the Company) Tj ET Q q 0 0 0 rg BT 165.86 73.30 Td (s common stock and/or other equity securities, the date Haldor ) Tj ET Q q 0 0 0 rg BT 418.67 73.30 Td (T) Tj ET Q q 0 0 0 rg BT 424.08 73.30 Td (opse no longer owns at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.30 Td (eighty percent \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.25 61.30 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.58 61.30 Td (\) of such securities, the Company) Tj ET Q q 0 0 0 rg BT 267.21 61.30 Td (s board shall include one person designated by Haldor ) Tj ET Q q 0 0 0 rg BT 486.15 61.30 Td (T) Tj ET Q q 0 0 0 rg BT 491.56 61.30 Td (opse in the ) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (board) Tj ET Q q 0 0 0 rg BT 75.05 686.10 Td (s slate of nominees to be submitted to stockholders at each meeting of stockholders of the Company where directors are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (to be elected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.00 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 650.00 Td (August30, 2016, Haldor ) Tj ET Q q 0 0 0 rg BT 165.15 650.00 Td (T) Tj ET Q q 0 0 0 rg BT 170.56 650.00 Td (opse elected to convert the Note for whichthe Company issued to Haldor ) Tj ET Q q 0 0 0 rg BT 471.69 650.00 Td (T) Tj ET Q q 0 0 0 rg BT 477.10 650.00 Td (opse an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 638.00 Td (308,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 638.00 Td ( shares of common stock in conversion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.24 638.00 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.13 638.00 Td ( in principal amount of indebtedness. On December 16, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.00 Td (Haldor ) Tj ET Q q 0 0 0 rg BT 79.59 626.00 Td (T) Tj ET Q q 0 0 0 rg BT 85.00 626.00 Td (opse elected to convert the Senior Note, and issued to Haldor ) Tj ET Q q 0 0 0 rg BT 336.97 626.00 Td (T) Tj ET Q q 0 0 0 rg BT 342.38 626.00 Td (opse and aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.34 626.00 Td (462,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.84 626.00 Td ( shares of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.00 Td (stock in conversion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 614.00 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.49 614.00 Td ( in principal amount of indebtedness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.00 Td (For additional information on the warrants discussed within this Note, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.10 594.00 Td (1) Tj ET Q q 0 0 0 rg BT 390.73 594.00 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.73 594.00 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.81 594.00 Td (Stockholders' Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.99 594.00 Td (" and Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.45 594.00 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.45 594.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.00 Td (") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.58 582.00 Td (W) Tj ET Q q 0 0 0 rg BT 62.22 582.00 Td (arrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.43 582.00 Td (", respectively) Tj ET Q q 0 0 0 rg BT 146.17 582.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.00 Td (Annual scheduled principal payments of debt based on earliest redemption date as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.34 562.00 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.92 562.00 Td ( are \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 543.50 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 543.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 513.50 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 513.50 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 498.5 m 563 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 484.5 m 563 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 482.5 m 563 482.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 533.17 Td (Years ending December31:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 533.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 518.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 518.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 518.17 Td (3,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 503.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 503.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 488.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 488.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 488.17 Td (3,458) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 464.00 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 464.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.95 464.00 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 63.95 464.00 Td (Stockholders' Equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.69 464.00 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 445.20 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.20 Td (On February12, 2016, at a special meeting of the Company) Tj ET Q q 0 0 0 rg BT 291.66 433.20 Td (s stockholders, the Company) Tj ET Q q 0 0 0 rg BT 409.98 433.20 Td (s stockholders voted to approve an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.20 Td (amendment to the Restated Certificate of Incorporation to increase the number of authorized shares from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.29 421.20 Td (24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.18 421.20 Td ( shares to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.20 Td (100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 409.20 Td ( shares. Further) Tj ET Q q 0 0 0 rg BT 164.92 409.20 Td (, on February12, 2016, the Company filed with the Secretary of State of Delaware a Certificate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.20 Td (Amendment to the Restated Certificate of Incorporation \(the Amendment\) which increased the number of authorized shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.20 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.44 385.20 Td (24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 385.20 Td ( shares to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.60 385.20 Td (100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.49 385.20 Td ( shares, ninety-nine million nine hundred thousand \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.34 385.20 Td (99.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.23 385.20 Td (\) of which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.20 Td (designated as common stock and one hundred thousand \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.78 373.20 Td (0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.67 373.20 Td (\) of which were designated as preferred stock. On May25, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.20 Td (2016 at the Company) Tj ET Q q 0 0 0 rg BT 138.10 361.20 Td (s ) Tj ET Q q 0 0 0 rg BT 143.94 361.20 Td (Annual Meeting of Stockholders, the stockholders also voted to approve the amendment of the Restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.20 Td (Certificate of Incorporation to ef) Tj ET Q q 0 0 0 rg BT 179.82 349.20 Td (fect a reverse stock split of the Company) Tj ET Q q 0 0 0 rg BT 346.16 349.20 Td (s common stock which to reduce the total number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.20 Td (shares authorized under the Restated Certificate of Incorporation from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 337.20 Td (100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.89 337.20 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.67 337.20 Td (20.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.56 337.20 Td (. On July21, 2016, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.20 Td (Company filed a Certificate of ) Tj ET Q q 0 0 0 rg BT 173.63 325.20 Td (Amendment to its Restated Certificate of Incorporation, as amended, with the Secretary of State ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.20 Td (of Delaware to ef) Tj ET Q q 0 0 0 rg BT 119.00 313.20 Td (fect a one-for) Tj ET Q q 0 0 0 rg BT 172.65 313.20 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.98 313.20 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.53 313.20 Td ( reverse stock split of the Company) Tj ET Q q 0 0 0 rg BT 335.95 313.20 Td (s common stock, \(the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 430.93 313.20 Td (Reverse Stock Split) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.56 313.20 Td ( \). ) Tj ET Q q 0 0 0 rg BT 522.65 313.20 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.20 Td (amendment became ef) Tj ET Q q 0 0 0 rg BT 139.27 301.20 Td (fective on July22, 2016. ) Tj ET Q q 0 0 0 rg BT 242.59 301.20 Td (As a result of the Reverse Stock Split, every five \(5\)shares of the Company) Tj ET Q q 0 0 0 rg BT 548.90 301.20 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.20 Td (issued and outstanding common stock were combined and reclassified into one \(1\)share of the Company) Tj ET Q q 0 0 0 rg BT 473.01 289.20 Td (s common stock. ) Tj ET Q q 0 0 0 rg BT 542.82 289.20 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.20 Td (Reverse Stock Split did not change the par value of the Company) Tj ET Q q 0 0 0 rg BT 313.61 277.20 Td (s common stock. ) Tj ET Q q 0 0 0 rg BT 385.55 277.20 Td (All share and per share information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.20 Td (disclosed in this report, including the conversion features of all warrants \(shares and exercise prices\) reflect the Reverse Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.20 Td (Split. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.20 Td (On December 16, 2016, the Company filed with the Secretary of State of Delaware a Certificate of ) Tj ET Q q 0 0 0 rg BT 446.86 229.20 Td (Amendment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.20 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 217.20 Td (s Restated Certificate of Incorporation \(the Amendment\) which increased the number of authorized shares from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.20 Td (20,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 205.20 Td ( shares to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.77 205.20 Td (50,100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.77 205.20 Td ( shares, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.03 205.20 Td (50,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.03 205.20 Td ( are designated as common stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.37 205.20 Td (100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.87 205.20 Td ( are designated as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.20 Td (preferred stock.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 173.20 Td (June 2015 Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.20 Td (In June2015, the Company agreed to of) Tj ET Q q 0 0 0 rg BT 209.84 153.20 Td (fer and sell up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.54 153.20 Td (500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.04 153.20 Td ( units at a price to the public of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.95 153.20 Td ($10.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.45 153.20 Td ( per unit \(the "June ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.20 Td (2015 Of) Tj ET Q q 0 0 0 rg BT 82.37 141.20 Td (fering"\). Each unit consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.75 141.20 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.19 141.20 Td ( share of common stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.16 141.20 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.66 141.20 Td ( of a warrant to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.28 141.20 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.72 141.20 Td ( share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.20 Td (stock. ) Tj ET Q q 0 0 0 rg BT 75.43 129.20 Td (The June 2015 Of) Tj ET Q q 0 0 0 rg BT 147.18 129.20 Td (fering warrants have an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.37 129.20 Td ($13.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.87 129.20 Td ( per share and can be exercised during the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.20 Td (commencing after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.47 117.20 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.14 117.20 Td ( months and ending five and a half years from the date of issuance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.20 Td (The Company received gross proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.78 97.20 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 97.20 Td ( and net proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.69 97.20 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.58 97.20 Td ( after deducting the underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.20 Td (discounts and other of) Tj ET Q q 0 0 0 rg BT 137.91 85.20 Td (fering expenses. ) Tj ET Q q 0 0 0 rg BT 205.21 85.20 Td (The June 2015 Of) Tj ET Q q 0 0 0 rg BT 276.96 85.20 Td (fering warrants are within the scope of ) Tj ET Q q 0 0 0 rg BT 433.29 85.20 Td (ASC 815-40 and are required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.20 Td (be recorded as liabilities. ) Tj ET Q q 0 0 0 rg BT 151.41 73.20 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 200.75 73.20 Td (, of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.29 73.20 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.18 73.20 Td ( in net proceeds, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.22 73.20 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.11 73.20 Td ( was allocated to the common stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.20 Td (included in equity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.15 61.20 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 61.20 Td ( was allocated to the warrant liability based on the fair value of the warrants on the issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.20 Td (date. ) Tj ET Q q 0 0 0 rg BT 70.60 49.20 Td (Additionally) Tj ET Q q 0 0 0 rg BT 120.51 49.20 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.51 49.20 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.40 49.20 Td ( of the underwriter discounts and other of) Tj ET Q q 0 0 0 rg BT 340.00 49.20 Td (fering costs were allocated to the June 2015 Of) Tj ET Q q 0 0 0 rg BT 528.09 49.20 Td (fering ) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (warrants, based on the relative fair value of the June 2015 Of) Tj ET Q q 0 0 0 rg BT 293.67 686.10 Td (fering warrants and the common stock on the issuance date, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (was included in other income \(expense\), net in the accompanying statements of comprehensive loss for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 662.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (November 2015 Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (In November2015, the Company entered into a securities and purchase agreement with certain institutional investors \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td ("Purchasers"\) providing for the issuance and sale by the Company of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.87 610.10 Td (176,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.37 610.10 Td ( shares of the Company's common stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (SeriesB pre-funded warrants \(the "Pre-Funded ) Tj ET Q q 0 0 0 rg BT 240.01 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 248.65 598.10 Td (arrants"\) to purchase an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.22 598.10 Td (337,228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.72 598.10 Td ( shares of its common stock. ) Tj ET Q q 0 0 0 rg BT 546.91 598.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 586.10 Td (fering price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.56 586.10 Td ($6.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.06 586.10 Td ( per share of common stock and the of) Tj ET Q q 0 0 0 rg BT 300.17 586.10 Td (fering price for the Pre-Funded ) Tj ET Q q 0 0 0 rg BT 426.89 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 435.53 586.10 Td (arrant was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.39 586.10 Td ($6.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.89 586.10 Td ( for each to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.54 574.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.98 574.10 Td ( share of common stock. ) Tj ET Q q 0 0 0 rg BT 202.33 574.10 Td (The Pre-Funded ) Tj ET Q q 0 0 0 rg BT 269.35 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 277.99 574.10 Td (arrants are immediately exercisable at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.59 574.10 Td ($0.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.09 574.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (share and expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.52 562.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.52 562.10 Td ( years from the date of issuance. In a concurrent private placement, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.12 562.10 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.62 562.10 Td ( of a Series) Tj ET Q q 0 0 0 rg BT 546.27 562.10 Td (A) Tj ET Q q 0 0 0 rg BT 552.94 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (warrant to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.85 550.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.29 550.10 Td ( share of common stock for each share of common stock purchased or pre-funded through the Pre-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (Funded ) Tj ET Q q 0 0 0 rg BT 81.82 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.46 538.10 Td (arrants in the registered of) Tj ET Q q 0 0 0 rg BT 195.23 538.10 Td (fering. Each whole Series) Tj ET Q q 0 0 0 rg BT 299.92 538.10 Td (A) Tj ET Q q 0 0 0 rg BT 306.59 538.10 Td ( ) Tj ET Q q 0 0 0 rg BT 308.91 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.55 538.10 Td (arrant can be exercised for a share of Common Stock. ) Tj ET Q q 0 0 0 rg BT 534.78 538.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (Series) Tj ET Q q 0 0 0 rg BT 75.89 526.10 Td (A) Tj ET Q q 0 0 0 rg BT 82.56 526.10 Td ( ) Tj ET Q q 0 0 0 rg BT 84.88 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 93.51 526.10 Td (arrants cover) Tj ET Q q 0 0 0 rg BT 145.03 526.10 Td (, in the aggregate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.88 526.10 Td (154,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 526.10 Td ( shares of common stock and become exercisable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.31 526.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.08 526.10 Td ( months following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (date of issuance at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.09 514.10 Td ($8.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.59 514.10 Td ( per share and expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.38 514.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.92 514.10 Td ( years from the date they become exercisable. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (in exchange for the surrender and cancellation for outstanding warrants to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.48 502.10 Td (171,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.98 502.10 Td ( shares of common stock, with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (weighted average exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.81 490.10 Td ($15.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.31 490.10 Td ( per share, held by the Purchasers, the Company issued SeriesC-1, SeriesC-2 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (SeriesC-3 warrants to purchase an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.31 478.10 Td (171,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.81 478.10 Td ( shares of common stock which will become exercisable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.80 478.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.57 478.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (following the date of issuance at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.19 466.10 Td ($8.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.69 466.10 Td ( per share. Each Exchange ) Tj ET Q q 0 0 0 rg BT 392.79 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 401.42 466.10 Td (arrant will expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.78 466.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.55 466.10 Td ( months from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (the expiration date set forth in the corresponding cancelled warrant. ) Tj ET Q q 0 0 0 rg BT 322.27 454.10 Td (The transactions noted just above are collectively referred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (to as the "November 2015 Of) Tj ET Q q 0 0 0 rg BT 166.99 442.10 Td (fering".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (The Company received gross proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.78 422.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 422.10 Td ( and net proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.69 422.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.58 422.10 Td ( after deducting placement agent fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (and other of) Tj ET Q q 0 0 0 rg BT 97.63 410.10 Td (fering expenses. ) Tj ET Q q 0 0 0 rg BT 164.56 410.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 213.89 410.10 Td (, of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.44 410.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.33 410.10 Td ( in gross proceeds initially included in equity) Tj ET Q q 0 0 0 rg BT 472.93 410.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.93 410.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.82 410.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 398.10 Td (fering costs were allocated to common stock, based on the relative fair value of the common stock and the November 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 386.10 Td (fering warrants on the issuance date. ) Tj ET Q q 0 0 0 rg BT 208.25 386.10 Td (The November 2015 Of) Tj ET Q q 0 0 0 rg BT 303.87 386.10 Td (fering warrants are within the scope of ) Tj ET Q q 0 0 0 rg BT 460.20 386.10 Td (ASC815-40 and are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (required to be recorded as liabilities. ) Tj ET Q q 0 0 0 rg BT 197.50 374.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 246.84 374.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.84 374.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.73 374.10 Td ( was allocated to the warrant liability based on the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (the warrants on the issuance date. ) Tj ET Q q 0 0 0 rg BT 185.84 362.10 Td (As the assigned fair values of the November 2015 Of) Tj ET Q q 0 0 0 rg BT 398.66 362.10 Td (fering warrants were greater than the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (cash proceeds allocated to common stock, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.99 350.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.88 350.10 Td ( excess was treated as of) Tj ET Q q 0 0 0 rg BT 381.72 350.10 Td (fering costs and included in other income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (\(expense\), net in the accompanying statements of comprehensive loss for the year ended December 31, 2015, along with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 326.10 Td ( of of) Tj ET Q q 0 0 0 rg BT 119.87 326.10 Td (fering costs allocated to the November 2015 Of) Tj ET Q q 0 0 0 rg BT 309.91 326.10 Td (fering warrants. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (November 2016 Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (On November 3, 2016, the Company entered into a securities purchase agreement with certain investors \(the "Purchasers"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (providing for the issuance and sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.96 274.10 Td (5,172,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 274.10 Td ( shares of the Company's common stock at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 274.10 Td ($2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 274.10 Td ( per share \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td ("November 2016 Of) Tj ET Q q 0 0 0 rg BT 131.16 262.10 Td (fering"\). On November 4, 2016, and December 16, 2016 the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.67 262.10 Td (949,960) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.17 262.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.61 262.10 Td (4,222,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.61 262.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (of Common Stock, respectively) Tj ET Q q 0 0 0 rg BT 175.50 250.10 Td (, under the November 2016 Of) Tj ET Q q 0 0 0 rg BT 298.06 250.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 326.76 250.10 Td (The Company also issued to the placement agent, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (consideration for its services as placement agent for the November 2016 Of) Tj ET Q q 0 0 0 rg BT 351.72 238.10 Td (fering, a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.64 238.10 Td (489,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.14 238.10 Td ( shares of Common Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (and a five-year warrant to purchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.09 226.10 Td (489,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.59 226.10 Td ( shares of Common Stock at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.64 226.10 Td ($2.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.14 226.10 Td ( per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (On October 24, 2016, the Company received a written consent from Kanis S.A., the holder of a majority of the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (outstanding shares of common stock as of such date, approving the of) Tj ET Q q 0 0 0 rg BT 328.15 194.10 Td (fer and sale of securities by the Company in a private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (placement transaction, or series of related private placement transactions, on terms similar to the terms of the November 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 170.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (The Company received net proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.88 150.10 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.77 150.10 Td ( after deducting placement agent fees and other of) Tj ET Q q 0 0 0 rg BT 462.50 150.10 Td (fering expenses. ) Tj ET Q q 0 0 0 rg BT 529.79 150.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (November 2016 Of) Tj ET Q q 0 0 0 rg BT 127.08 138.10 Td (fering warrants are within the scope of ) Tj ET Q q 0 0 0 rg BT 283.41 138.10 Td (ASC 815-40 and are required to be recorded as liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 126.10 Td (, of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.38 126.10 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.27 126.10 Td ( in net proceeds, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.31 126.10 Td ($9.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.20 126.10 Td ( was allocated to the common stock and included in equity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 114.10 Td ( was allocated to the warrant liability based on the fair value of the warrants on the issuance date. ) Tj ET Q q 0 0 0 rg BT 492.23 114.