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Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 166.90 Td (Lar) Tj ET Q q 0 0 0 rg BT 62.33 166.90 Td (ge ) Tj ET Q q 0 0 0 rg BT 72.57 166.90 Td (Accelerated Filer ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 137.04 164.96 cm /I16 Do Q /GS0 gs q 9.00 0 0 9.18 145.06 164.96 cm /I17 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.06 166.90 Td (Accelerated Filer ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 218.52 164.96 cm /I18 Do Q /GS0 gs q 9.00 0 0 9.18 228.06 164.96 cm /I19 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.06 166.90 Td (Non-Accelerated Filer ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 320.02 164.96 cm /I20 Do Q /GS0 gs q 9.00 0 0 9.18 328.04 164.96 cm /I21 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.04 166.90 Td (Smaller Reporting Company ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 442.78 164.96 cm /I22 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (Indicate by checkmark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 437.87 148.10 Td (Act\):) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 50.00 137.30 Td (Y) Tj ET Q q 0 0 0 rg BT 55.50 137.30 Td (es) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 137.30 Td ( ) Tj ET Q /GS0 gs q 8.02 0 0 9.04 65.25 135.36 cm /I23 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 73.27 137.30 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 75.52 137.30 Td (No) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.52 137.30 Td ( ) Tj ET Q /GS0 gs q 9.54 0 0 9.04 88.77 135.36 cm /I24 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 118.50 Td (The ) Tj ET Q q 0 0 0 rg BT 66.45 118.50 Td (aggregate ) Tj ET Q q 0 0 0 rg BT 103.89 118.50 Td (market ) Tj ET Q q 0 0 0 rg BT 131.34 118.50 Td (value ) Tj ET Q q 0 0 0 rg BT 153.29 118.50 Td (of ) Tj ET Q q 0 0 0 rg BT 163.24 118.50 Td (common ) Tj ET Q q 0 0 0 rg BT 197.20 118.50 Td (stock ) Tj ET Q q 0 0 0 rg BT 218.66 118.50 Td (held ) Tj ET Q q 0 0 0 rg BT 236.61 118.50 Td (by ) Tj ET Q q 0 0 0 rg BT 248.07 118.50 Td (non-af) Tj ET Q q 0 0 0 rg BT 271.40 118.50 Td (filiates ) Tj ET Q q 0 0 0 rg BT 298.35 118.50 Td (of ) Tj ET Q q 0 0 0 rg BT 308.30 118.50 Td (the ) Tj ET Q q 0 0 0 rg BT 321.76 118.50 Td (registrant, ) Tj ET Q q 0 0 0 rg BT 360.46 118.50 Td (computed ) Tj ET Q q 0 0 0 rg BT 398.41 118.50 Td (by ) Tj ET Q q 0 0 0 rg BT 409.87 118.50 Td (reference ) Tj ET Q q 0 0 0 rg BT 445.79 118.50 Td (to ) Tj ET Q q 0 0 0 rg BT 455.25 118.50 Td (the ) Tj ET Q q 0 0 0 rg BT 468.71 118.50 Td (last ) Tj ET Q q 0 0 0 rg BT 483.66 118.50 Td (quoted ) Tj ET Q q 0 0 0 rg BT 510.62 118.50 Td (price ) Tj ET Q q 0 0 0 rg BT 531.07 118.50 Td (at ) Tj ET Q q 0 0 0 rg BT 540.02 118.50 Td (which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 107.70 Td (such ) Tj ET Q q 0 0 0 rg BT 68.56 107.70 Td (stock ) Tj ET Q q 0 0 0 rg BT 89.63 107.70 Td (was ) Tj ET Q q 0 0 0 rg BT 105.69 107.70 Td (sold ) Tj ET Q q 0 0 0 rg BT 122.76 107.70 Td (on ) Tj ET Q q 0 0 0 rg BT 133.82 107.70 Td (such ) Tj ET Q q 0 0 0 rg BT 152.38 107.70 Td (date ) Tj ET Q q 0 0 0 rg BT 169.44 107.70 Td (as ) Tj ET Q q 0 0 0 rg BT 179.00 107.70 Td (reported ) Tj ET Q q 0 0 0 rg BT 211.05 107.70 Td (by ) Tj ET Q q 0 0 0 rg BT 222.12 107.70 Td (the ) Tj ET Q q 0 0 0 rg BT 235.18 107.70 Td (Nasdaq ) Tj ET Q q 0 0 0 rg BT 264.23 107.70 Td (Stock ) Tj ET Q q 0 0 0 rg BT 286.80 107.70 Td (Market ) Tj ET Q q 0 0 0 rg BT 314.85 107.70 Td (as ) Tj ET Q q 0 0 0 rg BT 324.42 107.70 Td (of ) Tj ET Q q 0 0 0 rg BT 333.98 107.70 Td (the ) Tj ET Q q 0 0 0 rg BT 347.04 107.70 Td (last ) Tj ET Q q 0 0 0 rg BT 361.60 107.70 Td (business ) Tj ET Q q 0 0 0 rg BT 394.17 107.70 Td (day ) Tj ET Q q 0 0 0 rg BT 409.23 107.70 Td (of ) Tj ET Q q 0 0 0 rg BT 418.79 107.70 Td (the ) Tj ET Q q 0 0 0 rg BT 431.85 107.70 Td (registrant) Tj ET Q q 0 0 0 rg BT 468.34 107.70 Td (s ) Tj ET Q q 0 0 0 rg BT 473.91 107.70 Td (most ) Tj ET Q q 0 0 0 rg BT 493.48 107.70 Td (recently ) Tj ET Q q 0 0 0 rg BT 524.53 107.70 Td (completed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 96.90 Td (second ) Tj ET Q q 0 0 0 rg BT 77.24 96.90 Td (fiscal ) Tj ET Q q 0 0 0 rg BT 98.98 96.90 Td (quarter ) Tj ET Q q 0 0 0 rg BT 126.72 96.90 Td (was ) Tj ET Q q 0 0 0 rg BT 142.96 96.90 Td (approximately ) Tj ET Q q 0 0 0 rg BT 197.19 96.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 201.69 96.90 Td (68,649,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.19 96.90 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (As ) Tj ET Q q 0 0 0 rg BT 62.25 78.10 Td (of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 78.10 Td (February29, ) Tj ET Q q 0 0 0 rg BT 120.24 78.10 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 138.24 78.10 Td (, ) Tj ET Q q 0 0 0 rg BT 142.74 78.10 Td (the ) Tj ET Q q 0 0 0 rg BT 155.98 78.10 Td (registrant ) Tj ET Q q 0 0 0 rg BT 192.22 78.10 Td (had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.46 78.10 Td (9,213,206) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.46 78.10 Td ( ) Tj ET Q q 0 0 0 rg BT 245.71 78.10 Td (outstanding ) Tj ET Q q 0 0 0 rg BT 289.96 78.10 Td (shares ) Tj ET Q q 0 0 0 rg BT 314.70 78.10 Td (of ) Tj ET Q q 0 0 0 rg BT 324.45 78.10 Td (common ) Tj ET Q q 0 0 0 rg BT 358.20 78.10 Td (stock.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.85 59.30 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 318.43 59.30 Td (TED BY) Tj ET Q q 0 0 0 rg BT 351.36 59.30 Td ( REFERENCE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 40.50 Td (Portions of the registrant) Tj ET Q q 0 0 0 rg BT 141.74 40.50 Td (s definitive proxy statement for its 2016 ) Tj ET Q q 0 0 0 rg BT 287.46 40.50 Td (Annual Meeting of Shareholders, to be filed within 120 days after the end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 29.70 Td (of the fiscal year covered by this report, are incorporated by reference into Part III hereof.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 19.200000000000045 m 562.5 19.200000000000045 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 15.200000000000045 m 562.5 15.200000000000045 l s BT /F1 10.00 Tf ET endstream endobj 5 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 6 0 R>> 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 /F2 10.00 Tf ET q 0 0 0 rg BT 252.65 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 258.58 742.25 Td (ABLE OF) Tj ET Q q 0 0 0 rg BT 301.82 742.25 Td ( CONTENTS) Tj ET Q 1 1 1 rg /GS0 gs 104.50 711.75 425.00 -13.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 698.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 684.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 670.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 656.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 642.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 628.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 614.75 425.00 -13.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 601.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 587.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 573.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 559.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 545.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 531.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 517.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 503.75 425.00 -16.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 487.75 425.00 -13.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 474.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 460.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 446.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 432.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 418.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 404.75 425.00 -13.00 re f /GS0 gs 1 1 1 rg /GS0 gs 104.50 391.75 425.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 50.50 377.75 479.00 -13.00 re f /GS0 gs BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 715.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.00 715.01 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 715.15 Td (Page) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 53 701.746337890625 m 82.10498046875 701.746337890625 l s q 0 0 1 rg BT 53.00 703.15 Td (P) Tj ET Q q 0 0 1 rg BT 57.83 703.15 Td (AR) Tj ET Q q 0 0 1 rg BT 70.51 703.15 Td (T) Tj ET Q q 0 0 1 rg BT 76.35 703.15 Td ( I) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.00 703.01 Td () Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 688.01005859375 m 78.49267578125 688.01005859375 l s q 0 0 1 rg BT 53.00 689.21 Td (Item 1.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 688.01005859375 m 139.00537109375 688.01005859375 l s q 0 0 1 rg BT 107.00 689.21 Td (Business) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 674.01005859375 m 84.9921875 674.01005859375 l s q 0 0 1 rg BT 53.00 675.21 Td (Item 1A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 674.01005859375 m 152.25048828125 674.01005859375 l s q 0 0 1 rg BT 107.00 675.21 Td (Risk Factors) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 660.01005859375 m 84.49560546875 660.01005859375 l s q 0 0 1 rg BT 53.00 661.21 Td (Item 1B.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 660.01005859375 m 209.322265625 660.01005859375 l s q 0 0 1 rg BT 107.00 661.21 Td (Unresolved Staf) Tj ET Q q 0 0 1 rg BT 165.07 661.21 Td (f Comments) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 646.01005859375 m 78.49267578125 646.01005859375 l s q 0 0 1 rg BT 53.00 647.21 Td (Item 2.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 646.01005859375 m 143.4921875 646.01005859375 l s q 0 0 1 rg BT 107.00 647.21 Td (Properties) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 632.01005859375 m 78.49267578125 632.01005859375 l s q 0 0 1 rg BT 53.00 633.21 Td (Item 3.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 632.01005859375 m 173.7265625 632.01005859375 l s q 0 0 1 rg BT 107.00 633.21 Td (Legal Proceedings) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 618.01005859375 m 78.49267578125 618.01005859375 l s q 0 0 1 rg BT 53.00 619.21 Td (Item 4.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 618.01005859375 m 195.48388671875 618.01005859375 l s q 0 0 1 rg BT 107.00 619.21 Td (Mine Safety Disclosures) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 53 604.746337890625 m 85.607421875 604.746337890625 l s q 0 0 1 rg BT 53.00 606.15 Td (P) Tj ET Q q 0 0 1 rg BT 57.83 606.15 Td (AR) Tj ET Q q 0 0 1 rg BT 70.51 606.15 Td (T) Tj ET Q q 0 0 1 rg BT 76.35 606.15 Td ( ) Tj ET Q q 0 0 1 rg BT 78.60 606.15 Td (II) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.00 606.01 Td () Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 591.01005859375 m 78.49267578125 591.01005859375 l s q 0 0 1 rg BT 53.00 592.21 Td (Item 5.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 591.01005859375 m 465.58935546875 591.01005859375 l s q 0 0 1 rg BT 107.00 592.21 Td (Market for Common Equity) Tj ET Q q 0 0 1 rg BT 207.15 592.21 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 577.01005859375 m 78.49267578125 577.01005859375 l s q 0 0 1 rg BT 53.00 578.21 Td (Item 6.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 577.01005859375 m 192.46484375 577.01005859375 l s q 0 0 1 rg BT 107.00 578.21 Td (Selected Financial Data) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 563.01005859375 m 78.49267578125 563.01005859375 l s q 0 0 1 rg BT 53.00 564.21 Td (Item 7.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 563.01005859375 m 429.4619140625 563.01005859375 l s q 0 0 1 rg BT 107.00 564.21 Td (Management) Tj ET Q q 0 0 1 rg BT 156.48 564.21 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 218.74 564.21 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 549.01005859375 m 84.9921875 549.01005859375 l s q 0 0 1 rg BT 53.00 550.21 Td (Item 7A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 549.01005859375 m 324.458984375 549.01005859375 l s q 0 0 1 rg BT 107.00 550.21 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 1 rg BT 254.96 550.21 Td (About Market Risk) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 535.01005859375 m 78.49267578125 535.01005859375 l s q 0 0 1 rg BT 53.00 536.21 Td (Item 8.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 535.01005859375 m 273.4560546875 535.01005859375 l s q 0 0 1 rg BT 107.00 536.21 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 521.01005859375 m 78.49267578125 521.01005859375 l s q 0 0 1 rg BT 53.00 522.21 Td (Item 9.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 521.01005859375 m 429.93212890625 521.01005859375 l s q 0 0 1 rg BT 107.00 522.21 Td (Changes in and Disagreements with ) Tj ET Q q 0 0 1 rg BT 238.23 522.21 Td (Accountants on ) Tj ET Q q 0 0 1 rg BT 296.22 522.21 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 507.01005859375 m 84.9921875 507.01005859375 l s q 0 0 1 rg BT 53.00 508.21 Td (Item 9A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 507.01005859375 m 195.48388671875 507.01005859375 l s q 0 0 1 rg BT 107.00 508.21 Td (Controls and Procedures) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 491.01005859375 m 84.49560546875 491.01005859375 l s q 0 0 1 rg BT 53.00 492.21 Td (Item 9B.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 491.01005859375 m 172.72900390625 491.01005859375 l s q 0 0 1 rg BT 107.00 492.21 Td (Other Information) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 53 477.746337890625 m 89.10986328125 477.746337890625 l s q 0 0 1 rg BT 53.00 479.15 Td (P) Tj ET Q q 0 0 1 rg BT 57.83 479.15 Td (AR) Tj ET Q q 0 0 1 rg BT 70.51 479.15 Td (T) Tj ET Q q 0 0 1 rg BT 76.35 479.15 Td ( III) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.00 479.01 Td () Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 464.01005859375 m 82.99267578125 464.01005859375 l s q 0 0 1 rg BT 53.00 465.21 Td (Item 10.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 464.01005859375 m 311.74560546875 464.01005859375 l s q 0 0 1 rg BT 107.00 465.21 Td (Directors, Executive Of) Tj ET Q q 0 0 1 rg BT 192.55 465.21 Td (ficers and Corporate Governance) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 450.01005859375 m 82.65869140625 450.01005859375 l s q 0 0 1 rg BT 53.00 451.21 Td (Item 1) Tj ET Q q 0 0 1 rg BT 75.91 451.21 Td (1.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 450.01005859375 m 197.228515625 450.01005859375 l s q 0 0 1 rg BT 107.00 451.21 Td (Executive Compensation) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 436.81005859375 m 82.99267578125 436.81005859375 l s q 0 0 1 rg BT 53.00 438.01 Td (Item 12.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 436.01005859375 m 475.14306640625 436.01005859375 l s q 0 0 1 rg BT 107.00 437.21 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 422.01005859375 m 82.99267578125 422.01005859375 l s q 0 0 1 rg BT 53.00 423.21 Td (Item 13.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 422.01005859375 m 380.67822265625 422.01005859375 l s q 0 0 1 rg BT 107.00 423.21 Td (Certain Relationships and Related ) Tj ET Q q 0 0 1 rg BT 231.81 423.21 Td (T) Tj ET Q q 0 0 1 rg BT 236.99 423.21 Td (ransactions and Directors Independence) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 408.01005859375 m 82.99267578125 408.01005859375 l s q 0 0 1 rg BT 53.00 409.21 Td (Item 14.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 408.01005859375 m 249.4619140625 408.01005859375 l s q 0 0 1 rg BT 107.00 409.21 Td (Principal ) Tj ET Q q 0 0 1 rg BT 141.25 409.21 Td (Accountant Fees and Services) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 53 394.746337890625 m 88.52294921875 394.746337890625 l s q 0 0 1 rg BT 53.00 396.15 Td (P) Tj ET Q q 0 0 1 rg BT 57.83 396.15 Td (AR) Tj ET Q q 0 0 1 rg BT 70.51 396.15 Td (T) Tj ET Q q 0 0 1 rg BT 76.35 396.15 Td ( IV) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.00 396.01 Td () Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 53 381.01005859375 m 82.99267578125 381.01005859375 l s q 0 0 1 rg BT 53.00 382.21 Td (Item 15.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 107 381.01005859375 m 264.97021484375 381.01005859375 l s q 0 0 1 rg BT 107.00 382.21 Td (Exhibits and Financial Statement Schedules) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 53 367.746337890625 m 110.849609375 367.746337890625 l s q 0 0 1 rg BT 53.00 369.15 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 80.84 369.15 Td (TURES) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 554.5 701.746337890625 m 559 701.746337890625 l s q 0 0 1 rg BT 554.50 703.15 Td (3) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 554.5 688.01005859375 m 559 688.01005859375 l s q 0 0 1 rg BT 554.50 689.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 554.5 674.01005859375 m 559 674.01005859375 l s q 0 0 1 rg BT 554.50 675.21 Td (7) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 660.01005859375 m 559 660.01005859375 l s q 0 0 1 rg BT 550.00 661.21 Td (16) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 646.01005859375 m 559 646.01005859375 l s q 0 0 1 rg BT 550.00 647.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 632.01005859375 m 559 632.01005859375 l s q 0 0 1 rg BT 550.00 633.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 618.01005859375 m 559 618.01005859375 l s q 0 0 1 rg BT 550.00 619.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 550 604.746337890625 m 559 604.746337890625 l s q 0 0 1 rg BT 550.00 606.15 Td (18) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 591.01005859375 m 559 591.01005859375 l s q 0 0 1 rg BT 550.00 592.21 Td (18) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 577.01005859375 m 559 577.01005859375 l s q 0 0 1 rg BT 550.00 578.21 Td (21) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 563.01005859375 m 559 563.01005859375 l s q 0 0 1 rg BT 550.00 564.21 Td (22) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 549.01005859375 m 559 549.01005859375 l s q 0 0 1 rg BT 550.00 550.21 Td (31) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 535.01005859375 m 559 535.01005859375 l s q 0 0 1 rg BT 550.00 536.21 Td (32) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 521.01005859375 m 559 521.01005859375 l s q 0 0 1 rg BT 550.00 522.21 Td (59) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 507.01005859375 m 559 507.01005859375 l s q 0 0 1 rg BT 550.00 508.21 Td (59) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 491.01005859375 m 559 491.01005859375 l s q 0 0 1 rg BT 550.00 492.21 Td (60) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 550 477.746337890625 m 559 477.746337890625 l s q 0 0 1 rg BT 550.00 479.15 Td (61) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 464.01005859375 m 559 464.01005859375 l s q 0 0 1 rg BT 550.00 465.21 Td (61) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 450.01005859375 m 559 450.01005859375 l s q 0 0 1 rg BT 550.00 451.21 Td (61) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 436.01005859375 m 559 436.01005859375 l s q 0 0 1 rg BT 550.00 437.21 Td (61) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 422.01005859375 m 559 422.01005859375 l s q 0 0 1 rg BT 550.00 423.21 Td (61) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 408.01005859375 m 559 408.01005859375 l s q 0 0 1 rg BT 550.00 409.21 Td (61) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 550 394.746337890625 m 559 394.746337890625 l s q 0 0 1 rg BT 550.00 396.15 Td (62) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 550 381.01005859375 m 559 381.01005859375 l s q 0 0 1 rg BT 550.00 382.21 Td (62) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 550 367.746337890625 m 559 367.746337890625 l s q 0 0 1 rg BT 550.00 369.15 Td (63) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <> endobj 8 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 /F2 12.00 Tf ET q 0 0 0 rg BT 252.50 740.90 Td (General Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 720.90 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 720.90 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 720.90 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 720.90 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 691.90 Td (Cautionary Note Regarding Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.90 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 670.90 Td (e make statements from time to time regarding our business and prospects, such as projections of future performance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.90 Td (statements of management's plans and objectives, forecasts of market trends, and other matters that are forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.90 Td (statements within the meaning of Section27A) Tj ET Q q 0 0 0 rg BT 234.41 646.90 Td ( of the Securities ) Tj ET Q q 0 0 0 rg BT 303.84 646.90 Td (Act of 1933 and Section21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 531.01 646.90 Td (Act of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.90 Td (1934. Statements containing the words or phrases will likely result, are expected to, will continue, is anticipated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.90 Td (estimates, projects, believes, expects, anticipates, intends, tar) Tj ET Q q 0 0 0 rg BT 351.33 622.90 Td (get, goal, plans, objective, should or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.90 Td (similar expressions identify forward-looking statements. Forward-looking statements may appear in documents, reports, filings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.90 Td (with the Securities and Exchange Commission \(SEC\), news releases, written or oral presentations made by our authorized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.90 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 586.90 Td (ficers or other representatives. For such statements, we claim the protection of the safe harbor for forward-looking statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.90 Td (contained in the Private Securities Litigation Reform ) Tj ET Q q 0 0 0 rg BT 263.56 574.90 Td (Act of 1995.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 553.90 Td (Our future results, including results expressed in or implied by forward-looking statements, involve a number of risks and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.90 Td (uncertainties. Forward-looking statements are not guarantees of future actions, outcomes, results or performance. ) Tj ET Q q 0 0 0 rg BT 504.58 541.90 Td (Any forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.90 Td (looking statement made by or on behalf of us speaks only as of the date on which such statement is made. ) Tj ET Q q 0 0 0 rg BT 475.27 529.90 Td (W) Tj ET Q q 0 0 0 rg BT 483.91 529.90 Td (e do not undertake ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 517.90 Td (any obligation to update or keep current any forward-looking statement to reflect events or circumstances arising after the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 505.90 Td (of such statement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.90 Td (In addition to other matters identified or described by us from time to time in filings with the SEC, there are many important ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.90 Td (factors that could cause our future results to dif) Tj ET Q q 0 0 0 rg BT 238.65 472.90 Td (fer materially from historical results or trends, results anticipated or planned by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.90 Td (us, or the results expressed in or implied by any forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 358.64 460.90 Td (These important factors are described below under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.90 Td (Item 1A. Risk Factors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 427.90 Td (ITEM 1. BUSINESS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 406.90 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.90 Td (Qumu Corporation \("Qumu" or the "Company"\) provides the tools businesses need to create, manage, secure, deliver and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.90 Td (measure the success of their videos. ) Tj ET Q q 0 0 0 rg BT 195.61 373.90 Td (The Company's innovative solutions release the power in video to engage and empower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 361.90 Td (employees, partners and clients. Or) Tj ET Q q 0 0 0 rg BT 190.88 361.90 Td (ganizations around the world realize the greatest possible value from video they create and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 349.90 Td (publish. ) Tj ET Q q 0 0 0 rg BT 84.27 349.90 Td (Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.90 Td (video. Qumu markets its products to customers primarily in North ) Tj ET Q q 0 0 0 rg BT 316.35 337.90 Td (America, Europe and ) Tj ET Q q 0 0 0 rg BT 403.54 337.90 Td (Asia.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.90 Td (Qumu generates revenue through the sale of enterprise video content management software solutions, hardware, maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.90 Td (and support, and professional and other services. Software sales may take the form of a perpetual software license, a term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.90 Td (software license or a cloud-hosted software as a service \(SaaS\). Software licenses and appliances revenue includes sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.90 Td (perpetual software licenses and hardware. Service revenue includes term software licenses, SaaS, maintenance and support, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.90 Td (professional and other services.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 236.40 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 236.40 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 236.40 4.00 -13.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 507.50 210.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 210.40 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 247.39999999999998 m 232.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 247.39999999999998 m 236.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 247.39999999999998 m 287.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 247.39999999999998 m 291.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 247.39999999999998 m 342.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 247.39999999999998 m 397.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 247.39999999999998 m 401.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 247.39999999999998 m 452.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 247.39999999999998 m 507.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 247.39999999999998 m 511.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 247.39999999999998 m 562.5 247.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 236.39999999999998 m 232.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 236.39999999999998 m 287.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 236.39999999999998 m 342.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 236.39999999999998 m 397.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 236.39999999999998 m 452.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 236.39999999999998 m 507.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 236.39999999999998 m 562.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 236.39999999999998 m 232.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 236.39999999999998 m 287.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 236.39999999999998 m 342.5 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 210.39999999999998 m 232.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 197.39999999999998 m 232.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 210.39999999999998 m 287.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 197.39999999999998 m 287.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 210.39999999999998 m 342.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 197.39999999999998 m 342.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 210.39999999999998 m 397.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 197.39999999999998 m 397.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 210.39999999999998 m 452.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 197.39999999999998 m 452.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 210.39999999999998 m 507.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 197.39999999999998 m 507.5 197.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 210.39999999999998 m 562.5 210.39999999999998 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 197.39999999999998 m 562.5 197.39999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 250.48 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 250.48 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 250.48 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 239.48 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 239.48 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 239.48 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 239.48 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 239.48 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 239.48 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 239.48 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 227.66 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 227.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 227.66 Td (9,456) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 227.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 227.66 Td (11,363) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 227.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 227.66 Td (7,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 227.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 227.66 Td (\(1,907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 227.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 227.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 227.66 Td (4,094) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 227.66 Td (\(17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 227.66 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 227.66 Td (56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 227.66 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 214.66 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 214.66 Td (24,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 214.66 Td (15,158) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 214.66 Td (10,467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 214.66 Td (9,840) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 214.66 Td (4,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 214.66 Td (65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 214.66 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 214.66 Td (45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 214.66 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 201.66 Td (Total revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 201.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 201.66 Td (34,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 201.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 201.66 Td (26,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 201.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 201.66 Td (17,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 201.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 201.66 Td (7,933) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 201.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 201.66 Td (8,785) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 201.66 Td (30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 201.66 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 201.66 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 201.66 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 176.90 Td (History) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 155.90 Td (The Company was founded in 1978, incorporated as IXI, Inc. in Minnesota in February 1987 and changed its name to Rimage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 143.90 Td (Corporation in ) Tj ET Q q 0 0 0 rg BT 110.55 143.90 Td (April 1988. From 1995 to 201) Tj ET Q q 0 0 0 rg BT 230.74 143.90 Td (1, the Company focused its business on the development and sale of its CD ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 131.90 Td (recordable publishing systems and DVD recordable publishing systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.90 Td (In response to declines in the disc publishing business due to technology substitutions and the rise of video as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.90 Td (communication and collaboration tool, in October 201) Tj ET Q q 0 0 0 rg BT 267.08 98.90 Td (1, the Company acquired Qumu, Inc., a leader in the enterprise video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.90 Td (content management software market and changed its name to Qumu Corporation in September 2013. Qumu completed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.90 Td (transition to an enterprise video content management software company in July 2014, when the Company closed on the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.90 Td (its disc publishing assets to Equus Holdings, Inc. and Redwood ) Tj ET Q q 0 0 0 rg BT 305.55 62.90 Td (Acquisition, Inc. \(now known as Rimage Corporation\). ) Tj ET Q endstream endobj 9 0 obj <> endobj 10 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 50.00 742.10 Td (On October 3, 2014, the Company acquired Kulu ) Tj ET Q q 0 0 0 rg BT 249.78 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 255.89 742.10 Td (alley Ltd., a private limited company incorporated in England and ) Tj ET Q q 0 0 0 rg BT 522.29 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 530.93 742.10 Td (ales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (\(Kulu ) Tj ET Q q 0 0 0 rg BT 80.09 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 86.20 730.10 Td (alley\). ) Tj ET Q q 0 0 0 rg BT 118.22 730.10 Td (The acquisition was made to expand Qumu) Tj ET Q q 0 0 0 rg BT 294.29 730.10 Td (s addressable market through the of) Tj ET Q q 0 0 0 rg BT 436.57 730.10 Td (fering of Kulu ) Tj ET Q q 0 0 0 rg BT 496.09 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 502.21 730.10 Td (alley) Tj ET Q q 0 0 0 rg BT 524.42 730.10 Td (s best-in-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (class video content creation capabilities and easy-to-deploy pure cloud solution, and provides Kulu ) Tj ET Q q 0 0 0 rg BT 448.60 718.10 Td (V) Tj ET Q q 0 0 0 rg BT 454.71 718.10 Td (alley) Tj ET Q q 0 0 0 rg BT 476.92 718.10 Td (s customers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (access to industry leading video content management and delivery capability) Tj ET Q q 0 0 0 rg BT 356.75 706.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (Enterprise ) Tj ET Q q 0 0 0 rg BT 97.87 685.10 Td (V) Tj ET Q q 0 0 0 rg BT 104.72 685.10 Td (ideo Content Management and Delivery Softwar) Tj ET Q q 0 0 0 rg BT 311.46 685.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 664.10 Td (o increase communication, engagement and collaboration between employees and stakeholders, or) Tj ET Q q 0 0 0 rg BT 449.53 664.10 Td (ganizations have invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (significantly in content and network infrastructure that connects these employees and stakeholders across of) Tj ET Q q 0 0 0 rg BT 481.63 652.10 Td (fices, conference ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (rooms, computers, tablets and smart phones. ) Tj ET Q q 0 0 0 rg BT 229.69 640.10 Td (As part of this, enterprises are adopting video as a mainstream communication and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td (collaboration tool because they understand its benefits over other forms of content.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (Qumu video content management software solutions allow or) Tj ET Q q 0 0 0 rg BT 296.15 607.10 Td (ganizations to create, capture, or) Tj ET Q q 0 0 0 rg BT 425.91 607.10 Td (ganize and deliver content across ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (the extended enterprise to a wide variety of end points, including mobile devices and thick or thin clients. Qumu's video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (platform supports both live and on-demand streaming, and also secure download capabilities, a critical component for mobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.10 Td (video solutions. Qumu provides information technology administrators and corporate communication leaders a way to securely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.10 Td (address the challenges of video that might otherwise overwhelm their data networks while utilizing their existing information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (technology infrastructures, thereby maximizing their investment and enabling the rapid adoption of video in their content, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.10 Td (collaboration, communication and marketing infrastructures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (Qumu provides an end-to-end solution with an intuitive and rich user) Tj ET Q q 0 0 0 rg BT 326.41 514.10 Td (-experience to create, manage and deliver live and on-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (demand video content both behind and beyond the secure firewall. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 481.10 Td (Capabilities and Pr) Tj ET Q q 0 0 0 rg BT 132.61 481.10 Td (oducts) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (Qumu Platform - Creating a Global V) Tj ET Q q 0 0 0 rg BT 206.13 460.10 Td (ideo Infrastructure for Organizations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (term software license or a cloud-hosted software as a service \(SaaS\). Qumu) Tj ET Q q 0 0 0 rg BT 357.39 427.10 Td (s implementations can range in size from tens of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (thousands to millions of dollars, and they integrate with customers' existing video services \(e.g., videoconferencing systems\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.10 Td (business applications and broader IT) Tj ET Q q 0 0 0 rg BT 196.45 403.10 Td ( infrastructures using Qumu's extensive application services or "APIs". Deployments also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.10 Td (range from a single customer location to a global infrastructure serving over one hundred thousand corporate employees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (Qumu) Tj ET Q q 0 0 0 rg BT 77.78 379.10 Td (s platform solution components are deployed as needed to serve dif) Tj ET Q q 0 0 0 rg BT 346.97 379.10 Td (ferent capabilities of the enterprise video content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (lifecycle of creating, capturing, managing, delivering and experiencing video content.) 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 50 344.7669921875 m 107.9931640625 344.7669921875 l s q 0 0 0 rg BT 50.00 346.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.62 346.10 Td (ideo Capture) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 331.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 331.10 Td (Qumu Capture Studio is a portable software-enabled device that quickly and easily records, edits, and publishes video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 319.10 Td (and presentation content.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 304.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 304.10 Td (Qumu Quick Capture is a browser) Tj ET Q q 0 0 0 rg BT 222.71 304.10 Td (-based applet for the simple creation of videos captured from a user's computer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 292.10 Td (screen and/or webcam. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 277.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 277.10 Td (Qumu's encoder control facilitates live encoding and can leverage popular encoders from multiple vendors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 262.10 Td (Qumu also integrates with videoconferencing systems or Unified Communication software to enable their use as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 250.10 Td (studios for the creation of live or on-demand video content.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 235.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 235.10 Td (Qumu) Tj ET Q q 0 0 0 rg BT 113.78 235.10 Td (s Creator provides ease of use for anyone to create slides and video at the desktop to produce their own rich ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 223.10 Td (content.) 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 50 200.76699218750002 m 128.5400390625 200.76699218750002 l s q 0 0 0 rg BT 50.00 202.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.62 202.10 Td (ideo Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 181.10 Td (Qumu) Tj ET Q q 0 0 0 rg BT 77.78 181.10 Td (s platform is an enterprise scalable solution that provides central control for all video applications, content and resources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 169.10 Td (involved in the production and delivery of enterprise video. ) Tj ET Q q 0 0 0 rg BT 290.31 169.10 Td (V) Tj ET Q q 0 0 0 rg BT 296.93 169.10 Td (ideo Control Center manages both live streamed video and video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.10 Td (on-demand workflows. ) Tj ET Q q 0 0 0 rg BT 145.08 157.10 Td (This comprehensive business video platform includes numerous industry leading features:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 142.10 Td (Patent pendingQumu Pathfindertechnology for intelligent routing to multiple device types with dif) Tj ET Q q 0 0 0 rg BT 484.91 142.10 Td (ferent bitrates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 130.10 Td (enabling more ef) Tj ET Q q 0 0 0 rg BT 153.57 130.10 Td (ficient use of the network and improved user experience.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 115.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 115.10 Td (Qumu Speech Searchfor searching and indexing the spoken dialogue within video programs, greatly reducing time-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 103.10 Td (knowledge.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 88.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 88.10 Td (Live Broadcast Console for managing and deploying live streamed videos across an or) Tj ET Q q 0 0 0 rg BT 432.39 88.10 Td (ganization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 73.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 73.10 Td (Broad and deep security capabilities encompassing single-sign-on \("SSO"\), ) Tj ET Q q 0 0 0 rg BT 389.94 73.10 Td (Active Directory/LDAP) Tj ET Q q 0 0 0 rg BT 485.93 73.10 Td ( integration, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 61.10 Td (Security ) Tj ET Q q 0 0 0 rg BT 121.27 61.10 Td (Assertion Markup Language \("SAML"\) that make it easy to create a secure video application and network ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 49.10 Td (based on the enterprise's existing security standards.) 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 (5) 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 50 740.7669921875 m 111.3232421875 740.7669921875 l s q 0 0 0 rg BT 50.00 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.62 742.10 Td (ideo Delivery) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 727.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 727.10 Td (The combination of Pathfinder with Qumu) Tj ET Q q 0 0 0 rg BT 259.58 727.10 Td (s ) Tj ET Q q 0 0 0 rg BT 265.79 727.10 Td (V) Tj ET Q q 0 0 0 rg BT 272.41 727.10 Td (ideoNet Edge software creates a unique, highly secure, fault tolerant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 715.10 Td (video delivery network with advanced streaming and caching features to provide outstanding performance for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 703.10 Td (unlimited number of users. By ensuring that only one stream crosses the ) Tj ET Q q 0 0 0 rg BT 377.15 703.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.48 703.10 Td (AN on its way to viewers in remote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 691.10 Td (locations, ) Tj ET Q q 0 0 0 rg BT 126.92 691.10 Td (V) Tj ET Q q 0 0 0 rg BT 133.54 691.10 Td (ideoNet Edge minimizes the strain placed on the network by live webcasting or video on demand. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 679.10 Td (V) Tj ET Q q 0 0 0 rg BT 92.62 679.10 Td (ideoNet Edge can work as the sole distribution platform for video or in conjunction with other enterprise or internet-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 667.10 Td (based content distribution networks \(CDNs\). Qumu ) Tj ET Q q 0 0 0 rg BT 303.84 667.10 Td (V) Tj ET Q q 0 0 0 rg BT 310.46 667.10 Td (ideoNet Edge provides caching of H.264/MPEG-4, ) Tj ET Q q 0 0 0 rg BT 517.46 667.10 Td (W) Tj ET Q q 0 0 0 rg BT 526.49 667.10 Td (indows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 655.10 Td (Media & Flash video, ) Tj ET Q q 0 0 0 rg BT 175.53 655.10 Td (V) Tj ET Q q 0 0 0 rg BT 182.15 655.10 Td (ideo on Demand and live broadcast content, reducing traf) Tj ET Q q 0 0 0 rg BT 411.61 655.10 Td (fic from the centrally-located origin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 643.10 Td (server) Tj ET Q q 0 0 0 rg BT 109.88 643.10 Td (. Importantly) Tj ET Q q 0 0 0 rg BT 161.44 643.10 Td (, Qumu of) Tj ET Q q 0 0 0 rg BT 202.09 643.10 Td (fers ) Tj ET Q q 0 0 0 rg BT 219.40 643.10 Td (V) Tj ET Q q 0 0 0 rg BT 226.02 643.10 Td (ideoNet Edge software in a variety of form factors \(W) Tj ET Q q 0 0 0 rg BT 442.47 643.10 Td (indows Software, virtual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 631.10 Td (machine, appliance, and integrated with Citrix CloudBridge and Riverbed ) Tj ET Q q 0 0 0 rg BT 383.79 631.10 Td (VSP\) to provide customers with the most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 619.10 Td (deployment options. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 604.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 604.10 Td (Qumu ) Tj ET Q q 0 0 0 rg BT 113.32 604.10 Td (V) Tj ET Q q 0 0 0 rg BT 119.94 604.10 Td (ideoNet Edge software solutions can federate existing CDNs into a single system for intranet and internet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 592.10 Td (content distribution of video and related media assets. ) Tj ET Q q 0 0 0 rg BT 303.82 592.10 Td (The federation capability includes Internet-based CDNs like ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 580.10 Td (Akamai and ) Tj ET Q q 0 0 0 rg BT 136.54 580.10 Td (Amazon CloudFront as well as intranet based devices like Riverbed Steelhead, Cisco ) Tj ET Q q 0 0 0 rg BT 478.96 580.10 Td (ACNS/W) Tj ET Q q 0 0 0 rg BT 517.05 580.10 Td (aaS/CDS, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 568.10 Td (and Blue Coat Director) Tj ET Q q 0 0 0 rg BT 178.48 568.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.29 568.10 Td (This federation capability allows customers and partners to execute an embrace and replace ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 556.10 Td (strategy for upgrading their networks as opposed to rip and replace from other vendors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 541.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 541.10 Td (Qumu Secure Download allows video to be securely delivered to mobile devices, viewed of) Tj ET Q q 0 0 0 rg BT 453.49 541.10 Td (fline, and managed/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 529.10 Td (disposed automatically based on prescribed policies. ) 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 50 506.7669921875 m 148.3154296875 506.7669921875 l s q 0 0 0 rg BT 50.00 508.10 Td (Mobility and Integration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 493.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 493.10 Td (Qumu provides Mobile ) Tj ET Q q 0 0 0 rg BT 181.27 493.10 Td (Apps for iOS, ) Tj ET Q q 0 0 0 rg BT 239.06 493.10 Td (Android and ) Tj ET Q q 0 0 0 rg BT 291.64 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 300.68 493.10 Td (indows phones and tablets. ) Tj ET Q q 0 0 0 rg BT 410.77 493.10 Td (The apps are complete out-of-the-box ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 481.10 Td (native video applications built using the Qumu Mobile SDKs. Customers can also work with Qumu Professional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 469.10 Td (Services to create fully branded applications accessing Qumu's video infrastructure. Qumu) Tj ET Q q 0 0 0 rg BT 451.30 469.10 Td (s HTML5-based video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 457.10 Td (portal also provides native support for all device platforms. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 442.10 Td (Qumu provides integration between its mobile apps and leading mobile device management/mobile application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 430.10 Td (management \("MDM/MAM"\) platforms such as Good ) Tj ET Q q 0 0 0 rg BT 306.73 430.10 Td (T) Tj ET Q q 0 0 0 rg BT 312.14 430.10 Td (echnology and XenMobile to ensure that Qumu's solutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 418.10 Td (work within the environments its customers are investing in for mobile security) Tj ET Q q 0 0 0 rg BT 403.34 418.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 403.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 403.10 Td (Qumu integrates with a variety of key business applications and infrastructure capabilities to enable or) Tj ET Q q 0 0 0 rg BT 495.69 403.10 Td (ganizations to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 391.10 Td (employ video in any work context required. Qumu of) Tj ET Q q 0 0 0 rg BT 299.38 391.10 Td (fers integration with Microsoft SharePoint and L) Tj ET Q q 0 0 0 rg BT 493.79 391.10 Td (ync as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 379.10 Td (with Of) Tj ET Q q 0 0 0 rg BT 116.65 379.10 Td (fice365; IBM Connections and IBM ) Tj ET Q q 0 0 0 rg BT 263.95 379.10 Td (W) Tj ET Q q 0 0 0 rg BT 272.59 379.10 Td (ebSphere; Jive and other collaborative and social platforms. Qumu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 367.10 Td (continues to work with partners and integrators to extend video functionality through the use of its REST) Tj ET Q q 0 0 0 rg BT 506.29 367.10 Td ( ) Tj ET Q q 0 0 0 rg BT 508.24 367.10 Td (APIs. Qumu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 355.10 Td (also integrates with Citrix capabilities such as XenApp and XenDesktop, enabling Qumu video to be delivered to thick ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 343.10 Td (or thin clients managed within a Citrix virtual desktop infrastructure. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Externalizing V) Tj ET Q q 0 0 0 rg BT 114.75 322.10 Td (ideo for Maximum Reach and Impact) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 Td (The Qumu platform in a cloud deployment allows SaaS enabled customers to easily create video and rich media presentations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 289.10 Td (and deliver video seamlessly to customers, partners, and employees. Cloud deployments allow or) Tj ET Q q 0 0 0 rg BT 438.90 289.10 Td (ganizations worldwide to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.10 Td (rapidly and clearly present their messages and drive business opportunities through the integration of video with their web sites ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.10 Td (and their marketing and campaign automation platforms. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (The Qumu platform in a cloud delivery brings the power of Qumu video to or) Tj ET Q q 0 0 0 rg BT 360.86 244.10 Td (ganizations that do not wish to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (infrastructure investments to own and support their applications. Instead, Qumu provides the following capabilities that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.10 Td (easily purchased, implemented, and available through the web browser:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 205.10 Td (Create rich media with the Qumu platform in minutes - Qumu's customers can capture video and easily integrate it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 193.10 Td (with PowerPoint slides to ensure that messages are delivered and understood; provide high quality sales enablement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 181.10 Td (on a regular basis from the desktop; and broadcast news about products and services to partners and customers every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 169.10 Td (week. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 154.10 Td (Embed and share Qumu content easily with nearly any application - video widgets can be embedded, played, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 142.10 Td (tracked within any external application, ranging from web sites, to e-mail of) Tj ET Q q 0 0 0 rg BT 390.44 142.10 Td (fers, to campaigns managed and executed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 130.10 Td (by platforms like Eloqua and Salesforce.com. ) Tj ET Q q 0 0 0 rg BT 270.39 130.10 Td (Analytics on origin and viewership are easily captured and integrated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 118.10 Td (back for tar) Tj ET Q q 0 0 0 rg BT 131.90 118.10 Td (geted marketing and sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 103.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 103.10 Td (Quickly create and deliver video for both live and on-demand - or) Tj ET Q q 0 0 0 rg BT 349.33 103.10 Td (ganizations that purchase Qumu's cloud platform to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 91.10 Td (support a variety of live broadcasts and on-demand scenarios, and the platform enables both to be executed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 79.10 Td (managed easily whenever desired. ) Tj ET Q q 0 0 0 rg BT 225.48 79.10 Td (V) Tj ET Q q 0 0 0 rg BT 232.10 79.10 Td (ideo and content created and captured is managed within the cloud platform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 67.10 Td (resident on IBM SoftLayer) Tj ET Q q 0 0 0 rg BT 193.63 67.10 Td (, thus providing market leading security and compliance for users.) 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 (6) 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 (Support an unlimited number of users - Qumu's cloud platform scales easily with a customer's needs, enabling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (or) Tj ET Q q 0 0 0 rg BT 94.15 730.10 Td (ganizations to create rich video presentations for 100's or to drive high performance video marketing campaigns to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (many thousands. ) Tj ET Q q 0 0 0 rg BT 155.54 718.10 Td (V) Tj ET Q q 0 0 0 rg BT 162.16 718.10 Td (ideo is also transcoded automatically to support any user) Tj ET Q q 0 0 0 rg BT 388.37 718.10 Td (, format, or device for viewing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (Marketing and Distribution) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.10 Td (Qumu) Tj ET Q q 0 0 0 rg BT 77.78 676.10 Td (s solutions serve a growing customer base of lar) Tj ET Q q 0 0 0 rg BT 269.78 676.10 Td (ge enterprises across a wide range of vertical and horizontal markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.10 Td (Qumu has primarily tar) Tj ET Q q 0 0 0 rg BT 143.41 664.10 Td (geted enterprises with 10,000+ employees and a history of video use for corporate communications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (Beginning in 2014, Qumu increased its ef) Tj ET Q q 0 0 0 rg BT 216.73 652.10 Td (forts and ability in tar) Tj ET Q q 0 0 0 rg BT 303.20 652.10 Td (geting mid-size businesses with less than 10,000 employees by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (promoting the new cloud deployment model.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.10 Td (Qumu serves its customer base via direct sales and channel partners of) Tj ET Q q 0 0 0 rg BT 331.67 619.10 Td (fering a variety of deployment methodologies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (business models to meet customer demand including software, software on server appliance, software-enabled devices, SaaS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (and managed services. During 2014, Qumu increased its focus and investment on channel and technology partners to expand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (the reach of the Company) Tj ET Q q 0 0 0 rg BT 156.07 583.10 Td (s solutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (In 2015, Qumu was selected as a leader in the industry by three leading industry analysts:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 547.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 547.10 Td (Gartner selected Qumu as a leader in their Magic Quadrant for Enterprise ) Tj ET Q q 0 0 0 rg BT 382.36 547.10 Td (V) Tj ET Q q 0 0 0 rg BT 388.98 547.10 Td (ideo Content Management.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 532.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 532.10 Td (Forrester selected Qumu as a leader in their Forrester ) Tj ET Q q 0 0 0 rg BT 301.01 532.10 Td (W) Tj ET Q q 0 0 0 rg BT 309.65 532.10 Td (ave report for Enterprise ) Tj ET Q q 0 0 0 rg BT 409.98 532.10 Td (W) Tj ET Q q 0 0 0 rg BT 418.62 532.10 Td (ebcast, Enterprise ) Tj ET Q q 0 0 0 rg BT 492.02 532.10 Td (V) Tj ET Q q 0 0 0 rg BT 498.64 532.10 Td (ideo Portal, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 520.10 Td (Enterprise ) Tj ET Q q 0 0 0 rg BT 129.41 520.10 Td (W) Tj ET Q q 0 0 0 rg BT 138.05 520.10 Td (ebcast and ) Tj ET Q q 0 0 0 rg BT 182.29 520.10 Td (V) Tj ET Q q 0 0 0 rg BT 188.92 520.10 Td (ideo Portal combined ) Tj ET Q q 0 0 0 rg BT 276.77 520.10 Td (W) Tj ET Q q 0 0 0 rg BT 285.41 520.10 Td (ave.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 505.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 505.10 Td (Aragon Research named Qumu a leader in their) Tj ET Q q 0 0 0 rg BT 279.08 505.10 Td (V) Tj ET Q q 0 0 0 rg BT 285.70 505.10 Td (ideo Content Management report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (These selections are visible proof points in the market that had a positive impact on Qumu) Tj ET Q q 0 0 0 rg BT 414.08 484.10 Td (s market awareness and lead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (generation activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (Qumu sells products and services internationally through its U.S. operation and its subsidiaries in Europe and Japan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (International sales comprised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.94 439.10 Td (27%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.27 439.10 Td (, 15% and 25% of revenues for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.59 439.10 Td (December 31, 2015, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 427.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 427.10 Td (. Customers in the United Kingdom, where Kulu ) Tj ET Q q 0 0 0 rg BT 319.68 427.10 Td (V) Tj ET Q q 0 0 0 rg BT 325.79 427.10 Td (alley is located, are a significant source of international ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (Major competitors of Qumu's include Kaltura, Kontiki, Cisco, Polycom, vBrick, Brightcove and MediaPlatform. Due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 361.10 Td (Qumu's unique focus on a complete video infrastructure that includes support for mobile devices and existing IT) Tj ET Q q 0 0 0 rg BT 499.84 361.10 Td ( infrastructure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 349.10 Td (Qumu believes it is able to compete ef) Tj ET Q q 0 0 0 rg BT 203.38 349.10 Td (fectively with these competitors. Qumu also dif) Tj ET Q q 0 0 0 rg BT 393.44 349.10 Td (ferentiates itself from its competitors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.10 Td (through its video delivery technology and flexibility as to solution deployment and service options.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 316.10 Td (ch and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.10 Td (Qumu develops its software internally and also licenses or purchases the intellectual property ownership rights of programs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.10 Td (developed by others with license or technology transfer agreements that may obligate Qumu to pay a flat license fee or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.10 Td (royalties, typically based on a dollar amount per unit shipped or a percentage of the revenue generated by those programs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (As of December 31, 2015, the Company employed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.06 250.10 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.06 250.10 Td ( employees in research and development. ) Tj ET Q q 0 0 0 rg BT 433.32 250.10 Td (This staf) Tj ET Q q 0 0 0 rg BT 467.86 250.10 Td (f engages in research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (and development of new products and enhancements to existing products. In addition, Qumu partners with third parties to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (utilize their competencies in creating products to enhance its product of) Tj ET Q q 0 0 0 rg BT 335.83 226.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 205.10 Td (Backlog of Contracted Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (The Company's contracted commitment backlog was $33.4 million at December 31, 2015 compared to $31.6 million at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 133.40 172.10 Td (The Company defines contracted commitments as the dollar value of signed non-cancellable customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (purchase commitments. Of the total at December 31, 2015, the Company expects to recognize between $20.0 million and $22.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (million as revenue during the year ended December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 298.81 148.10 Td (Actual amounts could dif) Tj ET Q q 0 0 0 rg BT 400.00 148.10 Td (fer depending on timing of customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (deployments and other factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 115.10 Td (Intellectual Pr) Tj ET Q q 0 0 0 rg BT 111.19 115.10 Td (operty and Government Regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (Qumu currently maintains two U.S. patents and has three non-provisional utility patent applications pending in the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (Further) Tj ET Q q 0 0 0 rg BT 79.04 82.10 Td (, Qumu protects the proprietary nature of its software primarily through copyright and license agreements. It is Qumu's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (policy to protect the proprietary nature of its newly developed products whenever they are likely to become significant sources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (of revenue. No assurance can be given that Qumu will be able to obtain patent or other protection for its products. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (Qumu has registered and may in the future register trademarks and other marks used in its business.) 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 (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (As the number of Qumu's products increases and the functionality of those products expand, Qumu believes that it may become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (increasingly subject to attempts by others to duplicate its proprietary technology and to the possibility of infringement of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (patents. In addition) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 126.93 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.93 718.10 Td (although Qumu does not believe that any of its products infringe on the rights of others, third parties have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (claimed, and may in the future claim, Qumu's products infringe on their rights and these third parties may assert infringement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (claims against Qumu in the future. Qumu may litigate to enforce patents issued to it and to defend against claimed infringement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (of the rights of others or to determine the ownership, scope, or validity of Qumu's proprietary rights and the rights of others. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (Any claim of infringement against Qumu could involve significant liabilities to third parties, could require Qumu to seek ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (licenses from third parties and could prevent Qumu from developing, selling or using its products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (The Company is the owner of various trademarks and trade names referenced in this ) Tj ET Q q 0 0 0 rg BT 389.33 634.10 Td (Annual Report on Form 10-K including: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td ("Qumu," "V) Tj ET Q q 0 0 0 rg BT 98.87 622.10 Td (ideoNet Edge" and "Pathfinder) Tj ET Q q 0 0 0 rg BT 222.28 622.10 Td (." Solely for convenience, the trademarks and trade names in this Report are referred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (to without the and ) Tj ET Q q 0 0 0 rg BT 134.91 610.10 Td (TM symbols, but such references should not be construed as any indicator that the Company or the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (respective owners will not assert, to the fullest extent under applicable law) Tj ET Q q 0 0 0 rg BT 347.59 598.10 Td (, its or their rights thereto.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (Employees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 556.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 556.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.07 556.10 Td (192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.07 556.10 Td ( employees, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.10 556.10 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.10 556.10 Td ( were involved in research and development, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.70 556.10 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.70 556.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (service and support, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.75 544.10 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.75 544.10 Td ( in sales and marketing, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.89 544.10 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.89 544.10 Td ( in administration and management. None of Qumu's employees are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (represented by a labor union or covered by a collective bar) Tj ET Q q 0 0 0 rg BT 284.72 532.10 Td (gaining agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 511.10 Td (vailable Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Qumu maintains a website at www) Tj ET Q q 0 0 0 rg BT 189.60 490.10 Td (.qumu.com. Its annual reports on Form 10-K, quarterly reports on Form 10-Q, current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (reports on Form 8-K filed or furnished pursuant to Section 13\(a\) or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 454.07 478.10 Td (Act of 1934, are available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (on its website, as soon as reasonably practicable after these documents are filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 428.59 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 434.00 466.10 Td (o obtain copies of these reports, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (go to www) Tj ET Q q 0 0 0 rg BT 93.79 454.10 Td (.qumu.com and click on Company) Tj ET Q q 0 0 0 rg BT 235.34 454.10 Td (, then click on investor relations, then "SEC filings" and all current EDGAR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (reports are available for viewing. ) Tj ET Q q 0 0 0 rg BT 184.39 442.10 Td (A) Tj ET Q q 0 0 0 rg BT 191.06 442.10 Td ( copy of any report filed by the Company with the SEC will also be furnished without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 430.10 Td (ge to any shareholder who requests it in writing to: Secretary) Tj ET Q q 0 0 0 rg BT 310.20 430.10 Td (, Qumu Corporation 510 1st ) Tj ET Q q 0 0 0 rg BT 424.64 430.10 Td (A) Tj ET Q q 0 0 0 rg BT 431.12 430.10 Td (venue North, Suite 305, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (Minneapolis, MN 55403.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (ITEM 1A. RISK F) Tj ET Q q 0 0 0 rg BT 125.78 397.10 Td (ACT) Tj ET Q q 0 0 0 rg BT 145.04 397.10 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (If any of the following risks actually occur) Tj ET Q q 0 0 0 rg BT 220.38 376.10 Td (, our results of operations, cash flows and the market price of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (could be negatively impacted. ) Tj ET Q q 0 0 0 rg BT 171.90 364.10 Td (Although we believe that we have identified and discussed below the key risk factors af) Tj ET Q q 0 0 0 rg BT 522.72 364.10 Td (fecting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (our business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (be significant that may adversely af) Tj ET Q q 0 0 0 rg BT 192.27 340.10 Td (fect our performance or financial condition. ) Tj ET Q q 0 0 0 rg BT 369.14 340.10 Td (Any forecast regarding our future performance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (including, but not limited to, forecasts regarding estimated bookings, revenue, or cash flow from our operating activities, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 165.07 316.10 Td (These forward-looking statements reflect various assumptions and are subject to significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (uncertainties and risks that could cause the actual results to dif) Tj ET Q q 0 0 0 rg BT 299.74 304.10 Td (fer materially from those described in the forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (statement, including the risks reflected in the risk factors set forth below) Tj ET Q q 0 0 0 rg BT 338.71 292.10 Td (. Consequently) Tj ET Q q 0 0 0 rg BT 398.06 292.10 Td (, no forward-looking statement can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (guaranteed and the variation of actual results or events from such statements may be material and adverse.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (The markets for) Tj ET Q q 0 0 0 rg BT 119.25 259.10 Td ( video content and softwar) Tj ET Q q 0 0 0 rg BT 231.84 259.10 Td (e to manage video content ar) Tj ET Q q 0 0 0 rg BT 354.14 259.10 Td (e each in early stages of development. If this ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (market does not develop or) Tj ET Q q 0 0 0 rg BT 165.92 247.10 Td ( develops mor) Tj ET Q q 0 0 0 rg BT 225.18 247.10 Td (e slowly than we expect, our) Tj ET Q q 0 0 0 rg BT 344.42 247.10 Td ( r) Tj ET Q q 0 0 0 rg BT 351.18 247.10 Td (evenues may decline or) Tj ET Q q 0 0 0 rg BT 449.59 247.10 Td ( fail to gr) Tj ET Q q 0 0 0 rg BT 488.57 247.10 Td (ow) Tj ET Q q 0 0 0 rg BT 500.24 247.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 226.10 Td (ith the sale of the disc publishing business on July 1, 2014, we now derive all of our revenues from providing video content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (management software. ) Tj ET Q q 0 0 0 rg BT 142.84 214.10 Td (The use of video as a mainstream communication and collaboration tool and the market for video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (content management software is in an early stage of development, and it is uncertain whether this use of video will achieve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (high levels of acceptance. ) Tj ET Q q 0 0 0 rg BT 155.60 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 164.64 190.10 Td (idespread acceptance and use of video in the enterprise is critical to our future growth and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (success.Likewise, it is uncertain whether video content management software will achieve high levels of demand and market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (acceptance. Our success will depend on enterprises adopting video as a tool and upon enterprise demand for software to help ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (them capture, or) Tj ET Q q 0 0 0 rg BT 115.07 154.10 Td (ganize and distribute this content.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (Some customers may be reluctant or unwilling to use video as a tool within the enterprise for a number of reasons, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (lack of perceived benefit of this new method of communication and existing investments in other enterprise-wide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.10 Td (communications tools. Further) Tj ET Q q 0 0 0 rg BT 172.08 109.10 Td (, even if customers are using video as a tool, these customers may choose to rely upon their own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (IT) Tj ET Q q 0 0 0 rg BT 59.26 97.10 Td ( infrastructure and resources to manage their video content. Because many companies generally are predisposed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (maintaining control of their IT) Tj ET Q q 0 0 0 rg BT 172.01 85.10 Td ( systems and infrastructure, there may be resistance to using software as a service provided by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.10 Td (third party) Tj ET Q q 0 0 0 rg BT 91.28 73.10 Td (. Privacy concerns and transition costs are also factors that may af) Tj ET Q q 0 0 0 rg BT 354.90 73.10 Td (fect a potential customer) Tj ET Q q 0 0 0 rg BT 453.84 73.10 Td () Tj ET Q q 0 0 0 rg BT 456.62 73.10 Td (s decision to subscribe to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (an external solution.) 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 (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Additional factors that may limit market acceptance of our video content management software include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 730.10 Td (competitive dynamics may cause pricing levels to change as the market matures and cause customers to seek ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 718.10 Td (out lower priced alternatives to our video content management software or force us to reduce the prices we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 706.10 Td (char) Tj ET Q q 0 0 0 rg BT 139.03 706.10 Td (ge for our products or services; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 694.10 Td (existing and new market participants may introduce new types of solutions and dif) Tj ET Q q 0 0 0 rg BT 451.74 694.10 Td (ferent approaches to enable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 682.10 Td (enterprises to address their enterprise communications or video communications needs and these disruptive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 670.10 Td (technologies may reduce demand for our video content management software.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (If customers do not perceive the benefits of our video content management software, or if customers are unwilling to accept ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (video content as an alternative to other more traditional forms of enterprise communication, the market for our software might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (not continue to develop or might develop more slowly than we expect, either of which would significantly adversely af) Tj ET Q q 0 0 0 rg BT 526.08 625.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (revenues and growth prospects.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.75 592.10 Td (o compete effectively) Tj ET Q q 0 0 0 rg BT 144.04 592.10 Td (, we must continually impr) Tj ET Q q 0 0 0 rg BT 258.03 592.10 Td (ove existing pr) Tj ET Q q 0 0 0 rg BT 320.06 592.10 Td (oducts and intr) Tj ET Q q 0 0 0 rg BT 384.90 592.10 Td (oduce new pr) Tj ET Q q 0 0 0 rg BT 441.94 592.10 Td (oducts that achieve market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (acceptance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.10 Td (The software industry in general, and in particular) Tj ET Q q 0 0 0 rg BT 250.08 559.10 Td (, software tar) Tj ET Q q 0 0 0 rg BT 302.38 559.10 Td (geted to a new and developing market like enterprise video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (content management, is characterized by rapid technological changes, evolving industry standards, changing customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.10 Td (requirements, and frequent new product and service introductions and enhancements.) Tj ET Q q 0 0 0 rg BT 393.59 535.10 Td (The introduction of products using new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (technologies or the adoption of new industry standards can make our existing products, or products under development, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (obsolete or unmarketable.If these technologies are patented or proprietary to our competitors, we may not be able to access ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (these technologies. In order to remain competitive and increase sales, we must anticipate and adapt to these rapidly changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (technologies, enhance our existing products and introduce new products to address the changing demands of our customers. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (we fail to anticipate or respond to technological developments or customer requirements, or if we are significantly delayed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (developing and introducing products, our revenues will decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (The process of developing new technology is complex and uncertain, and if we fail to accurately predict customers) Tj ET Q q 0 0 0 rg BT 512.43 442.10 Td ( changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (needs and emer) Tj ET Q q 0 0 0 rg BT 112.01 430.10 Td (ging technological trends, our business could be harmed. ) Tj ET Q q 0 0 0 rg BT 341.78 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 350.42 430.10 Td (e must commit significant resources and may incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (obligations \(such as royalty obligations\) to develop new products and features before knowing whether our investments will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (result in products the market will accept and without knowing the levels of revenue, if any) Tj ET Q q 0 0 0 rg BT 410.91 406.10 Td (, that may be derived from these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (products. ) Tj ET Q q 0 0 0 rg BT 88.89 394.10 Td (Although we expect to continue to invest substantial resources in product development activities, our ef) Tj ET Q q 0 0 0 rg BT 503.32 394.10 Td (forts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (achieve and maintain profitability will require us to be selective and focused with our research and development expenditures. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (Some of our competitors have greater engineering and product development resources than we have, allowing them to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (a greater number of products or improvements or to develop them more quickly) Tj ET Q q 0 0 0 rg BT 368.70 358.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.10 Td (If we fail to anticipate or respond in a cost-ef) Tj ET Q q 0 0 0 rg BT 230.02 337.10 Td (fective and timely manner to technological developments, changes in industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 325.10 Td (standards or customer requirements, or if we experience any significant delays in the development or introduction of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 313.10 Td (products or improvements to existing products, our business, operating results and financial condition could be af) Tj ET Q q 0 0 0 rg BT 503.89 313.10 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 Td (adversely) Tj ET Q q 0 0 0 rg BT 87.67 301.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (If we do not generate sufficient cash flow to fund our) Tj ET Q q 0 0 0 rg BT 274.80 280.10 Td ( operations, we may need additional capital and any additional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (capital we seek may not be available in the amount or) Tj ET Q q 0 0 0 rg BT 278.14 268.10 Td ( at the time we need it. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (In the year ended December 31, 2015, we had an operating loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.41 247.10 Td ($29.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.30 247.10 Td (, used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.13 247.10 Td ($23.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.02 247.10 Td ( of net cash in continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (operating activities, and ended 2015 with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.46 235.10 Td ($13.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.35 235.10 Td ( in cash, cash equivalents and marketable securities. In the third quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (of 2015, we implemented a significant expense reduction program that we believe will allow us to attain our goal of being cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (flow breakeven for the second half of 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 190.10 Td (, if we are not able to become cash flow breakeven for the second half of 2016 by increasing revenue and controlling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (expenses, we will need to raise funds in the future to execute our business plan and pursue our growth objectives. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.10 Td (If we raise funds in the future, we cannot assure you that additional financing will be available in the amount or at the time we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.10 Td (need it, or that it will be available on acceptable terms or at all. ) Tj ET Q q 0 0 0 rg BT 304.17 145.10 Td (W) Tj ET Q q 0 0 0 rg BT 312.80 145.10 Td (e may obtain future additional financing by incurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (indebtedness or from an of) Tj ET Q q 0 0 0 rg BT 157.01 133.10 Td (fering of our equity securities or both. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (If we raise additional equity financing, our shareholders may experience significant dilution of their ownership interests and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (value of shares of our common stock could decline. Our ef) Tj ET Q q 0 0 0 rg BT 284.47 100.10 Td (forts to raise additional funds from the sale of equity may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (hampered by the currently depressed trading price of our common stock. New investors may demand rights, preferences or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (privileges senior to those of existing holders of common stock. If we raise additional funds by incurring debt, we could incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (significant expense to service the debt and we may be required to accept covenants that restrict our ability to incur additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td (indebtedness, that force us to maintain specified liquidity or other ratios, or that otherwise could af) Tj ET Q q 0 0 0 rg BT 444.43 52.10 Td (fect the manner in which we ) 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 (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (conduct our business. If we cannot timely raise any needed funds, we may be forced to make further substantial reductions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (our operating expenses, which could limit our sales and marketing ef) Tj ET Q q 0 0 0 rg BT 325.58 730.10 Td (forts, adversely af) Tj ET Q q 0 0 0 rg BT 397.31 730.10 Td (fect our ability to attract and retain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (qualified personnel, limit our ability to develop and enhance our solutions, make it more dif) Tj ET Q q 0 0 0 rg BT 416.95 718.10 Td (ficult for us to respond to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (competitive pressures or unanticipated working capital requirements, and otherwise adversely af) Tj ET Q q 0 0 0 rg BT 435.52 706.10 Td (fect our ability to pursue our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (growth objectives.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 673.10 Td (e have limited operating history with our) Tj ET Q q 0 0 0 rg BT 233.70 673.10 Td ( video content softwar) Tj ET Q q 0 0 0 rg BT 327.67 673.10 Td (e management business, which may make evaluating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (our) Tj ET Q q 0 0 0 rg BT 64.82 661.10 Td ( business and pr) Tj ET Q q 0 0 0 rg BT 133.84 661.10 Td (ospects difficult.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 640.10 Td (ith our acquisition of Qumu, Inc. in October 201) Tj ET Q q 0 0 0 rg BT 252.52 640.10 Td (1, we began our video content management business. Prior to the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td (of Qumu, Inc. and through July 1, 2014, we also operated the disc publishing business. On October 3, 2014, we acquired Kulu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.11 616.10 Td (alley Ltd., a private limited company incorporated in England and ) Tj ET Q q 0 0 0 rg BT 322.51 616.10 Td (W) Tj ET Q q 0 0 0 rg BT 331.15 616.10 Td (ales, to add its cloud-based video content creation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.10 Td (capabilities and expanded market reach to include external use cases. ) Tj ET Q q 0 0 0 rg BT 328.49 604.10 Td (As a result, we have a limited history with our video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (content software management business and an even more limited history with the standalone operation of our video content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (software management business. ) Tj ET Q q 0 0 0 rg BT 178.86 580.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 228.19 580.10 Td (, our historical financial results are not necessarily indicative of the future financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (condition or results of operations of our video content management business. ) Tj ET Q q 0 0 0 rg BT 360.31 568.10 Td (This limited history may make it dif) Tj ET Q q 0 0 0 rg BT 504.55 568.10 Td (ficult for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (shareholders, prospective investors, analysts and others to evaluate our business and prospects given the risks and uncertainties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (that we face as a relatively early stage, high technology company entering a new and rapidly evolving market.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 523.10 Td (e face intense competition and such competition may r) Tj ET Q q 0 0 0 rg BT 290.35 523.10 Td (esult in price r) Tj ET Q q 0 0 0 rg BT 352.10 523.10 Td (eductions, lower) Tj ET Q q 0 0 0 rg BT 421.36 523.10 Td ( gr) Tj ET Q q 0 0 0 rg BT 433.12 523.10 Td (oss pr) Tj ET Q q 0 0 0 rg BT 458.22 523.10 Td (ofits and loss of market ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (shar) Tj ET Q q 0 0 0 rg BT 68.71 511.10 Td (e.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Our products face intense competition, both from other products and from other technologies, both in the U.S. and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (international markets. ) Tj ET Q q 0 0 0 rg BT 139.51 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 148.15 478.10 Td (e compete with others such as Kaltura, Kontiki, Cisco, Polycom, vBrick, Brightcove and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (MediaPlatform who deliver video content to businesses. Further) Tj ET Q q 0 0 0 rg BT 306.22 466.10 Td (, because some prospective customers may choose to rely upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (their own IT) Tj ET Q q 0 0 0 rg BT 99.80 454.10 Td ( infrastructure and resources to manage their video content, we compete with customer) Tj ET Q q 0 0 0 rg BT 446.98 454.10 Td (-created solutions for video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (content management. ) Tj ET Q q 0 0 0 rg BT 137.84 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 146.48 442.10 Td (e expect the intensity of competition we face to increase in the future from other established and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (emer) Tj ET Q q 0 0 0 rg BT 69.80 430.10 Td (ging companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (Many of our competitors have greater resources than we do, including greater sales, product development, marketing, financial, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (technical or engineering resources. In addition, because our enterprise video content management software business is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (relatively new with a limited operating history) Tj ET Q q 0 0 0 rg BT 234.86 385.10 Td (, our tar) Tj ET Q q 0 0 0 rg BT 266.05 385.10 Td (get customers may prefer to purchase software products that are critical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (to their business from one of our lar) Tj ET Q q 0 0 0 rg BT 193.40 373.10 Td (ger) Tj ET Q q 0 0 0 rg BT 205.77 373.10 Td (, more established competitors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 352.10 Td (o remain competitive, we believe that we must continue to provide:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 340.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 340.10 Td (technologically advanced products and solutions that anticipate and satisfy the demands of end-users;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 328.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 328.10 Td (continuing advancements or innovations in our product of) Tj ET Q q 0 0 0 rg BT 353.71 328.10 Td (ferings, including products with price-performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 316.10 Td (advantages or value-added features in security) Tj ET Q q 0 0 0 rg BT 306.55 316.10 Td (, reliability or other key areas of customer interest;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 304.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 304.10 Td (innovations in video content creation, management, delivery and user experience;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 292.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 292.10 Td (a responsive and ef) Tj ET Q q 0 0 0 rg BT 198.73 292.10 Td (fective sales force;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 280.10 Td (a dependable and ef) Tj ET Q q 0 0 0 rg BT 201.50 280.10 Td (ficient sales distribution network;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 268.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 268.10 Td (superior customer service; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 256.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 256.10 Td (high levels of quality and reliability) Tj ET Q q 0 0 0 rg BT 264.37 256.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 235.10 Td (e cannot assure you that we will be able to compete successfully against our current or future competitors. Competition may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (result in price reductions, lower gross profit mar) Tj ET Q q 0 0 0 rg BT 243.10 223.10 Td (gins, increased discounts to customers and loss of market share, and could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (require increased spending by us on research and development, sales and marketing and customer support.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 190.10 Td (e encounter) Tj ET Q q 0 0 0 rg BT 108.97 190.10 Td ( long sales cycles with our) Tj ET Q q 0 0 0 rg BT 218.51 190.10 Td ( enterprise video solutions, which could adversely affect our) Tj ET Q q 0 0 0 rg BT 473.03 190.10 Td ( operating r) Tj ET Q q 0 0 0 rg BT 523.40 190.10 Td (esults in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (a given period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.10 Td (Our ability to increase revenues and achieve profitability depends, in lar) Tj ET Q q 0 0 0 rg BT 338.33 157.10 Td (ge part, on widespread acceptance of our enterprise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.10 Td (video content management software products by lar) Tj ET Q q 0 0 0 rg BT 256.97 145.10 Td (ge businesses and other or) Tj ET Q q 0 0 0 rg BT 361.77 145.10 Td (ganizations. ) Tj ET Q q 0 0 0 rg BT 411.76 145.10 Td (As we tar) Tj ET Q q 0 0 0 rg BT 449.90 145.10 Td (get our sales ef) Tj ET Q q 0 0 0 rg BT 509.97 145.10 Td (forts at these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (customers, we face greater costs, longer sales cycles and less predictability in completing sales. In the lar) Tj ET Q q 0 0 0 rg BT 469.95 133.10 Td (ge enterprise market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (the customer) Tj ET Q q 0 0 0 rg BT 101.74 121.10 Td () Tj ET Q q 0 0 0 rg BT 104.52 121.10 Td (s decision to use our products may be an enterprise-wide decision and, therefore, these types of sales require us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.10 Td (provide greater levels of education regarding the use and benefits of our applications. Further) Tj ET Q q 0 0 0 rg BT 422.80 109.10 Td (, given the constant innovation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (with our industry and our products, customers may delay purchasing decisions until certain features or products in development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (are brought to market. Longer sales cycles could cause our operating and financial results to suf) Tj ET Q q 0 0 0 rg BT 433.02 85.10 Td (fer in a given period.) 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 301.00 31.60 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Adverse economic conditions, particularly those affecting our) Tj ET Q q 0 0 0 rg BT 311.73 742.25 Td ( customers have harmed and may continue to harm our) Tj ET Q q 0 0 0 rg BT 548.48 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (Unfavorable changes in economic conditions, including recession, inflation, lack of access to capital, lack of consumer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (confidence or other changes have resulted and may continue to result in lower spending among our customers and tar) Tj ET Q q 0 0 0 rg BT 519.12 697.25 Td (get ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (customers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (Further) Tj ET Q q 0 0 0 rg BT 79.04 664.25 Td (, we sell our products throughout the United States, as well as in several international countries to commercial and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (government customers. Our business may be adversely af) Tj ET Q q 0 0 0 rg BT 280.31 652.25 Td (fected by factors in the United States and other countries such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (disruptions in financial markets, reductions in government spending, or downturns in economic activity in specific countries or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (regions, or in the various industries in which we operate; social, political or labor conditions in specific countries or regions; or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (adverse changes in the availability and cost of capital, interest rates, tax rates, or regulations. ) Tj ET Q q 0 0 0 rg BT 422.74 616.25 Td (These factors are beyond our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (control, but may result in further decreases in spending among customers and softening demand for our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.25 Td (Further) Tj ET Q q 0 0 0 rg BT 79.04 583.25 Td (, challenging economic conditions also may impair the ability of our customers to pay for products and services they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.25 Td (have purchased. ) Tj ET Q q 0 0 0 rg BT 116.36 571.25 Td (As a result, our cash flow may be negatively impacted and our allowance for doubtful accounts and write-of) Tj ET Q q 0 0 0 rg BT 548.81 571.25 Td (fs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.25 Td (of accounts receivable may increase.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 538.25 Td ( sales will decline, and our) Tj ET Q q 0 0 0 rg BT 179.09 538.25 Td ( business will be materially harmed, if our) Tj ET Q q 0 0 0 rg BT 358.35 538.25 Td ( sales and marketing efforts ar) Tj ET Q q 0 0 0 rg BT 488.43 538.25 Td (e not effective.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 517.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 517.25 Td (e will need to continue to optimize our sales infrastructure in order to grow our customer base and our business. Identifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 505.25 Td (and recruiting qualified personnel and training them in the use and functionality of our software requires significant time, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 493.25 Td (expense and attention. It can take six months or longer before our sales representatives are fully-trained and productive. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (are unable to hire, develop and retain talented sales personnel or if new sales personnel are unable to achieve desired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (productivity levels in a reasonable period of time, we may not be able to realize the expected benefits of this investment or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (increase our revenues. ) Tj ET Q q 0 0 0 rg BT 141.44 457.25 Td (W) Tj ET Q q 0 0 0 rg BT 150.08 457.25 Td (e also intend to expand new sales models that focus on dif) Tj ET Q q 0 0 0 rg BT 382.34 457.25 Td (ferent sales strategies tailored to dif) Tj ET Q q 0 0 0 rg BT 524.61 457.25 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (customer types. Our business may be adversely af) Tj ET Q q 0 0 0 rg BT 249.77 445.25 Td (fected if our ef) Tj ET Q q 0 0 0 rg BT 308.72 445.25 Td (forts to train our internal sales force or execute our selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (strategies do not generate a corresponding increase in revenues. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.25 Td (For sales that are made to customers through our channel partners, we depend on these businesses to provide ef) Tj ET Q q 0 0 0 rg BT 494.97 412.25 Td (fective sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.25 Td (marketing support to our products. Our channel partners are independent businesses that we do not control. Our agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (with channel partners do not contain requirements that a certain percentage of such parties) Tj ET Q q 0 0 0 rg BT 413.83 388.25 Td ( sales are of our products. ) Tj ET Q q 0 0 0 rg BT 518.90 388.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.25 Td (channel partners may choose to devote their ef) Tj ET Q q 0 0 0 rg BT 236.13 376.25 Td (forts to other products in dif) Tj ET Q q 0 0 0 rg BT 348.43 376.25 Td (ferent markets or reduce or fail to devote the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.25 Td (resources to provide ef) Tj ET Q q 0 0 0 rg BT 141.17 364.25 Td (fective sales and marketing support of our products, any of which could harm our business by reducing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (sales to customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 331.25 Td (e believe that our future growth and success will depend upon the success of our internal sales and marketing ef) Tj ET Q q 0 0 0 rg BT 505.26 331.25 Td (forts as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.25 Td (as those of our channel partners.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (Competition for) Tj ET Q q 0 0 0 rg BT 118.42 298.25 Td ( highly skilled personnel is intense and if we fail to attract and r) Tj ET Q q 0 0 0 rg BT 389.08 298.25 Td (etain talented employees, we may fail to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (compete effectively) Tj ET Q q 0 0 0 rg BT 130.79 286.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.25 Td (Our future success depends, in significant part, on our continuing ability to identify) Tj ET Q q 0 0 0 rg BT 382.61 265.25 Td (, hire, develop, motivate, and retain highly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.25 Td (skilled personnel for all areas of our or) Tj ET Q q 0 0 0 rg BT 205.04 253.25 Td (ganization. Competition in our industry for qualified employees, particularly in senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.25 Td (management, product development and sales, is intense. In addition, our compensation arrangements, such as our equity award ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.25 Td (programs, may not always be successful in attracting new employees and retaining and motivating our existing employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.25 Td (given the high demand for these employees from other employers. Our ability to compete ef) Tj ET Q q 0 0 0 rg BT 418.32 217.25 Td (fectively depends on our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 205.25 Td (attract new employees and to retain and motivate our existing employees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 184.25 Td ( enterprise video content management softwar) Tj ET Q q 0 0 0 rg BT 264.87 184.25 Td (e pr) Tj ET Q q 0 0 0 rg BT 281.63 184.25 Td (oducts must be successfully integrated into our) Tj ET Q q 0 0 0 rg BT 480.89 184.25 Td ( customers) Tj ET Q q 0 0 0 rg BT 529.30 184.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (information technology envir) Tj ET Q q 0 0 0 rg BT 174.25 172.25 Td (onments and workflows and changes to these envir) Tj ET Q q 0 0 0 rg BT 390.47 172.25 Td (onments, workflows or) Tj ET Q q 0 0 0 rg BT 487.79 172.25 Td ( unfor) Tj ET Q q 0 0 0 rg BT 514.00 172.25 Td (eseen ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (combinations of technologies may harm our) Tj ET Q q 0 0 0 rg BT 236.76 160.25 Td ( customers) Tj ET Q q 0 0 0 rg BT 285.17 160.25 Td ( experience in using our) Tj ET Q q 0 0 0 rg BT 386.65 160.25 Td ( softwar) Tj ET Q q 0 0 0 rg BT 421.18 160.25 Td (e pr) Tj ET Q q 0 0 0 rg BT 437.94 160.25 Td (oducts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 139.25 Td ( significant portion of our sales are made into applications that require our enterprise video content management software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.25 Td (products to be integrated into other enterprise workflows, enterprise information technology environments or software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.25 Td (functionalities. ) Tj ET Q q 0 0 0 rg BT 111.66 115.25 Td (Any significant changes to enterprise workflows, IT) Tj ET Q q 0 0 0 rg BT 320.03 115.25 Td ( environments or software programs may limit the use or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.25 Td (functionality of or demand for our products. ) Tj ET Q q 0 0 0 rg BT 228.29 103.25 Td (As our customers advance technologically) Tj ET Q q 0 0 0 rg BT 397.03 103.25 Td (, we must be able to ef) Tj ET Q q 0 0 0 rg BT 487.10 103.25 Td (fectively integrate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (our products to remain competitive. Further) Tj ET Q q 0 0 0 rg BT 224.56 91.25 Td (, current and potential customers may choose to use products of) Tj ET Q q 0 0 0 rg BT 479.03 91.25 Td (fered by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.25 Td (competitors or may not purchase our products if our products would require changes in their existing enterprise workflows, IT) Tj ET Q q 0 0 0 rg BT 554.97 79.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.25 Td (environments or software.) 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 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (The gr) Tj ET Q q 0 0 0 rg BT 78.43 742.25 Td (owth and functionality of our) Tj ET Q q 0 0 0 rg BT 203.26 742.25 Td ( enterprise video content management softwar) Tj ET Q q 0 0 0 rg BT 400.54 742.25 Td (e pr) Tj ET Q q 0 0 0 rg BT 417.29 742.25 Td (oducts depend upon the solution) Tj ET Q q 0 0 0 rg BT 558.08 742.25 Td (s ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (effective operation with mobile operating systems and computer) Tj ET Q q 0 0 0 rg BT 322.83 730.25 Td ( networks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (Our products are currently compatible with various mobile operating systems including the iOS, ) Tj ET Q q 0 0 0 rg BT 437.51 709.25 Td (W) Tj ET Q q 0 0 0 rg BT 446.55 709.25 Td (indows Mobile and ) Tj ET Q q 0 0 0 rg BT 525.72 709.25 Td (Android ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (operating systems. ) Tj ET Q q 0 0 0 rg BT 126.75 697.25 Td (The functionality of our products depends upon the continued interoperability of these products with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (popular mobile operating systems. ) Tj ET Q q 0 0 0 rg BT 189.70 685.25 Td (Any changes in these systems that degrade our products) Tj ET Q q 0 0 0 rg BT 416.12 685.25 Td ( functionality or give preferential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (treatment to competitive of) Tj ET Q q 0 0 0 rg BT 158.39 673.25 Td (ferings could adversely af) Tj ET Q q 0 0 0 rg BT 261.78 673.25 Td (fect the operability and usage of our video management software products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (on mobile devices. ) Tj ET Q q 0 0 0 rg BT 127.21 661.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 177.11 661.25 Td (, in order to deliver a high quality user experience, it is important that our products work well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.25 Td (with a range of mobile technologies, systems, and networks. ) Tj ET Q q 0 0 0 rg BT 293.66 649.25 Td (W) Tj ET Q q 0 0 0 rg BT 302.29 649.25 Td (e may not be successful in keeping pace with changes in mobile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.25 Td (technologies, operating systems, or networks or in developing products that operate ef) Tj ET Q q 0 0 0 rg BT 394.45 637.25 Td (fectively within existing or future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.25 Td (technologies, systems, and networks. Further) Tj ET Q q 0 0 0 rg BT 229.85 625.25 Td (, any significant changes to mobile operating systems by their respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.25 Td (developers may prevent our products from working properly or at all on these systems. In the event that it is more dif) Tj ET Q q 0 0 0 rg BT 518.59 613.25 Td (ficult for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.25 Td (users to access content delivered by our solutions to their mobile devices, if our products do not operate ef) Tj ET Q q 0 0 0 rg BT 474.98 601.25 Td (fectively within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.25 Td (most popular operating systems or if popular mobile devices do not of) Tj ET Q q 0 0 0 rg BT 330.60 589.25 Td (fer a high quality user experience, sales of and customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.25 Td (demand for our software products could be harmed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 556.25 Td (Any failur) Tj ET Q q 0 0 0 rg BT 93.99 556.25 Td (e of major) Tj ET Q q 0 0 0 rg BT 137.68 556.25 Td ( elements of our) Tj ET Q q 0 0 0 rg BT 205.53 556.25 Td ( pr) Tj ET Q q 0 0 0 rg BT 217.85 556.25 Td (oducts could lead to significant disruptions in the ability to serve customers, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 544.25 Td (which could damage our) Tj ET Q q 0 0 0 rg BT 154.55 544.25 Td ( r) Tj ET Q q 0 0 0 rg BT 161.31 544.25 Td (eputation, r) Tj ET Q q 0 0 0 rg BT 211.13 544.25 Td (educe our) Tj ET Q q 0 0 0 rg BT 252.89 544.25 Td ( r) Tj ET Q q 0 0 0 rg BT 259.64 544.25 Td (evenues or) Tj ET Q q 0 0 0 rg BT 304.73 544.25 Td ( otherwise harm our) Tj ET Q q 0 0 0 rg BT 391.48 544.25 Td ( business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.25 Td (Our business is dependent upon providing customers with fast, ef) Tj ET Q q 0 0 0 rg BT 311.45 523.25 Td (ficient and reliable services. ) Tj ET Q q 0 0 0 rg BT 425.56 523.25 Td (A) Tj ET Q q 0 0 0 rg BT 432.23 523.25 Td ( reduction in the performance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.25 Td (reliability or availability of required network infrastructure may harm our ability to distribute content to our customers, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.25 Td (as our reputation and ability to attract and retain customers. Our content management software solutions and operations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 Td (susceptible to, and could be damaged or interrupted by outages caused by fire, flood, power loss, telecommunications failure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.25 Td (Internet or mobile network breakdown, earthquake and similar events. Our solutions are also subject to human error) Tj ET Q q 0 0 0 rg BT 513.35 475.25 Td (, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.25 Td (breaches, power losses, computer viruses, break-ins, denial of service attacks, sabotage, intentional acts of vandalism and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.25 Td (tampering designed to disrupt our computer systems and network communications. Our failure to protect our network against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.25 Td (damage from any of these events could harm our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Our operations also depend on web browsers, ISPs \(Internet service providers\) and mobile networks to provide our customers) Tj ET Q q 0 0 0 rg BT 555.80 418.