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (intends to use the net proceeds for general corporate purposes, which may include working capital, general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (expenses, capital expenditures and implementation of its strategic priorities. ) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-23) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Exchange T) Tj ET Q q 0 0 0 rg BT 96.43 686.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (As discussed in Note 10, on ) Tj ET Q q 0 0 0 rg BT 163.11 666.10 Td (August30, 2016, the Company consummated the Kanis Exchange ) Tj ET Q q 0 0 0 rg BT 430.56 666.10 Td (Agreement and Bell Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (Agreement transactions, pursuant to which the Company \(i\)issued to Kanis an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.12 654.10 Td (4,872,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.12 654.10 Td ( shares of common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (in exchange for the delivery to the Company of the Kanis Notes and the extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.41 642.10 Td ($7.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 642.10 Td ( of indebtedness, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (\(ii\)issued to Dr) Tj ET Q q 0 0 0 rg BT 112.00 630.10 Td (. Bell an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.29 630.10 Td (317,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 630.10 Td ( shares of common stock in exchange for the delivery to the Company of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (Director Note and the extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.90 618.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.79 618.10 Td ( of indebtedness) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Note Conversion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (As discussed in Note 10, on ) Tj ET Q q 0 0 0 rg BT 163.11 578.10 Td (August 31, 2016, the Company elected to convert ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.18 578.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.07 578.10 Td ( in principal amount of the Haldor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (Notes and issued Haldor ) Tj ET Q q 0 0 0 rg BT 149.86 566.10 Td (T) Tj ET Q q 0 0 0 rg BT 155.27 566.10 Td (opse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.10 566.10 Td (308,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.60 566.10 Td ( shares of the Company's common stock. On December 16, 2016, Haldor ) Tj ET Q q 0 0 0 rg BT 508.21 566.10 Td (T) Tj ET Q q 0 0 0 rg BT 513.62 566.10 Td (opse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (elected to convert ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.07 554.10 Td ($0.75 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.97 554.10 Td ( in principal amount of the Haldor Notes and issued Haldor ) Tj ET Q q 0 0 0 rg BT 416.45 554.10 Td (T) Tj ET Q q 0 0 0 rg BT 421.86 554.10 Td (opse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.69 554.10 Td (462,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.19 554.10 Td ( shares of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (Company's common stock.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (Other Sales and Issuances of Common Stock and W) Tj ET Q q 0 0 0 rg BT 255.78 522.10 Td (arrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (On December 16, 2016, the Company entered into a securities purchase agreement with MDB Capital Group, LLC \("MDB"\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (providing for the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 490.10 Td (81,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 490.10 Td ( shares of the Company's common stock at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.83 490.10 Td ($2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.33 490.10 Td ( per share for an aggregate purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.82 478.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 478.10 Td (. ) Tj ET Q q 0 0 0 rg BT 136.53 478.10 Td (The purchase price was paid by the cancellation of trade payables of the Company to MDB in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (of the purchase price.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 438.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.32 438.10 Td (W) Tj ET Q q 0 0 0 rg BT 73.77 438.10 Td (arrants) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 105.43 438.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (From time to time, the Company issues warrants to purchase its common stock. ) Tj ET Q q 0 0 0 rg BT 370.11 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 378.74 418.10 Td (arrants have been issued for consulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (services, in connection with the Company's issuance of debt and sales of its common stock. For additional information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (regarding the warrants discussed in this Note, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.04 394.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.04 394.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.12 394.10 Td (Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.56 394.10 Td (" and Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.02 394.10 Td (1) Tj ET Q q 0 0 0 rg BT 376.65 394.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 394.10 Td ( ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.23 394.10 Td (Stockholders' Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.41 394.10 Td (", respectively) Tj ET Q q 0 0 0 rg BT 528.16 394.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 374.10 Td (arrants activity is summarized as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 310.60 295.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 310.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 310.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 310.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 310.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 310.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 280.60 295.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 280.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 280.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 280.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 280.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 280.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 250.60 295.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 250.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 250.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 250.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 250.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 250.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 220.60 295.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 220.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 220.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 220.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 190.60 295.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 190.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 190.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 190.60 80.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 310.6 m 410 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 310.6 m 479 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 310.6 m 563 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 310.6 m 563 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 250.60000000000002 m 410 250.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 190.60000000000002 m 410 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 176.60000000000002 m 410 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 174.60000000000002 m 410 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 161.60000000000002 m 410 161.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 159.60000000000002 m 410 159.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 315.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.85 314.83 Td (Shares\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.75 338.83 Td (W) Tj ET Q q 0 0 0 rg BT 437.31 338.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.05 330.83 Td (A) Tj ET Q q 0 0 0 rg BT 437.23 330.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.60 322.83 Td (Exer) Tj ET Q q 0 0 0 rg BT 447.89 322.83 Td (cise) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.10 314.83 Td (Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.25 322.83 Td (Range of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.65 314.83 Td (Exer) Tj ET Q q 0 0 0 rg BT 512.94 314.83 Td (cise Prices) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 300.27 Td (Outstanding at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 300.27 Td (322,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 300.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 300.27 Td (17.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 300.27 Td ($6.25 - $52.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 285.27 Td (Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 285.27 Td (591,423) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 285.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 285.27 Td (4.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.80 285.27 Td ($0.05 - $6.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 270.27 Td (Exchange warrants issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 270.27 Td (171,276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 270.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 270.27 Td (8.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.75 270.27 Td (8.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 255.27 Td (Exchange warrants surrendered) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 255.32 Td (\(171,276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 255.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 255.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 255.27 Td (15.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 255.27 Td ($13.25 - $21.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 240.27 Td (Outstanding at December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 240.27 Td (913,434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 240.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 240.27 Td (3.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.25 240.27 Td ($6.25 - $52.00 \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 225.27 Td (Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 225.27 Td (489,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 225.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 225.27 Td (2.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.25 225.27 Td ($2.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 210.27 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 210.32 Td (\(410,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 210.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 210.27 Td (1.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.80 210.27 Td ($0.05 - $3.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 195.27 Td (Expired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.30 195.32 Td (\(12,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 195.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 195.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 195.27 Td (22.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.75 195.27 Td ($22.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 180.27 Td (Outstanding at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 180.27 Td (979,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 180.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 180.27 Td (6.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 180.27 Td ($0.05 - $21.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 165.27 Td (Exercisable at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 165.27 Td (979,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.50 165.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 165.27 Td (6.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 165.27 Td ($6.25 - $21.00) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 151.50 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 139.50 Td (Outstanding and exercisable information includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.83 139.50 Td (21,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.33 139.50 Td ( equity-classified warrants as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.01 139.50 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.59 139.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.50 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 119.50 Td (Includes the ef) Tj ET Q q 0 0 0 rg BT 126.18 119.50 Td (fects of repricing. Refer to the November 2015 Of) Tj ET Q q 0 0 0 rg BT 326.76 119.50 Td (fering in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.36 119.50 Td (1) Tj ET Q q 0 0 0 rg BT 389.99 119.50 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.99 119.50 Td ( ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.57 119.50 Td (Stockholders' Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.10 119.50 Td (.") Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 99.50 Td (W) Tj ET Q q 0 0 0 rg BT 56.91 99.50 Td (arrant Liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.50 Td (The Company's warrant liability is carried at fair value and is classified as Level3 in the fair value hierarchy because the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.50 Td (warrants are valued based on unobservable inputs.) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (The Company determines the fair value of its warrant liability using the Black-Scholes option-pricing model unless the awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (are subject to market conditions, in which case it uses a Monte Carlo simulation model, which utilizes multiple input variables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (to estimate the probability that market conditions will be achieved. ) Tj ET Q q 0 0 0 rg BT 318.97 662.10 Td (These models are dependent on several variables such as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (instrument's expected term, expected strike price, expected risk-free interest rate over the expected term of the instrument, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (expected dividend yield rate over the expected term and the expected volatility) Tj ET Q q 0 0 0 rg BT 364.00 638.10 Td (. ) Tj ET Q q 0 0 0 rg BT 368.82 638.10 Td (The expected strike price for warrants with full-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (ratchet down-round price protection is based on a weighted average probability analysis of the strike price changes expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (during the term as a result of the full-ratchet down-round price protection.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (The assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the warrant liability as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (December 31, 2016 were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 548.60 413.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 548.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 518.60 413.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 518.60 100.00 -15.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 538.27 Td (Expected volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 538.27 Td (97.7% - 106.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 523.27 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 523.27 Td (1.40% - 1.92%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 508.27 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 508.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 493.27 Td (Expected life in years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.80 493.27 Td (2.8 - 5.0) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (The assumptions used in the Monte Carlo simulation model to estimate the fair value of the warrant liability as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (2016 were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 423.60 413.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 423.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 393.60 413.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 393.60 100.00 -15.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 413.27 Td (Expected volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 413.27 Td (97.7%-106.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 398.27 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 398.27 Td (1.03%-1.43%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 383.27 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 383.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 368.27 Td (Expected life in years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.30 368.27 Td (1.5-2.9) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (The warrant liability) Tj ET Q q 0 0 0 rg BT 131.04 344.10 Td (, included in accrued expenses and other current liabilities in the accompanying consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (sheets, is re-measured at the end of each reporting period with changes in fair value recognized in other income \(expense\), net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (in the consolidated statements of comprehensive loss. Upon the exercise of a warrant that is classified as a liability) Tj ET Q q 0 0 0 rg BT 507.33 320.10 Td (, the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (value of the warrant exercised is re-measured on the exercise date and reclassified from warrant liability to additional paid-in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (capital. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (13. Fair) Tj ET Q q 0 0 0 rg BT 85.14 264.10 Td ( ) Tj ET Q q 0 0 0 rg BT 87.46 264.10 Td (V) Tj ET Q q 0 0 0 rg BT 93.77 264.10 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 146.63 264.10 Td (ements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (The Company measures certain financial assets and liabilities at fair value in accordance with a hierarchy which requires an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (entity to maximize the use of observable inputs which reflect market data obtained from independent sources and minimize the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (use of unobservable inputs. ) Tj ET Q q 0 0 0 rg BT 161.24 216.10 Td (There are three levels of inputs that may be used to measure fair value:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 192.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.50 192.10 Td (Level 1: Quoted prices \(unadjusted\)in active markets for identical assets or liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 168.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.50 168.10 Td (Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 156.10 Td (including quoted prices for similar instruments in active markets and quoted prices for identical or similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 144.10 Td (instruments in markets that are not active; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 120.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.50 120.10 Td (Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 108.10 Td (own assumptions about the assumptions that market participants would use in pricing.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Assets and liabilities measured at fair value on the Company) Tj ET Q q 0 0 0 rg BT 294.71 686.10 Td (s balance sheet on a recurring basis include the following at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (December31, 2016andDecember31, 2015 \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 633.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 633.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 633.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 633.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 648.6 m 424 648.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 648.6 m 493 648.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 648.6 m 562 648.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 652.83 Td (Warrant Liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 652.83 Td (Level1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.65 652.83 Td (Level2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.65 652.83 Td (Level3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 638.27 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.15 638.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 638.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 638.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 638.27 Td (1,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 623.27 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.15 623.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 623.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 623.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 623.27 Td (3,072) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.24 595.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.24 595.10 Td ( transfers in and out of Level1 and Level2 fair value measurements during the year endedDecember 31, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (The following is a reconciliation of the warrant liability) Tj ET Q q 0 0 0 rg BT 271.56 571.10 Td (, included in accrued expenses and other current liabilities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (accompanying unaudited condensed consolidated balance sheets, measured at fair value using Level 3 inputs \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 496.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 496.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 496.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 496.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 466.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 466.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 466.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 466.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 526.6 m 493 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 526.6 m 497 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 526.6 m 562 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 511.6 m 493 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 511.6 m 562 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 511.6 m 493 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 511.6 m 562 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 451.6 m 493 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 437.6 m 493 437.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 435.6 m 493 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 451.6 m 562 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 437.6 m 562 437.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 435.6 m 562 435.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.80 538.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.25 530.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 515.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 515.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 501.27 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 501.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 501.27 Td (3,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 501.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 501.27 Td (1,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 486.27 Td (Issuance of common stock warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 486.27 Td (858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 486.27 Td (4,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 471.27 Td (Exercise of common stock warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 471.32 Td (\(1,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 471.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 471.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 456.27 Td (Gain on change in fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 456.32 Td (\(1,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 456.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 456.32 Td (\(2,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 456.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 441.27 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 441.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 441.27 Td (1,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 441.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 441.27 Td (3,072) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (The following is a reconciliation of the embedded bifurcated derivative liability measured at fair value using significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (unobservable inputs, Level3 \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 345.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 345.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 345.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 345.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 315.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 315.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 315.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 315.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 285.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 285.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 285.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 285.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 360.6 m 493 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 360.6 m 497 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 360.6 m 562 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 345.6 m 493 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 345.6 m 562 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 345.6 m 493 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 345.6 m 562 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 285.6 m 493 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 271.6 m 493 271.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 269.6 m 493 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 285.6 m 562 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 271.6 m 562 271.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 269.6 m 562 269.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.80 379.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.25 364.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 349.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 349.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 335.27 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 335.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 335.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 335.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 335.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 320.27 Td (Transfers in and/or out of Level 3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 320.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 320.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 305.27 Td (Initial valuation of bifurcated derivative liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 305.27 Td (3,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 305.