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (end-users with access to websites, streaming and mobile content. Many of these providers have experienced outages in the past, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (and could experience outages, delays and other dif) Tj ET Q q 0 0 0 rg BT 251.96 394.25 Td (ficulties due to system failures unrelated to our solutions. ) Tj ET Q q 0 0 0 rg BT 483.03 394.25 Td (Any such outage, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (delay or dif) Tj ET Q q 0 0 0 rg BT 95.91 382.25 Td (ficulty could adversely af) Tj ET Q q 0 0 0 rg BT 197.64 382.25 Td (fect our ability to ef) Tj ET Q q 0 0 0 rg BT 276.87 382.25 Td (fectively provide our products and services, which would harm our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 349.25 Td (If we lose access to third-party licenses, our) Tj ET Q q 0 0 0 rg BT 234.79 349.25 Td ( softwar) Tj ET Q q 0 0 0 rg BT 269.32 349.25 Td (e pr) Tj ET Q q 0 0 0 rg BT 286.07 349.25 Td (oduct development and pr) Tj ET Q q 0 0 0 rg BT 397.85 349.25 Td (oduction may be delayed or) Tj ET Q q 0 0 0 rg BT 515.44 349.25 Td ( we may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 337.25 Td (incur) Tj ET Q q 0 0 0 rg BT 72.60 337.25 Td ( additional expense to modify our) Tj ET Q q 0 0 0 rg BT 214.93 337.25 Td ( pr) Tj ET Q q 0 0 0 rg BT 227.25 337.25 Td (oducts or) Tj ET Q q 0 0 0 rg BT 266.79 337.25 Td ( pr) Tj ET Q q 0 0 0 rg BT 279.11 337.25 Td (oducts in development.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.25 Td (Some of our solutions contain software licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 319.48 316.25 Td (Third-party licensing arrangements are subject to a number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.25 Td (of risks and uncertainties, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 292.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 292.25 Td (undetected errors or unauthorized use of another person) Tj ET Q q 0 0 0 rg BT 329.75 292.25 Td (s code in the third party) Tj ET Q q 0 0 0 rg BT 427.22 292.25 Td (s software;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 280.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 280.25 Td (disagreement over the scope of the license and other key terms, such as royalties payable;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 268.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 268.25 Td (infringement ) Tj ET Q q 0 0 0 rg BT 158.15 268.25 Td (actions ) Tj ET Q q 0 0 0 rg BT 188.98 268.25 Td (brought ) Tj ET Q q 0 0 0 rg BT 222.58 268.25 Td (by ) Tj ET Q q 0 0 0 rg BT 235.08 268.25 Td (third-party ) Tj ET Q q 0 0 0 rg BT 280.35 268.25 Td (licensees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 256.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 256.25 Td (that ) Tj ET Q q 0 0 0 rg BT 121.50 256.25 Td (third ) Tj ET Q q 0 0 0 rg BT 142.88 256.25 Td (parties ) Tj ET Q q 0 0 0 rg BT 172.04 256.25 Td (will ) Tj ET Q q 0 0 0 rg BT 190.09 256.25 Td (create ) Tj ET Q q 0 0 0 rg BT 216.46 256.25 Td (solutions ) Tj ET Q q 0 0 0 rg BT 255.07 256.25 Td (that ) Tj ET Q q 0 0 0 rg BT 272.57 256.25 Td (directly ) Tj ET Q q 0 0 0 rg BT 305.61 256.25 Td (compete ) Tj ET Q q 0 0 0 rg BT 341.98 256.25 Td (with ) Tj ET Q q 0 0 0 rg BT 362.26 256.25 Td (our ) Tj ET Q q 0 0 0 rg BT 378.09 256.25 Td (products; ) Tj ET Q q 0 0 0 rg BT 417.81 256.25 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 244.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 244.25 Td (termination or expiration of the license.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (Because of these risks, some of these licenses may not be available to us in the future on terms that are acceptable to us or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (allow our products to remain competitive. ) Tj ET Q q 0 0 0 rg BT 220.05 211.25 Td (The loss of these licenses or the inability to maintain any of them on commercially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (acceptable terms could delay development of future products or impair the functionality or enhancement of existing products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (leading to increased expense associated with licenses of third-party software or development of alternative software to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.25 Td (comparable functionality for our existing products and modification of our existing products. Further) Tj ET Q q 0 0 0 rg BT 453.67 175.25 Td (, if we lose or are unable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.25 Td (to maintain any of these third-party licenses or are required to modify software obtained under third-party licenses, it could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.25 Td (delay the release of new products, delay enhancements to our existing products or delay sales of our existing products. ) Tj ET Q q 0 0 0 rg BT 525.70 151.25 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.25 Td (delays could result in loss of competitive position, loss of sales and loss of customer confidence, which could have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 127.25 Td (fect on our business, results of operations and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (If the limited amount of open sour) Tj ET Q q 0 0 0 rg BT 195.93 106.25 Td (ce softwar) Tj ET Q q 0 0 0 rg BT 239.34 106.25 Td (e that is incorporated into our) Tj ET Q q 0 0 0 rg BT 367.21 106.25 Td ( pr) Tj ET Q q 0 0 0 rg BT 379.53 106.25 Td (oducts wer) Tj ET Q q 0 0 0 rg BT 425.73 106.25 Td (e to become unavailable or) Tj ET Q q 0 0 0 rg BT 539.42 106.25 Td ( if ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (we violate the terms of open sour) Tj ET Q q 0 0 0 rg BT 190.35 94.25 Td (ce licenses, it could adversely affect sales of our) Tj ET Q q 0 0 0 rg BT 390.95 94.25 Td ( pr) Tj ET Q q 0 0 0 rg BT 403.27 94.25 Td (oducts, which could disrupt our) Tj ET Q q 0 0 0 rg BT 538.40 94.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (business and harm our) Tj ET Q q 0 0 0 rg BT 147.35 82.25 Td ( financial r) Tj ET Q q 0 0 0 rg BT 193.83 82.25 Td (esults.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.25 Td (Our products incorporate a limited amount of open source software. Open source software is made available to us and to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.25 Td (public by its authors or other third parties under licenses that impose certain obligations on licensees that re-distribute or make ) 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 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 (derivative works of the open source software. ) Tj ET Q q 0 0 0 rg BT 234.76 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.39 742.10 Td (e may not be able to replace the functionality provided by the open source ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (software currently incorporated in our products if that software becomes unavailable, obsolete or incompatible with future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (versions of our products. In addition, we must carefully monitor our compliance with the licensing requirements applicable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (that open source software. If we have failed or if in the future we fail to comply with the applicable license requirements, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (might lose the right to use the subject open source software. ) Tj ET Q q 0 0 0 rg BT 291.98 694.10 Td (The terms of some open source licenses would require us to give ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (our customers significant rights to open source software that is subject to those licenses and is incorporated in our products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (This would include the right to obtain from us the source code form of that open source software, and the right to use, modify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (and distribute that open source software to others. ) Tj ET Q q 0 0 0 rg BT 251.71 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.35 658.10 Td (e may be required to provide these rights to customers on a royalty-free ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (basis. ) Tj ET Q q 0 0 0 rg BT 74.82 646.10 Td (Those rights might also extend to modifications and additions we make to the subject open source software. ) Tj ET Q q 0 0 0 rg BT 508.43 646.10 Td (That open ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (source software, and those modifications and additions, also might be obtained by our competitors and used in competing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (The enforceability and interpretation of open source licenses remains uncertain under applicable law) Tj ET Q q 0 0 0 rg BT 451.41 601.10 Td (. Unfavorable court ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.10 Td (decisions could require us to replace open source software incorporated in our products. In some cases this might require us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (obtain licenses to commercial software under terms that restrict our use of that commercial software and require us to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td (royalties. In some cases we might need to redesign our software products, or to discontinue the sale of our software products if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 553.10 Td (a redesign could not be accomplished on a timely basis. ) Tj ET Q q 0 0 0 rg BT 275.04 553.10 Td (These same consequences result if our use of any open source software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.10 Td (or commercial software is found to infringe any intellectual property right of another party) Tj ET Q q 0 0 0 rg BT 411.73 541.10 Td (. ) Tj ET Q q 0 0 0 rg BT 416.18 541.10 Td (Any of these occurrences would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.10 Td (harm our business, operating results and financial condition. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 508.10 Td (e sell a significant portion of our) Tj ET Q q 0 0 0 rg BT 197.04 508.10 Td ( pr) Tj ET Q q 0 0 0 rg BT 209.36 508.10 Td (oducts internationally) Tj ET Q q 0 0 0 rg BT 302.43 508.10 Td (, which exposes us to risks associated with international ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 475.10 Td (e sell a significant amount of our products to customers outside the United States, particularly in Europe and ) Tj ET Q q 0 0 0 rg BT 494.37 475.10 Td (Asia. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (International sales accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.72 463.10 Td (27%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.05 463.10 Td ( of our revenues for the year ended December 31, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.79 463.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.12 463.10 Td ( of our revenues for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (ended December 31, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.40 451.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.73 451.10 Td ( of our revenues for the year ended December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 418.29 451.10 Td (W) Tj ET Q q 0 0 0 rg BT 426.93 451.10 Td (e expect that sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (international customers, including customers in Europe and ) Tj ET Q q 0 0 0 rg BT 289.95 439.10 Td (Asia, will continue to account for a significant portion of our net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (sales. Sales outside the United States involve the following risks, among others:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 415.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 415.10 Td (international governments may impose tarif) Tj ET Q q 0 0 0 rg BT 296.77 415.10 Td (fs, quotas and taxes;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 403.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 403.10 Td (the demand for our products will depend, in part, on local economic health;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 391.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 391.10 Td (political and economic instability may reduce demand for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 379.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 379.10 Td (restrictions on the export or import of technology may reduce or eliminate our ability to sell in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 367.10 Td (markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 355.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 355.10 Td (potentially limited intellectual property protection in certain countries may limit our recourse against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 343.10 Td (infringing products or cause us to refrain from selling in certain markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 331.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 331.10 Td (potential dif) Tj ET Q q 0 0 0 rg BT 170.42 331.10 Td (ficulties in managing our international operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 319.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 319.10 Td (the burden and cost of complying with a variety of international laws, including those relating to data security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 307.10 Td (and privacy;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 295.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 295.10 Td (we may decide to price our products in foreign currency denominations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 283.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 283.10 Td (our contracts with international channel partners cannot fully protect us against political and economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 271.10 Td (instability;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 259.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 259.10 Td (potential dif) Tj ET Q q 0 0 0 rg BT 170.42 259.10 Td (ficulties in collecting receivables; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 247.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 247.10 Td (we may not be able to control our international channel partners) Tj ET Q q 0 0 0 rg BT 380.61 247.10 Td ( ef) Tj ET Q q 0 0 0 rg BT 390.70 247.10 Td (forts on our behalf.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (The financial results of our non-U.S. subsidiaries are translated into U.S. dollars for consolidation with our overall financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (results. Currency translations and fluctuations may adversely af) Tj ET Q q 0 0 0 rg BT 304.19 214.10 Td (fect the financial performance of our consolidated operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (Currency fluctuations may also increase the relative price of our product in international markets and thereby could also cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (our products to become less af) Tj ET Q q 0 0 0 rg BT 171.73 190.10 Td (fordable or less price competitive than those of international manufacturers. ) Tj ET Q q 0 0 0 rg BT 477.27 190.10 Td (These risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (associated with international operations may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 334.98 178.10 Td (fect on our revenue from or costs associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (international sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 145.10 Td (If our) Tj ET Q q 0 0 0 rg BT 74.54 145.10 Td ( domestic or) Tj ET Q q 0 0 0 rg BT 126.57 145.10 Td ( international intellectual pr) Tj ET Q q 0 0 0 rg BT 246.66 145.10 Td (operty rights ar) Tj ET Q q 0 0 0 rg BT 313.68 145.10 Td (e not adequately pr) Tj ET Q q 0 0 0 rg BT 396.00 145.10 Td (otected, others may offer) Tj ET Q q 0 0 0 rg BT 501.88 145.10 Td ( pr) Tj ET Q q 0 0 0 rg BT 514.20 145.10 Td (oducts ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (similar) Tj ET Q q 0 0 0 rg BT 79.81 133.10 Td ( to ours or) Tj ET Q q 0 0 0 rg BT 123.79 133.10 Td ( independently develop the same or) Tj ET Q q 0 0 0 rg BT 273.89 133.10 Td ( similar) Tj ET Q q 0 0 0 rg BT 306.21 133.10 Td ( technologies or) Tj ET Q q 0 0 0 rg BT 372.68 133.10 Td ( otherwise obtain access to our) Tj ET Q q 0 0 0 rg BT 502.76 133.10 Td ( technology ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (and trade secr) Tj ET Q q 0 0 0 rg BT 110.92 121.10 Td (ets which could depr) Tj ET Q q 0 0 0 rg BT 198.80 121.10 Td (ess our) Tj ET Q q 0 0 0 rg BT 228.34 121.10 Td ( pr) Tj ET Q q 0 0 0 rg BT 240.66 121.10 Td (oduct selling prices and gr) Tj ET Q q 0 0 0 rg BT 352.71 121.10 Td (oss pr) Tj ET Q q 0 0 0 rg BT 377.81 121.10 Td (ofit or) Tj ET Q q 0 0 0 rg BT 404.00 121.10 Td ( r) Tj ET Q q 0 0 0 rg BT 410.76 121.10 Td (esult in loss of market shar) Tj ET Q q 0 0 0 rg BT 525.30 121.10 Td (e.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 100.10 Td (e believe that protecting our proprietary technology is important to our success and competitive positioning. In addition to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (common law intellectual property rights, we rely on patents, trade secrets, trademarks, copyrights, know-how) Tj ET Q q 0 0 0 rg BT 487.00 88.10 Td (, license ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (agreements and contractual provisions to establish and protect our intellectual property rights. However) Tj ET Q q 0 0 0 rg BT 464.19 76.10 Td (, these legal means ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 64.10 Td (ford us only limited protection and may not adequately protect our rights or remedies to gain or keep any advantages we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td (have over our competitors.) 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 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 (Our competitors, who may have or could develop or acquire significant resources, may make substantial investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (competing technologies, or may apply for and obtain patents that will prevent, limit or interfere with our ability to develop or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (market our products. Further) Tj ET Q q 0 0 0 rg BT 164.57 718.10 Td (, although we do not believe that any of our products infringe on the rights of others, third parties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (have claimed, and may claim in the future, that our products infringe on their rights, and these third parties may assert ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (infringement claims against us in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (Costly litigation may be necessary to enforce patents issued to us, to protect trade secrets or know-how we own, to defend us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (against claimed infringement of the rights of others or to determine the ownership, scope, or validity of our proprietary rights ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (and the rights of others. ) Tj ET Q q 0 0 0 rg BT 146.65 649.10 Td (Any claim of infringement against us may involve significant liabilities to third parties, could require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (us to seek licenses from third parties, and could prevent us from manufacturing, selling, or using our products. ) Tj ET Q q 0 0 0 rg BT 493.61 637.10 Td (The occurrence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (of this litigation, or the ef) Tj ET Q q 0 0 0 rg BT 152.02 625.10 Td (fect of an adverse determination in any of this type of litigation, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 538.92 625.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (on our business, financial condition and results of operations. Further) Tj ET Q q 0 0 0 rg BT 327.05 613.10 Td (, the laws of some of the countries in which our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (are or may be sold may not protect our products and intellectual property to the same extent as the United States or at all. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.10 Td (failure to protect or enforce our intellectual property rights could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 415.77 589.10 Td (fect on our business, results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (operations and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (Changes in laws and r) Tj ET Q q 0 0 0 rg BT 144.29 556.10 Td (egulations r) Tj ET Q q 0 0 0 rg BT 194.38 556.10 Td (elated to the Internet or) Tj ET Q q 0 0 0 rg BT 295.84 556.10 Td ( changes in the Internet infrastructur) Tj ET Q q 0 0 0 rg BT 454.81 556.10 Td (e itself may diminish the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (demand for) Tj ET Q q 0 0 0 rg BT 99.54 544.10 Td ( our) Tj ET Q q 0 0 0 rg BT 116.86 544.10 Td ( pr) Tj ET Q q 0 0 0 rg BT 129.18 544.10 Td (oducts, and could have a negative impact on our) Tj ET Q q 0 0 0 rg BT 334.29 544.10 Td ( business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (The future success of our business depends in part upon the continued use of the Internet as a primary medium for commerce, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (communication and business applications. Federal, state or international government bodies or agencies have in the past ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (adopted, and may in the future adopt, laws or regulations af) Tj ET Q q 0 0 0 rg BT 288.08 499.10 Td (fecting the use of the Internet as a commercial medium. Changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (these laws or regulations could require us to modify our products in order to comply with these changes. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (government agencies or private or) Tj ET Q q 0 0 0 rg BT 186.43 475.10 Td (ganizations may begin to impose taxes, fees or other char) Tj ET Q q 0 0 0 rg BT 415.62 475.10 Td (ges for accessing the Internet or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (commerce conducted via the Internet. ) Tj ET Q q 0 0 0 rg BT 203.08 463.10 Td (These laws or char) Tj ET Q q 0 0 0 rg BT 278.14 463.10 Td (ges could limit the growth of Internet-related commerce or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (communications generally) Tj ET Q q 0 0 0 rg BT 155.15 451.10 Td (, or result in reductions in the demand for Internet-based applications such as ours. ) Tj ET Q q 0 0 0 rg BT 487.66 451.10 Td (The adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (any laws or regulations that adversely af) Tj ET Q q 0 0 0 rg BT 211.43 439.10 Td (fect the growth, popularity or use of the Internet could limit the growth of the video as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (a mainstream communication and collaboration tool, limit the market for video content management software generally) Tj ET Q q 0 0 0 rg BT 527.80 427.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (limit the demand for our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (In addition, the use of the Internet as a business tool could be adversely af) Tj ET Q q 0 0 0 rg BT 345.57 394.10 Td (fected due to delays in the development or adoption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (of new standards and protocols to handle increased demands of Internet activity) Tj ET Q q 0 0 0 rg BT 368.41 382.10 Td (, security) Tj ET Q q 0 0 0 rg BT 404.42 382.10 Td (, reliability) Tj ET Q q 0 0 0 rg BT 447.65 382.10 Td (, cost, ease of use, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (accessibility) Tj ET Q q 0 0 0 rg BT 98.78 370.10 Td (, and quality of service. ) Tj ET Q q 0 0 0 rg BT 194.96 370.10 Td (The performance of the Internet and its acceptance as a business tool has been adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 358.10 Td (fected by viruses, worms and similar malicious programs and the Internet has experienced a variety of outages and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (delays as a result of damage to portions of its infrastructure. If the use of the Internet is adversely af) Tj ET Q q 0 0 0 rg BT 448.57 346.10 Td (fected by these issues, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (demand for our applications could suf) Tj ET Q q 0 0 0 rg BT 201.72 334.10 Td (fer) Tj ET Q q 0 0 0 rg BT 212.27 334.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 313.10 Td (Expanding laws, r) Tj ET Q q 0 0 0 rg BT 127.34 313.10 Td (egulations and customer) Tj ET Q q 0 0 0 rg BT 231.05 313.10 Td ( r) Tj ET Q q 0 0 0 rg BT 237.81 313.10 Td (equir) Tj ET Q q 0 0 0 rg BT 260.41 313.10 Td (ements r) Tj ET Q q 0 0 0 rg BT 297.16 313.10 Td (elating to data security and privacy may adversely affect sales ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 Td (of our) Tj ET Q q 0 0 0 rg BT 75.65 301.10 Td ( pr) Tj ET Q q 0 0 0 rg BT 87.97 301.10 Td (oducts and r) Tj ET Q q 0 0 0 rg BT 141.13 301.10 Td (esult in incr) Tj ET Q q 0 0 0 rg BT 191.51 301.10 Td (eased compliance costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (Our customers can use our products to collect, use and store personal or identifying information regarding their employees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (customers and suppliers. Federal, state and international government bodies and agencies have adopted, are considering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (adopting, or may adopt laws and regulations regarding data security) Tj ET Q q 0 0 0 rg BT 320.94 256.10 Td (, privacy and the collection, use, storage and disclosure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (personal information obtained from consumers and individuals. ) Tj ET Q q 0 0 0 rg BT 306.43 244.10 Td (These laws and regulations could reduce the demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (software products if we fail to design or enhance our products to enable our customers to comply with the privacy and security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.10 Td (measures required by the legislation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 199.10 Td (e also must comply with the policies, procedures and business requirements of our customers relating to data privacy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.10 Td (security) Tj ET Q q 0 0 0 rg BT 81.01 187.10 Td (, which can vary based upon the customer) Tj ET Q q 0 0 0 rg BT 248.33 187.10 Td (, the customer) Tj ET Q q 0 0 0 rg BT 305.07 187.10 Td () Tj ET Q q 0 0 0 rg BT 307.85 187.10 Td (s industry or location, and the product the customer selects, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (and which may be more restrictive than the privacy and security measures required by law or regulation. In particular) Tj ET Q q 0 0 0 rg BT 519.15 175.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (European Union and many countries in Europe have stringent privacy laws and regulations, which may impact our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (profitably operate in certain European countries or to of) Tj ET Q q 0 0 0 rg BT 273.07 151.10 Td (fer products that meet the needs of customers subject to European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (Union privacy laws and regulations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (The costs of compliance with, and other burdens imposed by) Tj ET Q q 0 0 0 rg BT 292.63 118.10 Td (, our customers) Tj ET Q q 0 0 0 rg BT 356.59 118.10 Td ( own requirements and the privacy and security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (laws and regulations that are applicable to our customers) Tj ET Q q 0 0 0 rg BT 279.74 106.10 Td ( businesses may limit the use and adoption of our products and reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (overall demand. Non-compliance with our customers) Tj ET Q q 0 0 0 rg BT 265.30 94.10 Td ( specific requirements may lead to termination of contracts with these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (customers or liabilities to the customers; non-compliance with applicable laws and regulations may lead to significant fines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (penalties or liabilities.) 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 (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Furthermore, privacy concerns may cause our customers) Tj ET Q q 0 0 0 rg BT 278.90 742.10 Td ( workers to resist providing the personal data necessary to allow our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (customers to use our products ef) Tj ET Q q 0 0 0 rg BT 179.51 730.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 213.84 730.10 Td (. If a customer experiences a significant data security breach involving our software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (products, our customers could lose confidence in our software) Tj ET Q q 0 0 0 rg BT 301.32 718.10 Td (s ability to protect the personal information of their employees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (customers and suppliers, which could cause our customers to discontinue use of our products. ) Tj ET Q q 0 0 0 rg BT 426.96 706.10 Td (The loss of confidence from a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (significant data security breach involving our software products could hurt our reputation, cause sales and marketing challenges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (to existing and new customers, cause loss of market share or exacerbate competitive pressures, result in an increase in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (development costs to address any potential vulnerabilities in our software products, and may result in reduced demand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (revenue. Even the perception of privacy concerns, whether or not valid, may inhibit market adoption of our products in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (industries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (Domestic and international legislative and regulatory initiatives and our customers) Tj ET Q q 0 0 0 rg BT 382.77 625.10 Td ( privacy policies and practices may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.40 613.10 Td (fect our customers) Tj ET Q q 0 0 0 rg BT 174.85 613.10 Td ( ability to process, handle, store, use and transmit demographic and personal information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (their employees, customers and suppliers, which could reduce demand for our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (In addition to government activity) Tj ET Q q 0 0 0 rg BT 185.99 580.10 Td (, privacy advocacy groups and the technology and other industries are considering various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (new) Tj ET Q q 0 0 0 rg BT 66.01 568.10 Td (, additional or dif) Tj ET Q q 0 0 0 rg BT 135.26 568.10 Td (ferent self-regulatory standards that may place additional burdens on our software products. If the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (processing of personal information were to be curtailed in this manner) Tj ET Q q 0 0 0 rg BT 330.63 556.10 Td (, our software products would be less ef) Tj ET Q q 0 0 0 rg BT 489.85 556.10 Td (fective, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (may reduce demand for our products and adversely af) Tj ET Q q 0 0 0 rg BT 265.29 544.10 Td (fect our business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 523.10 Td (e have identified material weaknesses in our) Tj ET Q q 0 0 0 rg BT 247.03 523.10 Td ( internal contr) Tj ET Q q 0 0 0 rg BT 308.51 523.10 Td (ol over) Tj ET Q q 0 0 0 rg BT 337.48 523.10 Td ( financial r) Tj ET Q q 0 0 0 rg BT 383.96 523.10 Td (eporting. ) Tj ET Q q 0 0 0 rg BT 424.89 523.10 Td (These material weaknesses, if ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (not corr) Tj ET Q q 0 0 0 rg BT 84.53 511.10 Td (ected, could affect the r) Tj ET Q q 0 0 0 rg BT 184.03 511.10 Td (eliability of our) Tj ET Q q 0 0 0 rg BT 249.40 511.10 Td ( financial statements and have other) Tj ET Q q 0 0 0 rg BT 403.38 511.10 Td ( adverse consequences. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (In connection with the audit of our consolidated financial statements as of and for the year ended December 31, 2015, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (concluded that there are material weaknesses relating to our internal control over financial reporting. ) Tj ET Q q 0 0 0 rg BT 454.56 478.10 Td (A) Tj ET Q q 0 0 0 rg BT 461.23 478.10 Td ( material weakness is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (deficiency) Tj ET Q q 0 0 0 rg BT 90.99 466.10 Td (, or a combination of deficiencies, in internal control over financial reporting such that there is a 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 of the company) Tj ET Q q 0 0 0 rg BT 274.12 454.10 Td (s annual or interim consolidated financial statements will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (prevented or detected on a timely basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 421.10 Td (e did not maintain ef) Tj ET Q q 0 0 0 rg BT 141.21 421.10 Td (fective risk assessment and monitoring processes. Specifically) Tj ET Q q 0 0 0 rg BT 389.66 421.10 Td (, with respect to our risk assessment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (process, we did not adequately identify and analyze changes in the business and personnel and implement ef) Tj ET Q q 0 0 0 rg BT 483.30 409.10 Td (fective process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (level controls and monitoring activities that are responsive to those changes and aligned with our financial reporting objectives. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 385.10 Td (, our risk assessment process did not adequately evaluate the impact of information technology control deficiencies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (that af) Tj ET Q q 0 0 0 rg BT 75.08 373.10 Td (fect the design and operating ef) Tj ET Q q 0 0 0 rg BT 200.68 373.10 Td (fectiveness of controls related to the completeness and accuracy of underlying data ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 361.10 Td (included in system generated reports. ) Tj ET Q q 0 0 0 rg BT 201.44 361.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.48 361.10 Td (ith respect to our monitoring process, we did not design and maintain ef) Tj ET Q q 0 0 0 rg BT 497.73 361.10 Td (fective controls ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 349.10 Td (for the timely identification, evaluation, communication and remediation of internal control deficiencies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (Additionally as it relates to specific control activities: ) Tj ET Q q 0 0 0 rg BT 266.43 328.10 Td (The design of our controls were inadequate to ensure that a complete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (population of manual journal entries had been appropriately identified and subjected to appropriate levels of review and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (approval. ) Tj ET Q q 0 0 0 rg BT 89.80 304.10 Td (The design and operating ef) Tj ET Q q 0 0 0 rg BT 201.25 304.10 Td (fectiveness of our controls were inadequate to ensure that account reconciliations were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (consistently performed, that support was retained, and that reconciliations were approved to ensure the balances were complete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (and accurate. ) Tj ET Q q 0 0 0 rg BT 105.06 280.10 Td (W) Tj ET Q q 0 0 0 rg BT 113.70 280.10 Td (e did not maintain ef) Tj ET Q q 0 0 0 rg BT 196.27 280.10 Td (fective controls over the accuracy and appropriateness of revenue entries recorded to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (general ledger) Tj ET Q q 0 0 0 rg BT 106.36 268.10 Td (. Specifically) Tj ET Q q 0 0 0 rg BT 158.47 268.10 Td (, we did not maintain adequate documentation to ensure that all entries had been subject to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (appropriate level of review and approval. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (As a result, a reasonable possibility exists that material misstatements in the Company) Tj ET Q q 0 0 0 rg BT 397.99 235.10 Td (s financial statements would not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (prevented or detected on a timely basis. For additional information on these matters, see Part II, Item 9A) Tj ET Q q 0 0 0 rg BT 467.66 223.10 Td ( of this ) Tj ET Q q 0 0 0 rg BT 497.39 223.10 Td (Annual Report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (on Form 10-K. ) Tj ET Q q 0 0 0 rg BT 111.67 211.10 Td (As a result of these material weaknesses, management has determined that our disclosure controls and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.10 Td (procedures and internal control over financial reporting were not ef) Tj ET Q q 0 0 0 rg BT 318.87 199.10 Td (fective as of December 31, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (In light of the material weaknesses identified, we performed additional analysis and other post-closing procedures to ensure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (that our consolidated financial statements present fairly) Tj ET Q q 0 0 0 rg BT 270.94 166.10 Td (, in all material respects, the Company) Tj ET Q q 0 0 0 rg BT 427.56 166.10 Td (s financial position, results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (operations and cash flows for the periods disclosed in conformity with U.S. GAAP) Tj ET Q q 0 0 0 rg BT 380.51 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 385.33 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 393.96 154.10 Td (e are in the process of implementing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (remediation plans. During 2015, we hired a new chief financial of) Tj ET Q q 0 0 0 rg BT 313.62 142.10 Td (ficer and corporate controller) Tj ET Q q 0 0 0 rg BT 430.10 142.10 Td (, created and hired for the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (role of SEC reporting and compliance manager) Tj ET Q q 0 0 0 rg BT 238.42 130.10 Td (, and hired additional accounting personnel over the past six months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 118.10 Td (, the Company is expecting to complete the implementation of new financial reporting software by the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (third quarter of 2016. ) Tj ET Q q 0 0 0 rg BT 137.85 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 146.49 106.10 Td (e expect that a substantial portion of our remediation ef) Tj ET Q q 0 0 0 rg BT 367.62 106.10 Td (forts will be completed by the end of the third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (quarter of 2016, with final testing of ef) Tj ET Q q 0 0 0 rg BT 205.33 94.10 Td (fectiveness of new and enhanced controls occurring at the end of 2016. ) Tj ET Q q 0 0 0 rg BT 491.99 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 500.63 94.10 Td (e expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (incur additional costs remediating these material weaknesses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (Although we believe we are taking appropriate actions to remediate the control deficiencies we identified and to strengthen our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (internal control over financial reporting, we may need to take additional measures to fully mitigate the material weaknesses, ) 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 301.00 31.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (and the measures we have taken, and expect to take, to improve our internal controls may not be suf) Tj ET Q q 0 0 0 rg BT 449.69 742.10 Td (ficient to address the issues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (identified, to ensure that our internal controls are ef) Tj ET Q q 0 0 0 rg BT 255.58 730.10 Td (fective or to ensure that the identified material weaknesses will not result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (a material misstatement of our annual or interim consolidated financial statements. In addition, other material weaknesses or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (deficiencies may be identified in the future. If we are unable to correct material weaknesses or deficiencies in internal controls ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (in a timely manner) Tj ET Q q 0 0 0 rg BT 124.85 694.10 Td (, our ability to record, process, summarize and report financial information accurately and within the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (periods specified in the rules and forms of the SEC may be adversely af) Tj ET Q q 0 0 0 rg BT 336.68 682.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 365.92 682.10 Td (This failure could negatively af) Tj ET Q q 0 0 0 rg BT 491.25 682.10 Td (fect the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (price and trading liquidity of our common stock, cause investors to lose confidence in our reported financial information, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (subject us to civil and criminal investigations and penalties, and generally materially and adversely impact our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (financial condition. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 625.10 Td (e may face cir) Tj ET Q q 0 0 0 rg BT 118.40 625.10 Td (cumstances in the futur) Tj ET Q q 0 0 0 rg BT 218.49 625.10 Td (e that could r) Tj ET Q q 0 0 0 rg BT 275.25 625.10 Td (esult in impairment charges, including, but not limited to, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (significant goodwill impairment charges.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (If the fair value of any of our long-lived assets decreases as a result of an economic slowdown, a downturn in the markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (where we sell products and services or a downturn in our financial performance and/or future outlook, we may be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (record an impairment char) Tj ET Q q 0 0 0 rg BT 155.60 568.10 Td (ge on such assets, including goodwill.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 547.10 Td (e are required to test intangible assets with indefinite life periods for potential impairment annually and on an interim basis if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.10 Td (there are indicators of a potential impairment. ) Tj ET Q q 0 0 0 rg BT 235.30 535.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.94 535.10 Td (e also are required to evaluate amortizable intangible assets and fixed assets for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (impairment if there are indicators of a possible impairment. One potential indicator of impairment is the value of our market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (capitalization, or enterprise value, as compared to our net book value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (During the year ended December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 281.60 490.10 Td (s stock price traded at levels which caused the Company) Tj ET Q q 0 0 0 rg BT 510.14 490.10 Td (s enterprise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (value, excluding any control premium, to approximate its book value, resulting in increased risk of a potential impairment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 90.00 466.10 Td (As of December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 254.41 466.10 Td (s market capitalization, without a control premium, was less than its book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (value suggesting a possible goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 250.63 454.10 Td (The Company engaged a third party valuation firm to assist the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (with its goodwill impairment analysis. Based on the analysis, the Company determined its enterprise value using a discounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (cash flow analysis and a comparable public company analysis, giving both equal weight, was greater than the Company) Tj ET Q q 0 0 0 rg BT 531.81 430.10 Td (s book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (value by 14%. ) Tj ET Q q 0 0 0 rg BT 109.43 418.10 Td (As a result, the Company concluded there was no goodwill impairment. Declines in the Company) Tj ET Q q 0 0 0 rg BT 503.24 418.10 Td (s market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (capitalization or a downturn in our future financial performance and/or future outlook could require the Company to record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (goodwill and other impairment char) Tj ET Q q 0 0 0 rg BT 193.67 394.10 Td (ges. ) Tj ET Q q 0 0 0 rg BT 211.82 394.10 Td (While a goodwill impairment char) Tj ET Q q 0 0 0 rg BT 349.37 394.10 Td (ge is a non-cash char) Tj ET Q q 0 0 0 rg BT 433.04 394.10 Td (ge, it would have a negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (impact on our results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 361.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.45 361.10 Td (e may experience significant quarterly and annual fluctuations in our) Tj ET Q q 0 0 0 rg BT 354.55 361.10 Td ( r) Tj ET Q q 0 0 0 rg BT 361.31 361.10 Td (esults of operations due to a number) Tj ET Q q 0 0 0 rg BT 516.13 361.10 Td ( of factors ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 349.10 Td (and these fluctuations may negatively impact the market price of our) Tj ET Q q 0 0 0 rg BT 343.67 349.10 Td ( common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (Our quarterly and annual results of operations may fluctuate significantly due to a variety of factors, many of which are outside ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (of our control. ) Tj ET Q q 0 0 0 rg BT 109.80 316.10 Td (W) Tj ET Q q 0 0 0 rg BT 118.84 316.10 Td (ith the sale of the disc publishing business on July 1, 2014, there may be even wider fluctuations in our results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.10 Td (of operations given the smaller size of our retained software business. ) Tj ET Q q 0 0 0 rg BT 331.40 304.10 Td (This variability may lead to volatility in our stock price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (as research analysts and investors respond to quarterly fluctuations and this volatility may be exacerbated by the relatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (illiquid nature of our common stock. In addition, comparing our results of operations on a period-to-period basis, particularly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (on a sequential quarterly basis, may not be meaningful. Further) Tj ET Q q 0 0 0 rg BT 302.59 268.10 Td (, a comparison to our results of operations in periods prior to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (acquisition of Qumu, Inc. in October 201) Tj ET Q q 0 0 0 rg BT 214.59 256.10 Td (1 will not be meaningful. ) Tj ET Q q 0 0 0 rg BT 317.54 256.10 Td (Y) Tj ET Q q 0 0 0 rg BT 323.76 256.10 Td (ou should not rely on our past results as an indication of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (our future performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (Factors that may af) Tj ET Q q 0 0 0 rg BT 126.74 223.10 Td (fect our results of operations include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 211.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 211.10 Td (the number and mix of products and solutions sold in the period;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 199.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 199.10 Td (the timing and amount of our recorded revenue, which will depend upon the mix of products and solutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 187.10 Td (selected by our customers with revenue from paid-up perpetual software licenses being recognized upon delivery) Tj ET Q q 0 0 0 rg BT 555.97 187.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 175.10 Td (revenue from term software licenses recognized over the term of the contract, and revenue from cloud-hosted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 163.10 Td (services recognized over the term of the subscription agreement;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 151.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 151.10 Td (timing of customer purchase commitments, including the impact of long sales cycles and seasonal buying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 139.10 Td (patterns;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 127.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 127.10 Td (variability in the size of customer purchases and the impact of lar) Tj ET Q q 0 0 0 rg BT 365.12 127.10 Td (ge customer orders on a particular period;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 115.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 115.10 Td (the timing of major development projects and market launch of new products or improvements to existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 103.10 Td (products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 91.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 91.10 Td (reductions in our customers) Tj ET Q q 0 0 0 rg BT 217.40 91.10 Td ( budgets for information technology purchases and delays in their purchasing cycles, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 79.10 Td (due to changing global economic or market conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 67.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 67.10 Td (the impact to the marketplace of competitive products and pricing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 55.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 55.10 Td (the timing and level of operating expenses;) 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 (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 742.10 Td (the impact on revenue and expenses of acquisitions by us or by our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 730.10 Td (future accounting pronouncements or changes in our accounting policies; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 718.10 Td (the impact of a recession or any other adverse global economic conditions on our business, including uncertainties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 706.10 Td (that may cause a delay in entering into or a failure to enter into significant customer agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (The foregoing factors are dif) Tj ET Q q 0 0 0 rg BT 164.77 685.10 Td (ficult to forecast, and these, as well as other factors, could adversely af) Tj ET Q q 0 0 0 rg BT 447.53 685.10 Td (fect our quarterly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (annual results of operations. Failure to achieve our quarterly or annual forecasts or to meet or exceed the expectations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (research analysts or investors may cause our stock price to decline abruptly and significantly) Tj ET Q q 0 0 0 rg BT 420.06 661.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.70 Td (The limited liquidity for) Tj ET Q q 0 0 0 rg BT 152.88 634.70 Td ( our) Tj ET Q q 0 0 0 rg BT 170.20 634.70 Td ( common stock could affect your) Tj ET Q q 0 0 0 rg BT 308.61 634.70 Td ( ability to sell your) Tj ET Q q 0 0 0 rg BT 387.87 634.70 Td ( shar) Tj ET Q q 0 0 0 rg BT 409.08 634.70 Td (es at a satisfactory price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.70 Td (Our common stock is relatively illiquid. ) Tj ET Q q 0 0 0 rg BT 211.92 613.70 Td (As of December 31, 2015, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.05 613.70 Td (9,188,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.05 613.70 Td ( shares of common stock outstanding. ) Tj ET Q q 0 0 0 rg BT 544.46 613.70 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.70 Td (average daily trading volume in our common stock, as reported by the Nasdaq Stock Market, for the 64 trading days beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.70 Td (October 1, 2015 and ending December 31, 2015 was approximately 28,100 shares. ) Tj ET Q q 0 0 0 rg BT 382.70 589.70 Td (A) Tj ET Q q 0 0 0 rg BT 389.37 589.70 Td ( more active public market for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.70 Td (common stock may not develop, which could adversely af) Tj ET Q q 0 0 0 rg BT 282.81 577.70 Td (fect the trading price and liquidity of our common stock. Moreover) Tj ET Q q 0 0 0 rg BT 550.95 577.70 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 565.70 Td (thin trading market for our stock could cause the market price for our common stock to fluctuate significantly more than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 553.70 Td (stock market as a whole. ) Tj ET Q q 0 0 0 rg BT 150.90 553.70 Td (W) Tj ET Q q 0 0 0 rg BT 159.94 553.70 Td (ithout a lar) Tj ET Q q 0 0 0 rg BT 203.08 553.70 Td (ger float, our common stock is less liquid than the stock of companies with broader ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.70 Td (public ownership. ) Tj ET Q q 0 0 0 rg BT 123.60 541.70 Td (As a result, the trading prices of our common stock have been and may continue to be more volatile. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.70 Td (addition, in the absence of an active public trading market, shareholders may be unable to liquidate their shares of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 517.70 Td (stock at a satisfactory price.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 496.70 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.37 496.70 Td (ovisions of Minnesota law) Tj ET Q q 0 0 0 rg BT 169.55 496.70 Td (, our) Tj ET Q q 0 0 0 rg BT 189.37 496.70 Td ( bylaws and other) Tj ET Q q 0 0 0 rg BT 265.03 496.70 Td ( agr) Tj ET Q q 0 0 0 rg BT 281.79 496.70 Td (eements may deter) Tj ET Q q 0 0 0 rg BT 361.57 496.70 Td ( a change of contr) Tj ET Q q 0 0 0 rg BT 437.49 496.70 Td (ol of our) Tj ET Q q 0 0 0 rg BT 473.42 496.70 Td ( company and may ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 484.70 Td (have a possible negative effect on our) Tj ET Q q 0 0 0 rg BT 208.13 484.70 Td ( stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.70 Td (Certain provisions of Minnesota law) Tj ET Q q 0 0 0 rg BT 195.44 463.70 Td (, our bylaws and other agreements may make it more dif) Tj ET Q q 0 0 0 rg BT 421.02 463.70 Td (ficult for a third-party to acquire, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.70 Td (or discourage a third-party from attempting to acquire, control of our company) Tj ET Q q 0 0 0 rg BT 364.25 451.70 Td (, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 439.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 439.70 Td (the provisions of Minnesota law relating to business combinations and control share acquisitions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 427.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 427.70 Td (the provisions of our bylaws regarding the business properly brought before shareholders;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 415.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 415.70 Td (the right of our board of directors to establish more than one class or series of shares and to fix the relative rights ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 403.70 Td (and preferences of any such dif) Tj ET Q q 0 0 0 rg BT 229.04 403.70 Td (ferent classes or series;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 391.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 391.70 Td (the provisions of our stock option plans allowing for the acceleration of vesting or payments of awards granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 379.70 Td (under the plans in the event of specified events that result in a change in control; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 367.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 367.70 Td (the provisions of our agreements provide for severance payments to our executive of) Tj ET Q q 0 0 0 rg BT 442.59 367.70 Td (ficers in the event of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 355.70 Td (terminations following a change in control. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.70 Td (These measures could discourage or prevent a takeover of our company or changes in our management, even if an acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.70 Td (or such changes would be beneficial to our shareholders. ) Tj ET Q q 0 0 0 rg BT 279.19 322.70 Td (This may have a negative ef) Tj ET Q q 0 0 0 rg BT 391.46 322.70 Td (fect on the price of our common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 301.70 Td (Compliance with changing r) Tj ET Q q 0 0 0 rg BT 170.66 301.70 Td (egulation of corporate governance and public disclosur) Tj ET Q q 0 0 0 rg BT 404.92 301.70 Td (e may r) Tj ET Q q 0 0 0 rg BT 436.95 301.70 Td (esult in additional expenses ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 289.70 Td (and will constitute a larger) Tj ET Q q 0 0 0 rg BT 164.25 289.70 Td ( per) Tj ET Q q 0 0 0 rg BT 181.01 289.70 Td (centage of our) Tj ET Q q 0 0 0 rg BT 241.37 289.70 Td ( annual r) Tj ET Q q 0 0 0 rg BT 280.09 289.70 Td (evenue than prior) Tj ET Q q 0 0 0 rg BT 356.02 289.70 Td ( to the sale of the disc publishing business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.70 Td (Keeping abreast of, and in compliance with, changing laws, regulations and standards relating to corporate governance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.70 Td (public company disclosure requirements, including the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 337.71 256.70 Td (Act of 2002 and in particular Section 404 of that ) Tj ET Q q 0 0 0 rg BT 533.77 256.70 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.70 Td (relating to management certification of internal controls, new disclosures relating to conflict minerals, the regulations of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.70 Td (Securities and Exchange Commission and the rules of the Nasdaq Stock Market have required an increased amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.70 Td (management attention and external resources. ) Tj ET Q q 0 0 0 rg BT 235.30 220.70 Td (W) Tj ET Q q 0 0 0 rg BT 243.94 220.70 Td (e intend to invest all reasonably necessary resources to comply with evolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.70 Td (corporate governance and public disclosure standards, and this investment may result in increased general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.70 Td (expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. ) Tj ET Q q 0 0 0 rg BT 531.31 196.70 Td (While ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.70 Td (all public companies face the costs and burdens associated with being public companies, the costs and burden of being a public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.70 Td (company will be a significant portion of our annual revenues, which have been reduced following the sale of the disc ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.70 Td (publishing business on July 1, 2014.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 139.70 Td (ITEM 1B. UNRESOL) Tj ET Q q 0 0 0 rg BT 141.04 139.70 Td (VED ST) Tj ET Q q 0 0 0 rg BT 175.21 139.70 Td (AFF) Tj ET Q q 0 0 0 rg BT 195.04 139.70 Td ( COMMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.70 Td (None.) 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 (17) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 2. PROPERTIES) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 703.75 98.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 148.50 703.75 184.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 703.75 59.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 703.75 15.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 703.75 67.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 703.75 6.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 703.75 75.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 658.75 98.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 148.50 658.75 184.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 658.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 658.75 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 658.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 658.75 6.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 658.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 621.75 98.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 148.50 621.75 184.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 621.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 621.75 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 621.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 621.75 6.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 621.75 75.00 -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 50.5 703.75 m 148.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 148.5 703.75 m 332.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 703.75 m 391.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 703.75 m 406.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 703.75 m 473.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 703.75 m 479.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 703.75 m 554.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 703.75 m 148.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 148.5 703.75 m 332.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 703.75 m 406.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 703.75 m 479.5 703.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 703.75 m 554.5 703.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 707.98 Td (Location of Property) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.15 707.98 Td (Use of Property) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.90 723.83 Td (Approximate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.60 715.83 Td (Monthly Rent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.80 707.83 Td (\(USD\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.90 723.83 Td (Approximate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.30 715.83 Td (Leased Square) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.90 707.83 Td (Footage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.25 715.98 Td (Lease Expiration) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.50 707.98 Td (Date) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 695.01 Td (Minneapolis, Minnesota) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 686.01 Td (\(Headquarters\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 695.01 Td (Engineering, service, sales, marketing and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 686.01 Td (administration) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.00 686.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 686.21 Td (23,000) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 394.00 690.85 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 686.21 Td (16,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.35 686.21 Td (January 2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 673.01 Td (San Bruno, California) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 673.01 Td (Engineering, service, sales, marketing and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 664.01 Td (administration) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 663.21 Td (36,000) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 394.00 667.85 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 663.21 Td (13,900) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.10 663.21 Td (June 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 650.01 Td (Tokyo, Japan) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 650.01 Td (Sales and service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.00 649.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 649.21 Td (5,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 649.21 Td (500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.10 649.21 Td (Not applicable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 636.01 Td (London, England) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 636.01 Td (Engineering, service, sales, marketing and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 627.01 Td (administration) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.00 626.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 626.21 Td (36,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.75 626.21 Td (5,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.10 626.21 Td (September 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 613.01 Td (Hyderabad, India) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.00 613.01 Td (Software development and testing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.00 612.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 612.21 Td (7,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.75 612.21 Td (4,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.10 612.21 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 601.05 Td (_________________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 68.00 591.33 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 587.25 Td (The agreement has escalating lease payments ranging from approximately $23,000 to $27,000 per month during the course of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 576.45 Td (lease.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 68.00 566.73 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 562.65 Td (The agreement has escalating lease payments ranging from approximately $33,000 to $38,000 per month during the course of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 551.85 Td (lease.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.85 Td (ITEM 3. LEGAL) Tj ET Q q 0 0 0 rg BT 120.47 530.85 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 509.85 Td (The Company is exposed to a number of asserted and unasserted legal claims encountered in the ordinary course of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 497.85 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.34 497.85 Td (Although the outcome of any such legal actions cannot be predicted, management believes that there are no pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 485.85 Td (legal proceedings against or involving the Company for which the outcome is likely to have a material adverse ef) Tj ET Q q 0 0 0 rg BT 503.01 485.85 Td (fect upon its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 473.85 Td (financial position or results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 452.85 Td (ITEM 4. MINE SAFETY) Tj ET Q q 0 0 0 rg BT 154.65 452.85 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.85 Td (Not applicable.) 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 (18) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (ITEM 5. MARKET FOR COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 240.22 721.25 Td (, RELA) Tj ET Q q 0 0 0 rg BT 270.79 721.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 304.78 721.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 384.52 721.25 Td (TTERS ) Tj ET Q q 0 0 0 rg BT 417.77 721.25 Td (AND ISSUER PURCHASES OF) Tj ET Q q 0 0 0 rg BT 554.58 721.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (EQUITY) Tj ET Q q 0 0 0 rg BT 86.85 709.25 Td ( SECURITIE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.71 709.25 Td (S) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 688.25 Td (Market Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 667.25 Td (Qumu's common stock is traded on the Nasdaq Global Market under the symbol QUMU. ) Tj ET Q q 0 0 0 rg BT 417.94 667.25 Td (The following table sets forth, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 655.25 Td (the periods indicated, the range of low and high sales prices for Qumu's common stock as reported on ) Tj ET Q q 0 0 0 rg BT 459.01 655.25 Td (The Nasdaq Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 643.25 Td (Market.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 599.75 313.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 599.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 599.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 599.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 599.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 571.75 313.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 571.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 571.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 571.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 571.75 46.00 -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 367.5 621.75 m 413.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 621.75 m 417.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 621.75 m 462.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 621.75 m 466.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 621.75 m 512.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 621.75 m 516.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 621.75 m 562.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 610.75 m 413.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 610.75 m 417.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 610.75 m 462.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 610.75 m 512.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 610.75 m 516.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 610.75 m 562.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 599.75 m 413.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 599.75 m 462.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 599.75 m 512.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 599.75 m 562.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 599.75 m 462.5 599.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.20 624.83 Td (Year Ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 613.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.50 613.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.00 613.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.40 602.83 Td (Low) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.05 602.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.40 602.83 Td (Low) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.55 602.83 Td (High) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 590.21 Td (First Quarter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.75 590.21 Td (12.31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.75 590.21 Td (15.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.75 590.21 Td (12.38) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 590.21 Td (18.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 576.21 Td (Second Quarter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 576.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 576.21 Td (6.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 576.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.75 576.21 Td (14.99) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 576.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.75 576.21 Td (12.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 576.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 576.21 Td (17.27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 562.21 Td (Third Quarter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 562.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 562.21 Td (1.58) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 562.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.25 562.21 Td (8.59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 562.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.75 562.21 Td (11.74) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 562.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 562.21 Td (14.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 548.21 Td (Fourth Quarter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 548.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 548.21 Td (2.40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 548.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.25 548.21 Td (4.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 548.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.75 548.21 Td (11.83) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 548.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 548.21 Td (15.20) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 523.25 Td (Shar) Tj ET Q q 0 0 0 rg BT 70.38 523.25 Td (eholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (As of February 29, 2016, there were 99 shareholders of record of Qumu's common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.25 Td (The Company did not pay a dividend in 2015 and 2014 and does not expect to pay a dividend in 2016. ) Tj ET Q q 0 0 0 rg BT 461.97 460.25 Td (The payment by Qumu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.25 Td (of dividends, if any) Tj ET Q q 0 0 0 rg BT 127.11 448.25 Td (, on its common stock in the future is subject to the discretion of the Board of Directors and will depend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.25 Td (Qumu's future earnings, financial condition, capital requirements and other relevant factors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 415.25 Td (Issuer) Tj ET Q q 0 0 0 rg BT 75.93 415.25 Td ( Pur) Tj ET Q q 0 0 0 rg BT 94.36 415.25 Td (chases of Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 394.25 Td (s Board of Directors has approved common stock repurchases of up to 3,500,000 shares of the Company) Tj ET Q q 0 0 0 rg BT 530.73 394.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 113.42 382.25 Td (The Company has implemented a Rule 10b5-1 plan in connection with the repurchase program in order to give ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (the Company the ability to repurchase its shares at times when it otherwise might be prevented from doing so under insider ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (trading laws or because of self-imposed blackout periods. Shares may be purchased at prevailing market prices in the open ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (market or in private transactions, subject to market conditions, share price, trading volume and other factors. ) Tj ET Q q 0 0 0 rg BT 486.35 346.25 Td (The repurchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (program may be discontinued at any time. ) Tj ET Q q 0 0 0 rg BT 220.88 334.25 Td (The repurchase program has been funded to date using cash on hand. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (three months ended December 31, 2015, no repurchases were made under the repurchase program. ) Tj ET Q q 0 0 0 rg BT 447.16 322.25 Td (While the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (authorization remains in ef) Tj ET Q q 0 0 0 rg BT 157.28 310.25 Td (fect, the Company expects its primary use of cash will be to fund operations in support of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 298.25 Td (s goals for revenue growth and operating mar) Tj ET Q q 0 0 0 rg BT 273.37 298.25 Td (gin improvement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (In addition to shares purchased under the Board authorization, the Company purchases shares of common stock held by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (employees who wish to tender owned shares to satisfy the exercise price or tax withholding on stock option exercises or vesting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (of restricted stock awards. ) Tj ET Q q 0 0 0 rg BT 156.91 250.25 Td (All of the share repurchase activity included in the table below for the three months ended December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (31, 2015 was associated with satisfaction of employee tax withholding requirements on vesting of restricted stock awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.25 Td (Information on the Company) Tj ET Q q 0 0 0 rg BT 169.15 217.25 Td (s repurchases of its common stock during each month of the fourth quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.27 217.25 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 205.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 205.25 Td (, is as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 140.75 193.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 140.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 140.75 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 140.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 140.75 59.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 140.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 140.75 78.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 140.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 140.75 100.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 116.75 193.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 116.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 116.75 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 116.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 116.75 59.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 116.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 116.75 78.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 116.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 116.75 100.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 140.75 m 243.5 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 140.75 m 313.5 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 140.75 m 376.5 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 140.75 m 458.5 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 140.75 m 562.5 140.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 144.98 Td (Monthly Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.75 160.98 Td (Total Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.50 152.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.05 144.98 Td (Purchased) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.70 152.98 Td (Average Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.05 144.98 Td (Paid per Share) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.75 176.98 Td (Total Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.50 168.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.60 160.98 Td (Purchased as Part of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.65 152.98 Td (Publicly Announced) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.15 144.98 Td (Plans or Programs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.70 176.98 Td (Maximum Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.70 168.98 Td (Shares That May Yet Be) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.10 160.98 Td (purchased Under the) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.45 152.98 Td (Plans or Programs \(at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.00 144.98 Td (end of period\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 132.01 Td (October 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 132.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.00 132.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.00 132.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.00 132.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 132.01 Td (778,365) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 120.01 Td (November 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.75 120.01 Td (1,512) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.00 120.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.25 120.01 Td (2.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.00 120.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 120.01 Td (778,365) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 108.01 Td (December 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 108.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.00 108.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.00 108.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.00 108.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 108.01 Td (778,365) Tj ET Q BT /F1 10.00 Tf ET 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 (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Other) Tj ET Q q 0 0 0 rg BT 75.37 742.25 Td ( Information Regarding Equity Compensation Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The following table sets forth information regarding Qumu's equity compensation plans in ef) Tj ET Q q 0 0 0 rg BT 421.54 721.25 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.68 721.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.27 721.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (Each of the Company) Tj ET Q q 0 0 0 rg BT 139.70 709.25 Td (s equity compensation plans is an employee benefit plan as defined by Rule 405 of Regulation C of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (Securities ) Tj ET Q q 0 0 0 rg BT 91.38 697.25 Td (Act of 1933.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 622.75 224.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 622.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 622.75 94.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 622.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 622.75 88.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 622.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 622.75 94.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 596.75 224.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 596.75 94.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 596.75 88.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 596.75 94.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 675.75 m 372.5 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 675.75 m 376.5 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 675.75 m 464.5 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 675.75 m 468.5 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 675.75 m 562.5 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 622.75 m 274.5 622.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 622.75 m 372.5 622.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 622.75 m 464.5 622.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 622.75 m 562.5 622.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 596.75 m 372.5 596.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 596.75 m 464.5 596.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 596.75 m 562.5 596.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 583.75 m 372.5 583.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 583.75 m 464.5 583.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 583.75 m 562.5 583.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.10 678.83 Td (Securities Authorized for Issuance Under Equity Compensation Plans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 627.20 Td (Plan category) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.70 658.98 Td (Number) Tj ET Q q 0 0 0 rg BT 318.00 658.98 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 344.97 658.98 Td (es of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.30 650.98 Td (Common Stock to be) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.05 642.98 Td (Issued Upon Exer) Tj ET Q q 0 0 0 rg BT 344.81 642.98 Td (cise of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.05 634.98 Td (Outstanding Options,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.95 626.98 Td (W) Tj ET Q q 0 0 0 rg BT 296.51 626.98 Td (arrants and Rights) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.50 650.98 Td (W) Tj ET Q q 0 0 0 rg BT 396.06 650.98 Td (eighted-A) Tj ET Q q 0 0 0 rg BT 428.79 650.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.40 642.98 Td (Exer) Tj ET Q q 0 0 0 rg BT 407.69 642.98 Td (cise Price of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.05 634.98 Td (Outstanding Options,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.95 626.98 Td (W) Tj ET Q q 0 0 0 rg BT 391.51 626.98 Td (arrants and Rights) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.70 666.98 Td (Number) Tj ET Q q 0 0 0 rg BT 508.00 666.98 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 534.97 666.98 Td (es of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.65 658.98 Td (Common Stock ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.30 650.98 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.30 642.98 Td (A) Tj ET Q q 0 0 0 rg BT 485.48 642.98 Td (vailable for) Tj ET Q q 0 0 0 rg BT 524.22 642.98 Td ( Futur) Tj ET Q q 0 0 0 rg BT 546.08 642.98 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.95 634.98 Td (Issuance Under) Tj ET Q q 0 0 0 rg BT 528.92 634.98 Td ( Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.95 626.98 Td (Compensation Plans) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 546.96 630.61 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 614.01 Td (Equity compensation plans approved by shareholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 614.01 Td (1,333,077) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 614.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 614.01 Td (9.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 614.01 Td (337,456) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 601.01 Td (Equity compensation plans not approved by shareholders) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 258.95 605.09 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 601.01 Td (480,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 601.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 601.01 Td (10.54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 601.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 588.01 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 588.01 Td (1,813,077) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 588.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 588.01 Td (10.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 588.01 Td (337,456) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 574.53 Td (_______________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 560.73 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.82 556.65 Td ( Excludes shares of common stock listed in the first column.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 546.93 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.82 542.85 Td ( Consists of outstanding non-qualified stock option grants to 1\) three of the Company) Tj ET Q q 0 0 0 rg BT 367.03 542.85 Td (s current senior management level employees, ) Tj ET Q q 0 0 0 rg BT 535.56 542.85 Td (V) Tj ET Q q 0 0 0 rg BT 541.06 542.85 Td (ern ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 532.05 Td (Hanzlik, Peter Shutte, and Peter Goepfrich on November 26, 2012, January 7, 2013, and May 18, 2015, the respective first days of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 521.25 Td (employment with Qumu; and 2\) one of the Company) Tj ET Q q 0 0 0 rg BT 252.47 521.25 Td (s former senior management level employees, Sherman L. Black, on ) Tj ET Q q 0 0 0 rg BT 500.65 521.25 Td (April 1, 2009, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 510.45 Td (the first day of employment with Qumu. ) Tj ET Q q 0 0 0 rg BT 206.31 510.45 Td (The stock options were granted outside of the Company) Tj ET Q q 0 0 0 rg BT 410.27 510.45 Td (s current equity incentive plan, the 2007 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 499.65 Td (Stock Incentive Plan, as inducement awards pursuant to Nasdaq Listing Rule 4350\(i\)\(1\)\(A\)\(iv\). ) Tj ET Q q 0 0 0 rg BT 413.24 499.65 Td (The options have an exercise price equal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 488.85 Td (to the closing price of the Company) Tj ET Q q 0 0 0 rg BT 190.47 488.85 Td (s common stock as reported by the Nasdaq Stock Market on the grant dates, vest in four equal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 478.05 Td (installments on each of the first four anniversaries of the date of grant, and have a term of seven years. In other respects, the options were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 467.25 Td (structured to mirror the terms of options granted under the Company) Tj ET Q q 0 0 0 rg BT 308.44 467.25 Td (s 2007 Stock Incentive Plan and are subject to a stock option plan and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 456.45 Td (agreement entered into by and between the Company and each employee.) 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 (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Performance Graph) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 721.25 Td (s common stock is quoted on ) Tj ET Q q 0 0 0 rg BT 228.41 721.25 Td (The Nasdaq Global Market. ) Tj ET Q q 0 0 0 rg BT 342.36 721.25 Td (The graph and table below set forth a comparison of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (the cumulative total return of the Company) Tj ET Q q 0 0 0 rg BT 225.51 709.25 Td (s common stock over the last five fiscal years with a broad market index and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (published industry index. ) Tj ET Q q 0 0 0 rg BT 153.70 697.25 Td (The Company has selected the NASDAQ Computer Services Index as its published industry index.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.25 Td (The following graph shows changes during the period from December 31, 2010 to December 31, 2015 in the value of $100 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (invested in: \(1\) the NASDAQ US Benchmark ) Tj ET Q q 0 0 0 rg BT 235.63 664.25 Td (TR Index; \(2\) the NASDAQ Computer Services Index; and \(3\) Qumu's common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (stock. ) Tj ET Q q 0 0 0 rg BT 75.93 652.25 Td (The values of each investment as of the dates indicated are based on share prices plus any dividends paid in cash, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (the dividends reinvested on the date they were paid. ) Tj ET Q q 0 0 0 rg BT 259.75 640.25 Td (The calculations exclude trading commissions and taxes. ) Tj ET Q q 0 0 0 rg BT 489.51 640.25 Td (The table and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (graph are not necessarily indicative of future investment performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.25 264.25 Td ( ) Tj ET Q /GS0 gs q 453.00 0 0 355.00 80.75 259.25 cm /I25 Do Q 0.8 0.9333333333333333 1 rg /GS0 gs 79.00 241.75 133.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.00 241.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 241.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 241.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 241.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 241.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 241.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.00 217.75 133.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 217.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.00 217.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.00 217.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 217.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 217.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 217.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 217.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 217.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 217.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 217.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 217.75 50.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 241.75 m 262 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 241.75 m 316 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 241.75 m 370 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 241.75 m 424 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 241.75 m 478 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 241.75 m 532 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 241.75 m 262 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 241.75 m 316 241.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 222.25 245.83 Td (12/31/10) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.45 245.83 Td (12/31/11) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.25 245.83 Td (12/31/12) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.25 245.83 Td (12/31/13) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.25 245.83 Td (12/31/14) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.25 245.83 Td (12/31/15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.50 233.01 Td (Nasdaq US Benchmark TR Index) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.75 233.01 Td (100.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.75 233.01 Td (100.31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.75 233.01 Td (116.79) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.75 233.01 Td (155.90) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.75 233.01 Td (175.33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.75 233.01 Td (176.17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.50 221.01 Td (Nasdaq Computer Services Index) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.75 221.01 Td (100.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.75 221.01 Td (116.70) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.75 221.01 Td (128.53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.75 221.01 Td (138.82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.75 221.01 Td (132.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 221.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.75 221.01 Td (129.36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.50 209.01 Td (Qumu Corporation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.75 209.01 Td (100.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.25 209.01 Td (75.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.25 209.01 Td (44.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.25 209.01 Td (85.85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.25 209.01 Td (91.68) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 209.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.25 209.01 Td (18.18) Tj ET Q BT /F1 10.00 Tf ET 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 (21) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 6. SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 196.88 742.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 212.72 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 218.28 742.25 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The selected consolidated financial data below should be read in conjunction with Management) Tj ET Q q 0 0 0 rg BT 439.87 721.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 509.04 721.25 Td (Analysis of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (Financial Condition and Results of Operations in Item 7 below and the Consolidated Financial Statements and the Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (thereto included in Item 8 below) Tj ET Q q 0 0 0 rg BT 179.59 697.25 Td (. Results of operations exclude the operations of the disc publishing business, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (reported as discontinued operations for all periods presented in the Consolidated Financial Statements due to the sale of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (Disc Publishing business on July 1, 2014. ) Tj ET Q q 0 0 0 rg BT 219.00 673.25 Td (W) Tj ET Q q 0 0 0 rg BT 227.64 673.25 Td (e acquired Qumu, Inc. and began our enterprise video content software business in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (October 201) Tj ET Q q 0 0 0 rg BT 99.34 661.25 Td (1. ) Tj ET Q q 0 0 0 rg BT 108.78 661.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 158.12 661.25 Td (, the Statement of Operations for 201) Tj ET Q q 0 0 0 rg BT 306.32 661.25 Td (1 presented below reflects a partial year) Tj ET Q q 0 0 0 rg BT 465.14 661.25 Td (. \(In thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.25 Td (per share data\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (Consolidated Statements of Operations Information) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 595.75 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 595.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 595.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 595.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 595.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 595.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 595.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 595.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 595.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 595.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 567.75 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 567.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 567.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 567.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 567.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 567.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 567.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 567.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 567.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 567.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 539.75 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 539.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 539.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 539.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 539.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 539.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 539.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 539.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 539.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 539.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 502.75 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 502.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 502.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 502.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 502.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 502.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 502.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 502.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 502.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 502.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 474.75 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 474.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 474.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 474.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 474.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 474.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 474.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 474.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 474.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 474.75 56.00 -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 266.5 606.75 m 322.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 606.75 m 326.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 606.75 m 382.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 606.75 m 386.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 606.75 m 442.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 606.75 m 446.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 606.75 m 502.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 606.75 m 506.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 606.75 m 562.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 606.75 m 322.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 595.75 m 322.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 606.75 m 382.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 595.75 m 382.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 606.75 m 386.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 606.75 m 442.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 595.75 m 442.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 606.75 m 446.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 606.75 m 502.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 595.75 m 502.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 606.75 m 506.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 606.75 m 562.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 595.75 m 562.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 595.75 m 322.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 595.75 m 382.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 595.75 m 442.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 595.75 m 502.5 595.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 595.75 m 562.5 595.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.70 609.83 Td (Y) Tj ET Q q 0 0 0 rg BT 374.59 609.83 Td (ear) Tj ET Q q 0 0 0 rg BT 385.55 609.83 Td ( Ended December) Tj ET Q q 0 0 0 rg BT 446.28 609.83 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.00 598.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.00 598.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.00 598.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.00 598.83 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.20 598.83 Td (2011) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 586.21 Td (Total revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 586.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 586.21 Td (34,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 586.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 586.21 Td (26,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 586.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 586.21 Td (17,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 586.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 586.21 Td (9,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 586.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 586.21 Td (1,760) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 572.21 Td (Gross profit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 572.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 572.21 Td (16,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 572.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 572.21 Td (12,049) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 572.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 572.21 Td (10,402) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 572.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 572.21 Td (5,917) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 572.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 572.21 Td (733) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 558.21 Td (Operating loss ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 107.49 562.29 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 558.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.25 558.21 Td (\(29,404) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 558.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 558.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.25 558.21 Td (\(28,726) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 558.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 558.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 558.21 Td (\(19,605) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 558.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 558.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 558.21 Td (\(49,428) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 558.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 558.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 558.21 Td (\(7,056) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 558.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 544.21 Td (Net loss from continuing operations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 184.73 548.29 Td (\(1\) \(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 544.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.25 544.21 Td (\(28,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 544.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 544.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.25 544.21 Td (\(22,343) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 544.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 544.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 544.21 Td (\(16,221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 544.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 544.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 544.21 Td (\(53,790) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 544.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 544.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 544.21 Td (\(4,341) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 544.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 530.21 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 116.98 534.29 Td ( \(1\) \(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 530.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.25 530.21 Td (\(28,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 530.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 530.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.75 530.21 Td (\(8,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 530.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 530.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.75 530.21 Td (\(9,694) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 530.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 530.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 530.21 Td (\(48,338) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 530.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 530.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 530.21 Td (2,835) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 516.21 Td (Net loss from continuing operations per basic and diluted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 507.21 Td (share) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 71.99 511.29 Td ( \(1\) \(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 507.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.25 507.21 Td (\(3.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 507.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 507.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.25 507.21 Td (\(2.53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 507.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 507.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.25 507.21 Td (\(1.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 507.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 507.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.25 507.21 Td (\(5.39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 507.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 507.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 507.21 Td (\(0.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 507.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 493.21 Td (Weighted average shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 479.21 Td (Basic) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 479.21 Td (9,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.75 479.21 Td (8,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 479.21 Td (8,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 479.21 Td (9,971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 479.21 Td (9,674) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 465.21 Td (Diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 465.21 Td (9,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.75 465.21 Td (8,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 465.21 Td (8,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 465.21 Td (9,971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 465.21 Td (9,699) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 454.05 Td (_________________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 444.33 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.28 440.25 Td (The Company recorded non-cash goodwill and intangible asset impairment char) Tj ET Q q 0 0 0 rg BT 346.78 440.25 Td (ges of $29,548 before tax in fiscal year 2012.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 430.53 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.28 426.45 Td (The Company recorded non-cash deferred tax asset valuation allowance char) Tj ET Q q 0 0 0 rg BT 335.25 426.45 Td (ge of $13,967 in fiscal year 2012.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 405.45 Td (Consolidated Balance Sheets Information) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 372.95 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 372.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 372.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 372.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 372.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 372.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 372.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 372.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 372.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 372.