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 290.27 Td (Extinguishment of bifurcated derivative liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 290.32 Td (\(3,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 290.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 290.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 275.27 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 275.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 275.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 275.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 275.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (Upon amendment of the Kanis debt on ) Tj ET Q q 0 0 0 rg BT 206.41 247.10 Td (April1, 2016, the convertible debt required bifurcation and accounting at fair value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (The resulting embedded derivative was comprised of a conversion option, the exercise of which would require shareholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (approval, as well as a call option the Company could exercise in the event of a Liquidity Event. ) Tj ET Q q 0 0 0 rg BT 436.15 223.10 Td (The call option would be at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 211.10 Td ( discount to the Liquidity Event price. ) Tj ET Q q 0 0 0 rg BT 222.06 211.10 Td (The company used a Monte Carlo simulation model to estimate the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (embedded derivative portion of the Kanis debt. ) Tj ET Q q 0 0 0 rg BT 242.87 199.10 Td (The assumptions used in the Monte Carlo simulation model to estimate the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (value of the derivative liability included volatility of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.66 187.10 Td (109%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.99 187.10 Td (, a risk free rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.78 187.10 Td (0.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.61 187.10 Td ( and an expected term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.68 187.10 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.18 187.10 Td ( years. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (August 30, 2016, the Kanis debt was extinguished eliminating the embedded derivative.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (The fair values of the Company) Tj ET Q q 0 0 0 rg BT 179.18 151.10 Td (s cash, accounts receivable, prepaid expenses and other current assets, accounts payable and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (accrued expenses and other current liabilities approximate carrying values due to the short maturity of these instruments. ) Tj ET Q q 0 0 0 rg BT 534.72 139.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (fair value of the line of credit approximates its carrying value due to the variable interest rates. Using a net present value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (model, the fair value of the Company) Tj ET Q q 0 0 0 rg BT 201.96 115.10 Td (s current notes payable is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.54 115.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.43 115.10 Td ( at December 31, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 91.10 Td (s assessment of the significance of a particular input to the fair value measurement requires judgment and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 79.10 Td (fect the valuation of assets and liabilities and their placement within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 424.08 79.10 Td (.) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (14. Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (The Clean Diesel ) Tj ET Q q 0 0 0 rg BT 121.24 666.25 Td (T) Tj ET Q q 0 0 0 rg BT 126.65 666.25 Td (echnologies,Inc. Stock Incentive Plan \(formerly known as the Clean Diesel ) Tj ET Q q 0 0 0 rg BT 432.21 666.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.63 666.25 Td (echnologies,Inc. 1994 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (Incentive Plan\), as amended \(the "Plan"\), provides for the awarding of incentive stock options, non-qualified stock options, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (stock appreciation rights, restricted shares, performance awards, bonuses or other forms of share-based awards, or combinations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (of these to the Company's directors, of) Tj ET Q q 0 0 0 rg BT 203.59 630.25 Td (ficers, employees, consultants and advisors \(except consultants or advisors in capital-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (raising transactions\) as determined by the board of directors. ) Tj ET Q q 0 0 0 rg BT 293.87 618.25 Td (At the Company's ) Tj ET Q q 0 0 0 rg BT 367.62 618.25 Td (Annual Meeting of Shareholders held on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (May23, 2012, the Company's shareholders approved certain amendments to the Plan, the most significant of which changed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (the Plan name, removed the ever) Tj ET Q q 0 0 0 rg BT 180.38 594.25 Td (green provision and established a maximum number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 594.25 Td (1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.00 594.25 Td ( shares to be reserved for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (issuance under the Plan, disallowed the repricing of outstanding stock options without shareholder approval, removed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (ability to issue cash bonus awards under the Plan and modified the change in control provisions within the Plan. ) Tj ET Q q 0 0 0 rg BT 499.42 570.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 558.25 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 558.25 Td (81,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.00 558.25 Td ( shares available for future grants under the Plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 58.76 538.25 Td (fective December 16, 2016, the Company adopted the Clean Diesel ) Tj ET Q q 0 0 0 rg BT 330.71 538.25 Td (T) Tj ET Q q 0 0 0 rg BT 336.12 538.25 Td (echnologies, Inc. 2016 Omnibus Incentive Plan \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td ("Omnibus Plan"\), pursuant to the approval of the Omnibus plan by the Company's stockholders by written consent dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (October 24, 2016. ) Tj ET Q q 0 0 0 rg BT 124.03 514.25 Td (The Omnibus plan was adopted by the Company's Board of Directors \(the "Board"\) on October 1) Tj ET Q q 0 0 0 rg BT 513.25 514.25 Td (1, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (Under the Omnibus Plan, the Company is authorized to grant equity-based awards in the form of stock options, restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (common stock, restricted stock units, stock appreciation rights, and other stock based awards to employees \(including executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 478.25 Td (ficers\), directors and consultants of the Company and its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 337.96 478.25 Td (The Omnibus Plan authorized the issuance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.08 478.25 Td (2,250,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.08 478.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (shares of the Company's common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 446.25 Td (otal stock-based compensation expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.91 446.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.80 446.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.24 446.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.13 446.25 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.49 446.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.07 446.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.51 446.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.51 446.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 434.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (Stock Options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (Stock option activity is summarized as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 308.75 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 308.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 308.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 308.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 308.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 308.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 308.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 308.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 278.75 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 278.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 278.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 278.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 278.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 278.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 278.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 278.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 248.75 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 248.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 248.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 248.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 248.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 248.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 248.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 248.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 308.75 m 356 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 308.75 m 425 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 308.75 m 494 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 308.75 m 563 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 308.75 m 494 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 308.75 m 563 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 249.75 m 356 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 247.75 m 356 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 249.75 m 425 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 247.75 m 425 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 249.75 m 494 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 247.75 m 494 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 249.75 m 563 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 247.75 m 563 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 234.75 m 356 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 232.75 m 356 232.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 234.75 m 425 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 232.75 m 425 232.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 234.75 m 494 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 232.75 m 494 232.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 234.75 m 563 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 232.75 m 563 232.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 219.75 m 356 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 217.75 m 356 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 219.75 m 425 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 217.75 m 425 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 219.75 m 494 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 217.75 m 494 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 219.75 m 563 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 217.75 m 563 217.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 313.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.40 312.98 Td (Options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.75 336.98 Td (W) Tj ET Q q 0 0 0 rg BT 383.31 336.98 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.05 328.98 Td (A) Tj ET Q q 0 0 0 rg BT 383.23 328.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 320.98 Td (Exer) Tj ET Q q 0 0 0 rg BT 393.89 320.98 Td (cise) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.10 312.98 Td (Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.75 352.98 Td (W) Tj ET Q q 0 0 0 rg BT 452.31 352.98 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.05 344.98 Td (A) Tj ET Q q 0 0 0 rg BT 452.23 344.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.30 336.98 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.30 328.98 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.80 320.98 Td (T) Tj ET Q q 0 0 0 rg BT 456.40 320.98 Td (erm) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.85 312.98 Td (\(in years\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.50 336.98 Td (Aggr) Tj ET Q q 0 0 0 rg BT 529.68 336.98 Td (egate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.30 328.98 Td (Intrinsic) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.35 320.98 Td (V) Tj ET Q q 0 0 0 rg BT 525.39 320.98 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.95 312.98 Td (\(thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.42 Td (Outstanding at December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.65 298.42 Td (256,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 298.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 298.42 Td (20.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 298.42 Td (7.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 298.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 283.42 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.65 283.42 Td (875,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 283.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 283.42 Td (2.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 283.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 283.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 268.42 Td (Cancelled) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.30 268.47 Td (\(24,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 268.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 268.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 268.42 Td (8.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 268.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 268.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 253.42 Td (Vested shares expired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.30 253.47 Td (\(34,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 253.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 253.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 253.42 Td (36.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 253.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 253.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 253.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 238.42 Td (Outstanding at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 238.42 Td (1,073,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 238.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 238.42 Td (5.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 238.42 Td (9.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 238.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 238.42 Td (5,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 223.42 Td (Exercisable at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.65 223.42 Td (471,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 223.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 223.42 Td (8.82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 223.42 Td (8.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 223.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 223.42 Td (2,750) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.25 Td (The aggregate intrinsic value represents the dif) Tj ET Q q 0 0 0 rg BT 237.02 199.25 Td (ference between the exercise price and the Company's closing stock price on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.25 Td (last trading day of the year) Tj ET Q q 0 0 0 rg BT 155.85 187.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (Stock options granted under the Plan typically expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.45 167.25 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.67 167.25 Td ( years from the date of grant and are issued at a price equal to the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (market value of the underlying stock on the date of grant. ) Tj ET Q q 0 0 0 rg BT 281.47 155.25 Td (The Company's board of directors may establish such vesting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.25 Td (other conditions with respect to options as it deems appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. ) Tj ET Q q 0 0 0 rg BT 451.18 123.25 Td (The weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (assumptions and grant date fair value for the options granted during year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.12 111.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.71 111.25 Td ( were as follows:) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-27) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 662.50 340.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 662.50 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 662.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 662.50 74.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 632.50 340.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 632.50 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 632.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 632.50 74.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 602.50 340.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 602.50 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 602.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 602.50 74.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 677.5 m 477 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 677.5 m 483 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 677.5 m 557 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 662.5 m 477 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 662.5 m 557 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 662.5 m 477 662.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.05 681.73 Td (Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.00 666.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.50 666.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 652.17 Td (Expected volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 652.17 Td (153.7% - 168.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 652.17 Td (126.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 652.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 637.17 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 637.17 Td (1.19% - 2.18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 637.17 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 637.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 622.17 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 622.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 622.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.17 Td (Expected life in years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 607.17 Td (6.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.00 607.17 Td (5.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 592.17 Td (Weighted average grant date fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 592.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 592.17 Td (2.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 592.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 592.17 Td (7.60) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.00 Td (The expected term of the options has historically been based upon the historical term until exercise or expiration of all granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.00 Td (options. Due to the significant change in the Company following the Mer) Tj ET Q q 0 0 0 rg BT 342.60 556.00 Td (ger and significant change in the terms of the options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.00 Td (granted, CDTI's pre-Mer) Tj ET Q q 0 0 0 rg BT 148.59 544.00 Td (ger historical exercise data was not considered to provide a reasonable basis for estimating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.00 Td (expected term for current option grants. ) Tj ET Q q 0 0 0 rg BT 210.28 532.00 Td (As such, the expected term of stock options granted in 2015 was determined using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.00 Td ("simplified method" as allowed under ) Tj ET Q q 0 0 0 rg BT 202.91 520.00 Td (ASC 718-10-S99, "CompensationStock Compensation: Overall: SEC Materials." ) Tj ET Q q 0 0 0 rg BT 540.04 520.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.00 Td ("simplified method" calculates the expected term as the average of the vesting term and original contractual term of the options. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.00 Td (The expected volatility is based on the volatility of the Company over the corresponding expected term of the option. ) Tj ET Q q 0 0 0 rg BT 520.86 496.00 Td (The risk-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.00 Td (free interest rate is the constant maturity rate published by the U.S. Federal Reserve Board that corresponds to the expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.00 Td (term of the option. ) Tj ET Q q 0 0 0 rg BT 126.25 472.00 Td (The dividend yield is assumed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.22 472.00 Td (0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.55 472.00 Td ( because the Company has not paid dividends and does not expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.00 Td (pay dividends in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.00 Td (Compensation costs for stock options that vest over time are recognized over the vesting period on a straight-line basis. ) Tj ET Q q 0 0 0 rg BT 528.83 440.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.00 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 428.00 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.13 428.00 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.02 428.00 Td ( of unrecognized compensation cost related to stock option grants that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.00 Td (remained to be recognized over vesting periods. ) Tj ET Q q 0 0 0 rg BT 243.69 416.00 Td (These costs are expected to be recognized over a weighted average period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.00 Td (3.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 404.00 Td (years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 384.00 Td (Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.00 Td (RSU activity is as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 316.50 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 316.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 316.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 316.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 286.50 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 286.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 286.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 286.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 256.50 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 256.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 256.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 256.50 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 316.5 m 494 316.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 316.5 m 563 316.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 256.5 m 494 256.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 242.5 m 494 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 240.5 m 494 240.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 321.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 320.73 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.75 336.73 Td (W) Tj ET Q q 0 0 0 rg BT 521.31 336.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.60 328.73 Td (A) Tj ET Q q 0 0 0 rg BT 509.78 328.73 Td (verage Grant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.15 320.73 Td (Date Fair) Tj ET Q q 0 0 0 rg BT 535.66 320.73 Td ( ) Tj ET Q q 0 0 0 rg BT 537.51 320.73 Td (V) Tj ET Q q 0 0 0 rg BT 542.56 320.73 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 306.17 Td (Nonvested at December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 306.17 Td (39,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 306.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 306.17 Td (12.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 291.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 291.17 Td (5,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 291.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 291.17 Td (2.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 276.17 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 276.22 Td (\(28,806) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 276.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 276.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 276.17 Td (11.38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 261.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 261.22 Td (\(3,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 261.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 261.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 261.17 Td (13.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 246.17 Td (Nonvested units at December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 246.17 Td (12,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 246.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 246.17 Td (10.50) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 222.00 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 222.00 Td (, the Company had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.83 222.00 Td ($37.5 thousand) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.94 222.00 Td ( of unrecognized compensation expense related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.00 Td (RSUs, which will be recognized over a weighted average estimated remaining life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.60 210.00 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.10 210.00 Td (years.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 190.00 Td (15. Impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.00 Td (The Company performs its annual impairment test during the fourth quarter) Tj ET Q q 0 0 0 rg BT 351.80 160.00 Td (, after the annual budgeting process is completed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.00 Td (Furthermore, goodwill is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.00 Td (may not be recoverable. Each interim period, management assesses whether or not an indicator of impairment is present that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.00 Td (would necessitate that a goodwill impairment analysis be performed in an interim period other than during the fourth quarter) Tj ET Q q 0 0 0 rg BT 547.14 124.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.00 Td (During the Company) Tj ET Q q 0 0 0 rg BT 136.71 100.00 Td (s annual impairment analysis during the fourth quarter of 2016, management used a discount rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.54 100.00 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.87 100.