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 344.95 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 344.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 344.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 344.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 344.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 344.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 344.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 344.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 344.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 344.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 316.95 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 316.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 316.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 316.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 316.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 316.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 316.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 316.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 316.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 316.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 288.95 216.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 288.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 288.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 288.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 288.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 288.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 288.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 288.95 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 288.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 288.95 56.00 -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 266.5 383.95000000000005 m 322.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 383.95000000000005 m 326.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 383.95000000000005 m 382.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 383.95000000000005 m 386.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 383.95000000000005 m 442.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 383.95000000000005 m 446.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 383.95000000000005 m 502.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 383.95000000000005 m 506.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 383.95000000000005 m 562.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 383.95000000000005 m 322.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 372.95000000000005 m 322.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 383.95000000000005 m 326.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 383.95000000000005 m 382.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 372.95000000000005 m 382.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 383.95000000000005 m 386.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 383.95000000000005 m 442.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 372.95000000000005 m 442.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 383.95000000000005 m 446.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 383.95000000000005 m 502.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 372.95000000000005 m 502.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 383.95000000000005 m 506.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 383.95000000000005 m 562.5 383.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 372.95000000000005 m 562.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 372.95000000000005 m 322.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 372.95000000000005 m 382.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 372.95000000000005 m 442.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 372.95000000000005 m 502.5 372.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 372.95000000000005 m 562.5 372.95000000000005 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 386.90 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.75 387.03 Td (December) Tj ET Q q 0 0 0 rg BT 425.25 387.03 Td ( 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 375.90 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.00 376.03 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.00 376.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.00 376.03 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.00 376.03 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.20 376.03 Td (2011) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 363.41 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 363.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 363.41 Td (7,072) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 363.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 363.41 Td (11,684) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 363.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 363.41 Td (37,725) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 363.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 363.41 Td (28,644) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 363.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 363.41 Td (70,161) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 349.41 Td (Marketable securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 349.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 349.41 Td (6,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 349.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 349.41 Td (23,486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 349.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 349.41 Td (13,233) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 349.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 349.41 Td (21,496) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 349.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 349.41 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 335.41 Td (Current assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 335.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 335.41 Td (28,629) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 335.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 335.41 Td (52,752) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 335.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 335.41 Td (71,774) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 335.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 335.41 Td (75,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 335.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 335.41 Td (98,437) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 321.41 Td (Total assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 321.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 321.41 Td (54,412) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 321.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 321.41 Td (80,177) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 321.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 321.41 Td (89,146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 321.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 321.41 Td (95,563) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 321.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 321.41 Td (157,660) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 307.41 Td (Current liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 307.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 307.41 Td (19,113) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 307.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 307.41 Td (19,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 307.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 307.41 Td (23,028) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 307.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 307.41 Td (19,807) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 307.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 307.41 Td (20,156) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 293.41 Td (Long-term liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 293.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 293.41 Td (4,542) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 293.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.75 293.41 Td (2,527) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 293.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 293.41 Td (3,537) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 293.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 293.41 Td (5,129) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 293.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 293.41 Td (5,204) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 279.41 Td (Stockholders equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.00 279.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.25 279.41 Td (30,757) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 279.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.25 279.41 Td (58,273) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 279.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 279.41 Td (62,581) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 279.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 279.41 Td (70,627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 279.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 279.41 Td (132,300) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.45 Td (Historical data is not necessarily indicative of the Company's future results of operations or financial condition. See discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.45 Td (of "Risk Factors" in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 191.48 242.45 Td ( of this ) Tj ET Q q 0 0 0 rg BT 221.21 242.45 Td (Annual Report on Form 10-K.) 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 (22) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 7. MANAGEMENTS DISCUSSION ) Tj ET Q q 0 0 0 rg BT 233.84 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 257.08 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 283.38 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 320.72 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 377.86 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 439.16 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 494.82 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 522.71 742.25 Td ( ) Tj ET Q BT /F3 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 82.79 730.25 Td (TIONS) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (The following discussion and analysis of our financial condition and r) Tj ET Q q 0 0 0 rg BT 330.75 709.25 Td (esults of operations should be r) Tj ET Q q 0 0 0 rg BT 456.21 709.25 Td (ead together with the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (section titled Selected Financial Data and our audited financial statements and r) Tj ET Q q 0 0 0 rg BT 384.87 697.25 Td (elated notes which ar) Tj ET Q q 0 0 0 rg BT 470.32 697.25 Td (e included elsewher) Tj ET Q q 0 0 0 rg BT 549.37 697.25 Td (e ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (in this ) Tj ET Q q 0 0 0 rg BT 77.05 685.25 Td (Annual Report on Form 10-K. Our actual r) Tj ET Q q 0 0 0 rg BT 250.00 685.25 Td (esults could differ materially fr) Tj ET Q q 0 0 0 rg BT 374.06 685.25 Td (om those anticipated in the forwar) Tj ET Q q 0 0 0 rg BT 511.74 685.25 Td (d-looking ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (statements included in this discussion as a r) Tj ET Q q 0 0 0 rg BT 225.46 673.25 Td (esult of certain factors, including, but not limited to, those discussed in Risk ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (Factors included elsewher) Tj ET Q q 0 0 0 rg BT 161.28 661.25 Td (e in this ) Tj ET Q q 0 0 0 rg BT 195.26 661.25 Td (Annual Report on Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.25 Td (Qumu Corporation \("Qumu" or the "Company"\) provides the tools businesses need to create, manage, secure, deliver and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.25 Td (measure the success of their videos. ) Tj ET Q q 0 0 0 rg BT 195.61 607.25 Td (The Company's innovative solutions release the power in video to engage and empower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.25 Td (employees, partners and clients. Or) Tj ET Q q 0 0 0 rg BT 190.88 595.25 Td (ganizations around the world realize the greatest possible value from video they create and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.25 Td (publish. ) Tj ET Q q 0 0 0 rg BT 84.27 583.25 Td (Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.25 Td (video.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (The Company generates revenue through the sale of enterprise video content management software solutions, hardware, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (a term software license or a cloud-hosted software as a service \(SaaS\). Software licenses and appliances revenue includes sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (of perpetual software licenses and hardware. Service revenue includes term software licenses, SaaS, maintenance and support, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (and professional and other services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (For the years ended December 31, 2015, 2014 and 2013, the Company generated revenues of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.44 481.25 Td ($34.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.33 481.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.33 481.25 Td ($26.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.22 481.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td ($17.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 469.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 156.55 469.25 Td (. Subscription, maintenance and support revenue increased 54% to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.08 469.25 Td ($18.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.97 469.25 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.41 469.25 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.30 469.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (in 2015 as the Company continues to advance its transition to more revenue that is recurring in nature from primarily perpetual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (software license revenue. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (History) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.25 Td (The Company was founded in 1978, incorporated as IXI, Inc. in Minnesota in February 1987 and changed its name to Rimage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.25 Td (Corporation in ) Tj ET Q q 0 0 0 rg BT 110.55 391.25 Td (April 1988. From 1995 to 201) Tj ET Q q 0 0 0 rg BT 230.74 391.25 Td (1, the Company focused its business on the development and sale of its CD ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.25 Td (recordable publishing systems and DVD recordable publishing systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (In response to declines in the disc publishing business due to technology substitutions and the rise of video as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (communication and collaboration tool, in October 201) Tj ET Q q 0 0 0 rg BT 267.08 346.25 Td (1, the Company acquired Qumu, Inc., a leader in the enterprise video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (content management software market and changed its name to Qumu Corporation in September 2013. Qumu completed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (transition to enterprise video content management software company in July 2014, when the Company closed on the sale of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (disc publishing assets to Equus Holdings, Inc. and Redwood ) Tj ET Q q 0 0 0 rg BT 293.60 310.25 Td (Acquisition, Inc. \(now known as Rimage Corporation\). ) Tj ET Q q 0 0 0 rg BT 516.34 310.25 Td (As a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (the disc publishing business was classified as held for sale and qualified for presentation as discontinued operations ef) Tj ET Q q 0 0 0 rg BT 522.20 298.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (with the reporting of the Company's financial results for the second quarter of 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.25 Td (On October 3, 2014, the Company acquired Kulu ) Tj ET Q q 0 0 0 rg BT 249.78 265.25 Td (V) Tj ET Q q 0 0 0 rg BT 255.89 265.25 Td (alley Ltd., a private limited company incorporated in England and ) Tj ET Q q 0 0 0 rg BT 522.29 265.25 Td (W) Tj ET Q q 0 0 0 rg BT 530.93 265.25 Td (ales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.25 Td (\(Kulu ) Tj ET Q q 0 0 0 rg BT 80.09 253.25 Td (V) Tj ET Q q 0 0 0 rg BT 86.20 253.25 Td (alley\). ) Tj ET Q q 0 0 0 rg BT 118.22 253.25 Td (The acquisition was made to expand Qumu) Tj ET Q q 0 0 0 rg BT 294.29 253.25 Td (s addressable market through the of) Tj ET Q q 0 0 0 rg BT 436.57 253.25 Td (fering of Kulu ) Tj ET Q q 0 0 0 rg BT 496.09 253.25 Td (V) Tj ET Q q 0 0 0 rg BT 502.21 253.25 Td (alley) Tj ET Q q 0 0 0 rg BT 524.42 253.25 Td (s best-in-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.25 Td (class video content creation capabilities and easy-to-deploy pure cloud solution, and provides Kulu ) Tj ET Q q 0 0 0 rg BT 448.60 241.25 Td (V) Tj ET Q q 0 0 0 rg BT 454.71 241.25 Td (alley) Tj ET Q q 0 0 0 rg BT 476.92 241.25 Td (s customers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.25 Td (access to industry leading video content management and delivery capability) Tj ET Q q 0 0 0 rg BT 356.75 229.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (The results of the discontinued disc publishing business and associated financial impacts from the sale of this business have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (been presented as discontinued operations for the years ended December 31, 2015, 2014 and 2013. No general corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 184.25 Td (ges were allocated to the discontinued business. ) Tj ET Q q 0 0 0 rg BT 260.68 184.25 Td (The assets and liabilities of the discontinued business are presented on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (Consolidated Balance Sheets as assets and liabilities from discontinued operations. Other than consolidated amounts reflecting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (operating results and balances for both the continuing and discontinued operations, all remaining amounts presented in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (accompanying consolidated financial statements reflect the financial results and financial position of the Company's continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.25 Td (enterprise video content management software business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.25 Td (The following discussion of year) Tj ET Q q 0 0 0 rg BT 181.44 115.25 Td (-to-year changes and trends in financial statement results under "Management) Tj ET Q q 0 0 0 rg BT 495.69 115.25 Td (s Discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.25 Td (and ) Tj ET Q q 0 0 0 rg BT 66.39 103.25 Td (Analysis of Financial Condition and Results of Operations aligns with the financial statement presentation described ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (above. ) 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 (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.71 742.25 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The discussion of the Company's financial condition and results of operations is based upon its financial statements, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (prepared in accordance with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 422.35 709.25 Td (America, or GAAP) Tj ET Q q 0 0 0 rg BT 498.72 709.25 Td (.) Tj ET Q q 0 0 0 rg BT 503.54 709.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (preparation of these financial statements requires management to make estimates, judgments and assumptions that af) Tj ET Q q 0 0 0 rg BT 517.18 697.25 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures.On an ongoing basis, management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (evaluates its estimates and assumptions.Management bases its estimates of the carrying value of certain assets and liabilities on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (historical experience and on various other assumptions that management believes to be reasonable.) Tj ET Q q 0 0 0 rg BT 448.02 661.25 Td (The Company's actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.25 Td (results may dif) Tj ET Q q 0 0 0 rg BT 109.25 649.25 Td (fer from these estimates under dif) Tj ET Q q 0 0 0 rg BT 243.75 649.25 Td (ferent assumptions or conditions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (Management believes that of the Company's significant accounting policies, which are described in the notes to our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (statements, the following accounting policies involve a greater degree of judgment, complexity and ef) Tj ET Q q 0 0 0 rg BT 457.74 616.25 Td (fect on materiality) Tj ET Q q 0 0 0 rg BT 530.40 616.25 Td (.) Tj ET Q q 0 0 0 rg BT 534.84 616.25 Td (A) Tj ET Q q 0 0 0 rg BT 541.51 616.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (critical accounting policy is one that is both material to the presentation of our financial statements and requires management to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.25 Td (make dif) Tj ET Q q 0 0 0 rg BT 85.08 592.25 Td (ficult, subjective or complex judgments for uncertain matters that could have a material ef) Tj ET Q q 0 0 0 rg BT 445.33 592.25 Td (fect on the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.25 Td (financial condition and results of operations.) Tj ET Q q 0 0 0 rg BT 230.23 580.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 279.57 580.25 Td (, these are the policies management believes are the most critical to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.25 Td (aid in fully understanding and evaluating the Company's financial condition and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 547.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (The Company follows specific and detailed guidelines in determining the proper amount of revenue to be recorded; however) Tj ET Q q 0 0 0 rg BT 548.60 526.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (certain judgments af) Tj ET Q q 0 0 0 rg BT 131.46 514.25 Td (fect the application of its revenue recognition policy) Tj ET Q q 0 0 0 rg BT 339.90 514.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 493.25 Td (The Company commences revenue recognition when all of the following conditions are met: there is persuasive evidence of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (arrangement; the product has been delivered or the services have been provided to the customer; the collection of the fees is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (reasonably assured; and the amount of fees to be paid by the customer is fixed or determinable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.25 Td (Revenue results are dif) Tj ET Q q 0 0 0 rg BT 141.73 448.25 Td (ficult to predict, and any shortfall in revenue or delay in recognizing revenue could cause the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.25 Td (operating results to vary significantly from period to period. ) Tj ET Q q 0 0 0 rg BT 292.54 436.25 Td (The significant judgments for revenue recognition typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (involve allocation of revenue to multiple element arrangements, which must be analyzed to determine the fair value of each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.25 Td (element, the amount of revenue to be recognized for each element, if any) Tj ET Q q 0 0 0 rg BT 341.44 412.25 Td (, and the period and conditions under which deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.25 Td (revenue should be recognized. ) Tj ET Q q 0 0 0 rg BT 173.56 400.25 Td (As a result, if facts and circumstances change that af) Tj ET Q q 0 0 0 rg BT 383.30 400.25 Td (fect management's current judgments, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (Company's revenue could be materially dif) Tj ET Q q 0 0 0 rg BT 221.85 388.25 Td (ferent in the future.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 367.25 Td (Long-lived ) Tj ET Q q 0 0 0 rg BT 96.56 367.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (lived assets, including property and equipment and intangible assets may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 422.77 334.25 Td (When such events or changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (circumstances occur) Tj ET Q q 0 0 0 rg BT 130.95 322.25 Td (, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (amount over the fair value of the assets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 265.25 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.25 Td (assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (more frequently if facts and circumstances warrant a review) Tj ET Q q 0 0 0 rg BT 289.24 220.25 Td (. ) Tj ET Q q 0 0 0 rg BT 294.06 220.25 Td (The Company has determined that there is a single reporting unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company annually) Tj ET Q q 0 0 0 rg BT 542.89 208.25 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (its fiscal year end, estimates the fair value of the reporting unit and compares this amount to the carrying value of the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment char) Tj ET Q q 0 0 0 rg BT 523.82 184.25 Td (ge is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (recognized in the amount by which the carrying amount of the asset exceeds its fair value. ) 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 (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (During the year ended December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 281.60 742.10 Td (s stock price traded at levels which caused the Company) Tj ET Q q 0 0 0 rg BT 510.14 742.10 Td (s enterprise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (value, excluding any control premium, to approximate its book value, resulting in increased risk of a potential impairment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 90.00 718.10 Td (As of December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 254.41 718.10 Td (s market capitalization, without a control premium, was less than its book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (value suggesting a possible goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 250.63 706.10 Td (The Company engaged a third party valuation firm to assist the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (with its goodwill impairment analysis. Based on the analysis, the Company determined its enterprise value using a discounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (cash flow analysis and a comparable public company analysis, giving both equal weight, was greater than the Company) Tj ET Q q 0 0 0 rg BT 531.81 682.10 Td (s book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (value by 14%. ) Tj ET Q q 0 0 0 rg BT 109.43 670.10 Td (As a result, the Company concluded there was no goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 398.91 670.10 Td (While not a factor used for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (December 31, 2015 goodwill impairment analysis, the Company's market capitalization increased to $48.7 million as of March ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (14, 2016 which was in excess of its book value at December 31, 2015 by 58%. Declines in the Company) Tj ET Q q 0 0 0 rg BT 471.58 646.10 Td (s market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (capitalization could require the Company to record goodwill and other impairment char) Tj ET Q q 0 0 0 rg BT 399.98 634.10 Td (ges. ) Tj ET Q q 0 0 0 rg BT 418.13 634.10 Td (While a goodwill impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 622.10 Td (ge is a non-cash char) Tj ET Q q 0 0 0 rg BT 150.70 622.10 Td (ge, it would have a negative impact on the Company's results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (Investment in Nonconsolidated Company) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 580.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 580.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.47 580.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.47 580.10 Td (, the Company held an investment totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.66 580.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.55 580.10 Td ( in convertible preferred stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (Briefcam, Ltd. \("Briefcam"\) a privately-held Israeli company that develops video synopsis technology to augment security and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (surveillance systems to facilitate review of surveillance video. ) Tj ET Q q 0 0 0 rg BT 301.12 556.10 Td (The investment is included in other non-current assets. Because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (Qumu's ownership interest is less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.67 544.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.00 544.10 Td ( and it has no other rights or privileges that enable it to exercise significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (influence over the operating and financial policies of Briefcam, Qumu accounts for this equity investment using the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (method. Equity securities accounted for under the cost method are reviewed quarterly for changes in circumstances or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (occurrence of events that suggest the Company) Tj ET Q q 0 0 0 rg BT 241.61 508.10 Td (s investment may not be fully recoverable. If an unrealized loss for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (investment is considered to be other) Tj ET Q q 0 0 0 rg BT 193.93 496.10 Td (-than-temporary) Tj ET Q q 0 0 0 rg BT 258.25 496.10 Td (, the loss will be recognized in the Consolidated Statements of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (in the period the determination is made. Qumu monitors Briefcam's results of operations, business plan and capital raising ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (activities and is not aware of any events or circumstances that would indicate a decline in the carrying value of its investment. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized ratably as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (expense over the vesting period of the award. Determining the appropriate fair value model and calculating the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (stock-based payment awards require the use of subjective assumptions, including the expected life of the stock-based payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (awards and stock price volatility) Tj ET Q q 0 0 0 rg BT 179.31 394.10 Td (. Management uses the Black-Scholes option pricing model to value award grants and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (determine the related compensation expense. ) Tj ET Q q 0 0 0 rg BT 231.97 382.10 Td (The assumptions used in calculating the fair value of stock-based payment awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (represent management) Tj ET Q q 0 0 0 rg BT 143.01 370.10 Td (s best estimates, but the estimates involve inherent uncertainties and the application of management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 92.22 358.10 Td (As a result, if factors change and management uses dif) Tj ET Q q 0 0 0 rg BT 310.30 358.10 Td (ferent assumptions, the Company's stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (expense could be materially dif) Tj ET Q q 0 0 0 rg BT 175.33 346.10 Td (ferent in the future. ) Tj ET Q q 0 0 0 rg BT 254.83 346.10 Td (The Company expects to continue to grant stock-based awards in the future, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (and to the extent that the Company does, its actual stock-based compensation expense recognized in future periods will likely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (increase.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 Td (Royalties for Third Party T) Tj ET Q q 0 0 0 rg BT 160.74 301.10 Td (echnology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (Royalties for third party technology are either paid in advance and capitalized as prepaid royalties or are accrued as incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (and subsequently paid. ) Tj ET Q q 0 0 0 rg BT 143.69 268.10 Td (These royalties are generally expensed to cost of revenue generally at the greater of the contractual rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (or an ef) Tj ET Q q 0 0 0 rg BT 80.36 256.10 Td (fective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Each quarter) Tj ET Q q 0 0 0 rg BT 537.27 256.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (Company also evaluates the expected future realization of its prepaid royalties, as well as any minimum commitments not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (paid to determine amounts it deems unlikely to be realized through product sales. ) Tj ET Q q 0 0 0 rg BT 377.14 232.10 Td (Any impairments or losses determined before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.10 Td (the launch of a product are generally char) Tj ET Q q 0 0 0 rg BT 216.12 220.10 Td (ged to general and administrative expense, and any impairments or losses determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.10 Td (post-launch are char) Tj ET Q q 0 0 0 rg BT 130.89 208.10 Td (ged to cost of revenue. Unrecognized minimum royalty-based commitments are accounted for as executory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (abandoned \(i.e., cease use\) or the contractual rights to use the intellectual property are terminated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (During the quarter ended December 31, 2015, the Company recognized a loss relating to a third party license agreement of $1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (million to general and administration expense which included the write-of) Tj ET Q q 0 0 0 rg BT 346.12 151.10 Td (f of a $606,000 prepaid royalty and the accrual of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (remaining $606,000 minimum royalty payments. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 118.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (Significant judgment is required in determining the realizability of deferred tax assets. Management must assess the likelihood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (that the Company's net deferred tax assets will be recovered from future taxable income, and to the extent Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.10 Td (believes that recovery is not likely) Tj ET Q q 0 0 0 rg BT 186.81 73.10 Td (, the Company must establish a valuation allowance. Considerations for determining the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (realizability of the Company's deferred tax assets primarily involve cumulative pre-tax income for financial reporting purposes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 49.10 Td (cumulative taxable income for the past three years, estimated future pre-tax income for financial reporting purposes and ) 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 (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (estimated future taxable income from the Company's core business. Management also considers the expiration dates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (amounts of net operating loss carryforwards and other tax credits, and estimate the impact of future tax deductions from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (exercise of stock options. ) Tj ET Q q 0 0 0 rg BT 153.96 718.10 Td (These estimates are projected through the life of the related deferred tax assets based on assumptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (which Management believes to be reasonable and consistent with current operating results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (Since 2012, the Company has maintained a full valuation allowance against the Company U.S. deferred tax assets. If pretax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (results improve in future periods, the Company may be able to reverse the valuation allowance, which would positively impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (earnings. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.10 Td (The percentage relationships to revenues of certain income and expense items for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.90 619.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.48 619.10 Td (, 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (and 2013, and the percentage changes in these income and expense items between years, are contained in the following table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (\(all amounts presented reflect only the financial results of the Company's continuing enterprise video content management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (software business\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 550.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 550.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 550.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 550.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 550.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 550.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 550.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 550.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 550.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 550.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 524.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 524.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 524.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 524.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 524.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 524.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 524.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 524.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 524.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 524.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 498.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 498.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 498.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 498.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 498.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 498.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 498.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 498.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 498.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 498.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 472.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 472.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 472.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 472.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 472.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 472.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 472.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 472.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 472.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 472.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 446.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 446.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 446.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 446.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 446.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 446.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 446.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 446.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 446.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 446.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 420.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 420.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 420.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 420.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 420.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 420.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 394.60 246.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 394.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 394.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 394.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 394.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 394.60 50.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 561.6 m 346.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 561.6 m 350.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 561.6 m 400.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 561.6 m 404.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 561.6 m 454.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 561.6 m 508.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 561.6 m 512.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 561.6 m 562.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 561.6 m 346.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 550.6 m 346.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 561.6 m 400.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 550.6 m 400.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 561.6 m 454.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 550.6 m 454.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 561.6 m 508.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 550.6 m 508.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 561.6 m 512.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 561.6 m 562.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 550.6 m 562.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 550.6 m 346.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 550.6 m 400.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 550.6 m 454.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 524.6 m 346.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 524.6 m 400.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 524.6 m 454.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 446.6 m 346.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 446.6 m 400.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 446.6 m 454.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 446.6 m 346.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 433.6 m 346.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 446.6 m 400.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 433.6 m 400.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 446.6 m 454.5 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 433.6 m 454.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 407.6 m 346.5 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 407.6 m 400.5 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 407.6 m 454.5 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 381.6 m 346.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 381.6 m 400.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 381.6 m 454.5 381.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 368.6 m 346.5 368.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 368.6 m 400.5 368.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 368.6 m 454.5 368.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.60 564.68 Td (Percentage of Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.65 564.68 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 313.00 553.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 553.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.00 553.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 553.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.65 553.68 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 541.86 Td (Revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.25 541.86 Td (100.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.50 541.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.25 541.86 Td (100.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.50 541.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.25 541.86 Td (100.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.50 541.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 541.86 Td (30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.50 541.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 541.86 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 541.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 528.86 Td (Cost of revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 528.86 Td (\(50.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 528.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 528.86 Td (\(54.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 528.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.75 528.86 Td (\(41.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 528.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 528.86 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 528.86 Td (97) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 515.86 Td (Gross profit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.75 515.86 Td (49.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 515.86 Td (45.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.75 515.86 Td (58.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 515.86 Td (41) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 515.86 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 502.86 Td (Operating expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 502.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 502.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.00 502.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 489.86 Td (Research and development) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.75 489.86 Td (31.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 489.86 Td (35.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.75 489.86 Td (49.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 489.86 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 489.86 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 476.86 Td (Sales and marketing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.75 476.86 Td (52.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 476.86 Td (67.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.75 476.86 Td (58.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 476.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 476.86 Td (75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 463.86 Td (General and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.75 463.86 Td (49.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 463.86 Td (47.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.75 463.86 Td (58.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 463.86 Td (34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 463.86 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 450.86 Td (Amortization of purchased intangibles) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.25 450.86 Td (2.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.25 450.86 Td (2.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.25 450.86 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 450.86 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 450.86 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 437.86 Td (Total operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.25 437.86 Td (134.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.25 437.86 Td (153.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.25 437.86 Td (169.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 437.86 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 437.86 Td (36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 424.86 Td (Operating loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 424.86 Td (\(85.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 424.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.25 424.86 Td (\(108.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 424.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.25 424.86 Td (\(110.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 424.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 424.86 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 424.86 Td (47) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 411.86 Td (Other expense, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.25 411.86 Td (\(0.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 411.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.25 411.86 Td (\(0.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 411.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.25 411.86 Td (\(0.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 411.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 411.86 Td (\(31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.50 411.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 411.86 Td (1,408) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 398.86 Td (Loss before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 398.86 Td (\(85.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 398.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.25 398.86 Td (\(109.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 398.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.25 398.86 Td (\(110.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 398.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 398.86 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 398.86 Td (47) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 385.86 Td (Income tax benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.25 385.86 Td (\(2.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 385.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 385.86 Td (\(24.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 385.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.75 385.86 Td (\(19.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 385.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 385.86 Td (\(87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.50 385.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 385.86 Td (93) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 372.86 Td (Net loss from continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 372.86 Td (\(83.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 372.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 372.86 Td (\(84.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 372.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.75 372.86 Td (\(91.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.50 372.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 372.86 Td (28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.50 372.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 372.86 Td (38) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 372.86 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.10 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (The Company generates revenue through the sale of enterprise video content management software solutions, hardware, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (a term software license or a cloud-hosted software as a service \(SaaS\). Software licenses and appliances revenue includes sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 291.10 Td (of perpetual software licenses and hardware. Service revenue includes term software licenses, SaaS, maintenance and support, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 279.10 Td (and professional and other services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (The table below describes Qumu's revenues by product category \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 225.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 225.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 225.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 199.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 199.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 199.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 199.60 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 236.60000000000002 m 232.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 236.60000000000002 m 236.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 236.60000000000002 m 287.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 236.60000000000002 m 291.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 236.60000000000002 m 342.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 236.60000000000002 m 397.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 236.60000000000002 m 401.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 236.60000000000002 m 452.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 236.60000000000002 m 507.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 236.60000000000002 m 511.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 236.60000000000002 m 562.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 236.60000000000002 m 232.5 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 225.60000000000002 m 232.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 225.60000000000002 m 287.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 225.60000000000002 m 342.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 225.60000000000002 m 397.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 225.60000000000002 m 452.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 225.60000000000002 m 507.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 225.60000000000002 m 562.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 199.60000000000002 m 232.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 186.60000000000002 m 232.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 199.60000000000002 m 287.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 186.60000000000002 m 287.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 199.60000000000002 m 342.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 186.60000000000002 m 342.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 199.60000000000002 m 397.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 186.60000000000002 m 397.