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.00 Td (and a terminal growth rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.34 88.00 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.67 88.00 Td (. ) Tj ET Q q 0 0 0 rg BT 188.99 88.00 Td (The discount rate used in the discount cash flow method was based on a weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.00 Td (cost of capital determined from relevant market comparisons, adjusted for specific reporting unit risks \(i.e. primarily the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.00 Td (uncertainty of achieving projected operating cash flows\). ) Tj ET Q q 0 0 0 rg BT 282.29 64.00 Td (The terminal value growth rate was applied to the final year of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 52.00 Td (projected period and reflected the Company's estimate of stable, perpetual growth.) Tj ET Q q 0 0 0 rg BT 383.78 52.00 Td (The inputs utilized in the analyses are ) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (classified as Level 3 inputs within the fair value hierarchy as defined in ) Tj ET Q q 0 0 0 rg BT 336.91 686.10 Td (ASC ) Tj ET Q q 0 0 0 rg BT 358.68 686.10 Td (T) Tj ET Q q 0 0 0 rg BT 364.09 686.10 Td (opic 820 Fair ) Tj ET Q q 0 0 0 rg BT 424.17 686.10 Td (V) Tj ET Q q 0 0 0 rg BT 430.29 686.10 Td (alue Measurements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Disclosures \(ASC 820\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Due to the complexity and the ef) Tj ET Q q 0 0 0 rg BT 180.39 650.10 Td (fort required to estimate the fair value of the reporting units in the step one of the impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (test and to estimate the fair values of all assets and liabilities of the reporting units in the second step of the test, the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (estimates were derived based on assumptions and analyses that are subject to change. Such assumptions include but are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (limited to the following: changes in its cost of capital, growth of the reporting unit's revenue, cost structure of the reporting unit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (successful completion of research and development and customer acceptance of new products, expected changes in emissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (regulations and approval of the reporting unit's product by regulatory agencies. Based on the Company) Tj ET Q q 0 0 0 rg BT 466.19 590.10 Td (s analyses, the implied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (fair value of goodwill was substantially lower than the carrying value of goodwill for its reporting unit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (As a result during the fourth quarter of 2016, the Company recognized, an impairment char) Tj ET Q q 0 0 0 rg BT 414.21 554.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.98 554.10 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.87 554.10 Td (. ) Tj ET Q q 0 0 0 rg BT 490.69 554.10 Td (This impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 542.10 Td (ge was included as a separate component of operating expenses for the year ended December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 481.09 542.10 Td (As a result, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (December 31, 2016, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.13 530.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.13 530.10 Td ( goodwill on its consolidated balance sheet. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (16. Income ) Tj ET Q q 0 0 0 rg BT 98.48 498.10 Td (T) Tj ET Q q 0 0 0 rg BT 104.23 498.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Income \(loss\) from continuing operations before income taxes include the following components \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 425.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 425.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 425.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 395.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 395.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 395.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 395.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 438.6 m 494 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 438.6 m 498 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 438.6 m 563 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 425.6 m 494 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 425.6 m 563 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 395.6 m 494 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 381.6 m 494 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 379.6 m 494 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 395.6 m 563 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 381.6 m 563 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 379.6 m 563 379.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 443.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 450.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 442.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 429.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 429.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 429.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.27 Td (U.S.-based operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 415.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 415.32 Td (\(17,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 415.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 415.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 415.32 Td (\(7,770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 415.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 400.27 Td (Non U.S.-based operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 400.32 Td (\(7,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 400.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 400.32 Td (\(1,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 400.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 385.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 385.32 Td (\(24,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 385.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 385.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 385.32 Td (\(8,821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 385.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (Income tax expense \(benefit\) attributable to loss from continuing operations is summarized as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 328.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 328.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 328.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 328.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 328.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 328.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 298.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 298.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 298.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 298.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 298.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 298.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 268.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 268.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 268.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 268.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 268.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 268.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 238.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 238.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 238.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 238.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 238.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 238.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 208.60 310.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 208.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 208.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 208.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 208.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 208.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 328.6 m 425 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 328.6 m 494 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 328.6 m 563 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 283.6 m 425 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 269.6 m 425 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 267.6 m 425 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 283.6 m 494 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 269.6 m 494 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 267.6 m 494 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 283.6 m 563 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 269.6 m 563 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 208.60000000000002 m 425 208.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 194.60000000000002 m 425 194.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 192.60000000000002 m 425 192.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 208.60000000000002 m 494 208.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 194.60000000000002 m 494 194.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 192.60000000000002 m 494 192.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 208.60000000000002 m 563 208.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 194.60000000000002 m 563 194.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 192.60000000000002 m 563 192.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 333.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.05 332.83 Td (Current) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.75 332.83 Td (Deferred) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.25 332.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.27 Td (Year ended December 31, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 318.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 318.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 318.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 303.27 Td (State and local) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 303.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 303.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 303.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 303.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 303.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 303.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 288.27 Td (Foreign) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 288.32 Td (\(210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 288.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 288.32 Td (\(770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 288.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 288.32 Td (\(980) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 288.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 273.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 273.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 273.32 Td (\(188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 273.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 273.32 Td (\(770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 273.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 273.32 Td (\(958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 258.27 Td (Year ended December 31, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 258.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 258.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 258.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 243.27 Td (U.S. Federal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 243.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 243.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 243.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 243.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 243.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 243.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 228.27 Td (State and local) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 228.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 228.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 228.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 213.27 Td (Foreign) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 213.32 Td (\(269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 213.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 213.32 Td (\(134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 213.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 213.32 Td (\(403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 213.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 198.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 198.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 198.32 Td (\(265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 198.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 198.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 198.32 Td (\(134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 198.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 198.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 198.32 Td (\(399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 198.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Income taxes attributable to loss from continuing operations dif) Tj ET Q q 0 0 0 rg BT 303.70 686.10 Td (fer from the amounts computed by applying the U.S. federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 674.10 Td (34%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.64 674.10 Td ( to loss from continuing operations before income taxes as shown below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 621.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 621.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 621.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 621.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 591.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 591.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 591.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 591.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 561.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 561.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 561.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 561.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 531.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 531.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 531.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 531.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 501.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 501.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 501.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 501.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 471.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 471.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 471.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 634.6 m 494 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 634.6 m 498 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 634.6 m 563 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 621.6 m 494 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 621.6 m 563 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 471.6 m 494 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 457.6 m 494 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 455.6 m 494 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 471.6 m 563 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 457.6 m 563 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 455.6 m 563 455.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 639.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 646.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 638.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 625.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 625.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 625.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 611.27 Td (Expected tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 611.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 611.32 Td (\(8,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 611.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 611.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 611.32 Td (\(2,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 611.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 596.27 Td (Net tax effects of:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 596.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 596.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 581.27 Td (Foreign tax rate differential) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 581.27 Td (1,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 581.27 Td (167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 566.27 Td (State taxes, net of federal benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 566.27 Td (219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 566.32 Td (\(602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 566.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 551.27 Td (Return to provision adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 551.27 Td (13,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 551.32 Td (\(619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 551.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 536.27 Td (Research and other credits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 536.27 Td (443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 536.32 Td (\(59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 536.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 521.27 Td (Permanent difference on convertible notes and warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 521.27 Td (2,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 521.32 Td (\(589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 521.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.27 Td (Goodwill impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 506.27 Td (533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 491.27 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 491.27 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 491.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 476.27 Td (Change in deferred tax asset valuation allowance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 476.32 Td (\(11,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 476.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 476.27 Td (4,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 461.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 461.32 Td (\(958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 461.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 461.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 461.32 Td (\(399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 461.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (Deferred tax assets and liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 391.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 391.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 391.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 391.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 361.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 361.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 361.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 331.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 331.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 331.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 331.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 301.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 301.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 301.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 301.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 271.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 271.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 271.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 271.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 241.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 241.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 241.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 241.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 211.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 211.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 211.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 211.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 181.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 181.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 181.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 181.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 151.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 151.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 151.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 151.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 404.6 m 494 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 404.6 m 498 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 404.6 m 563 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 391.6 m 494 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 391.6 m 563 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 226.60000000000002 m 494 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 226.60000000000002 m 563 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 196.60000000000002 m 494 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 182.60000000000002 m 494 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 180.60000000000002 m 494 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 196.60000000000002 m 563 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 182.60000000000002 m 563 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 180.60000000000002 m 563 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 151.60000000000002 m 494 151.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 151.60000000000002 m 563 151.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 136.60000000000002 m 494 136.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 122.60000000000002 m 494 122.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 120.60000000000002 m 494 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 136.60000000000002 m 563 136.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 122.60000000000002 m 563 122.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 120.60000000000002 m 563 120.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 409.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 408.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 395.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 395.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 395.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 381.27 Td (Deferred tax assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 381.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 381.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 366.27 Td (Research and development credits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 366.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 366.27 Td (2,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 366.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 366.27 Td (2,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 351.27 Td (Other credits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 351.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 351.27 Td (487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 336.27 Td (Operating loss carry forwards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 336.27 Td (7,320) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 336.27 Td (17,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 321.27 Td (Interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 321.27 Td (460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 321.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 306.27 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 306.27 Td (289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 306.27 Td (254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 291.27 Td (Allowance for doubtful accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 291.27 Td (129) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 291.27 Td (116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 276.27 Td (Depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 276.27 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 276.27 Td (382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 261.27 Td (Deferred research and development expenses for income tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 261.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 261.27 Td (240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 246.27 Td (Non-cash compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 246.27 Td (946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 246.27 Td (1,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 231.27 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 231.27 Td (929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 231.27 Td (921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 216.27 Td (Total gross deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 216.27 Td (12,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 216.27 Td (23,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 201.27 Td (Valuation allowance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.30 201.32 Td (\(11,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 201.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 201.32 Td (\(23,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 201.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 186.27 Td (Net deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 186.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 186.27 Td (1,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 186.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 186.27 Td (441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 171.27 Td (Deferred tax liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 171.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 171.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 156.27 Td (Other identifiable intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 156.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 156.32 Td (\(494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 156.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 156.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 156.32 Td (\(634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 156.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 141.27 Td (Total gross deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.80 141.32 Td (\(494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 141.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 141.32 Td (\(634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 141.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 126.27 Td (Net deferred tax assets \(liabilities\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 126.