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 199.60000000000002 m 452.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 186.60000000000002 m 452.5 186.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 239.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 239.68 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 239.68 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 228.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 228.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 228.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 228.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 228.68 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 228.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 228.68 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 216.86 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 216.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 216.86 Td (9,456) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 216.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 216.86 Td (11,363) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 216.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 216.86 Td (7,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 216.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 216.86 Td (\(1,907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 216.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 216.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 216.86 Td (4,094) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 216.86 Td (\(17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 216.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 216.86 Td (56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 216.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 203.86 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 203.86 Td (24,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 203.86 Td (15,158) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 203.86 Td (10,467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 203.86 Td (9,840) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 203.86 Td (4,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 203.86 Td (65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 203.86 Td (45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 190.86 Td (Total revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 190.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 190.86 Td (34,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 190.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 190.86 Td (26,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 190.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 190.86 Td (17,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 190.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 190.86 Td (7,933) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 190.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 190.86 Td (8,785) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 190.86 Td (30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 190.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 190.86 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 190.86 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 166.10 Td ($7.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.94 166.10 Td ( increase in total revenues from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.22 166.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.22 166.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 166.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 166.10 Td ( reflects a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.36 166.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.25 166.10 Td ( increase in service revenues, partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 154.10 Td (fset by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.53 154.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.42 154.10 Td ( decrease in software licenses and appliances revenues. ) Tj ET Q q 0 0 0 rg BT 366.19 154.10 Td (The decrease in software license revenues in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 142.10 Td ( was lar) Tj ET Q q 0 0 0 rg BT 100.92 142.10 Td (gely impacted by a decrease in the value of perpetual product license contracts entered into in 2015 and converted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (to revenue. Revenues can vary year to year based on the type of contract the Company enters into with each customer) Tj ET Q q 0 0 0 rg BT 520.11 130.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (Contracts for perpetual software licenses, which are included in software licenses and appliances revenue, generally result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (revenue recognized closer to the contract commitment date, while contracts for term software licenses and SaaS, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (included in service revenue, result in most of the revenue being recognized over the period of the contract. ) Tj ET Q q 0 0 0 rg BT 477.99 94.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.04 94.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.93 94.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (increase in service revenues from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.32 82.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.32 82.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.10 82.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.10 82.10 Td ( resulted from a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.63 82.10 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.53 82.10 Td ( increase in subscription, maintenance and support ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (revenues to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.32 70.10 Td ($18.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.21 70.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.65 70.10 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.54 70.10 Td ( driven primarily from growth in the customer base, including the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (impact of SaaS revenues from Qumu) Tj ET Q q 0 0 0 rg BT 200.80 58.10 Td (s acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 286.72 58.10 Td (V) Tj ET Q q 0 0 0 rg BT 292.83 58.10 Td (alley ef) Tj ET Q q 0 0 0 rg BT 322.35 58.10 Td (fective October 3, 2014. ) Tj ET Q q 0 0 0 rg BT 421.21 58.10 Td (Also contributing to the growth in ) 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 (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (services revenue was an approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.10 742.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.99 742.10 Td ( increase in professional services revenues to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.42 742.10 Td ($6.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.32 742.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.75 742.10 Td ($2.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 730.10 Td ( as Qumu assists its customers in the deployment of its growing base of enterprise video solutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 709.10 Td ($8.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.94 709.10 Td ( increase in total revenues from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.22 709.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.22 709.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 709.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 709.10 Td ( reflects a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.36 709.10 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.25 709.10 Td ( increase in software licenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (appliances revenues and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.62 697.10 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 697.10 Td ( increase in service revenues. ) Tj ET Q q 0 0 0 rg BT 324.71 697.10 Td (The increase in software license revenues in 2014 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (lar) Tj ET Q q 0 0 0 rg BT 60.37 685.10 Td (gely impacted by an increase in the value of perpetual product license contracts entered into in 2014 and converted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (revenue. ) Tj ET Q q 0 0 0 rg BT 86.46 673.10 Td (The increase in service revenues in 2014 resulted from a rise in maintenance and support revenues stemming primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (from growth in the customer base and higher professional services revenues. ) Tj ET Q q 0 0 0 rg BT 358.24 661.10 Td (Also contributing to the increase in service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (revenues was the recognition of revenue from a lar) Tj ET Q q 0 0 0 rg BT 253.07 649.10 Td (ge term-based arrangement closed in the first quarter of 2014 for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (revenue is being recognized over the three-year term of the contract. ) Tj ET Q q 0 0 0 rg BT 325.80 637.10 Td (The growth in service revenues was also favorably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (impacted by the generation in the fourth quarter of cloud-based SaaS revenues from Qumu) Tj ET Q q 0 0 0 rg BT 415.72 625.10 Td (s acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 501.64 625.10 Td (V) Tj ET Q q 0 0 0 rg BT 507.75 625.10 Td (alley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 613.10 Td (fective October 3, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (Future consolidated revenues will be dependent upon many factors, including the rate of adoption of the Company's software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (solutions in its tar) Tj ET Q q 0 0 0 rg BT 121.21 580.10 Td (geted markets and whether arrangements with customers are structured as a perpetual software license, a term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (software license or a SaaS, which impacts the timing of revenue recognition. Other factors that will influence future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (consolidated revenues include the timing of customer orders, the impact of changes in economic conditions and the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (foreign currency exchange rate fluctuations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (Cost of Revenues and Gross Profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 502.10 Td ( comparison of gross profit and gross mar) Tj ET Q q 0 0 0 rg BT 223.40 502.10 Td (gin by revenue category is as follows \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 469.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 469.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 443.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 443.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 417.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 417.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 391.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 391.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 391.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 365.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 365.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 365.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 365.60 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 480.6 m 232.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 480.6 m 236.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 480.6 m 287.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 480.6 m 291.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 480.6 m 342.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 480.6 m 397.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 480.6 m 401.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 480.6 m 452.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 480.6 m 507.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 480.6 m 511.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 480.6 m 562.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 480.6 m 232.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 469.6 m 232.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 469.6 m 287.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 469.6 m 342.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 469.6 m 397.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 469.6 m 452.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 469.6 m 507.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 469.6 m 562.5 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 430.6 m 232.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 430.6 m 287.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 430.6 m 342.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 430.6 m 232.5 430.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 417.6 m 232.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 430.6 m 287.5 430.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 417.6 m 287.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 430.6 m 342.5 430.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 417.6 m 342.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 430.6 m 397.5 430.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 417.6 m 397.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 430.6 m 452.5 430.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 417.6 m 452.5 417.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 483.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 483.68 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 483.68 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 472.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 472.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 472.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 472.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 472.68 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 472.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 472.68 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 460.86 Td (Gross profit:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 447.86 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 447.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 447.86 Td (6,507) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 447.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 447.86 Td (7,547) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 447.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 447.86 Td (4,348) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 447.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.25 447.86 Td (\(1,040) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 447.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 447.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.25 447.86 Td (3,199) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 447.86 Td (\(14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 447.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 447.86 Td (74) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 447.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 434.86 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 434.86 Td (10,448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 434.86 Td (4,502) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 434.86 Td (6,054) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.25 434.86 Td (5,946) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 434.86 Td (\(1,552) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.50 434.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 434.86 Td (132) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 434.86 Td (\(26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 434.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 421.86 Td (Total gross profit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 421.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 421.86 Td (16,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 421.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.75 421.86 Td (12,049) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 421.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.75 421.86 Td (10,402) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 421.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.25 421.86 Td (4,906) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 421.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.25 421.86 Td (1,647) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 421.86 Td (41) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 421.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 421.86 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 421.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 395.86 Td (Gross margin:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 382.86 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 382.86 Td (68.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.50 382.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 382.86 Td (66.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 382.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 382.86 Td (59.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.50 382.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.25 382.86 Td (2.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 382.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.25 382.86 Td (6.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.50 382.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 369.86 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 369.86 Td (41.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.50 369.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 369.86 Td (29.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 369.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 369.86 Td (57.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.50 369.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 369.86 Td (12.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 369.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 369.86 Td (\(28.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.50 369.86 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 356.86 Td (Total gross margin) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 356.86 Td (49.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.50 356.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 356.86 Td (45.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 356.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 356.86 Td (58.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.50 356.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.25 356.86 Td (3.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 356.86 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 356.86 Td (\(13.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.50 356.86 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 332.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 332.10 Td (3.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 332.10 Td ( improvement in gross mar) Tj ET Q q 0 0 0 rg BT 196.46 332.10 Td (gin in 2015 compared to 2014 was primarily driven by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.24 332.10 Td (12.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.07 332.10 Td ( improvement in service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 320.10 Td (gross mar) Tj ET Q q 0 0 0 rg BT 88.98 320.10 Td (gin primarily driven by improved economies of scale on increased service revenue; service mar) Tj ET Q q 0 0 0 rg BT 470.60 320.10 Td (gin also improved due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (to cost savings initiatives in the second half of 2015. ) Tj ET Q q 0 0 0 rg BT 262.29 308.10 Td (The year ended December 31, 2015 included severance expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 296.10 Td ($49,000 relating the cost reduction initiatives. ) Tj ET Q q 0 0 0 rg BT 235.89 296.10 Td (The Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.26 296.10 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.26 296.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.70 296.10 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.70 296.10 Td ( service personnel at December 31, 2015 and 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 284.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 284.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 263.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 263.10 Td (13.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.88 263.10 Td ( decline in gross mar) Tj ET Q q 0 0 0 rg BT 177.01 263.10 Td (gin in 2014 compared to 2013 resulted from increased investments in customer support and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (professional services costs to support growth in the customer base, deployment of a growing base of software contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (expansion of service of) Tj ET Q q 0 0 0 rg BT 142.84 239.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 175.06 239.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 224.96 239.10 Td (, the sales mix shifted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.67 239.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.67 239.10 Td ( compared to 2013 to include a higher concentration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (of lower mar) Tj ET Q q 0 0 0 rg BT 101.46 227.10 Td (gin hardware in perpetual license transactions. ) Tj ET Q q 0 0 0 rg BT 289.27 227.10 Td (The overall growth in revenue volume in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.61 227.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.61 227.10 Td ( provided greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (absorption of fixed service costs, partially of) Tj ET Q q 0 0 0 rg BT 228.38 215.10 Td (fsetting the impact of the changes described above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (For the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.67 194.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.67 194.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.67 194.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.67 194.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.11 194.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.11 194.10 Td (, gross mar) Tj ET Q q 0 0 0 rg BT 318.09 194.10 Td (gins are inclusive of the impact of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.91 194.10 Td ($1.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 182.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.89 182.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.78 182.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.22 182.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.11 182.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 253.77 182.10 Td (, in amortization expense associated with intangible assets acquired as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (result of the acquisition of Qumu, Inc. in the fourth quarter of 201) Tj ET Q q 0 0 0 rg BT 313.45 170.10 Td (1 and Kulu ) Tj ET Q q 0 0 0 rg BT 360.21 170.10 Td (V) Tj ET Q q 0 0 0 rg BT 366.32 170.10 Td (alley in the fourth quarter of 2014. Cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (software licenses and appliances revenues in 2016 are expected to include approximately $1.4 million of amortization expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (for purchased intangibles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (Future gross profit mar) Tj ET Q q 0 0 0 rg BT 142.30 129.10 Td (gins will fluctuate quarter to quarter and will be impacted by the rate of growth and mix of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (Company's product and service of) Tj ET Q q 0 0 0 rg BT 186.03 117.10 Td (ferings and foreign currency exchange rate fluctuations. ) 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 (27) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The following is a summary of operating expenses:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 687.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 687.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 687.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 661.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 661.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 661.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 635.75 131.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 635.75 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 635.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 635.75 51.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 698.75 m 232.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 698.75 m 236.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 698.75 m 287.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 698.75 m 291.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 698.75 m 342.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 698.75 m 397.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 698.75 m 401.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 698.75 m 452.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 698.75 m 456.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 698.75 m 507.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 698.75 m 511.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 698.75 m 562.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 698.75 m 232.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 687.75 m 232.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 687.75 m 287.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 687.75 m 342.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 687.75 m 397.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 687.75 m 452.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 698.75 m 507.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 687.75 m 507.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 698.75 m 511.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 698.75 m 562.5 698.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 687.75 m 562.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 687.75 m 232.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 687.75 m 287.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 687.75 m 342.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 687.75 m 507.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 612.75 m 232.5 612.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 612.75 m 287.5 612.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 612.75 m 342.5 612.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 612.75 m 232.5 612.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 599.75 m 232.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 612.75 m 287.5 612.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 599.75 m 287.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 612.75 m 342.5 612.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 599.75 m 342.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 612.75 m 397.5 612.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 599.75 m 397.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 612.75 m 452.5 612.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 599.75 m 452.5 599.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 702.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 702.83 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 702.83 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 690.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 690.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 690.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 690.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 690.83 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 690.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 690.83 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 679.01 Td (Operating expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 666.01 Td (Research and development) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 666.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 666.01 Td (10,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 666.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 666.01 Td (9,506) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 666.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 666.01 Td (8,745) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 666.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 666.01 Td (1,183) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 666.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 666.01 Td (761) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 666.01 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 666.01 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 666.01 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 666.01 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 653.01 Td (Sales and marketing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 653.01 Td (17,994) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 653.01 Td (17,991) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 653.01 Td (10,303) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 653.01 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 653.01 Td (7,688) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 653.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 653.01 Td (75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 640.01 Td (General and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 640.01 Td (16,878) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 640.01 Td (12,626) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 640.01 Td (10,332) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 640.01 Td (4,252) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 640.01 Td (2,294) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 640.01 Td (34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 640.01 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 626.21 Td (Amortization of purchased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 617.21 Td (intangibles) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 617.21 Td (798) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 617.21 Td (652) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 617.21 Td (627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 617.21 Td (146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 617.21 Td (25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 617.21 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 617.21 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 604.01 Td (Total operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 604.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 604.01 Td (46,359) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 604.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 604.01 Td (40,775) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 604.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 604.01 Td (30,007) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 604.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 604.01 Td (5,584) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 604.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.25 604.01 Td (10,768) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 604.01 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 604.01 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 604.01 Td (36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 604.01 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.25 Td (Operating expenses for the year ended December 31, 2015 included an equipment operating lease loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.35 579.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.25 579.25 Td ( relating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.25 Td (to equipment the Company no longer plans to utilize as part of it managed services of) Tj ET Q q 0 0 0 rg BT 392.23 567.25 Td (ferings, a loss relating to a third party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.25 Td (license agreement of $1.2 million, and severance expense of $2.1 million relating the cost reduction initiatives and executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.25 Td (transitions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (Resear) Tj ET Q q 0 0 0 rg BT 77.40 522.25 Td (ch and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.25 Td (Research and development expenses were as follows \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 468.75 131.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 468.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 468.75 51.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 435.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 435.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 409.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 409.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 409.75 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 479.75 m 232.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 479.75 m 236.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 479.75 m 287.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 479.75 m 291.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 479.75 m 342.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 479.75 m 397.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 479.75 m 401.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 479.75 m 452.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 479.75 m 507.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 479.75 m 511.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 479.75 m 562.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 479.75 m 232.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 468.75 m 232.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 468.75 m 287.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 468.75 m 342.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 468.75 m 397.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 468.75 m 452.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 468.75 m 507.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 468.75 m 562.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 468.75 m 232.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 468.75 m 287.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 468.75 m 342.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 468.75 m 397.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 468.75 m 452.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 468.75 m 507.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 468.75 m 562.5 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 396.75 m 397.5 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 396.75 m 452.5 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 396.75 m 232.5 396.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 375.75 m 232.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 396.75 m 287.5 396.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 375.75 m 287.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 396.75 m 342.5 396.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 375.75 m 342.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 396.75 m 397.5 396.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 375.75 m 397.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 396.75 m 452.5 396.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 375.75 m 452.5 375.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 482.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 482.83 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 482.83 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 471.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 471.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 471.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 471.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 471.83 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 471.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 471.83 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 460.01 Td (Compensation and employee-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 451.06 Td (related) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 453.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 453.21 Td (6,738) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 453.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 453.21 Td (5,762) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 453.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 453.21 Td (6,291) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 453.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 453.21 Td (976) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 453.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.50 453.21 Td (\(529) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 453.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 453.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 453.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 453.21 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 453.21 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 440.01 Td (Overhead and other expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 440.01 Td (1,067) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 440.01 Td (749) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 440.01 Td (540) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 440.01 Td (318) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 440.01 Td (209) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 440.01 Td (42) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 440.01 Td (39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 427.01 Td (Outside services and consulting) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 427.01 Td (2,349) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 427.01 Td (2,403) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 427.01 Td (1,300) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.00 427.01 Td (\(54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 427.01 Td (1,103) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 427.01 Td (\(2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 427.01 Td (85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 414.01 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 414.01 Td (273) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 414.01 Td (349) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 414.01 Td (296) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.00 414.01 Td (\(76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 414.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 414.01 Td (53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 414.01 Td (\(22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 414.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 414.01 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 401.01 Td (Equity-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 401.01 Td (262) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 401.01 Td (243) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 401.01 Td (318) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 401.01 Td (19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 401.01 Td (\(75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 401.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.00 401.01 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.50 401.01 Td (\(24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 401.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 388.01 Td (Total research and development) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 379.01 Td (expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 380.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 380.21 Td (10,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 380.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 380.21 Td (9,506) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 380.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 380.21 Td (8,745) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 380.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 380.21 Td (1,183) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 380.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 380.21 Td (761) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 380.21 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 380.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 380.21 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 380.21 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 355.25 Td (otal research and development expenses for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.83 355.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.83 355.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.83 355.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.83 355.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.27 355.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.27 355.25 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.36 355.25 Td (31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.69 355.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.69 355.25 Td (36%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.02 355.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 343.25 Td (49%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 343.25 Td ( of revenues, respectively) Tj ET Q q 0 0 0 rg BT 169.86 343.25 Td (. ) Tj ET Q q 0 0 0 rg BT 174.68 343.25 Td (The increase in expenses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.79 343.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.79 343.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.57 343.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.57 343.25 Td ( was driven primarily by increased employee costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.25 Td (through the addition of engineering employees from the acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 355.58 331.25 Td (V) Tj ET Q q 0 0 0 rg BT 361.69 331.25 Td (alley in October 2014. ) Tj ET Q q 0 0 0 rg BT 453.43 331.25 Td (The increase in expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.25 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.94 319.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.94 319.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.72 319.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.72 319.25 Td ( reflect an increase in project spending to support development of expanded software functionality) Tj ET Q q 0 0 0 rg BT 517.54 319.25 Td (. ) Tj ET Q q 0 0 0 rg BT 522.36 319.25 Td (The year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td (ended December 31, 2015 included severance expense of $136,000 relating to cost reduction initiatives. ) Tj ET Q q 0 0 0 rg BT 468.30 307.25 Td (The Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.67 307.25 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.67 307.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 295.25 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.94 295.25 Td ( research and development personnel at December 31, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 408.11 295.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.25 Td (Sales and marketing expenses were as follows \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 220.75 131.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 220.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 220.75 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 186.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 186.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 186.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 160.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 160.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 160.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 160.75 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 231.75 m 232.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 231.75 m 236.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 231.75 m 287.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 231.75 m 291.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 231.75 m 342.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 231.75 m 397.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 231.75 m 401.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 231.75 m 452.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 231.75 m 507.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 231.75 m 511.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 231.75 m 562.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 231.75 m 232.5 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 220.75 m 232.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 220.75 m 287.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 220.75 m 342.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 220.75 m 397.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 220.75 m 452.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 220.75 m 507.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 220.75 m 562.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 220.75 m 397.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 220.75 m 452.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 220.75 m 507.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 220.75 m 562.5 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 147.75 m 397.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 147.75 m 452.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 147.75 m 232.5 147.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 126.75 m 232.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 147.75 m 287.5 147.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 126.75 m 287.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 147.75 m 342.5 147.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 126.75 m 342.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 147.75 m 397.5 147.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 126.75 m 397.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 147.75 m 452.5 147.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 126.75 m 452.5 126.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 234.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 234.83 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 234.83 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 223.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 223.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 223.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 223.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 223.83 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 223.83 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 223.83 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 212.01 Td (Compensation and employee-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 203.01 Td (related) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 204.21 Td (14,293) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 204.21 Td (14,487) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 204.21 Td (7,690) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 204.21 Td (\(194) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 204.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 204.21 Td (6,797) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 204.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 204.21 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 204.21 Td (88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 204.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 191.01 Td (Overhead and other expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 191.01 Td (1,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 191.01 Td (921) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 191.01 Td (736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 191.01 Td (770) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 191.01 Td (185) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 191.01 Td (84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 191.01 Td (25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 178.01 Td (Outside services and consulting) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 178.01 Td (1,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 178.01 Td (2,174) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 178.01 Td (1,690) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 178.01 Td (\(653) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 178.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 178.01 Td (484) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.50 178.01 Td (\(30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 178.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 178.01 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 165.01 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 165.01 Td (130) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 165.01 Td (135) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 165.01 Td (67) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 165.01 Td (\(5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 165.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 165.01 Td (68) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 165.01 Td (\(4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 165.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.00 165.01 Td (101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 152.01 Td (Equity-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 152.01 Td (359) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 152.01 Td (274) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 152.01 Td (120) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 152.01 Td (85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 152.01 Td (154) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 152.01 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.00 152.01 Td (128) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 139.01 Td (Total sales and marketing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 130.01 Td (expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 131.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 131.21 Td (17,994) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 131.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 131.21 Td (17,991) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 131.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 131.21 Td (10,303) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 131.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 131.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 131.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 131.21 Td (7,688) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 131.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 131.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 131.21 Td (75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 131.21 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 106.25 Td (otal sales and marketing expenses for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.86 106.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.86 106.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.86 106.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.86 106.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.30 106.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 106.25 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.38 106.25 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.71 106.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.71 106.25 Td (68%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.04 106.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.48 106.25 Td (58%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.81 106.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (revenues, respectively) Tj ET Q q 0 0 0 rg BT 138.20 94.25 Td (. Expenses remained flat from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.93 94.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.93 94.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.71 94.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.71 94.25 Td (, as the favorable impact of an expense reduction program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (implemented in the 2015 third quarter was of) Tj ET Q q 0 0 0 rg BT 230.61 82.25 Td (fset by additional employee costs and the allocation of corporate overhead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (expense in connection with the Kulu ) Tj ET Q q 0 0 0 rg BT 198.67 70.25 Td (V) Tj ET Q q 0 0 0 rg BT 204.79 70.25 Td (alley operations, which included a full year of expense in 2015 compared to one quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (of expense in 2014, and severance costs incurred in 2015. ) Tj ET Q q 0 0 0 rg BT 283.08 58.25 Td (The year ended December 31, 2015 included severance expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td ($550,000 relating the cost reduction initiatives. ) Tj ET Q q 0 0 0 rg BT 240.89 46.25 Td (The Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.26 46.25 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.26 46.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.70 46.25 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.70 46.25 Td ( sales and marketing personnel at December 31, ) Tj ET Q 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 (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 162.10 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 166.92 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.97 742.10 Td ($7.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.86 742.10 Td ( increase in expenses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.43 742.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.43 742.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.21 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.21 742.10 Td ( was driven by an increase in sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (marketing headcount, higher sales commissions stemming from an increase in revenues and increased spending on marketing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (programs to support sales growth.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.10 Td (General and administrative expenses were as follows \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 643.60 131.