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 126.27 Td (554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 126.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 126.32 Td (\(193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 126.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (The Company had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.13 102.10 Td ($14.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.02 102.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.46 102.10 Td ($14.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.35 102.10 Td ( of federal and state income tax net operating loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (carryforwards at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.80 90.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.38 90.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 249.04 90.10 Td (. ) Tj ET Q q 0 0 0 rg BT 253.86 90.10 Td (The foreign net operating losses can be carried forward indefinitely) Tj ET Q q 0 0 0 rg BT 522.83 90.10 Td (. Future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (utilization of the federal and state net operating losses and credit carryforwards is subject to a substantial annual limitation due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (to ownership change limitations as required by Sections382 and 383 of the Internal Revenue Code of 1986, as amended \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td ("Code"\), as well as similar state limitations.) Tj ET Q endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (In connection with the settlement of the Kanis S.A. debt exchange \(see Note 10\), a change in control of the Company occurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (with Kanis S.A. becoming the lar) Tj ET Q q 0 0 0 rg BT 182.91 674.10 Td (gest owner of the Company's common stock in an amount greater than 50% of the issued and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (outstanding shares of common stock. ) Tj ET Q q 0 0 0 rg BT 202.54 662.10 Td (As a result, the Company performed a study to evaluate the status of net operating loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (carryforwards as a result of the ownership change during the year) Tj ET Q q 0 0 0 rg BT 311.07 650.10 Td (. ) Tj ET Q q 0 0 0 rg BT 318.39 650.10 Td (The results of the study provided that there was indeed an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (ownership change as of ) Tj ET Q q 0 0 0 rg BT 154.46 638.10 Td (August 30, 2016 as defined for U.S. federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 420.89 638.10 Td (The "ownership change" will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (significantly limit the use of the Company's net operating losses and credits in future tax years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (Of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.27 606.10 Td ($14.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.16 606.10 Td ( federal loss carryforwards approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 606.10 Td ($1) Tj ET Q q 0 0 0 rg BT 310.44 606.10 Td (1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.33 606.10 Td ( of the loss will be subject to an annual limitation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 594.10 Td ( within the next 5years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.42 594.10 Td ($0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.92 594.10 Td ( million for the next 15 years. ) Tj ET Q q 0 0 0 rg BT 349.82 594.10 Td (The federal net operating loss carryforwards will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (expire in fiscal year 2036. ) Tj ET Q q 0 0 0 rg BT 155.57 582.10 Td (As a result of the "ownership change" the federal research and development credits have been limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (and based on the limitation the Company does not anticipate being able to use any of these credits that existed as of the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (the Mer) Tj ET Q q 0 0 0 rg BT 80.70 558.10 Td (ger in future tax years. Of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.20 558.10 Td ($14.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.10 558.10 Td ( of state net operating loss carryforwards approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.13 558.10 Td ($10.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.02 558.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (loss will be subject to an annual limitation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.97 546.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.86 546.10 Td ( within the next 5years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.89 546.10 Td ($0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.39 546.10 Td ( million for the next 15 years. ) Tj ET Q q 0 0 0 rg BT 532.29 546.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (state net operating loss carryforwards will expire in fiscal year 2036. ) Tj ET Q q 0 0 0 rg BT 326.45 534.10 Td (The Company has state research and development credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 522.10 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 522.10 Td ( however they have placed a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.28 522.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.61 522.10 Td ( reserve on the credit since a thorough R&D study was not performed. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (the state credits have an indefinite life, the Company did not write them of) Tj ET Q q 0 0 0 rg BT 347.01 510.10 Td (f even though it is also limited under Section383. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (The Company has a full valuation allowance against the related deferred tax assets for its U.S. and U.K. entities as it is more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (likely than not that they will not be realized by the Company) Tj ET Q q 0 0 0 rg BT 291.85 486.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (In assessing the potential realization of deferred tax assets, consideration is given to whether it is more likely than not that some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (portion or all of the deferred tax assets will be realized. ) Tj ET Q q 0 0 0 rg BT 272.57 454.10 Td (The ultimate realization of deferred tax assets is dependent upon the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Company attaining future taxable income during the periods in which those temporary dif) Tj ET Q q 0 0 0 rg BT 408.67 442.10 Td (ferences become deductible. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (addition, the utilization of net operating loss carryforwards may be limited due to restrictions imposed under applicable federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (and state tax laws due to a change in ownership. Based upon the level of historical operating losses and future projections, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (management believes it is more likely than not that the Company will not realize the deferred tax assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (The Company has not recognized a deferred tax liability on undistributed earnings of its foreign subsidiaries, because these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 258.13 374.10 Td (The amount of the unrecognized deferred tax liability depends on judgment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (required to analyze the withholding tax due, the applicable tax law and factual circumstances in ef) Tj ET Q q 0 0 0 rg BT 441.94 362.10 Td (fect at the time of any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (distributions. ) Tj ET Q q 0 0 0 rg BT 104.32 350.10 Td (Therefore, the Company believes it is not practicable at this time to reliably determine the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (unrecognized deferred tax liability related to its undistributed earnings; however) Tj ET Q q 0 0 0 rg BT 370.38 338.10 Td (, these undistributed earnings are immaterial. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (income taxes have not been recognized by the parent entity) Tj ET Q q 0 0 0 rg BT 285.70 314.10 Td (, the parent entity shall accrue as an expense of the current period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (income taxes attributable to that remittance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (The following changes occurred in the amount of unrecognized tax benefits including related interest and penalties, included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (the income taxes payable on the consolidated balance sheet \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 217.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 217.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 217.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 187.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 187.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 187.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 172.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 172.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 172.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 230.60000000000002 m 494 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 230.60000000000002 m 498 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 230.60000000000002 m 563 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 217.60000000000002 m 494 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 217.60000000000002 m 563 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 157.60000000000002 m 494 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 143.60000000000002 m 494 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 141.60000000000002 m 494 141.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 157.60000000000002 m 563 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 143.60000000000002 m 563 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 141.60000000000002 m 563 141.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 235.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 242.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 234.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 221.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 221.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 221.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 207.27 Td (Balance at beginning of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 207.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 207.27 Td (634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 207.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 207.27 Td (683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 192.27 Td (Additions for current year tax provisions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 192.27 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 192.27 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 177.27 Td (Additions/Reduction for tax positions of prior years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 177.27 Td (786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 177.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 162.27 Td (Reduction for prior year tax provisions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 162.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 162.32 Td (\(81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 162.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 147.27 Td (Balance at end of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 147.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 147.27 Td (1,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 147.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 147.27 Td (634) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (If recognized, the entire amount of the unrecognized tax benefits would af) Tj ET Q q 0 0 0 rg BT 345.87 123.10 Td (fect the ef) Tj ET Q q 0 0 0 rg BT 385.66 123.10 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 449.51 123.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.95 123.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.54 123.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 111.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 111.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.48 111.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.37 111.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.81 111.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.70 111.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.20 111.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 336.86 111.10 Td (, accrued for payment of interest and penalties related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (unrecognized tax benefits.) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (The Company operates in multiple tax jurisdictions, both within and outside of the United States. ) Tj ET Q q 0 0 0 rg BT 440.28 686.10 Td (Although the timing of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (resolution and/or closure of audits is not certain, the Company does not believe it is reasonably possible that its unrecognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (tax benefits would materially change in the next twelve months. ) Tj ET Q q 0 0 0 rg BT 307.86 662.10 Td (The following tax years remain open to examination by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (major domestic taxing jurisdictions to which it is subject:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.60 423.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 617.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 587.60 423.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 587.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 557.60 423.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 557.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 617.6 m 563 617.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 622.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.50 621.83 Td (Open Tax Years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.27 Td (United StatesFederal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 607.27 Td (2013-2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 592.27 Td (United StatesState) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 592.27 Td (2012-2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.27 Td (Canada) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.50 577.27 Td (2011-2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 562.27 Td (Sweden) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 562.27 Td (2014-2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 547.27 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.30 547.27 Td (2012-2016) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 523.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 523.10 Td (Commitments and Contingencies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 206.17 523.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (Lease Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (The Company leases certain equipment and facilities under operating leases that expire through 2020. ) Tj ET Q q 0 0 0 rg BT 458.91 483.10 Td (The Company recognizes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (its minimum lease payments, including escalation clauses, on a straight-line basis over the minimum lease term of the lease. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (Rent expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.65 459.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.54 459.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 459.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.87 459.10 Td ( during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.67 459.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.25 459.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.69 459.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.69 459.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 507.35 459.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (Future minimum lease payments under non-cancelable operating leases \(with initial or remaining lease terms in excess of one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (year\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.20 427.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.78 427.10 Td ( are \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 408.60 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 408.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.60 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 378.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 348.60 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 348.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 318.60 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 318.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 318.6 m 563 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 304.6 m 563 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 302.6 m 563 302.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.27 Td (Years ending December31:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 398.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 383.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 383.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 383.27 Td (501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 368.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 368.27 Td (462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 353.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 353.27 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 338.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 338.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 323.27 Td (2021 and thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 323.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 308.27 Td (Total minimum lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 308.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 308.27 Td (966) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (California ) Tj ET Q q 0 0 0 rg BT 93.49 284.10 Td (Air Resour) Tj ET Q q 0 0 0 rg BT 136.73 284.10 Td (ces Boar) Tj ET Q q 0 0 0 rg BT 171.63 284.10 Td (d \( "CARB" \)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (By email dated June26, 2015, CARB asserted the Company had deficiencies in compliance with the ) Tj ET Q q 0 0 0 rg BT 454.78 264.10 Td (V) Tj ET Q q 0 0 0 rg BT 460.89 264.10 Td (erification Procedure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (Aftermarket Parts Regulations and the ) Tj ET Q q 0 0 0 rg BT 205.11 252.10 Td (V) Tj ET Q q 0 0 0 rg BT 211.22 252.10 Td (ehicle Code. ) Tj ET Q q 0 0 0 rg BT 263.52 252.10 Td (The initial penalty calculated by CARB for these alleged violations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 240.10 Td (, with the lar) Tj ET Q q 0 0 0 rg BT 148.75 240.10 Td (gest component relating to the use of empty center bodies to allow trucks to be placed back in service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (while warranty claims are being evaluated. ) Tj ET Q q 0 0 0 rg BT 223.41 228.10 Td (This process is now explicitly permitted by regulation, but was not permitted at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (time of the alleged violation. ) Tj ET Q q 0 0 0 rg BT 166.69 216.10 Td (Although the Company disagreed, and continues to disagree, with CARB's findings, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (has cooperated with CARB's investigation and discussed with CARB whether and to what extent the payment of monetary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (penalties would be appropriate. ) Tj ET Q q 0 0 0 rg BT 176.96 192.10 Td (After review and evaluation of CARB's findings and publicly available CARB settlements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (similar matters, the Company has accrued an expense of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.42 180.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.31 180.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.47 180.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.05 180.10 Td ( for a proposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (settlement provided to CARB to resolve this matter) Tj ET Q q 0 0 0 rg BT 254.75 168.10 Td (. During 2016, CARB responded to the Company's proposed settlement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (a counter) Tj ET Q q 0 0 0 rg BT 86.22 156.10 Td (-proposal of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.32 156.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.21 156.10 Td ( by cutting certain components of their initial penalty in half and reducing certain penalties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (During the first quarter of 2017, the Company and CARB reached a settlement in which the Company will pay approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 132.10 Td ( in 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (For information related to commitments and contingencies related to ) Tj ET Q q 0 0 0 rg BT 326.37 112.10 Td (AUS, a former subsidiary of the Company that was sold in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (2009, refer to Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 100.10 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.08 100.10 Td (, ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.17 100.10 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.87 100.10 Td (".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (In addition to the foregoing, the Company is involved in legal proceedings from time to time in the ordinary course of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (business. Management does not believe that any of these claims and proceedings against it is likely to have, individually or in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.10 Td (the aggregate, a material adverse ef) Tj ET Q q 0 0 0 rg BT 190.90 56.10 Td (fect on the Company's consolidated financial condition, results of operations or cash flows. ) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 686.10 Td (, the Company cannot determine the final amount, if any) Tj ET Q q 0 0 0 rg BT 324.51 686.10 Td (, of its liability beyond the amount accrued in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (consolidated financial statements as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.39 674.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.98 674.10 Td (, nor is it possible to estimate what litigation-related costs will be in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 634.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 634.10 Td (Geographic Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.22 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 621.03 149.96 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 614.10 Td (In the past, the Company operated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.46 614.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.46 614.10 Td ( reportable business division segments based on the products it delivered. Beginning in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (the last quarter of 2015, the Company began transitioning from a niche manufacturer of emission control solutions for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (automotive and heavy duty diesel markets to becoming an advanced materials technology provider for these markets. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (the second quarter of 2016, the transition of the operating strategy was completed and the Company now views its operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (and measures its business as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 566.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.75 566.10 Td ( reportable segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (Net sales by geographic region based on location of sales or) Tj ET Q q 0 0 0 rg BT 289.25 546.10 Td (ganization is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 493.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 493.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 493.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 493.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 463.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 463.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 463.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 433.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 433.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 433.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 506.6 m 494 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 506.6 m 498 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 506.6 m 563 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 493.6 m 494 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 493.6 m 563 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 448.6 m 494 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 433.6 m 494 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 419.6 m 494 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 417.6 m 494 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 433.6 m 563 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 419.6 m 563 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 417.6 m 563 417.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 511.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 518.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 510.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 497.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 497.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 497.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 483.27 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 483.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 483.27 Td (23,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 483.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 483.27 Td (24,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 468.27 Td (Canada) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 468.27 Td (9,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 468.27 Td (12,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 453.27 Td (Europe) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 453.27 Td (3,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 453.27 Td (3,272) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 438.27 Td (Total international) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 438.27 Td (12,969) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 438.27 Td (15,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 423.27 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 423.27 Td (36,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 423.27 Td (39,738) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (Property and equipment, net and total assets by geographic region as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.48 399.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.06 399.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 399.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.50 399.10 Td ( is as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 341.60 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 341.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 341.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 341.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 341.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 341.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 341.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 341.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 311.60 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 311.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 311.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 311.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 311.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 311.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 311.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 311.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 281.60 241.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 281.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 281.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 281.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 281.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 281.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 281.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 281.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 354.6 m 356 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 354.6 m 360 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 354.6 m 425 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 354.6 m 494 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 354.6 m 498 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 354.6 m 563 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 341.6 m 356 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 341.6 m 425 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 341.6 m 494 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 341.6 m 563 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 296.6 m 356 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 296.6 m 425 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 296.6 m 494 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 296.6 m 563 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 281.6 m 356 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 267.6 m 356 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 265.6 m 356 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 281.6 m 425 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 267.6 m 425 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 265.6 m 425 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 281.6 m 494 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 267.6 m 494 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 265.6 m 494 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 281.6 m 563 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 265.6 m 563 265.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 359.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.30 358.83 Td (Property and Equipment, net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.30 358.83 Td (Total Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 345.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.00 345.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 345.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 345.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 345.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 331.27 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 331.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 331.27 Td (1,082) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 331.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 331.27 Td (1,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 331.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 331.27 Td (15,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 331.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 331.27 Td (11,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 316.27 Td (Canada) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.15 316.27 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 316.27 Td (290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 316.27 Td (8,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 316.27 Td (11,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 301.27 Td (Europe) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 301.27 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 301.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 301.27 Td (1,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 301.27 Td (2,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 286.27 Td (Total international) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.15 286.27 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 286.27 Td (291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 286.27 Td (9,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 286.27 Td (13,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 271.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 271.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 271.27 Td (1,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 271.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 271.27 Td (1,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 271.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 271.27 Td (24,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 271.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 271.27 Td (25,102) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (19. Concentrations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.08 227.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.67 227.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.11 227.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.11 227.10 Td (, Honda accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.46 227.10 Td (59%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.79 227.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.23 227.10 Td (57%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.56 227.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 449.22 227.10 Td (, of the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (revenues. ) Tj ET Q q 0 0 0 rg BT 90.36 215.10 Td (This customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.98 215.10 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.31 215.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.75 215.10 Td (31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.08 215.10 Td ( of the Company's accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.99 215.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.57 215.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.01 215.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.01 215.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 203.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 203.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (For the year ended December 31, 2016, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.82 183.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.26 183.10 Td ( supplier that accounted for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.42 183.10 Td (30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.75 183.10 Td ( of the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (material purchases. For the year ended December 31, 2015, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.01 171.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.01 171.10 Td ( suppliers that accounted for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (58%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 159.10 Td ( of the Company's material purchases. ) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (20. Supplementary Cash Flow Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (Supplementary cash flow information for 2016, and 2015 is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 604.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 604.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 604.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 604.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 574.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 574.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 574.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 574.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 544.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 544.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 544.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 544.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 514.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 514.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 514.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 514.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 484.75 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 484.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 484.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 484.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 619.75 m 493 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 619.75 m 497 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 619.75 m 562 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 604.75 m 493 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 604.75 m 562 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 604.75 m 493 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 604.75 m 562 604.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.80 631.98 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.25 623.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 608.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 608.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 594.42 Td (Cash paid for interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 594.42 Td (694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 594.42 Td (1,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 579.42 Td (Cash paid for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 579.42 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 579.42 Td (227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 564.42 Td (Non-cash operating and financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 549.42 Td ( Kanis S.A. notes payable plus accrued interest settled with common stock \(Note 10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 549.42 Td (7,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 549.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 534.42 Td ( Haldor Topse note payable settled with common stock \(Note 10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 534.42 Td (1,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 534.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 519.42 Td ( Director Note payable plus accrued interest settled with common stock \(Note 10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 519.42 Td (515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 519.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 504.42 Td ( Issuance of common stock to placement agent in connection with equity offering \(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 504.42 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 504.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 489.42 Td ( Issuance of warrants to placement agent in connection with equity offering \(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 489.42 Td (857) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 489.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 474.42 Td ( Accounts Payable settled with common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 474.42 Td (184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 474.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 438.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.50 438.25 Td (Discontinued Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 170.90 438.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (Applied Utility Systems,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (The Company is under) Tj ET Q q 0 0 0 rg BT 140.69 398.25 Td (going a sales and use tax audit by the State of California \(the "State"\) on ) Tj ET Q q 0 0 0 rg BT 432.40 398.25 Td (AUS for the period of 2007 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (through 2009. ) Tj ET Q q 0 0 0 rg BT 107.93 386.25 Td (The audit has identified a project performed by the Company during that time period for which sales tax was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (collected and remitted and for which the State asserts that proper documentation of resale may not have been obtained and that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (the Company owes sales tax of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 362.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.03 362.25 Td (, inclusive of interest. ) Tj ET Q q 0 0 0 rg BT 313.72 362.25 Td (The Company contends and believes that it received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 350.25 Td (ficient and proper documentation from its customer to support not collecting and remitting sales tax from that customer and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (is actively disputing the audit report with the State. On ) Tj ET Q q 0 0 0 rg BT 270.30 338.25 Td (August12, 2013, the Company appeared at an appeals conference with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (the State Board of Equalization \("BOE"\). On July21, 2014, the Company received a Decision and Recommendation \("D&R"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (from the BOE. ) Tj ET Q q 0 0 0 rg BT 110.97 314.25 Td (The D&R's conclusion was that the basis for the calculation of the aforementioned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.51 314.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.41 314.25 Td ( tax due should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (be reduced from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.52 302.25 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.41 302.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.19 302.25 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.08 302.25 Td ( with a commensurate reduction in the tax owed to the State. Regardless of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (finding, the Company continues to believe that it will prevail in this matter) Tj ET Q q 0 0 0 rg BT 348.21 290.25 Td (, as it believes that the State did not adequately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (address the legal ar) Tj ET Q q 0 0 0 rg BT 126.23 278.25 Td (guments related to the Company's acceptance of the valid resale certificate from its customer) Tj ET Q q 0 0 0 rg BT 497.05 278.25 Td (. ) Tj ET Q q 0 0 0 rg BT 501.87 278.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (has not agreed to these findings, and therefore, it will be appealing at a higher level at the BOE. Based on a re-audit, the BOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (lowered the tax due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.86 254.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.75 254.25 Td (, inclusive of interest. ) Tj ET Q q 0 0 0 rg BT 278.44 254.25 Td (The Company continues to disagree with these findings based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (aforementioned reasons. However) Tj ET Q q 0 0 0 rg BT 185.99 242.25 Td (, in October 2015, the Company of) Tj ET Q q 0 0 0 rg BT 325.23 242.25 Td (fered to settle this case for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.96 242.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.85 242.25 Td (, which is based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (the expected cost of continuing to contest this audit. ) Tj ET Q q 0 0 0 rg BT 259.46 230.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 308.79 230.25 Td (, an accrual was char) Tj ET Q q 0 0 0 rg BT 392.17 230.25 Td (ged to discontinued operations during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (year ended December 31, 2015 to reflect the of) Tj ET Q q 0 0 0 rg BT 237.84 218.25 Td (fer to settle this case. Should the Company not prevail with the of) Tj ET Q q 0 0 0 rg BT 500.11 218.25 Td (fer to settle this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (case, it plans to continue with the appeals process. Further) Tj ET Q q 0 0 0 rg BT 282.09 206.25 Td (, should the Company not prevail in this case, it will pursue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (reimbursement from the customer for all assessments from the State.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (On November15, 2013, BP) Tj ET Q q 0 0 0 rg BT 160.79 174.25 Td ( Products North ) Tj ET Q q 0 0 0 rg BT 226.07 174.25 Td (America \("BP"\) instituted claims against Johnson Matthey \("JM"\) as the parent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (company of and purchaser of ) Tj ET Q q 0 0 0 rg BT 168.07 162.25 Td (Applied Utility Systems,Inc. \("AUS"\), a former subsidiary of the Company) Tj ET Q q 0 0 0 rg BT 471.38 162.25 Td (. On May12, 2010, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (JM tendered to the Company a claim for indemnification under the ) Tj ET Q q 0 0 0 rg BT 319.15 150.25 Td (Asset Purchase ) Tj ET Q q 0 0 0 rg BT 381.92 150.25 Td (Agreement dated October1, 2009 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td ("Asset Purchase ) Tj ET Q q 0 0 0 rg BT 116.35 138.25 Td (Agreement"\) among JM, the Company and ) Tj ET Q q 0 0 0 rg BT 290.68 138.25 Td (AUS. On June1) Tj ET Q q 0 0 0 rg BT 355.86 138.25 Td (1, 2013, BP) Tj ET Q q 0 0 0 rg BT 401.99 138.25 Td (, JM and the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (settlement agreement and mutual release pursuant to which they settled all claims. ) Tj ET Q q 0 0 0 rg BT 380.60 126.25 Td (This settlement agreement had no material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (impact on the Company) Tj ET Q q 0 0 0 rg BT 144.67 114.25 Td (. Under the indemnification clauses of the ) Tj ET Q q 0 0 0 rg BT 314.06 114.25 Td (Asset Purchase ) Tj ET Q q 0 0 0 rg BT 376.83 114.25 Td (Agreement, the Company may be liable for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (legal expenses incurred by JM. ) Tj ET Q q 0 0 0 rg BT 175.95 102.25 Td (These legal costs may be of) Tj ET Q q 0 0 0 rg BT 286.57 102.25 Td (fset against funds withheld by JM from the acquisition of ) Tj ET Q q 0 0 0 rg BT 517.64 102.25 Td (AUS.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (In connection with the ) Tj ET Q q 0 0 0 rg BT 141.15 82.25 Td (Asset Purchase ) Tj ET Q q 0 0 0 rg BT 203.91 82.25 Td (Agreement, on October1, 2009, JM presented the Company with an indemnification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (claim seeking recovery of the net amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.32 70.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.21 70.25 Td ( after of) Tj ET Q q 0 0 0 rg BT 308.68 70.25 Td (fsetting the funds withheld by JM from the acquisition of ) Tj ET Q q 0 0 0 rg BT 539.21 70.25 Td (AUS. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (These claims were for matters relating to various customer contracts that JM purchased, including the BP) Tj ET Q q 0 0 0 rg BT 470.68 58.25 Td ( contract discussed ) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (above. ) Tj ET Q q 0 0 0 rg BT 78.20 686.10 Td (The Company and JM entered into discussions relating to the application of of) Tj ET Q q 0 0 0 rg BT 391.84 686.10 Td (fsets and the validity of the claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (presented. On June3, 2015, JM and the Company entered into a settlement and release agreement pursuant to which they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (settled all claims for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.36 662.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.25 662.10 Td (. ) Tj ET Q q 0 0 0 rg BT 187.07 662.10 Td (This settlement was paid with an initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.77 662.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.66 662.10 Td ( installment upon execution of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (settlement and release agreement, and the remaining balance was paid in July 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (The following table presents revenue and expense information for discontinued operations \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 577.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 577.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 577.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 577.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 547.60 379.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 547.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 547.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 590.6 m 494 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 590.6 m 498 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 577.6 m 494 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 547.6 m 494 547.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 547.6 m 563 547.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 533.6 m 494 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 531.6 m 494 531.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 533.6 m 563 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 531.6 m 563 531.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 595.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.80 602.83 Td (Years Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 594.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 581.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 581.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 581.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 567.27 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 567.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 567.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 567.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 567.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 552.27 Td (Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 552.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 552.32 Td (\(112) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 552.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 537.27 Td (Net loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.50 537.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 537.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 537.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 537.32 Td (\(112) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 537.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.30 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 309.91 742.25 Td ( INDEX) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 702.75 m 95.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 702.75 m 280.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 702.75 m 284.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 702.75 m 329.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 702.75 m 333.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 702.75 m 396.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 702.75 m 400.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 702.75 m 445.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 702.75 m 449.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 702.75 m 512.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 702.75 m 516.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 702.75 m 562.5 702.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 706.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 706.98 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 706.98 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 693.48 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 693.48 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 693.48 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 693.48 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 693.48 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 693.48 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 693.48 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 654.32 Td (3.1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 654.32 Td (Composite Certificate of Incorporation of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 644.32 Td (Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 654.32 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 654.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 654.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 654.32 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 621.32 Td (3.1.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 621.32 Td (Certificate of Amendment to the Restated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 611.32 Td (Certificate of Incorporation of Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 601.32 Td (Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 621.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 621.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 621.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 621.32 Td (7/26/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 573.32 Td (3.1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 573.32 Td (Certificate of Amendment to the Restated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 563.32 Td (Certificate of Incorporation of Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 553.32 Td (Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 573.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 573.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 573.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 573.32 Td (12/16/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 530.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 530.32 Td (By-Laws of Clean Diesel Technologies,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 520.32 Td (Inc. as amended through November 6,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 510.32 Td (2008.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 530.32 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 530.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 530.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 530.32 Td (11/10/2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 491.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 491.32 Td (Specimen of Certificate for Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 481.32 Td (Technologies, Inc. Common Stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 491.32 Td (S-3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 491.32 Td (333-166865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 491.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 491.32 Td (11/10/2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 458.32 Td (4.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 458.32 Td (Form of Investor Warrant issued on July 3,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 448.32 Td (2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 458.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 458.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 458.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 458.32 Td (7/3/2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 426.32 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 426.32 Td (Form of Investor Warrant issued on April) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 416.32 Td (4, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 426.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 426.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 426.