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 643.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 643.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 609.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 609.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 609.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 583.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 583.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 583.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 583.60 51.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 654.6 m 232.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 654.6 m 236.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 654.6 m 287.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 654.6 m 291.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 654.6 m 342.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 654.6 m 397.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 654.6 m 401.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 654.6 m 452.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 654.6 m 507.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 654.6 m 511.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 654.6 m 562.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 654.6 m 232.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 643.6 m 232.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 643.6 m 287.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 643.6 m 342.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 643.6 m 397.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 643.6 m 452.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 643.6 m 507.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 643.6 m 562.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 643.6 m 232.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 643.6 m 287.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 643.6 m 342.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 643.6 m 397.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 643.6 m 452.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 643.6 m 507.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 643.6 m 562.5 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 570.6 m 232.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 570.6 m 287.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 570.6 m 342.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 570.6 m 397.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 570.6 m 452.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 570.6 m 232.5 570.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 181.5 549.6 m 232.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 570.6 m 287.5 570.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 549.6 m 287.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 570.6 m 342.5 570.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 549.6 m 342.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 570.6 m 397.5 570.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 549.6 m 397.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 570.6 m 452.5 570.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 549.6 m 452.5 549.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.20 657.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.70 657.68 Td (Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.65 657.68 Td (Percent Increase \(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.50 646.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 646.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 646.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.15 646.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 646.68 Td (2013 to 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.15 646.68 Td (2014 to 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.15 646.68 Td (2013 to 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 634.86 Td (Compensation and employee-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 625.86 Td (related) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 627.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 627.06 Td (7,522) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 627.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 627.06 Td (6,189) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 627.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 627.06 Td (6,174) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 627.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 627.06 Td (1,333) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 627.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 627.06 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 627.06 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 627.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 627.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 627.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 613.86 Td (Overhead and other expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 613.86 Td (3,607) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 613.86 Td (1,261) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 613.86 Td (692) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 613.86 Td (2,346) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 613.86 Td (569) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 613.86 Td (186) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 613.86 Td (82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 600.86 Td (Outside services and consulting) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 600.86 Td (4,146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 600.86 Td (3,697) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.75 600.86 Td (2,302) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 600.86 Td (449) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 600.86 Td (1,395) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 600.86 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 600.86 Td (61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 587.86 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.50 587.86 Td (549) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.50 587.86 Td (210) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 587.86 Td (193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 587.86 Td (339) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 587.86 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 587.86 Td (161) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 587.86 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 574.86 Td (Equity-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.75 574.86 Td (1,054) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.75 574.86 Td (1,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.50 574.86 Td (971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 574.86 Td (\(215) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 574.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.50 574.86 Td (298) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 574.86 Td (\(17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 574.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 574.86 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 561.86 Td (Total general and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 552.86 Td (expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.00 554.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.25 554.06 Td (16,878) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 554.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 554.06 Td (12,626) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 554.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.25 554.06 Td (10,332) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 554.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.75 554.06 Td (4,252) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 554.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.75 554.06 Td (2,294) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 554.06 Td (34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 554.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 554.06 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 554.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 529.10 Td (otal general and administrative expenses for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.51 529.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.51 529.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.51 529.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.51 529.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.95 529.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.95 529.10 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.03 529.10 Td (49%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.36 529.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.36 529.10 Td (48%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.69 529.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 517.10 Td (58%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 517.10 Td ( of revenues, respectively) Tj ET Q q 0 0 0 rg BT 169.86 517.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.68 517.10 Td (The increase in expenses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.79 517.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.79 517.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.57 517.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.57 517.10 Td ( was driven primarily by an equipment operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 505.10 Td (lease loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.38 505.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.27 505.10 Td ( relating to equipment the Company no longer plans to utilize as part of it managed services of) Tj ET Q q 0 0 0 rg BT 528.04 505.10 Td (ferings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 493.10 Td (a loss relating to a third party license agreement of $1.2 million, and severance expense of $1.4 million relating the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.10 Td (reduction and executive transition initiatives. ) Tj ET Q q 0 0 0 rg BT 232.17 481.10 Td (Also contributing to the increase were non-recurring audit, legal and outside ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.10 Td (service costs in 2015 associated with transition and reor) Tj ET Q q 0 0 0 rg BT 273.10 469.10 Td (ganization activities resulting from the divestiture in 2014 of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.10 Td (Company's disc publishing business. ) Tj ET Q q 0 0 0 rg BT 199.13 457.10 Td (The Company had 31 general and administrative personnel at both December 31, 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.10 Td (and 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (The increase in expenses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.12 424.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.12 424.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.89 424.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.89 424.10 Td ( included costs to support corporate development activity associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 129.53 412.10 Td (V) Tj ET Q q 0 0 0 rg BT 135.64 412.10 Td (alley in the fourth quarter of 2014 as well as transition activities related to separating the back of) Tj ET Q q 0 0 0 rg BT 521.72 412.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (processes and systems of the Company's enterprise video content management software business from the disc publishing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (business, which was sold ef) Tj ET Q q 0 0 0 rg BT 160.64 388.10 Td (fective July 1, 2014.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (Amortization of Pur) Tj ET Q q 0 0 0 rg BT 129.63 367.10 Td (chased Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Operating expenses include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.02 346.10 Td ($798,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.52 346.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.52 346.10 Td ($652,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.02 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.46 346.10 Td ($627,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.96 346.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.73 346.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.73 346.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.73 346.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.73 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.17 346.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.17 346.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 449.83 346.10 Td (, for the amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (intangible assets acquired as part of the Company) Tj ET Q q 0 0 0 rg BT 251.33 334.10 Td (s acquisition of Qumu, Inc. in October 201) Tj ET Q q 0 0 0 rg BT 422.32 334.10 Td (1 and Kulu ) Tj ET Q q 0 0 0 rg BT 469.08 334.10 Td (V) Tj ET Q q 0 0 0 rg BT 475.19 334.10 Td (alley in October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (2014. Operating expenses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.36 322.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.36 322.10 Td ( are expected to include approximately $0.9 million of amortization expense associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (purchased intangibles, exclusive of the portion classified in cost of revenue.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 289.10 Td (Other Income, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (The Company recognized interest income on cash and marketable securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.38 268.10 Td ($7,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.88 268.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.88 268.10 Td ($60,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.38 268.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.82 268.10 Td ($28,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.32 268.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.10 268.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.10 268.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.10 268.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.10 268.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 256.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 256.10 Td (. Other income also included the net losses on foreign currency transactions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.68 256.10 Td ($131,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.18 256.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.18 256.10 Td ($201,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.68 256.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td ($40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 244.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.28 244.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.28 244.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.28 244.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.28 244.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.72 244.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.72 244.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 232.38 244.10 Td (. See Liquidity and Capital Resources below for a discussion of changes in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (levels.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 211.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (The provision for income taxes represents federal, state, and foreign income taxes or income tax benefit on income or loss. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.28 178.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.28 178.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.28 178.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.28 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.71 178.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.71 178.10 Td (, net income tax benefit amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.56 178.10 Td ($839,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.06 178.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.06 178.10 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.95 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.39 178.10 Td ($3.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 166.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 166.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.10 Td (Income tax benefit in 2015 is primarily attributable to UK operations, which include refundable research credits. ) Tj ET Q q 0 0 0 rg BT 502.08 145.10 Td (Amounts in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (2014 and 2013 primarily reflect the realization of income tax benefits on losses from continuing operations as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (income generated from discontinued operations, including the gain on sale of the disc publishing business recognized in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.10 Td (third quarter of 2014.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (Net Income from Discontinued Operations, Net of T) Tj ET Q q 0 0 0 rg BT 264.08 88.10 Td (ax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.10 Td (The Company closed the sale of its disc publishing business ef) Tj ET Q q 0 0 0 rg BT 300.34 67.10 Td (fective July 1, 2014. ) Tj ET Q q 0 0 0 rg BT 383.66 67.10 Td (As a result, net income from discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.10 Td (operations includes the financial results of the Company) Tj ET Q q 0 0 0 rg BT 278.00 55.10 Td (s disc publishing business through June 30, 2014. Included in net ) 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 (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (income from discontinued operations for the third quarter of 2014 is the recognition of a gain on sale of the disc publishing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (business of $16.2 million. ) Tj ET Q q 0 0 0 rg BT 155.93 730.10 Td (This amount excludes the impact of transaction related expenses which were primarily incurred and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (recognized prior to the third quarter of 2014. Discontinued operations results also include non-recurring expenses incurred by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (the Company as a result of the sale of the disc publishing business. ) Tj ET Q q 0 0 0 rg BT 319.78 706.10 Td (These expenses included third party transaction specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (costs, one-time income tax related impacts and the acceleration of vesting of cash-based long-term incentive and stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (awards payable to employees of the disc publishing business upon completion of the asset sale transaction. Non-recurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (expenses and income tax related impacts amounted to approximately $9.6 million for the year ended December 31, 2014.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.68 649.10 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 632.10 Td (The following table sets forth certain relevant measures of the Company's liquidity and capital resources \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 590.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 590.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 590.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 564.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 564.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 564.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 538.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 538.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 538.60 71.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 601.6 m 487.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 601.6 m 491.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 601.6 m 562.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 590.6 m 487.5 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 590.6 m 562.5 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 590.6 m 487.5 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 590.6 m 562.5 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 551.6 m 487.5 551.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 538.6 m 487.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 551.6 m 562.5 551.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 538.6 m 562.5 538.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 538.6 m 487.5 538.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 525.6 m 487.5 525.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 538.6 m 562.5 538.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 525.6 m 562.5 525.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 525.6 m 487.5 525.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 512.6 m 487.5 512.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 525.6 m 562.5 525.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 512.6 m 562.5 512.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.75 604.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.50 593.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.50 593.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 581.86 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 581.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 581.86 Td (7,072) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 581.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 581.86 Td (11,684) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 568.86 Td (Marketable securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 568.86 Td (6,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 568.86 Td (23,486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 555.86 Td (Restricted cash) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 555.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 555.86 Td (2,300) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 542.86 Td (Cash, cash equivalents, marketable securities and restricted cash) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 542.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.25 542.86 Td (13,321) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 542.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 542.86 Td (37,470) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 529.86 Td (Working capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 529.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 529.86 Td (9,516) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 529.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 529.86 Td (33,375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 516.86 Td (Financing obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 516.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 516.86 Td (1,021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 516.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 516.86 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 492.10 Td (The Company expects it will be able to maintain current operations and anticipated capital expenditure requirements for at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 480.10 Td (the next 12 months through its cash reserves as well as any cash flows that may be generated from current operations. Based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 468.10 Td (revenue growth and an expense reduction program implemented in the third quarter of 2015, the Company expects that it will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 456.10 Td (be cash flow breakeven for the second half of 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.08 435.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.08 435.10 Td (, the Company had aggregate working capital of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.30 435.10 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.19 435.10 Td (, down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.91 435.10 Td ($23.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.80 435.10 Td ( from working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 423.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 423.10 Td ($33.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 423.10 Td ( at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.52 423.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.52 423.10 Td (. ) Tj ET Q q 0 0 0 rg BT 210.34 423.10 Td (The primary contributors to the decrease in working capital were the generation of a net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (loss adjusted for non-cash items during the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.80 411.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.80 411.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.13 411.10 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.03 411.10 Td (, purchases of property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.54 399.10 Td ($635,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.04 399.10 Td ( and principal payments on capital lease obligations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.26 399.10 Td ($320,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.76 399.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (Financing obligations consist of capital leases related to the acquisition of computer and network equipment and furniture and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (other financing obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (The Company's primary source of cash from operating activities has been cash collections from sales of products and services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td (to customers. ) Tj ET Q q 0 0 0 rg BT 105.64 333.10 Td (The Company expects cash inflows from operating activities to be af) Tj ET Q q 0 0 0 rg BT 380.94 333.10 Td (fected by increases or decreases in sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (timing of collections. ) Tj ET Q q 0 0 0 rg BT 137.58 321.10 Td (The Company's primary use of cash for operating activities has been for personnel costs, payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (royalties associated with third-party software licenses and purchases of equipment to fulfill customer orders. ) Tj ET Q q 0 0 0 rg BT 486.08 309.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (expects cash flows from operating activities to be af) Tj ET Q q 0 0 0 rg BT 258.08 297.10 Td (fected by fluctuations in revenues, personnel costs and the amount and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (timing of royalty payments and equipment purchases as the Company continues to support the growth of the business. ) Tj ET Q q 0 0 0 rg BT 525.01 285.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (amount of cash, cash equivalents and marketable securities held by the Company's international subsidiaries that is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 261.10 Td (available to fund domestic operations unless repatriated was $1.0 million as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.89 261.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.89 261.10 Td (. ) Tj ET Q q 0 0 0 rg BT 449.71 261.10 Td (The Company does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (currently intend to repatriate the cash and related balances held by its international subsidiaries.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (Summary of Cash Flows. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 228.10 Td (A) Tj ET Q q 0 0 0 rg BT 163.64 228.10 Td ( summary of cash flows is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 173.60 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 173.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 173.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 173.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 173.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 173.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 147.60 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 147.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 147.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 147.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 147.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 147.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 121.60 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 121.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 121.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 121.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 121.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 121.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 197.60000000000002 m 430.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 197.60000000000002 m 434.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 197.60000000000002 m 495.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 197.60000000000002 m 499.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 197.60000000000002 m 560.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 186.60000000000002 m 430.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 186.60000000000002 m 495.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 186.60000000000002 m 560.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 121.60000000000002 m 430.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 108.60000000000002 m 430.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 121.60000000000002 m 495.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 108.60000000000002 m 495.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 121.60000000000002 m 560.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 108.60000000000002 m 560.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 108.60000000000002 m 430.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 95.60000000000002 m 430.5 95.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 108.60000000000002 m 495.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 95.60000000000002 m 495.5 95.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 108.60000000000002 m 560.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 95.60000000000002 m 560.5 95.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.20 200.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.50 189.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.50 189.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 189.68 Td (2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 177.85 Td (Cash flows from \(used in\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 177.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.00 177.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 557.00 177.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.00 164.85 Td (Operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.00 164.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.60 164.85 Td (\(23,227) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 164.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.00 164.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 164.85 Td (\(22,644) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 164.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 164.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.30 164.85 Td (2,367) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.00 151.85 Td (Investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.30 151.85 Td (18,923) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.60 151.85 Td (\(3,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 151.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.30 151.85 Td (6,926) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.00 138.85 Td (Financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.60 138.85 Td (\(228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 138.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 138.85 Td (35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 542.60 138.85 Td (\(129) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 557.30 138.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 125.85 Td (Effect of exchange rate changes on cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.60 125.85 Td (\(80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 125.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.60 125.85 Td (\(252) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 125.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.60 125.85 Td (\(83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 557.30 125.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 112.85 Td (Net change in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.00 112.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.60 112.85 Td (\(4,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 112.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.00 112.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 112.85 Td (\(26,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 112.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 112.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.30 112.85 Td (9,081) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 99.85 Td (Net change in marketable securities and restricted cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.00 99.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.60 99.85 Td (\(19,537) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 99.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.00 99.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 99.85 Td (12,553) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 99.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.60 99.85 Td (\(8,263) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 557.30 99.85 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (Operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (Net cash used in operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.23 58.10 Td ($23.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.12 58.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.78 58.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.78 58.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.48 58.10 Td ($22.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.38 58.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.04 58.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.04 58.10 Td (. ) Tj ET Q q 0 0 0 rg BT 455.85 58.10 Td (The change in operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (cash flows as compared to 2014 was favorably impacted by changes in year) Tj ET Q q 0 0 0 rg BT 353.03 46.10 Td (-over) Tj ET Q q 0 0 0 rg BT 373.93 46.10 Td (-year balances for receivables and prepaid ) 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 (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (expenses and other assets of) Tj ET Q q 0 0 0 rg BT 162.56 742.10 Td (fset by the unfavorable impact of a higher net loss in 2015 and unfavorable changes in year) Tj ET Q q 0 0 0 rg BT 527.24 742.10 Td (-over) Tj ET Q q 0 0 0 rg BT 548.14 742.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (year balances for accrued compensation, deferred revenue and income tax receivable. ) Tj ET Q q 0 0 0 rg BT 394.36 730.10 Td (The increase in deferred revenue for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (year was driven by increased deferrals of perpetual software licenses and corresponding maintenance contracts, primarily due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (to revenue recognition criteria and contracted deliverables not being delivered or completed. ) Tj ET Q q 0 0 0 rg BT 421.79 706.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 471.69 706.10 Td (, cash used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (operating activities was impacted by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.50 694.10 Td ($879,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 694.10 Td ( unfavorable change in cash from discontinued operations in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (the Company's sale of its discontinued disc publishing business ef) Tj ET Q q 0 0 0 rg BT 313.54 682.10 Td (fective July 1, 2014. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 664.10 Td (Investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 647.10 Td (Net cash provided by investing activities totaled, in the aggregate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.59 647.10 Td ($18.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.48 647.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.14 647.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.14 647.10 Td ( compared to net cash used of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.49 647.10 Td ($3.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 635.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 635.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.67 635.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.67 635.10 Td (. Primarily driving the generation of cash in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.13 635.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.13 635.10 Td ( were maturities of marketable securities, net of related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 623.10 Td (purchases, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.26 623.10 Td ($17.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.15 623.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 208.12 623.10 Td (fset by purchases of property and equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.17 623.10 Td ($635,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.67 623.10 Td (. ) Tj ET Q q 0 0 0 rg BT 441.49 623.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.54 623.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.43 623.10 Td ( cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 611.10 Td (provided by investing activities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.59 611.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.59 611.10 Td ( resulted from the Company's receipt of proceeds from the sale of the disc publishing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.10 Td (business of $19.7 million, significantly of) Tj ET Q q 0 0 0 rg BT 216.75 599.10 Td (fset by purchases of marketable securities, net of related maturities, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.70 599.10 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.59 599.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.10 Td (and purchases of property and equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.55 587.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.45 587.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (Financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.10 Td (Financing activities used net cash of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.74 545.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.63 545.10 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.74 545.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.74 545.10 Td ( and used a minimal amount of cash in the comparable period in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 533.10 Td (. Primarily impacting the current period use of cash were principal payments on financing obligations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 533.10 Td ($320,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.10 533.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 521.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 521.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.41 521.10 Td ($142,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.91 521.10 Td ( in proceeds from employee stock plans. Financing activities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.12 521.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.12 521.10 Td ( consisted primarily of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 509.10 Td (proceeds from employee stock plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (Since October 2010, the Company) Tj ET Q q 0 0 0 rg BT 190.81 488.10 Td (s Board of Directors has approved common stock repurchases of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.62 488.10 Td (3,500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.62 488.10 Td ( shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (Shares may be purchased at prevailing market prices in the open market or in private transactions, subject to market conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (share price, trading volume and other factors. ) Tj ET Q q 0 0 0 rg BT 233.92 464.10 Td (The repurchase program has been funded to date using cash on hand and may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (discontinued at any time. ) Tj ET Q q 0 0 0 rg BT 152.85 452.10 Td (The Company did not repurchase any shares of its common stock under the repurchase program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 440.10 Td (during the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.88 440.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.88 440.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.88 440.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.88 440.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.32 440.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.32 440.10 Td (. ) Tj ET Q q 0 0 0 rg BT 290.77 440.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.80 440.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.80 440.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.84 440.10 Td (778,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.34 440.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (available for repurchase under the authorizations. ) Tj ET Q q 0 0 0 rg BT 250.01 428.10 Td (While the current authorization remains in ef) Tj ET Q q 0 0 0 rg BT 429.76 428.10 Td (fect, the Company expects its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 416.10 Td (primary use of cash will be to fund operations in support of the Company) Tj ET Q q 0 0 0 rg BT 346.33 416.10 Td (s goals for revenue growth and operating mar) Tj ET Q q 0 0 0 rg BT 528.04 416.10 Td (gin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (improvement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (The Company did not declare or pay any dividends during the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.33 383.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.33 383.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.33 383.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.33 383.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.77 383.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.77 383.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (Contractual Obligations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.75 362.10 Td (The following table summarizes the Company's contractual cash obligations at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.61 362.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.61 362.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (and the net ef) Tj ET Q q 0 0 0 rg BT 103.96 350.10 Td (fect such obligations are expected to have on liquidity and cash flow in future periods. Some of the amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (included in this table are based on management's estimates and assumptions about these obligations, including their duration, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (the possibility of renewal, anticipated actions by third parties and other factors. Because these estimates and assumptions are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (necessarily subjective, the amounts the Company will actually pay in future periods may vary from those reflected in the table. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 262.60 204.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 262.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 262.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 262.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 234.60 204.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 234.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 234.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 206.60 204.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 206.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 206.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 206.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 206.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 206.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 206.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 206.60 40.00 -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 254.5 282.6 m 294.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 282.6 m 298.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 282.6 m 338.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 282.6 m 342.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 282.6 m 382.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 282.6 m 386.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 282.6 m 426.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 282.6 m 430.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 282.6 m 470.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 282.6 m 474.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 282.6 m 518.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 282.6 m 522.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 282.6 m 562.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 262.6 m 294.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 262.6 m 338.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 262.6 m 382.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 262.6 m 426.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 262.6 m 470.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 262.6 m 518.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 262.6 m 562.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 262.6 m 518.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 206.60000000000002 m 294.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 206.60000000000002 m 338.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 206.60000000000002 m 382.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 206.60000000000002 m 426.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 206.60000000000002 m 470.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 206.60000000000002 m 518.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 206.60000000000002 m 562.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 192.60000000000002 m 294.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 192.60000000000002 m 338.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 192.60000000000002 m 382.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 192.60000000000002 m 426.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 192.60000000000002 m 470.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 192.60000000000002 m 518.5 192.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 206.60000000000002 m 562.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 192.60000000000002 m 562.5 192.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 286.55 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.85 286.68 Td (Payments Due by Period) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 267.05 Td (Contractual Obligations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 266.00 266.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 310.00 266.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.00 266.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 266.83 Td (2019) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.00 266.83 Td (2020) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.70 266.83 Td (Thereafter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.25 266.83 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 253.86 Td (Operating leases) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.75 253.86 Td (1,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.75 253.86 Td (1,268) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.75 253.86 Td (1,062) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.50 253.86 Td (571) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.50 253.86 Td (309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.50 253.86 Td (658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 253.86 Td (5,086) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 239.86 Td (Capital leases and other financing obligations) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 217.21 243.94 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.50 239.86 Td (561) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.50 239.86 Td (375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.50 239.86 Td (163) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 239.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 239.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 239.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 239.86 Td (1,099) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 225.86 Td (Purchase obligations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 129.99 229.94 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.75 225.86 Td (2,733) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.50 225.86 Td (707) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.50 225.86 Td (128) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 225.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 225.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 225.86 Td (3,568) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 211.86 Td (Income tax liabilities under ) Tj ET Q q 0 0 0 rg BT 153.47 211.86 Td (ASC 740 ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 188.98 215.94 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 211.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 211.86 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 198.00 Td (Total contractual cash obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.75 197.86 Td (4,512) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.75 197.86 Td (2,350) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.75 197.86 Td (1,353) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.50 197.86 Td (571) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.50 197.86 Td (309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.50 197.86 Td (658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 197.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 197.86 Td (9,753) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 185.90 Td (_________________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 68.00 176.18 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 172.10 Td (Amounts include principal and interest. ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 68.00 162.38 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 158.30 Td (Purchase obligations include all commitments to purchase goods or services that meet one or both of the following criteria: \(1\) they ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 147.50 Td (are non-cancelable or \(2\) the Company must make specified minimum payments even if it does not take delivery of the contracted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 136.70 Td (products or services. If the obligation is non-cancelable, the entire value of the contract is included in the table.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 68.00 126.98 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 122.90 Td (The Company does not currently expect any income tax liabilities accrued under ) Tj ET Q q 0 0 0 rg BT 368.90 122.90 Td (ASC 740 as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.90 122.90 Td (December31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.63 122.90 Td ( to be paid to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 112.10 Td (applicable tax authorities in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 178.97 112.10 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.97 112.10 Td (. ) Tj ET Q q 0 0 0 rg BT 201.30 112.10 Td (The full balance of unrecognized tax benefits under ) Tj ET Q q 0 0 0 rg BT 388.73 112.10 Td (ASC 740 of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.98 112.10 Td ($1.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.98 112.10 Td ( at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.98 112.10 Td (December31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.70 112.10 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 101.30 Td (has been excluded from the above table as the period of payment or reversal cannot be reasonably estimated. ) Tj ET Q q 0 0 0 rg BT 470.43 101.30 Td (This amount is before ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 90.50 Td (reduction for deferred federal benefits of uncertain tax positions and also excludes potential interest and penalties.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 69.50 Td (New ) Tj ET Q q 0 0 0 rg BT 70.83 69.50 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 132.59 69.50 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.50 Td (Information regarding new accounting pronouncements is included in Note 1 to the Consolidated Financial Statements.) 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 (31) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 7A. QUANTIT) Tj ET Q q 0 0 0 rg BT 138.62 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 144.74 742.25 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 170.21 742.25 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 230.49 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 236.61 742.25 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 332.94 742.25 Td (ABOUT MARKET RISK) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 721.25 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 107.12 721.25 Td (ency ) Tj ET Q q 0 0 0 rg BT 128.88 721.25 Td (T) Tj ET Q q 0 0 0 rg BT 134.81 721.25 Td (ranslation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.65 721.25 Td ( ) Tj ET Q q 0 0 0 rg BT 182.60 721.25 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.63 721.