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 426.32 Td (4/1/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 396.32 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 396.32 Td (Form of Investor Series A Warrant issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 386.32 Td (on November 7, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 396.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 396.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 396.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 396.32 Td (11/4/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 360.32 Td (4.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 360.32 Td (Form of Investor Series B Warrant issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 350.32 Td (on November 7, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 360.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 360.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 360.32 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 360.32 Td (11/4/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 330.32 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 330.32 Td (Form of Series A Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 330.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 330.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 330.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 330.32 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 301.32 Td (4.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 301.32 Td (Form of Series B Pre-Funded Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 301.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 301.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 301.32 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 301.32 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 264.32 Td (4.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 264.32 Td (Form of Series C-1 Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 264.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 264.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 264.32 Td (4.3\(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 264.32 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 234.32 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 234.32 Td (Form of Series C-2 Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 234.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 234.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 234.32 Td (4.3\(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 234.32 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.15 210.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 210.32 Td (Form of Series C-3 Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 210.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 210.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 210.32 Td (4.3\(c\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 210.32 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 183.32 Td (4.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 183.32 Td (Form of Warrant issued to Kanis S.A.,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 173.32 Td (dated February 16, 2012.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 183.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 183.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 183.32 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 183.32 Td (2/17/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 150.32 Td (4.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 150.32 Td (Warrant issued to Kanis S.A., dated July 3,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 140.32 Td (2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 150.32 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 150.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 150.32 Td (99.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 150.32 Td (7/3/2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 112.32 Td (4.13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 112.32 Td (Form of Warrant, dated November 11,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 102.32 Td (2014, issued to Kanis S.A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 112.32 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 112.32 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 112.32 Td (10.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 112.32 Td (3/18/2015) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-36) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 727.5 m 95.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 727.5 m 280.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 727.5 m 284.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 727.5 m 329.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 727.5 m 333.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 727.5 m 396.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 727.5 m 400.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 727.5 m 445.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 727.5 m 449.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 727.5 m 512.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 727.5 m 516.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 727.5 m 562.5 727.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 731.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 731.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 731.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 718.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 718.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 718.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 718.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 718.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 718.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 718.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 679.07 Td (4.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 679.07 Td (Form of Warrant issued on July 5, 2011 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 669.07 Td (the underwriters named in the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 659.07 Td (Underwriting Agreement, dated June 28,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 649.07 Td (2011, by and among Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 639.07 Td (Technologies, Inc., the selling stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 629.07 Td (named therein, and Roth Capital Partners,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 619.07 Td (LLC, as the representative of the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 609.07 Td (underwriters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 679.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 679.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 679.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 679.07 Td (7/1/2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 579.07 Td (4.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 579.07 Td (Form of Underwriter Warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 579.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 579.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 579.07 Td (99.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 579.07 Td (7/3/2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 555.07 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 555.07 Td (Warrant, dated November 4, 2016,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 545.07 Td (between Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 535.07 Td (and MDB Capital Group LLC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 555.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 555.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 555.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 555.07 Td (11/8/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 510.07 Td (4.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 510.07 Td (Warrant, dated December 16, 2016,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 500.07 Td (between Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 490.07 Td (and MDB Capital Group LLC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 510.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 510.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 510.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 510.07 Td (12/16/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 468.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 468.07 Td (Joint Research Agreement on Zero) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 458.07 Td (Precious Group Metal Catalyst, dated June) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 448.07 Td (8, 2010, between Honda R&D Co., Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 438.07 Td (and Catalytic Solutions, Inc. and extended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 428.07 Td (by the Memorandum of Joint Research) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 418.07 Td (Agreement on Zero Precious Group Metal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 408.07 Td (Catalyst, dated April 1, 2012, between) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 398.07 Td (Honda R&D Co., Ltd. and Catalytic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 388.07 Td (Solutions, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 468.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 468.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 468.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 468.07 Td (3/31/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 365.07 Td (10.2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 365.07 Td (Form of Agreement of Sale of Accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 355.07 Td (and Security Agreement, dated February) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 345.07 Td (14, 2011 between Faunus Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 335.07 Td (International, Inc., on the one hand, and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 325.07 Td (Clean Diesel Technologies, Inc. and certain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 315.07 Td (of its subsidiaries, on the other hand.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 365.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 365.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 365.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 365.07 Td (2/16/2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 288.07 Td (10.2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 288.07 Td (Omnibus Amendment to Sale of Accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 278.07 Td (and Security Agreements and Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 268.07 Td (Agreement dated August 15, 2012, among) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 258.07 Td (Clean Diesel Technologies, Inc., certain of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 248.07 Td (its subsidiaries and Faunus Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 238.07 Td (International, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 288.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 288.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 288.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 288.07 Td (8/21/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 216.07 Td (10.2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 216.07 Td (Agreement, dated October 15, 2014,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 206.07 Td (between Engine Control Systems Ltd. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 196.07 Td (Faunus Group International, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 216.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 216.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 216.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 216.07 Td (10/21/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 169.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 169.07 Td (Form of Agreement Guaranty, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 159.07 Td (February 14, 2011 between Faunus Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 149.07 Td (International, Inc. and Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 139.07 Td (Technologies, Inc., Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 129.07 Td (International LLC, Catalytic Solutions,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 119.07 Td (Inc., Engine Control Systems, Ltd., Engine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 109.07 Td (Control Systems Limited, Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 99.07 Td (Technologies Limited, Engine Control) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 89.07 Td (Systems Europe AB, ECS Holdings, Inc.,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 79.07 Td (Catalytic Solutions Holdings, Inc. and CSI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 69.07 Td (Aliso, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 169.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 169.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 169.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 169.07 Td (2/16/2011) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-37) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 727.5 m 95.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 727.5 m 280.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 727.5 m 284.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 727.5 m 329.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 727.5 m 333.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 727.5 m 396.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 727.5 m 400.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 727.5 m 445.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 727.5 m 449.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 727.5 m 512.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 727.5 m 516.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 727.5 m 562.5 727.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 731.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 731.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 731.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 718.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 718.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 718.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 718.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 718.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 718.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 718.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 679.07 Td (10.4*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 679.07 Td (Joint Venture Agreement, dated February) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 669.07 Td (19, 2013, between Pirelli & C. Ambiente) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 659.07 Td (SpA and Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 679.07 Td (8-K/A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 679.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 679.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 679.07 Td (5/6/2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.15 626.07 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 626.07 Td (Eco Emission Enterprise srl Liquidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 616.07 Td (letter, dated November 21, 2013, between) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 606.07 Td (Pirelli & C. Ambiente SpA and Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 596.07 Td (Diesel Technologies, Inc. \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 586.07 Td (reference to Exhibit 10.16 to CDTi's) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 576.07 Td (Annual Report on Form 10-K \(SEC file) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 566.07 Td (number 001-33710\) filed on March 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 556.07 Td (2014\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 626.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 626.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 626.07 Td (10.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 626.07 Td (3/31/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 532.07 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 532.07 Td (Employment Agreement, dated December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 522.07 Td (14, 2016, between Stephen J. Golden,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 512.07 Td (Ph.D., and CDTi.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 532.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 491.07 Td (10.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 491.07 Td (Stock Incentive Plan as amended through) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 481.07 Td (May 20, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 491.07 Td (DEF 14A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 491.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 491.07 Td (Appx. A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 491.07 Td (4/2/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 458.07 Td (10.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 458.07 Td (Form of U.S. Participant Notice of Grant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 448.07 Td (of Stock Option and Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 458.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 458.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 458.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 458.07 Td (8/9/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 424.07 Td (10.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 424.07 Td (Form of Non-U.S. Participant Notice of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 414.07 Td (Grant of Stock Option and Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 424.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 424.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 424.07 Td (10.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 424.07 Td (8/9/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 389.07 Td (10.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 389.07 Td (Form of Non-Employee Director Notice of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 379.07 Td (Grant of Stock Option and Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 389.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 389.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 389.07 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 389.07 Td (8/9/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.85 353.07 Td (10.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 353.07 Td (Form of U.S. Participant Notice of Grant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 343.07 Td (of Restricted Share Units and Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 353.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 353.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 353.07 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 353.07 Td (8/9/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 317.07 Td (10.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 317.07 Td (Form of Non-U.S. Participant Notice of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 307.07 Td (Grant of Restricted Share Units and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 297.07 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 317.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 317.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 317.07 Td (10.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 317.07 Td (8/9/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 273.07 Td (10.13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 273.07 Td (Management Short Term Incentive Plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 273.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 273.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 273.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 273.07 Td (6/13/2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 241.07 Td (10.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 241.07 Td (Executive Long Term Incentive Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 241.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 241.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 241.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 241.07 Td (12/18/2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.15 207.07 Td (10.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 207.07 Td (Second Purchase and Sale Agreement,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 197.07 Td (dated December 18, 2009, between Tanaka) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 187.07 Td (Kikinzoku Kogyo K.K. and Catalytic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 177.07 Td (Solutions, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 207.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 207.07 Td (011-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 207.07 Td (10.37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 207.07 Td (3/31/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.15 157.07 Td (10.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 157.07 Td (Purchase and Sale Agreement and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 147.07 Td (Amendment to Purchase and Sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 137.07 Td (Agreement, each dated December 22,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 127.07 Td (2008, between Tanaka Kikinzoku Kogyo) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 117.07 Td (K.K. and Catalytic Solutions, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 157.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 157.07 Td (011-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 157.07 Td (10.38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 157.07 Td (3/31/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.15 96.07 Td (10.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 96.07 Td (New Shareholders Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 86.07 Td (December 18, 2009, between Tanaka) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 76.07 Td (Holdings Co., Ltd., Tanaka Kikinzoku) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 66.07 Td (Kogyo K.K., Catalytic Solutions, Inc. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 56.07 Td (TC Catalyst, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 96.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 96.07 Td (011-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 96.07 Td (10.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 96.07 Td (3/31/2014) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-38) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 727.5 m 95.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 727.5 m 280.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 727.5 m 284.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 727.5 m 329.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 727.5 m 333.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 727.5 m 396.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 727.5 m 400.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 727.5 m 445.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 727.5 m 449.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 727.5 m 512.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 727.5 m 516.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 727.5 m 562.5 727.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 731.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 731.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 731.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 718.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 718.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 718.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 718.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 718.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 718.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 718.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 679.07 Td (10.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 679.07 Td (TKK-CDTi Addendum Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 669.07 Td (March 13, 2015, between Tanaka Holdings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 659.07 Td (Co., Ltd., Tanaka Kikinzoku Kogyo K.K.,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 649.07 Td (TC Catalyst, Inc. and Catalytic Solutions,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 639.12 Td (Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 679.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 679.07 Td (011-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 679.07 Td (10.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 679.07 Td (3/18/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 621.07 Td (10.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 621.07 Td (North American Purchase and Sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 611.07 Td (Agreement, dated June 5, 2015, between) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 601.07 Td (Honda North America and each of the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 591.07 Td (other Honda Companies named in the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 581.07 Td (Agreement and Clean Diesel Technologies,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 571.07 Td (Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 621.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 621.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 621.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 621.07 Td (8/6/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 548.07 Td (10.20.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 548.07 Td (Employment Agreement, dated July27,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 538.07 Td (2015, between Hans Eric Bippus and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 528.07 Td (Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 548.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 548.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 548.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 548.07 Td (8/6/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 506.07 Td (10.20.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 506.07 Td (Addendum to Employment Agreement,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 496.07 Td (dated March 29, 2016, between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 486.07 Td (Diesel Technologies, Inc. and Hans Eric) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 476.12 Td (Bippus.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 506.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 506.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 506.07 Td (10.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 506.07 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 460.07 Td (10.21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 460.07 Td (Employment Agreement, dated October) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 450.07 Td (22, 2015, between Matthew Beale and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 440.07 Td (Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 460.07 Td (10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 460.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 460.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 460.07 Td (11/13/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 421.07 Td (10.21.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 421.07 Td (Addendum to Employment Agreement,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 411.07 Td (dated March 29, 2016, between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 401.07 Td (Diesel Technologies, Inc. and Matthew) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 391.12 Td (Beale.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 421.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 421.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 421.07 Td (10.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 421.07 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 373.07 Td (10.21.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 373.07 Td (Addendum to Employment Agreement,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 363.07 Td (dated June 1, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 353.07 Td (Technologies, Inc. and Matthew Beale.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 373.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 373.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 373.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 373.07 Td (6/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 333.07 Td (10.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 333.07 Td (Letter Agreement dated October 7, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 323.07 Td (between Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 313.12 Td (and Kanis S.A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 333.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 333.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 333.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 333.07 Td (10/13/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 296.07 Td (10.23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 296.07 Td (Placement Agent Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 286.07 Td (November 23, 2015, by and between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 276.07 Td (Diesel Technologies, Inc. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 266.07 Td (Oppenheimer & Co., Inc., as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 256.07 Td (Representative of the Several Placement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 246.07 Td (Agents named therein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 296.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 296.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 296.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 296.07 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 222.07 Td (10.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 222.07 Td (Securities Purchase Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 212.07 Td (November 23, 2015, by and among Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 202.07 Td (Diesel Technologies, Inc. and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 192.12 Td (Purchasers set forth therein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 222.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 222.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 222.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 222.07 Td (11/23/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 175.07 Td (10.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 175.07 Td (Separation Agreement and Release, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 165.07 Td (December 11, 2015, by and between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 155.07 Td (Diesel Technologies, Inc. and Christopher) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 145.07 Td (Harris.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 175.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 175.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 175.07 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 175.07 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 123.07 Td (10.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 123.07 Td (Separation Agreement and Release, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 113.07 Td (December 11, 2015, by and between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 103.07 Td (Diesel Technologies, Inc. and Pedro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 93.07 Td (Lopez-Baldrich.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 123.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 123.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 123.07 Td (10.61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 123.07 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 71.07 Td (10.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 71.07 Td (Employment Agreement, dated as of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 61.07 Td (January 11, 2017, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 51.07 Td (Technologies, Inc. and Peter J. Chase.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 71.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 71.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 71.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 71.07 Td (1/31/2017) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-39) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 727.5 m 95.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 727.5 m 280.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 727.5 m 284.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 727.5 m 329.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 727.5 m 333.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 727.5 m 396.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 727.5 m 400.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 727.5 m 445.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 727.5 m 449.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 727.5 m 512.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 727.5 m 516.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 727.5 m 562.5 727.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 731.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 731.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 731.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 718.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 718.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 718.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 718.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 718.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 718.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 718.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 674.07 Td (10.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 674.07 Td (Promissory Note, dated April 1, 2016,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 664.07 Td (issued by Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 674.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 674.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 674.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 674.07 Td (4/7/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 644.07 Td (10.29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 644.07 Td (Amendment to Loan Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 634.07 Td (April 1, 2016, by and between Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 624.07 Td (Diesel Technologies, Inc. and Kanis S.A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 644.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 644.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 644.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 644.07 Td (4/7/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 602.07 Td (10.30.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 602.07 Td (Convertible Promissory Note, dated April) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 592.07 Td (11, 2016, issued by Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 582.07 Td (Technologies, Inc. in favor of Lon E. Bell,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 572.07 Td (Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 602.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 602.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 602.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 602.07 Td (4/15/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 551.07 Td (10.30.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 551.07 Td (Convertible Promissory Note of Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 541.07 Td (Diesel Technologies, Inc., in the principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 531.07 Td (amount of $500,000, originally dated April) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 521.07 Td (11, 2016 and amended and restated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 511.07 Td (effective May 12, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 551.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 551.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 551.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 551.07 Td (5/20/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 490.07 Td (10.31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 490.07 Td (Separation Agreement and Release, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 480.07 Td (as of May 31, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 470.07 Td (Technologies, Inc. and David Shea.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 490.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 490.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 490.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 490.07 Td (6/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 448.07 Td (10.32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 448.07 Td (Employment Agreement, dated as of May) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 438.07 Td (25, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 428.07 Td (Technologies, Inc. and Tracy Kern.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 448.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 448.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 448.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 448.07 Td (6/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 409.07 Td (10.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 409.07 Td (Letter Agreement, dated June 30, 2016,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 399.07 Td (between Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 389.07 Td (and Kanis S.A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 409.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 409.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 409.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 409.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 370.07 Td (10.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 370.07 Td (Letter Agreement, dated June 30, 2016,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 360.07 Td (between Clean Diesel Technologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 350.07 Td (and Lon E. Bell, Ph.D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 370.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 370.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 370.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 370.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 330.07 Td (10.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 330.07 Td (Debt Subordination Agreement, dated June) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 320.07 Td (30, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 310.07 Td (Technologies, Inc., Kanis S.A. and Haldor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 300.07 Td (Topse A/S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 330.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 330.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 330.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 330.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 279.07 Td (10.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 279.07 Td (Note Purchase Agreement, dated June 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 269.07 Td (2016, between Clean Diesel Technologies,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 259.07 Td (Inc. and Haldor Topse A/S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 279.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 279.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 279.07 Td (10.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 279.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 238.07 Td (10.37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 238.07 Td (Senior Convertible Promissory Note of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 228.07 Td (Clean Diesel Technologies, Inc., in the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 218.07 Td (principal amount of $750,000, dated June) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 208.07 Td (30, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 238.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 238.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 238.07 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 238.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 188.07 Td (10.38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 188.07 Td (Convertible Promissory Note of Clean) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 178.07 Td (Diesel Technologies, Inc., in the principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 168.07 Td (amount of $500,000, dated June 30, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 188.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 188.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 188.07 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 188.07 Td (7/1/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 146.07 Td (10.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 146.07 Td (Securities Purchase Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 136.07 Td (November 3, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 126.07 Td (Technologies, Inc. and the Investors listed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 116.07 Td (on the schedule of buyers attached thereto.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 146.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 146.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 146.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 146.07 Td (11/8/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 94.07 Td (10.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 94.07 Td (Registration Rights Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 84.07 Td (November 4, 2016, between Clean Diesel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 74.07 Td (Technologies, Inc. and the Investors party) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 64.07 Td (thereto.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 94.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 94.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 94.07 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 94.07 Td (11/8/2016) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-40) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 727.5 m 95.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 727.5 m 280.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 727.5 m 284.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 727.5 m 329.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 727.5 m 333.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 727.5 m 396.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 727.5 m 400.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 727.5 m 445.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 727.5 m 449.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 727.5 m 512.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 727.5 m 516.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 727.5 m 562.5 727.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 731.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 731.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 731.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 718.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 718.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 718.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 718.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 718.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 718.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 718.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 679.07 Td (10.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 679.07 Td (Securities Purchase Agreement, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 669.07 Td (December 16, 2016, between the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 659.07 Td (Registrant and MDB Capital Group LLC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 679.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 679.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 679.07 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 679.07 Td (12/16/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 639.07 Td (10.42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 639.07 Td (Clean Diesel Technologies, Inc. 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 629.07 Td (Omnibus Incentive Plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 639.07 Td (8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 639.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 639.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 639.07 Td (12/16/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 607.07 Td (10.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 607.07 Td (Form of Restricted Stock Unit Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 597.07 Td (\(Employee; 2016 Plan\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 607.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 577.07 Td (10.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 577.07 Td (Form of Non-Qualified Stock Option) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 567.07 Td (Agreement \(Employee; 2016 Plan\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 577.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 547.07 Td (10.45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 547.07 Td (Form of Incentive Stock Option) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 537.07 Td (Agreement \(2016 Plan\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 547.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 515.07 Td (10.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 515.07 Td (Form of Restricted Stock Unit Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 505.07 Td (\(Non-Employee Director; 2016 Plan\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 515.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 483.07 Td (10.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 483.07 Td (Form of Non-Qualified Stock Option) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 473.07 Td (Agreement \(Non-Employee Director; 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 463.07 Td (Plan\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 483.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 442.07 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 442.07 Td (List of Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 442.07 Td (10-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.00 442.07 Td (001-33710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 442.07 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 442.07 Td (3/30/2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 422.07 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 422.07 Td (Consent of BDO USA, LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 422.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 400.07 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 400.07 Td (Power of Attorney \(included on signature) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 390.07 Td (page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 400.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 369.07 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 369.07 Td (Certification of Principal Executive Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 359.07 Td (Pursuant to Securities Exchange Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 349.07 Td (Rules13a-14\(a\)and 15d-14\(a\)as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 339.07 Td (pursuant to Section302 of the Sarbanes-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 329.07 Td (Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 369.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 309.07 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 309.07 Td (Certification of Principal Financial Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 299.07 Td (Pursuant to Securities Exchange Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 289.07 Td (Rules13a-14\(a\)and 15d-14\(a\)as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 279.07 Td (pursuant to Section302 of the Sarbanes-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 269.07 Td (Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 309.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 247.07 Td (32.1#) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 247.07 Td (Certification of Principal Executive Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 237.07 Td (and Principal Financial Officer Pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 227.07 Td (18 U.S.C. Section1350, as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 217.07 Td (pursuant to Section906 of the Sarbanes-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 207.07 Td (Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 247.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.35 186.07 Td (101.INS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 186.07 Td (XBRL Instance Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 186.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 164.07 Td (101.SCH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 164.07 Td (XBRL Taxonomy Extension Schema) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 154.07 Td (Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 164.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.85 134.07 Td (101.CAL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 134.07 Td (XBRL Taxonomy Extension Calculation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 124.07 Td (Linkbase Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 134.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.60 105.07 Td (101.DEF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 105.07 Td (XBRL Taxonomy Extension Definition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 95.07 Td (Linkbase Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 105.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 75.07 Td (101.LAB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 75.07 Td (XBRL Taxonomy Extension Label) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 65.07 Td (Linkbase Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 75.07 Td (X) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 31.60 Td (F-41) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 726.5 m 95.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 100.5 726.5 m 280.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 726.5 m 284.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 726.5 m 329.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 726.5 m 333.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 726.5 m 396.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 726.5 m 400.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 726.5 m 445.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 726.5 m 449.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 726.5 m 512.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 726.5 m 516.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 726.5 m 562.5 726.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.80 730.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 730.73 Td (IncorporatedbyReference) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.30 730.73 Td (Filed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.80 717.23 Td (Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.00 717.23 Td (ExhibitDescription) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 717.23 Td (Form) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.00 717.23 Td (FileNumber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 717.23 Td (Exhibit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 717.23 Td (FilingDate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 717.23 Td (Herewith) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.15 678.07 Td (101.PRE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 678.07 Td (XBRL Taxonomy Extension Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 668.07 Td (Linkbase Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 678.07 Td (X) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 638.40 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.40 Td ( ) Tj ET Q q 0 0 0 rg BT 68.00 626.40 Td (Each a management contract or compensatory plan or arrangement required to be filed as an exhibit to this annual report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 614.40 Td (on Form 10-K.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.40 Td (* ) Tj ET Q q 0 0 0 rg BT 68.00 599.40 Td (Confidential treatment has been granted for certain portions omitted from this exhibit pursuant to an order granted by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 587.40 Td (Commission under Rule 24b-2 of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 302.40 587.40 Td (Act of 1934, as amended. Confidential portions of this exhibit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 575.40 Td (have been separately filed with the Securities and Exchange Commission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 560.40 Td (# ) Tj ET Q q 0 0 0 rg BT 68.00 560.40 Td (The information in this exhibit is furnished and deemed not filed with the Securities and Exchange Commission for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 548.40 Td (purposes of section 18 of the Exchange ) Tj ET Q q 0 0 0 rg BT 227.13 548.40 Td (Act of 1934, as amended, and is not to be incorporated by reference into any filing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 536.40 Td (of Clean Diesel ) Tj ET Q q 0 0 0 rg BT 132.52 536.40 Td (T) Tj ET Q q 0 0 0 rg BT 137.93 536.40 Td (echnologies, Inc. under the Securities ) Tj ET Q q 0 0 0 rg BT 289.83 536.40 Td (Act of 1933, as amended, or the Exchange ) Tj ET Q q 0 0 0 rg BT 461.44 536.40 Td (Act of 1934, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 524.40 Td (amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing.) Tj ET Q endstream endobj 161 0 obj <> /View <>>>>> endobj 162 0 obj <> /View <>>>>> endobj 163 0 obj <> endobj 164 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;