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.63 721.25 Td (, the Company is exposed to market risk primarily from foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (exchange rate fluctuations of the British Pound Sterling, Japanese ) Tj ET Q q 0 0 0 rg BT 315.12 709.25 Td (Y) Tj ET Q q 0 0 0 rg BT 321.34 709.25 Td (en and Singapore Dollar to the U.S. Dollar as the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (position and operating results of the Company) Tj ET Q q 0 0 0 rg BT 237.75 697.25 Td (s foreign subsidiaries are translated into U.S. dollars for consolidation. Resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (translation adjustments are recorded as a separate component of stockholders) Tj ET Q q 0 0 0 rg BT 361.09 685.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 387.93 685.25 Td (.) Tj ET Q endstream endobj 65 0 obj <><><><><><><><><><><><><><>] /Rotate 0 /Contents 66 0 R>> endobj 66 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 /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 8. FINANCIAL) Tj ET Q q 0 0 0 rg BT 142.71 742.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 156.32 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 162.44 742.25 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 211.80 742.25 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 301.53 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 314.69 742.25 Td (Y) Tj ET Q q 0 0 0 rg BT 320.43 742.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 336.27 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 341.83 742.25 Td (A) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Financial Statements) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 642.75 441.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 642.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 614.75 441.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 614.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 586.75 441.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 586.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 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BT 322.73 626.25 Td (express ) Tj ET Q q 0 0 0 rg BT 354.29 626.25 Td (an ) Tj ET Q q 0 0 0 rg BT 365.30 626.25 Td (opinion ) Tj ET Q q 0 0 0 rg BT 397.43 626.25 Td (on ) Tj ET Q q 0 0 0 rg BT 409.00 626.25 Td (these ) Tj ET Q q 0 0 0 rg BT 431.12 626.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 483.24 626.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 519.79 626.25 Td (statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.25 Td (based ) Tj ET Q q 0 0 0 rg BT 75.27 614.25 Td (on ) Tj ET Q q 0 0 0 rg BT 87.77 614.25 Td (our ) Tj ET Q q 0 0 0 rg BT 103.60 614.25 Td (audits.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (In ) Tj ET Q q 0 0 0 rg BT 60.39 514.25 Td (our ) Tj ET Q q 0 0 0 rg BT 75.77 514.25 Td (opinion, ) Tj ET Q q 0 0 0 rg BT 110.88 514.25 Td (the ) Tj ET Q q 0 0 0 rg BT 125.16 514.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 177.75 514.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 214.79 514.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 259.06 514.25 Td (referred ) Tj ET Q q 0 0 0 rg BT 292.75 514.25 Td (to ) Tj ET Q q 0 0 0 rg BT 302.58 514.25 Td (above ) Tj ET Q q 0 0 0 rg BT 328.52 514.25 Td (present ) Tj ET Q q 0 0 0 rg BT 359.45 514.25 Td (fairly) Tj ET Q q 0 0 0 rg BT 380.45 514.25 Td (, ) Tj ET Q q 0 0 0 rg BT 385.01 514.25 Td (in ) Tj ET Q q 0 0 0 rg BT 394.84 514.25 Td (all ) Tj ET Q q 0 0 0 rg BT 406.89 514.25 Td (material ) Tj ET Q q 0 0 0 rg BT 441.71 514.25 Td (respects, ) Tj ET Q q 0 0 0 rg BT 478.47 514.25 Td (the ) Tj ET Q q 0 0 0 rg BT 492.74 514.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 529.78 514.25 Td (position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.71 502.25 Td (Qumu ) Tj ET Q q 0 0 0 rg BT 88.10 502.25 Td (Corporation ) Tj ET Q q 0 0 0 rg BT 138.81 502.25 Td (and ) Tj ET Q q 0 0 0 rg BT 155.63 502.25 Td (subsidiaries ) Tj ET Q q 0 0 0 rg BT 205.23 502.25 Td (as ) Tj ET Q q 0 0 0 rg BT 215.95 502.25 Td (of ) Tj ET Q q 0 0 0 rg BT 226.66 502.25 Td (December31, ) Tj ET Q q 0 0 0 rg BT 285.13 502.25 Td (2015 ) Tj ET Q q 0 0 0 rg BT 307.51 502.25 Td (and ) Tj ET Q q 0 0 0 rg BT 324.34 502.25 Td (2014 ) Tj ET Q q 0 0 0 rg BT 346.72 502.25 Td (and ) Tj ET Q q 0 0 0 rg BT 363.54 502.25 Td (the ) Tj ET Q q 0 0 0 rg BT 378.14 502.25 Td (results ) Tj ET Q q 0 0 0 rg BT 406.64 502.25 Td (of ) Tj ET Q q 0 0 0 rg BT 417.35 502.25 Td (their ) Tj ET Q q 0 0 0 rg BT 438.06 502.25 Td (operations ) Tj ET Q q 0 0 0 rg BT 482.10 502.25 Td (and ) Tj ET Q q 0 0 0 rg BT 498.92 502.25 Td (their ) Tj ET Q q 0 0 0 rg BT 519.63 502.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 539.79 502.25 Td (flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (for ) Tj ET Q q 0 0 0 rg BT 64.33 490.25 Td (each ) Tj ET Q q 0 0 0 rg BT 85.31 490.25 Td (of ) Tj ET Q q 0 0 0 rg BT 96.31 490.25 Td (the ) Tj ET Q q 0 0 0 rg BT 111.20 490.25 Td (years ) Tj ET Q q 0 0 0 rg BT 134.96 490.25 Td (in ) Tj ET Q q 0 0 0 rg BT 145.41 490.25 Td (the ) Tj ET Q q 0 0 0 rg BT 160.30 490.25 Td (three-year ) Tj ET Q q 0 0 0 rg BT 203.49 490.25 Td (period ) Tj ET Q q 0 0 0 rg BT 231.70 490.25 Td (ended ) Tj ET Q q 0 0 0 rg BT 258.25 490.25 Td (December ) Tj ET Q q 0 0 0 rg BT 302.00 490.25 Td (31, ) Tj ET Q q 0 0 0 rg BT 317.17 490.25 Td (2015, ) Tj ET Q q 0 0 0 rg BT 342.34 490.25 Td (in ) Tj ET Q q 0 0 0 rg BT 352.78 490.25 Td (conformity ) Tj ET Q q 0 0 0 rg BT 399.89 490.25 Td (with ) Tj ET Q q 0 0 0 rg BT 420.33 490.25 Td (U.S.generally ) Tj ET Q q 0 0 0 rg BT 480.49 490.25 Td (accepted ) Tj ET Q q 0 0 0 rg BT 518.13 490.25 Td (accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (principles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 458.25 Td (e ) Tj ET Q q 0 0 0 rg BT 65.52 458.25 Td (also ) Tj ET Q q 0 0 0 rg BT 84.08 458.25 Td (have ) Tj ET Q q 0 0 0 rg BT 105.40 458.25 Td (audited, ) Tj ET Q q 0 0 0 rg BT 139.79 458.25 Td (in ) Tj ET Q q 0 0 0 rg BT 150.01 458.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 197.42 458.25 Td (with ) Tj ET Q q 0 0 0 rg BT 217.65 458.25 Td (the ) Tj ET Q q 0 0 0 rg BT 232.31 458.25 Td (standards ) Tj ET Q q 0 0 0 rg BT 272.53 458.25 Td (of ) Tj ET Q q 0 0 0 rg BT 283.31 458.25 Td (the ) Tj ET Q q 0 0 0 rg BT 297.97 458.25 Td (Public ) Tj ET Q q 0 0 0 rg BT 325.97 458.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 366.77 458.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 415.87 458.25 Td (Oversight ) Tj ET Q q 0 0 0 rg BT 457.76 458.25 Td (Board ) Tj ET Q q 0 0 0 rg BT 484.64 458.25 Td (\(United ) Tj ET Q q 0 0 0 rg BT 517.64 458.25 Td (States\), ) Tj ET Q q 0 0 0 rg BT 549.80 458.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 446.25 Td (s ) Tj ET Q q 0 0 0 rg BT 98.10 446.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 131.19 446.25 Td (control ) Tj ET Q q 0 0 0 rg BT 162.07 446.25 Td (over ) Tj ET Q q 0 0 0 rg BT 182.38 446.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 219.91 446.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 259.12 446.25 Td (as ) Tj ET Q q 0 0 0 rg BT 269.99 446.25 Td (of ) Tj ET Q q 0 0 0 rg BT 280.87 446.25 Td (December ) Tj ET Q q 0 0 0 rg BT 324.50 446.25 Td (31, ) Tj ET Q q 0 0 0 rg BT 339.55 446.25 Td (2015, ) Tj ET Q q 0 0 0 rg BT 364.60 446.25 Td (based ) Tj ET Q q 0 0 0 rg BT 389.92 446.25 Td (on ) Tj ET Q q 0 0 0 rg BT 402.46 446.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 433.32 446.25 Td (established ) Tj ET Q q 0 0 0 rg BT 480.30 446.25 Td (in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 490.63 446.25 Td (Internal ) Tj ET Q q 0 0 0 rg BT 525.39 446.25 Td (Contr) Tj ET Q q 0 0 0 rg BT 548.36 446.25 Td (ol ) Tj ET Q q 0 0 0 rg BT 558.69 446.25 Td (- ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (Integrated ) Tj ET Q q 0 0 0 rg BT 93.97 434.25 Td (Framework ) Tj ET Q q 0 0 0 rg BT 142.94 434.25 Td (\(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.60 434.25 Td ( ) Tj ET Q q 0 0 0 rg BT 171.92 434.25 Td (issued ) Tj ET Q q 0 0 0 rg BT 199.23 434.25 Td (by ) Tj ET Q q 0 0 0 rg BT 211.55 434.25 Td (the ) Tj ET Q q 0 0 0 rg BT 226.08 434.25 Td (Committee ) Tj ET Q q 0 0 0 rg BT 272.83 434.25 Td (of ) Tj ET Q q 0 0 0 rg BT 283.48 434.25 Td (Sponsoring ) Tj ET Q q 0 0 0 rg BT 331.35 434.25 Td (Or) Tj ET Q q 0 0 0 rg BT 341.72 434.25 Td (ganizations ) Tj ET Q q 0 0 0 rg BT 389.58 434.25 Td (of ) Tj ET Q q 0 0 0 rg BT 400.22 434.25 Td (the ) Tj ET Q q 0 0 0 rg BT 414.59 434.25 Td (T) Tj ET Q q 0 0 0 rg BT 420.35 434.25 Td (readway ) Tj ET Q q 0 0 0 rg BT 456.53 434.25 Td (Commission ) Tj ET Q q 0 0 0 rg BT 509.41 434.25 Td (\(COSO\), ) Tj ET Q q 0 0 0 rg BT 547.56 434.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (our ) Tj ET Q q 0 0 0 rg BT 65.05 422.25 Td (report ) Tj ET Q q 0 0 0 rg BT 90.64 422.25 Td (dated ) Tj ET Q q 0 0 0 rg BT 114.02 422.25 Td (March ) Tj ET Q q 0 0 0 rg BT 141.83 422.25 Td (15, ) Tj ET Q q 0 0 0 rg BT 156.05 422.25 Td (2016 ) Tj ET Q q 0 0 0 rg BT 177.77 422.25 Td (expressed ) Tj ET Q q 0 0 0 rg BT 218.91 422.25 Td (an ) Tj ET Q q 0 0 0 rg BT 230.07 422.25 Td (adverse ) Tj ET Q q 0 0 0 rg BT 262.33 422.25 Td (opinion ) Tj ET Q q 0 0 0 rg BT 294.60 422.25 Td (on ) Tj ET Q q 0 0 0 rg BT 306.32 422.25 Td (the ) Tj ET Q q 0 0 0 rg BT 320.25 422.25 Td (ef) Tj ET Q q 0 0 0 rg BT 327.84 422.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 373.98 422.25 Td (of ) Tj ET Q q 0 0 0 rg BT 384.03 422.25 Td (the ) Tj ET Q q 0 0 0 rg BT 397.96 422.25 Td (Company) Tj ET Q q 0 0 0 rg BT 439.63 422.25 Td (s ) Tj ET Q q 0 0 0 rg BT 445.24 422.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 477.50 422.25 Td (control ) Tj ET Q q 0 0 0 rg BT 507.54 422.25 Td (over ) Tj ET Q q 0 0 0 rg BT 527.03 422.25 Td (financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.60 378.25 Td (/s/ KPMG LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (Minneapolis, Minnesota) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (March 15, 2016) 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 (34) 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 50.00 706.25 Td (The Board of Directors and Shareholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Qumu Corporation:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 664.25 Td (e ) Tj ET Q q 0 0 0 rg BT 64.42 664.25 Td (have ) Tj ET Q q 0 0 0 rg BT 84.63 664.25 Td (audited ) Tj ET Q q 0 0 0 rg BT 115.40 664.25 Td (Qumu ) Tj ET Q q 0 0 0 rg BT 141.74 664.25 Td (Corporation) Tj ET Q q 0 0 0 rg BT 192.85 664.25 Td (s ) Tj ET Q q 0 0 0 rg BT 198.08 664.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 229.96 664.25 Td (control ) Tj ET Q q 0 0 0 rg BT 259.62 664.25 Td (over ) Tj ET Q q 0 0 0 rg BT 278.73 664.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 315.05 664.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 353.05 664.25 Td (as ) Tj ET Q q 0 0 0 rg BT 362.72 664.25 Td (of ) Tj ET Q q 0 0 0 rg BT 372.39 664.25 Td (December ) Tj ET Q q 0 0 0 rg BT 414.81 664.25 Td (31, ) Tj ET Q q 0 0 0 rg BT 428.65 664.25 Td (2015, ) Tj ET Q q 0 0 0 rg BT 452.49 664.25 Td (based ) Tj ET Q q 0 0 0 rg BT 476.60 664.25 Td (on ) Tj ET Q q 0 0 0 rg BT 487.94 664.25 Td (criteria ) Tj ET Q q 0 0 0 rg BT 517.58 664.25 Td (established ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (in) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 57.78 652.25 Td ( ) Tj ET Q q 0 0 0 rg BT 61.63 652.25 Td (Internal ) Tj ET Q q 0 0 0 rg BT 97.70 652.25 Td (Contr) Tj ET Q q 0 0 0 rg BT 120.66 652.25 Td (ol ) Tj ET Q q 0 0 0 rg BT 132.29 652.25 Td (- ) Tj ET Q q 0 0 0 rg BT 139.47 652.25 Td (Integrated ) Tj ET Q q 0 0 0 rg BT 184.98 652.25 Td (Framework ) Tj ET Q q 0 0 0 rg BT 235.49 652.25 Td (\(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.15 652.25 Td ( ) Tj ET Q q 0 0 0 rg BT 266.00 652.25 Td (issued ) Tj ET Q q 0 0 0 rg BT 294.85 652.25 Td (by ) Tj ET Q q 0 0 0 rg BT 308.70 652.25 Td (the ) Tj ET Q q 0 0 0 rg BT 324.77 652.25 Td (Committee ) Tj ET Q q 0 0 0 rg BT 373.05 652.25 Td (of ) Tj ET Q q 0 0 0 rg BT 385.23 652.25 Td (Sponsoring ) Tj ET Q q 0 0 0 rg BT 434.65 652.25 Td (Or) Tj ET Q q 0 0 0 rg BT 445.02 652.25 Td (ganizations ) Tj ET Q q 0 0 0 rg BT 494.41 652.25 Td (of ) Tj ET Q q 0 0 0 rg BT 506.59 652.25 Td (the ) Tj ET Q q 0 0 0 rg BT 522.38 652.25 Td (T) Tj ET Q q 0 0 0 rg BT 528.13 652.25 Td (readway ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (Commission ) Tj ET Q q 0 0 0 rg BT 103.37 640.25 Td (\(COSO\). ) Tj ET Q q 0 0 0 rg BT 142.01 640.25 Td (Qumu ) Tj ET Q q 0 0 0 rg BT 169.82 640.25 Td (Corporation) Tj ET Q q 0 0 0 rg BT 220.92 640.25 Td (s ) Tj ET Q q 0 0 0 rg BT 227.62 640.25 Td (management ) Tj ET Q q 0 0 0 rg BT 281.51 640.25 Td (is ) Tj ET Q q 0 0 0 rg BT 290.99 640.25 Td (responsible ) Tj ET Q q 0 0 0 rg BT 339.34 640.25 Td (for ) Tj ET Q q 0 0 0 rg BT 353.80 640.25 Td (maintaining ) Tj ET Q q 0 0 0 rg BT 404.38 640.25 Td (ef) Tj ET Q q 0 0 0 rg BT 411.97 640.25 Td (fective ) Tj ET Q q 0 0 0 rg BT 441.97 640.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 475.32 640.25 Td (control ) Tj ET Q q 0 0 0 rg BT 506.45 640.25 Td (over ) Tj ET Q q 0 0 0 rg BT 527.02 640.25 Td (financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 89.65 628.25 Td (and ) Tj ET Q q 0 0 0 rg BT 107.09 628.25 Td (for ) Tj ET Q q 0 0 0 rg BT 121.75 628.25 Td (its ) Tj ET Q q 0 0 0 rg BT 134.19 628.25 Td (assessment ) Tj ET Q q 0 0 0 rg BT 181.63 628.25 Td (of ) Tj ET Q q 0 0 0 rg BT 192.96 628.25 Td (the ) Tj ET Q q 0 0 0 rg BT 208.17 628.25 Td (ef) Tj ET Q q 0 0 0 rg BT 215.76 628.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 263.18 628.25 Td (of ) Tj ET Q q 0 0 0 rg BT 274.51 628.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 308.05 628.25 Td (control ) Tj ET Q q 0 0 0 rg BT 339.38 628.25 Td (over ) Tj ET Q q 0 0 0 rg BT 360.14 628.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 398.12 628.25 Td (reporting, ) Tj ET Q q 0 0 0 rg BT 440.27 628.25 Td (included ) Tj ET Q q 0 0 0 rg BT 477.71 628.25 Td (in ) Tj ET Q q 0 0 0 rg BT 488.48 628.25 Td (the ) Tj ET Q q 0 0 0 rg BT 503.70 628.25 Td (accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (Management) Tj ET Q q 0 0 0 rg BT 104.98 616.25 Td (s ) Tj ET Q q 0 0 0 rg BT 110.91 616.25 Td (Report ) Tj ET Q q 0 0 0 rg BT 140.16 616.25 Td (on ) Tj ET Q q 0 0 0 rg BT 152.19 616.25 Td (Internal ) Tj ET Q q 0 0 0 rg BT 185.32 616.25 Td (Control ) Tj ET Q q 0 0 0 rg BT 217.92 616.25 Td (over ) Tj ET Q q 0 0 0 rg BT 237.72 616.25 Td (Financial ) Tj ET Q q 0 0 0 rg BT 276.97 616.25 Td (Reporting. ) Tj ET Q q 0 0 0 rg BT 321.50 616.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 339.08 616.25 Td (responsibility ) Tj ET Q q 0 0 0 rg BT 395.56 616.25 Td (is ) Tj ET Q q 0 0 0 rg BT 404.27 616.25 Td (to ) Tj ET Q q 0 0 0 rg BT 414.08 616.25 Td (express ) Tj ET Q q 0 0 0 rg BT 446.11 616.25 Td (an ) Tj ET Q q 0 0 0 rg BT 457.58 616.25 Td (opinion ) Tj ET Q q 0 0 0 rg BT 490.17 616.25 Td (on ) Tj ET Q q 0 0 0 rg BT 502.21 616.25 Td (the ) Tj ET Q q 0 0 0 rg BT 516.46 616.25 Td (Company) Tj ET Q q 0 0 0 rg BT 558.12 616.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 83.04 604.25 Td (control ) Tj ET Q q 0 0 0 rg BT 113.87 604.25 Td (over ) Tj ET Q q 0 0 0 rg BT 134.14 604.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 171.62 604.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 210.77 604.25 Td (based ) Tj ET Q q 0 0 0 rg BT 236.04 604.25 Td (on ) Tj ET Q q 0 0 0 rg BT 248.54 604.25 Td (our ) Tj ET Q q 0 0 0 rg BT 264.37 604.25 Td (audit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 584.25 Td (e ) Tj ET Q q 0 0 0 rg BT 65.95 584.25 Td (conducted ) Tj ET Q q 0 0 0 rg BT 109.92 584.25 Td (our ) Tj ET Q q 0 0 0 rg BT 126.12 584.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 148.99 584.25 Td (in ) Tj ET Q q 0 0 0 rg BT 159.64 584.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 207.48 584.25 Td (with ) Tj ET Q q 0 0 0 rg BT 228.13 584.25 Td (the ) Tj ET Q q 0 0 0 rg BT 243.22 584.25 Td (standards ) Tj ET Q q 0 0 0 rg BT 283.86 584.25 Td (of ) Tj ET Q q 0 0 0 rg BT 295.06 584.25 Td (the ) Tj ET Q q 0 0 0 rg BT 310.15 584.25 Td (Public ) Tj ET Q q 0 0 0 rg BT 338.58 584.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 379.71 584.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 429.24 584.25 Td (Oversight ) Tj ET Q q 0 0 0 rg BT 471.55 584.25 Td (Board ) Tj ET Q q 0 0 0 rg BT 498.86 584.25 Td (\(United ) Tj ET Q q 0 0 0 rg BT 532.28 584.25 Td (States\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (Those ) Tj ET Q q 0 0 0 rg BT 76.45 572.25 Td (standards ) Tj ET Q q 0 0 0 rg BT 116.24 572.25 Td (require ) Tj ET Q q 0 0 0 rg BT 146.57 572.25 Td (that ) Tj ET Q q 0 0 0 rg BT 163.58 572.25 Td (we ) Tj ET Q q 0 0 0 rg BT 177.26 572.25 Td (plan ) Tj ET Q q 0 0 0 rg BT 196.49 572.25 Td (and ) Tj ET Q q 0 0 0 rg BT 212.94 572.25 Td (perform ) Tj ET Q q 0 0 0 rg BT 247.17 572.25 Td (the ) Tj ET Q q 0 0 0 rg BT 261.40 572.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 283.41 572.25 Td (to ) Tj ET Q q 0 0 0 rg BT 293.20 572.25 Td (obtain ) Tj ET Q q 0 0 0 rg BT 320.21 572.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 364.98 572.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 405.87 572.25 Td (about ) Tj ET Q q 0 0 0 rg BT 430.10 572.25 Td (whether ) Tj ET Q q 0 0 0 rg BT 464.32 572.25 Td (ef) Tj ET Q q 0 0 0 rg BT 471.91 572.25 Td (fective ) Tj ET Q q 0 0 0 rg BT 501.13 572.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 533.68 572.25 Td (control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (over ) Tj ET Q q 0 0 0 rg BT 69.91 560.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 107.02 560.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 145.82 560.25 Td (was ) Tj ET Q q 0 0 0 rg BT 163.51 560.25 Td (maintained ) Tj ET Q q 0 0 0 rg BT 210.07 560.25 Td (in ) Tj ET Q q 0 0 0 rg BT 219.99 560.25 Td (all ) Tj ET Q q 0 0 0 rg BT 232.12 560.25 Td (material ) Tj ET Q q 0 0 0 rg BT 267.02 560.25 Td (respects. ) Tj ET Q q 0 0 0 rg BT 303.86 560.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 321.55 560.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 343.69 560.25 Td (included ) Tj ET Q q 0 0 0 rg BT 380.26 560.25 Td (obtaining ) Tj ET Q q 0 0 0 rg BT 420.17 560.25 Td (an ) Tj ET Q q 0 0 0 rg BT 431.74 560.25 Td (understanding ) Tj ET Q q 0 0 0 rg BT 490.54 560.25 Td (of ) Tj ET Q q 0 0 0 rg BT 501.00 560.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 533.68 560.25 Td (control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (over ) Tj ET Q q 0 0 0 rg BT 70.67 548.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 108.54 548.25 Td (reporting, ) Tj ET Q q 0 0 0 rg BT 150.60 548.25 Td (assessing ) Tj ET Q q 0 0 0 rg BT 190.71 548.25 Td (the ) Tj ET Q q 0 0 0 rg BT 205.83 548.25 Td (risk ) Tj ET Q q 0 0 0 rg BT 223.72 548.25 Td (that ) Tj ET Q q 0 0 0 rg BT 241.62 548.25 Td (a ) Tj ET Q q 0 0 0 rg BT 248.95 548.25 Td (material ) Tj ET Q q 0 0 0 rg BT 284.61 548.25 Td (weakness ) Tj ET Q q 0 0 0 rg BT 325.83 548.25 Td (exists, ) Tj ET Q q 0 0 0 rg BT 354.00 548.25 Td (and ) Tj ET Q q 0 0 0 rg BT 371.34 548.25 Td (testing ) Tj ET Q q 0 0 0 rg BT 400.90 548.25 Td (and ) Tj ET Q q 0 0 0 rg BT 418.23 548.25 Td (evaluating ) Tj ET Q q 0 0 0 rg BT 462.78 548.25 Td (the ) Tj ET Q q 0 0 0 rg BT 477.89 548.25 Td (design ) Tj ET Q q 0 0 0 rg BT 506.90 548.25 Td (and ) Tj ET Q q 0 0 0 rg BT 524.24 548.25 Td (operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 536.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 105.49 536.25 Td (of ) Tj ET Q q 0 0 0 rg BT 117.30 536.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 151.32 536.25 Td (control ) Tj ET Q q 0 0 0 rg BT 183.13 536.25 Td (based ) Tj ET Q q 0 0 0 rg BT 209.37 536.25 Td (on ) Tj ET Q q 0 0 0 rg BT 222.85 536.25 Td (the ) Tj ET Q q 0 0 0 rg BT 238.55 536.25 Td (assessed ) Tj ET Q q 0 0 0 rg BT 275.91 536.25 Td (risk. ) Tj ET Q q 0 0 0 rg BT 296.89 536.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 315.92 536.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 339.39 536.25 Td (also ) Tj ET Q q 0 0 0 rg BT 358.98 536.25 Td (included ) Tj ET Q q 0 0 0 rg BT 396.89 536.25 Td (performing ) Tj ET Q q 0 0 0 rg BT 445.36 536.25 Td (such ) Tj ET Q q 0 0 0 rg BT 467.17 536.25 Td (other ) Tj ET Q q 0 0 0 rg BT 491.19 536.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 538.54 536.25 Td (as ) Tj ET Q q 0 0 0 rg BT 550.35 536.25 Td (we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 524.25 Td (considered ) Tj ET Q q 0 0 0 rg BT 95.82 524.25 Td (necessary ) Tj ET Q q 0 0 0 rg BT 137.18 524.25 Td (in ) Tj ET Q q 0 0 0 rg BT 147.46 524.25 Td (the ) Tj ET Q q 0 0 0 rg BT 162.18 524.25 Td (circumstances. ) Tj ET Q q 0 0 0 rg BT 223.64 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 232.28 524.25 Td (e ) Tj ET Q q 0 0 0 rg BT 239.21 524.25 Td (believe ) Tj ET Q q 0 0 0 rg BT 270.59 524.25 Td (that ) Tj ET Q q 0 0 0 rg BT 288.08 524.25 Td (our ) Tj ET Q q 0 0 0 rg BT 303.91 524.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 326.41 524.25 Td (provides ) Tj ET Q q 0 0 0 rg BT 363.34 524.25 Td (a ) Tj ET Q q 0 0 0 rg BT 370.28 524.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 415.54 524.25 Td (basis ) Tj ET Q q 0 0 0 rg BT 438.04 524.25 Td (for ) Tj ET Q q 0 0 0 rg BT 452.20 524.25 Td (our ) Tj ET Q q 0 0 0 rg BT 468.03 524.25 Td (opinion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 504.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 504.25 Td ( ) Tj ET Q q 0 0 0 rg BT 58.30 504.25 Td (company) Tj ET Q q 0 0 0 rg BT 97.74 504.25 Td (s ) Tj ET Q q 0 0 0 rg BT 103.26 504.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 135.43 504.25 Td (control ) Tj ET Q q 0 0 0 rg BT 165.39 504.25 Td (over ) Tj ET Q q 0 0 0 rg BT 184.79 504.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 221.41 504.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 259.69 504.25 Td (is ) Tj ET Q q 0 0 0 rg BT 268.00 504.25 Td (a ) Tj ET Q q 0 0 0 rg BT 274.07 504.25 Td (process ) Tj ET Q q 0 0 0 rg BT 305.69 504.25 Td (designed ) Tj ET Q q 0 0 0 rg BT 342.87 504.25 Td (to ) Tj ET Q q 0 0 0 rg BT 352.28 504.25 Td (provide ) Tj ET Q q 0 0 0 rg BT 384.46 504.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 428.84 504.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 469.34 504.25 Td (regarding ) Tj ET Q q 0 0 0 rg BT 509.29 504.25 Td (the ) Tj ET Q q 0 0 0 rg BT 523.14 504.25 Td (reliability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 492.25 Td (of ) Tj ET Q q 0 0 0 rg BT 61.59 492.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 99.84 492.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 139.76 492.25 Td (and ) Tj ET Q q 0 0 0 rg BT 157.46 492.25 Td (the ) Tj ET Q q 0 0 0 rg BT 172.94 492.25 Td (preparation ) Tj ET Q q 0 0 0 rg BT 221.74 492.25 Td (of ) Tj ET Q q 0 0 0 rg BT 233.33 492.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 271.58 492.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 317.05 492.25 Td (for ) Tj ET Q q 0 0 0 rg BT 331.98 492.25 Td (external ) Tj ET Q q 0 0 0 rg BT 367.44 492.25 Td (purposes ) Tj ET Q q 0 0 0 rg BT 406.26 492.25 Td (in ) Tj ET Q q 0 0 0 rg BT 417.30 492.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 465.53 492.25 Td (with ) Tj ET Q q 0 0 0 rg BT 486.57 492.25 Td (generally ) Tj ET Q q 0 0 0 rg BT 527.04 492.25 Td (accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 480.25 Td (accounting ) Tj ET Q q 0 0 0 rg BT 95.75 480.25 Td (principles. ) Tj ET Q q 0 0 0 rg BT 139.15 480.25 Td (A) Tj ET Q q 0 0 0 rg BT 145.82 480.25 Td ( ) Tj ET Q q 0 0 0 rg BT 147.70 480.25 Td (company) Tj ET Q q 0 0 0 rg BT 187.13 480.25 Td (s ) Tj ET Q q 0 0 0 rg BT 192.91 480.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 225.33 480.25 Td (control ) Tj ET Q q 0 0 0 rg BT 255.53 480.25 Td (over ) Tj ET Q q 0 0 0 rg BT 275.18 480.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 312.04 480.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 350.58 480.25 Td (includes ) Tj ET Q q 0 0 0 rg BT 385.78 480.25 Td (those ) Tj ET Q q 0 0 0 rg BT 408.77 480.25 Td (policies ) Tj ET Q q 0 0 0 rg BT 441.75 480.25 Td (and ) Tj ET Q q 0 0 0 rg BT 458.07 480.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 503.82 480.25 Td (that ) Tj ET Q q 0 0 0 rg BT 520.69 480.25 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 534.23 480.25 Td (pertain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 468.25 Td (to ) Tj ET Q q 0 0 0 rg BT 60.00 468.25 Td (the ) Tj ET Q q 0 0 0 rg BT 74.44 468.25 Td (maintenance ) Tj ET Q q 0 0 0 rg BT 127.18 468.25 Td (of ) Tj ET Q q 0 0 0 rg BT 137.74 468.25 Td (records ) Tj ET Q q 0 0 0 rg BT 169.38 468.25 Td (that, ) Tj ET Q q 0 0 0 rg BT 189.10 468.25 Td (in ) Tj ET Q q 0 0 0 rg BT 199.10 468.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 244.07 468.25 Td (detail, ) Tj ET Q q 0 0 0 rg BT 271.01 468.25 Td (accurately ) Tj ET Q q 0 0 0 rg BT 314.31 468.25 Td (and ) Tj ET Q q 0 0 0 rg BT 330.97 468.25 Td (fairly ) Tj ET Q q 0 0 0 rg BT 354.84 468.25 Td (reflect ) Tj ET Q q 0 0 0 rg BT 382.59 468.25 Td (the ) Tj ET Q q 0 0 0 rg BT 397.03 468.25 Td (transactions ) Tj ET Q q 0 0 0 rg BT 447.02 468.25 Td (and ) Tj ET Q q 0 0 0 rg BT 463.68 468.25 Td (dispositions ) Tj ET Q q 0 0 0 rg BT 513.68 468.25 Td (of ) Tj ET Q q 0 0 0 rg BT 524.24 468.25 Td (the ) Tj ET Q q 0 0 0 rg BT 538.67 468.25 Td (assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 456.25 Td (of ) Tj ET Q q 0 0 0 rg BT 61.17 456.25 Td (the ) Tj ET Q q 0 0 0 rg BT 76.23 456.25 Td (company; ) Tj ET Q q 0 0 0 rg BT 118.51 456.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 133.01 456.25 Td (provide ) Tj ET Q q 0 0 0 rg BT 166.40 456.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 212.00 456.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 253.71 456.25 Td (that ) Tj ET Q q 0 0 0 rg BT 271.55 456.25 Td (transactions ) Tj ET Q q 0 0 0 rg BT 322.16 456.25 Td (are ) Tj ET Q q 0 0 0 rg BT 337.21 456.25 Td (recorded ) Tj ET Q q 0 0 0 rg BT 375.03 456.25 Td (as ) Tj ET Q q 0 0 0 rg BT 386.20 456.25 Td (necessary ) Tj ET Q q 0 0 0 rg BT 427.91 456.25 Td (to ) Tj ET Q q 0 0 0 rg BT 438.53 456.25 Td (permit ) Tj ET Q q 0 0 0 rg BT 467.48 456.25 Td (preparation ) Tj ET Q q 0 0 0 rg BT 515.85 456.25 Td (of ) Tj ET Q q 0 0 0 rg BT 527.03 456.25 Td (financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 444.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 95.08 444.25 Td (in ) Tj ET Q q 0 0 0 rg BT 105.72 444.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 153.54 444.25 Td (with ) Tj ET Q q 0 0 0 rg BT 174.18 444.25 Td (generally ) Tj ET Q q 0 0 0 rg BT 214.25 444.25 Td (accepted ) Tj ET Q q 0 0 0 rg BT 252.08 444.25 Td (accounting ) Tj ET Q q 0 0 0 rg BT 298.82 444.25 Td (principles, ) Tj ET Q q 0 0 0 rg BT 343.62 444.25 Td (and ) Tj ET Q q 0 0 0 rg BT 360.92 444.25 Td (that ) Tj ET Q q 0 0 0 rg BT 378.78 444.25 Td (receipts ) Tj ET Q q 0 0 0 rg BT 412.74 444.25 Td (and ) Tj ET Q q 0 0 0 rg BT 430.04 444.25 Td (expenditures ) Tj ET Q q 0 0 0 rg BT 484.00 444.25 Td (of ) Tj ET Q q 0 0 0 rg BT 495.19 444.25 Td (the ) Tj ET Q q 0 0 0 rg BT 510.27 444.25 Td (company ) Tj ET Q q 0 0 0 rg BT 549.79 444.25 Td (are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 432.25 Td (being ) Tj ET Q q 0 0 0 rg BT 75.45 432.25 Td (made ) Tj ET Q q 0 0 0 rg BT 100.34 432.25 Td (only ) Tj ET Q q 0 0 0 rg BT 121.35 432.25 Td (in ) Tj ET Q q 0 0 0 rg BT 132.36 432.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 180.56 432.25 Td (with ) Tj ET Q q 0 0 0 rg BT 201.57 432.25 Td (authorizations ) Tj ET Q q 0 0 0 rg BT 261.46 432.25 Td (of ) Tj ET Q q 0 0 0 rg BT 273.02 432.25 Td (management ) Tj ET Q q 0 0 0 rg BT 327.34 432.25 Td (and ) Tj ET Q q 0 0 0 rg BT 345.01 432.25 Td (directors ) Tj ET Q q 0 0 0 rg BT 383.23 432.25 Td (of ) Tj ET Q q 0 0 0 rg BT 394.80 432.25 Td (the ) Tj ET Q q 0 0 0 rg BT 410.25 432.25 Td (company; ) Tj ET Q q 0 0 0 rg BT 452.92 432.25 Td (and ) Tj ET Q q 0 0 0 rg BT 470.59 432.25 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 485.48 432.25 Td (provide ) Tj ET Q q 0 0 0 rg BT 519.26 432.25 Td (reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 420.25 Td (assurance ) Tj ET Q q 0 0 0 rg BT 91.64 420.25 Td (regarding ) Tj ET Q q 0 0 0 rg BT 132.73 420.25 Td (prevention ) Tj ET Q q 0 0 0 rg BT 178.26 420.25 Td (or ) Tj ET Q q 0 0 0 rg BT 189.37 420.25 Td (timely ) Tj ET Q q 0 0 0 rg BT 217.69 420.25 Td (detection ) Tj ET Q q 0 0 0 rg BT 257.11 420.25 Td (of ) Tj ET Q q 0 0 0 rg BT 268.22 420.25 Td (unauthorized ) Tj ET Q q 0 0 0 rg BT 323.19 420.25 Td (acquisition, ) Tj ET Q q 0 0 0 rg BT 372.34 420.25 Td (use, ) Tj ET Q q 0 0 0 rg BT 390.95 420.25 Td (or ) Tj ET Q q 0 0 0 rg BT 402.05 420.25 Td (disposition ) Tj ET Q q 0 0 0 rg BT 448.72 420.25 Td (of ) Tj ET Q q 0 0 0 rg BT 459.82 420.25 Td (the ) Tj ET Q q 0 0 0 rg BT 474.81 420.25 Td (company) Tj ET Q q 0 0 0 rg BT 514.24 420.25 Td (s ) Tj ET Q q 0 0 0 rg BT 520.91 420.25 Td (assets ) Tj ET Q q 0 0 0 rg BT 547.01 420.25 Td (that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 408.25 Td (could ) Tj ET Q q 0 0 0 rg BT 74.72 408.25 Td (have ) Tj ET Q q 0 0 0 rg BT 96.09 408.25 Td (a ) Tj ET Q q 0 0 0 rg BT 103.03 408.25 Td (material ) Tj ET Q q 0 0 0 rg BT 138.29 408.25 Td (ef) Tj ET Q q 0 0 0 rg BT 145.88 408.25 Td (fect ) Tj ET Q q 0 0 0 rg BT 163.36 408.25 Td (on ) Tj ET Q q 0 0 0 rg BT 175.86 408.25 Td (the ) Tj ET Q q 0 0 0 rg BT 190.58 408.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 228.06 408.25 Td (statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (Because ) Tj ET Q q 0 0 0 rg BT 87.24 388.25 Td (of ) Tj ET Q q 0 0 0 rg BT 99.49 388.25 Td (its ) Tj ET Q q 0 0 0 rg BT 112.85 388.25 Td (inherent ) Tj ET Q q 0 0 0 rg BT 149.54 388.25 Td (limitations, ) Tj ET Q q 0 0 0 rg BT 198.74 388.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 233.20 388.25 Td (control ) Tj ET Q q 0 0 0 rg BT 265.45 388.25 Td (over ) Tj ET Q q 0 0 0 rg BT 287.13 388.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 326.04 388.25 Td (reporting ) Tj ET Q q 0 0 0 rg BT 366.61 388.25 Td (may ) Tj ET Q q 0 0 0 rg BT 387.75 388.25 Td (not ) Tj ET Q q 0 0 0 rg BT 404.45 388.25 Td (prevent ) Tj ET Q q 0 0 0 rg BT 438.35 388.25 Td (or ) Tj ET Q q 0 0 0 rg BT 450.60 388.25 Td (detect ) Tj ET Q q 0 0 0 rg BT 478.40 388.25 Td (misstatements. ) Tj ET Q q 0 0 0 rg BT 540.61 388.25 Td (Also, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.25 Td (projections ) Tj ET Q q 0 0 0 rg BT 96.31 376.25 Td (of ) Tj ET Q q 0 0 0 rg BT 106.52 376.25 Td (any ) Tj ET Q q 0 0 0 rg BT 122.84 376.25 Td (evaluation ) Tj ET Q q 0 0 0 rg BT 166.37 376.25 Td (of ) Tj ET Q q 0 0 0 rg BT 176.58 376.25 Td (ef) Tj ET Q q 0 0 0 rg BT 184.17 376.25 Td (fectiveness ) Tj ET Q q 0 0 0 rg BT 230.47 376.25 Td (to ) Tj ET Q q 0 0 0 rg BT 240.13 376.25 Td (future ) Tj ET Q q 0 0 0 rg BT 265.89 376.25 Td (periods ) Tj ET Q q 0 0 0 rg BT 297.21 376.25 Td (are ) Tj ET Q q 0 0 0 rg BT 311.29 376.25 Td (subject ) Tj ET Q q 0 0 0 rg BT 341.50 376.25 Td (to ) Tj ET Q q 0 0 0 rg BT 351.16 376.25 Td (the ) Tj ET Q q 0 0 0 rg BT 365.25 376.25 Td (risk ) Tj ET Q q 0 0 0 rg BT 382.13 376.25 Td (that ) Tj ET Q q 0 0 0 rg BT 399.01 376.25 Td (controls ) Tj ET Q q 0 0 0 rg BT 433.11 376.25 Td (may ) Tj ET Q q 0 0 0 rg BT 452.20 376.25 Td (become ) Tj ET Q q 0 0 0 rg BT 485.18 376.25 Td (inadequate ) Tj ET Q q 0 0 0 rg BT 530.37 376.25 Td (because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.83 364.25 Td (changes ) Tj ET Q q 0 0 0 rg BT 95.54 364.25 Td (in ) Tj ET Q q 0 0 0 rg BT 105.82 364.25 Td (conditions, ) Tj ET Q q 0 0 0 rg BT 152.48 364.25 Td (or ) Tj ET Q q 0 0 0 rg BT 163.31 364.25 Td (that ) Tj ET Q q 0 0 0 rg BT 180.81 364.25 Td (the ) Tj ET Q q 0 0 0 rg BT 195.52 364.25 Td (degree ) Tj ET Q q 0 0 0 rg BT 224.67 364.25 Td (of ) Tj ET Q q 0 0 0 rg BT 235.50 364.25 Td (compliance ) Tj ET Q q 0 0 0 rg BT 284.09 364.25 Td (with ) Tj ET Q q 0 0 0 rg BT 304.37 364.25 Td (the ) Tj ET Q q 0 0 0 rg BT 319.08 364.25 Td (policies ) Tj ET Q q 0 0 0 rg BT 352.69 364.25 Td (or ) Tj ET Q q 0 0 0 rg BT 363.52 364.25 Td (procedures ) Tj ET Q q 0 0 0 rg BT 409.88 364.25 Td (may ) Tj ET Q q 0 0 0 rg BT 429.60 364.25 Td (deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 344.25 Td ( ) Tj ET Q q 0 0 0 rg BT 59.12 344.25 Td (material ) Tj ET Q q 0 0 0 rg BT 94.32 344.25 Td (weakness ) Tj ET Q q 0 0 0 rg BT 135.08 344.25 Td (is ) Tj ET Q q 0 0 0 rg BT 144.20 344.25 Td (a ) Tj ET Q q 0 0 0 rg BT 151.08 344.25 Td (deficiency) Tj ET Q q 0 0 0 rg BT 192.08 344.25 Td (, ) Tj ET Q q 0 0 0 rg BT 197.02 344.25 Td (or ) Tj ET Q q 0 0 0 rg BT 207.80 344.25 Td (a ) Tj ET Q q 0 0 0 rg BT 214.68 344.25 Td (combination ) Tj ET Q q 0 0 0 rg BT 267.12 344.25 Td (of ) Tj ET Q q 0 0 0 rg BT 277.89 344.25 Td (deficiencies, ) Tj ET Q q 0 0 0 rg BT 330.58 344.25 Td (in ) Tj ET Q q 0 0 0 rg BT 340.81 344.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 373.80 344.25 Td (control ) Tj ET Q q 0 0 0 rg BT 404.57 344.25 Td (over ) Tj ET Q q 0 0 0 rg BT 424.78 344.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 462.21 344.25 Td (reporting, ) Tj ET Q q 0 0 0 rg BT 503.81 344.25 Td (such ) Tj ET Q q 0 0 0 rg BT 524.58 344.25 Td (that ) Tj ET Q q 0 0 0 rg BT 542.02 344.25 Td (there ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (is ) Tj ET Q q 0 0 0 rg BT 58.22 332.25 Td (a ) Tj ET Q q 0 0 0 rg BT 64.20 332.25 Td (reasonable ) Tj ET Q q 0 0 0 rg BT 108.50 332.25 Td (possibility ) Tj ET Q q 0 0 0 rg BT 151.72 332.25 Td (that ) Tj ET Q q 0 0 0 rg BT 168.27 332.25 Td (a ) Tj ET Q q 0 0 0 rg BT 174.25 332.25 Td (material ) Tj ET Q q 0 0 0 rg BT 208.56 332.25 Td (misstatement ) Tj ET Q q 0 0 0 rg BT 262.87 332.25 Td (of ) Tj ET Q q 0 0 0 rg BT 272.75 332.25 Td (the ) Tj ET Q q 0 0 0 rg BT 286.51 332.25 Td (company) Tj ET Q q 0 0 0 rg BT 325.95 332.25 Td (s ) Tj ET Q q 0 0 0 rg BT 331.39 332.25 Td (annual ) Tj ET Q q 0 0 0 rg BT 359.59 332.25 Td (or ) Tj ET Q q 0 0 0 rg BT 369.46 332.25 Td (interim ) Tj ET Q q 0 0 0 rg BT 399.89 332.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 436.42 332.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 480.18 332.25 Td (will ) Tj ET Q q 0 0 0 rg BT 497.28 332.25 Td (not ) Tj ET Q q 0 0 0 rg BT 511.61 332.25 Td (be ) Tj ET Q q 0 0 0 rg BT 522.59 332.25 Td (prevented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 320.25 Td (or ) Tj ET Q q 0 0 0 rg BT 60.68 320.25 Td (detected ) Tj ET Q q 0 0 0 rg BT 96.34 320.25 Td (on ) Tj ET Q q 0 0 0 rg BT 108.69 320.25 Td (a ) Tj ET Q q 0 0 0 rg BT 115.48 320.25 Td (timely ) Tj ET Q q 0 0 0 rg BT 143.39 320.25 Td (basis. ) Tj ET Q q 0 0 0 rg BT 168.24 320.25 Td (Material ) Tj ET Q q 0 0 0 rg BT 204.46 320.25 Td (weaknesses ) Tj ET Q q 0 0 0 rg BT 253.46 320.25 Td (were ) Tj ET Q q 0 0 0 rg BT 275.24 320.25 Td (identified ) Tj ET Q q 0 0 0 rg BT 315.91 320.25 Td (related ) Tj ET Q q 0 0 0 rg BT 345.47 320.25 Td (to ) Tj ET Q q 0 0 0 rg BT 355.60 320.25 Td (the ) Tj ET Q q 0 0 0 rg BT 370.16 320.25 Td (adequacy ) Tj ET Q q 0 0 0 rg BT 410.27 320.25 Td (of ) Tj ET Q q 0 0 0 rg BT 420.95 320.25 Td (the ) Tj ET Q q 0 0 0 rg BT 435.52 320.25 Td (Company) Tj ET Q q 0 0 0 rg BT 477.18 320.25 Td (s ) Tj ET Q q 0 0 0 rg BT 483.43 320.25 Td (risk ) Tj ET Q q 0 0 0 rg BT 500.78 320.25 Td (assessment ) Tj ET Q q 0 0 0 rg BT 547.57 320.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.25 Td (monitoring ) Tj ET Q q 0 0 0 rg BT 96.89 308.25 Td (processes ) Tj ET Q q 0 0 0 rg BT 137.65 308.25 Td (as ) Tj ET Q q 0 0 0 rg BT 148.43 308.25 Td (well ) Tj ET Q q 0 0 0 rg BT 168.09 308.25 Td (as ) Tj ET Q q 0 0 0 rg BT 178.87 308.25 Td (control ) Tj ET Q q 0 0 0 rg BT 209.64 308.25 Td (activities ) Tj ET Q q 0 0 0 rg BT 248.18 308.25 Td (specific ) Tj ET Q q 0 0 0 rg BT 281.72 308.25 Td (to ) Tj ET Q q 0 0 0 rg BT 291.94 308.25 Td (manual ) Tj ET Q q 0 0 0 rg BT 323.82 308.25 Td (journal ) Tj ET Q q 0 0 0 rg BT 354.59 308.25 Td (entries, ) Tj ET Q q 0 0 0 rg BT 386.19 308.25 Td (account ) Tj ET Q q 0 0 0 rg BT 419.73 308.25 Td (reconciliations ) Tj ET Q q 0 0 0 rg BT 481.05 308.25 Td (and ) Tj ET Q q 0 0 0 rg BT 497.93 308.25 Td (revenue ) Tj ET Q q 0 0 0 rg BT 532.02 308.25 Td (relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 296.25 Td (to ) Tj ET Q q 0 0 0 rg BT 60.93 296.25 Td (its ) Tj ET Q q 0 0 0 rg BT 73.54 296.25 Td (internal ) Tj ET Q q 0 0 0 rg BT 107.23 296.25 Td (control ) Tj ET Q q 0 0 0 rg BT 138.71 296.25 Td (over ) Tj ET Q q 0 0 0 rg BT 159.63 296.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 197.77 296.25 Td (reporting. ) Tj ET Q q 0 0 0 rg BT 239.85 296.25 Td (These ) Tj ET Q q 0 0 0 rg BT 266.88 296.25 Td (material ) Tj ET Q q 0 0 0 rg BT 302.79 296.25 Td (weaknesses ) Tj ET Q q 0 0 0 rg BT 352.60 296.25 Td (have ) Tj ET Q q 0 0 0 rg BT 374.63 296.25 Td (been ) Tj ET Q q 0 0 0 rg BT 396.66 296.25 Td (identified ) Tj ET Q q 0 0 0 rg BT 438.14 296.25 Td (and ) Tj ET Q q 0 0 0 rg BT 455.73 296.25 Td (included ) Tj ET Q q 0 0 0 rg BT 493.32 296.25 Td (in ) Tj ET Q q 0 0 0 rg BT 504.25 296.25 Td (management) Tj ET Q q 0 0 0 rg BT 558.12 296.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 284.25 Td (assessment. ) Tj ET Q q 0 0 0 rg BT 99.08 284.25 Td (W) Tj ET Q q 0 0 0 rg BT 107.71 284.25 Td (e ) Tj ET Q q 0 0 0 rg BT 114.46 284.25 Td (also ) Tj ET Q q 0 0 0 rg BT 132.87 284.25 Td (have ) Tj ET Q q 0 0 0 rg BT 154.05 284.25 Td (audited, ) Tj ET Q q 0 0 0 rg BT 188.29 284.25 Td (in ) Tj ET Q q 0 0 0 rg BT 198.37 284.25 Td (accordance ) Tj ET Q q 0 0 0 rg BT 245.64 284.25 Td (with ) Tj ET Q q 0 0 0 rg BT 265.72 284.25 Td (the ) Tj ET Q q 0 0 0 rg BT 280.24 284.25 Td (standards ) Tj ET Q q 0 0 0 rg BT 320.32 284.25 Td (of ) Tj ET Q q 0 0 0 rg BT 330.95 284.25 Td (the ) Tj ET Q q 0 0 0 rg BT 345.47 284.25 Td (Public ) Tj ET Q q 0 0 0 rg BT 373.33 284.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 414.02 284.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 462.98 284.25 Td (Oversight ) Tj ET Q q 0 0 0 rg BT 504.72 284.25 Td (Board ) Tj ET Q q 0 0 0 rg BT 531.46 284.25 Td (\(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (States\), ) Tj ET Q q 0 0 0 rg BT 81.83 272.25 Td (the ) Tj ET Q q 0 0 0 rg BT 96.17 272.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 148.83 272.25 Td (balance ) Tj ET Q q 0 0 0 rg BT 181.47 272.25 Td (sheets ) Tj ET Q q 0 0 0 rg BT 208.03 272.25 Td (of ) Tj ET Q q 0 0 0 rg BT 218.48 272.25 Td (Qumu ) Tj ET Q q 0 0 0 rg BT 245.59 272.25 Td (Corporation ) Tj ET Q q 0 0 0 rg BT 296.04 272.25 Td (and ) Tj ET Q q 0 0 0 rg BT 312.59 272.25 Td (subsidiaries ) Tj ET Q q 0 0 0 rg BT 361.92 272.25 Td (as ) Tj ET Q q 0 0 0 rg BT 372.37 272.25 Td (of ) Tj ET Q q 0 0 0 rg BT 382.82 272.25 Td (December ) Tj ET Q q 0 0 0 rg BT 426.02 272.25 Td (31, ) Tj ET Q q 0 0 0 rg BT 440.63 272.25 Td (2015 ) Tj ET Q q 0 0 0 rg BT 462.75 272.25 Td (and ) Tj ET Q q 0 0 0 rg BT 479.31 272.25 Td (2014, ) Tj ET Q q 0 0 0 rg BT 503.92 272.25 Td (and ) Tj ET Q q 0 0 0 rg BT 520.48 272.25 Td (the ) Tj ET Q q 0 0 0 rg BT 534.81 272.25 Td (related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 102.79 260.25 Td (statements ) Tj ET Q q 0 0 0 rg BT 147.26 260.25 Td (of ) Tj ET Q q 0 0 0 rg BT 157.84 260.25 Td (operations, ) Tj ET Q q 0 0 0 rg BT 204.24 260.25 Td (comprehensive ) Tj ET Q q 0 0 0 rg BT 267.03 260.25 Td (income ) Tj ET Q q 0 0 0 rg BT 298.71 260.25 Td (\(loss\), ) Tj ET Q q 0 0 0 rg BT 325.68 260.25 Td (stockholders) Tj ET Q q 0 0 0 rg BT 378.82 260.25 Td ( ) Tj ET Q q 0 0 0 rg BT 381.07 260.25 Td (equity) Tj ET Q q 0 0 0 rg BT 405.42 260.25 Td (, ) Tj ET Q q 0 0 0 rg BT 410.17 260.25 Td (and ) Tj ET Q q 0 0 0 rg BT 426.86 260.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 446.88 260.25 Td (flows ) Tj ET Q q 0 0 0 rg BT 471.35 260.25 Td (for ) Tj ET Q q 0 0 0 rg BT 485.26 260.25 Td (each ) Tj ET Q q 0 0 0 rg BT 505.83 260.25 Td (of ) Tj ET Q q 0 0 0 rg BT 516.41 260.25 Td (the ) Tj ET Q q 0 0 0 rg BT 530.87 260.25 Td (years ) Tj ET Q q 0 0 0 rg BT 554.22 260.25 Td (in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 248.25 Td (the ) Tj ET Q q 0 0 0 rg BT 64.94 248.25 Td (three-year ) Tj ET Q q 0 0 0 rg BT 108.18 248.25 Td (period ) Tj ET Q q 0 0 0 rg BT 136.45 248.25 Td (ended ) Tj ET Q q 0 0 0 rg BT 163.04 248.25 Td (December ) Tj ET Q q 0 0 0 rg BT 206.85 248.25 Td (31, ) Tj ET Q q 0 0 0 rg BT 222.07 248.25 Td (2015. ) Tj ET Q q 0 0 0 rg BT 247.09 248.25 Td (These ) Tj ET Q q 0 0 0 rg BT 273.69 248.25 Td (material ) Tj ET Q q 0 0 0 rg BT 309.16 248.25 Td (weaknesses ) Tj ET Q q 0 0 0 rg BT 358.53 248.25 Td (were ) Tj ET Q q 0 0 0 rg BT 380.68 248.25 Td (considered ) Tj ET Q q 0 0 0 rg BT 426.72 248.25 Td (in ) Tj ET Q q 0 0 0 rg BT 437.22 248.25 Td (determining ) Tj ET Q q 0 0 0 rg BT 488.26 248.25 Td (the ) Tj ET Q q 0 0 0 rg BT 503.19 248.25 Td (nature, ) Tj ET Q q 0 0 0 rg BT 533.40 248.25 Td (timing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.25 Td (and ) Tj ET Q q 0 0 0 rg BT 66.35 236.25 Td (extent ) Tj ET Q q 0 0 0 rg BT 92.70 236.25 Td (of ) Tj ET Q q 0 0 0 rg BT 102.94 236.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 124.84 236.25 Td (tests ) Tj ET Q q 0 0 0 rg BT 144.53 236.25 Td (applied ) Tj ET Q q 0 0 0 rg BT 175.88 236.25 Td (in ) Tj ET Q q 0 0 0 rg BT 185.57 236.25 Td (our ) Tj ET Q q 0 0 0 rg BT 200.81 236.25 Td (audit ) Tj ET Q q 0 0 0 rg BT 222.72 236.25 Td (of ) Tj ET Q q 0 0 0 rg BT 232.96 236.25 Td (the ) Tj ET Q q 0 0 0 rg BT 247.09 236.25 Td (2015 ) Tj ET Q q 0 0 0 rg BT 269.00 236.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 321.45 236.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 358.34 236.25 Td (statements, ) Tj ET Q q 0 0 0 rg BT 404.97 236.25 Td (and ) Tj ET Q q 0 0 0 rg BT 421.32 236.25 Td (this ) Tj ET Q q 0 0 0 rg BT 437.68 236.25 Td (report ) Tj ET Q q 0 0 0 rg BT 463.47 236.25 Td (does ) Tj ET Q q 0 0 0 rg BT 483.71 236.25 Td (not ) Tj ET Q q 0 0 0 rg BT 498.40 236.25 Td (af) Tj ET Q q 0 0 0 rg BT 505.99 236.25 Td (fect ) Tj ET Q q 0 0 0 rg BT 522.88 236.25 Td (our ) Tj ET Q q 0 0 0 rg BT 538.13 236.25 Td (report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.25 Td (dated ) Tj ET Q q 0 0 0 rg BT 74.16 224.25 Td (March ) Tj ET Q q 0 0 0 rg BT 102.75 224.25 Td (15, ) Tj ET Q q 0 0 0 rg BT 117.75 224.25 Td (2016, ) Tj ET Q q 0 0 0 rg BT 142.75 224.25 Td (which ) Tj ET Q q 0 0 0 rg BT 169.69 224.25 Td (expressed ) Tj ET Q q 0 0 0 rg BT 211.62 224.25 Td (an ) Tj ET Q q 0 0 0 rg BT 223.56 224.25 Td (unqualified ) Tj ET Q q 0 0 0 rg BT 271.60 224.25 Td (opinion ) Tj ET Q q 0 0 0 rg BT 304.66 224.25 Td (on ) Tj ET Q q 0 0 0 rg BT 317.16 224.25 Td (those ) Tj ET Q q 0 0 0 rg BT 340.77 224.25 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 393.81 224.25 Td (financial ) Tj ET Q q 0 0 0 rg BT 431.29 224.25 Td (statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.25 Td (In ) Tj ET Q q 0 0 0 rg BT 60.19 204.25 Td (our ) Tj ET Q q 0 0 0 rg BT 75.37 204.25 Td (opinion, ) Tj ET Q q 0 0 0 rg BT 110.28 204.25 Td (because ) Tj ET Q q 0 0 0 rg BT 143.78 204.25 Td (of ) Tj ET Q q 0 0 0 rg BT 153.97 204.25 Td (the ) Tj ET Q q 0 0 0 rg BT 168.04 204.25 Td (ef) Tj ET Q q 0 0 0 rg BT 175.63 204.25 Td (fect ) Tj ET Q q 0 0 0 rg BT 192.47 204.25 Td (of ) Tj ET Q q 0 0 0 rg BT 202.66 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469.75 434.21 Td (3,864) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 434.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 434.21 Td (3,396) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 421.21 Td (Accrued compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.75 421.21 Td (4,014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 421.21 Td (6,222) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 408.21 Td (Deferred revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.25 408.21 Td (10,413) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 408.21 Td (9,015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 395.21 Td (Deferred income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 395.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 395.21 Td (110) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 382.21 Td (Income taxes payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 382.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 382.21 Td (53) Tj ET Q BT /F1 9.00 Tf ET q 0 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558.00 316.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 303.21 Td (Deferred revenue, non-current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.75 303.21 Td (2,215) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 303.21 Td (1,047) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 290.21 Td (Income taxes payable, non-current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.50 290.21 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.50 290.21 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 277.21 Td (Deferred tax liability, non-current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.50 277.21 Td (575) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 277.21 Td (1,071) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 264.21 Td (Deferred rent, non-current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.50 264.21 Td (998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 264.21 Td (401) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 251.21 Td (Financing obligations, non-current) Tj ET Q BT /F1 9.00 Tf 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0.9333333333333333 1 rg /GS0 gs 436.50 504.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 504.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 504.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 478.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 478.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 478.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 478.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 478.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 478.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 452.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 452.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 452.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 452.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 452.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 452.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 426.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 426.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 426.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 426.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 426.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 426.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 400.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 400.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 400.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 400.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 400.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 400.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 374.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 374.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 374.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 374.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 374.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 374.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 348.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 348.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 348.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 348.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 348.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 348.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 322.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 322.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 322.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 322.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 322.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 322.95 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 697.95 m 432.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 697.95 m 436.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 697.95 m 497.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 697.95 m 501.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 697.95 m 562.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 686.95 m 432.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 686.95 m 497.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 686.95 m 562.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 647.95 m 432.5 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 634.95 m 432.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 647.95 m 497.5 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 634.95 m 497.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 647.95 m 562.5 647.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 634.95 m 562.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 595.95 m 432.5 595.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 582.95 m 432.5 582.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 595.95 m 497.5 595.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 582.95 m 497.5 582.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 595.95 m 562.5 595.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 582.95 m 562.5 582.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 569.95 m 432.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 569.95 m 497.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 569.95 m 562.5 569.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 504.95 m 432.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 504.95 m 497.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 504.95 m 562.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 504.95 m 432.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 491.95 m 432.5 491.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 504.95 m 497.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 491.95 m 497.5 491.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 504.95 m 562.5 504.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 491.95 m 562.5 491.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 478.95 m 432.5 478.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 478.95 m 497.5 478.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 478.95 m 562.5 478.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 439.95 m 432.5 439.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 439.95 m 497.5 439.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 439.95 m 562.5 439.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 426.95 m 432.5 426.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 426.95 m 497.5 426.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 426.95 m 562.5 426.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 400.95 m 432.5 400.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 400.95 m 497.5 400.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 400.95 m 562.5 400.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 374.95 m 432.5 374.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 374.95 m 497.5 374.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 374.95 m 562.5 374.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 361.95 m 432.5 361.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 361.95 m 497.5 361.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 361.95 m 562.5 361.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 361.95 m 432.5 361.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 361.95 m 497.5 361.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 361.95 m 562.5 361.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 322.95 m 432.5 322.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 309.95 m 432.5 309.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 322.95 m 497.5 322.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 309.95 m 497.5 309.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 322.95 m 562.5 322.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 309.95 m 562.5 309.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 701.03 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 690.03 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 690.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 690.03 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 678.21 Td (Revenues:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 678.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 678.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 678.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 665.21 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 665.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 665.21 Td (9,456) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 665.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 665.21 Td (11,363) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 665.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 665.21 Td (7,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 652.21 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 652.21 Td (24,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 652.21 Td (15,158) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 652.21 Td (10,467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 639.21 Td (Total revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 639.21 Td (34,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 639.21 Td (26,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 639.21 Td (17,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 626.21 Td (Cost of revenues:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 626.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 626.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 626.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 613.21 Td (Software licenses and appliances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 613.21 Td (2,949) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 613.21 Td (3,816) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 613.21 Td (2,921) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 600.21 Td (Service) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 600.21 Td (14,550) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 600.21 Td (10,656) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 600.21 Td (4,413) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 587.21 Td (Total cost of revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 587.21 Td (17,499) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 587.21 Td (14,472) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 587.21 Td (7,334) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 574.21 Td (Gross profit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 574.21 Td (16,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 574.21 Td (12,049) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 574.21 Td (10,402) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 561.21 Td (Operating expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 561.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 561.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 561.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 548.21 Td (Research and development) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 548.21 Td (10,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 548.21 Td (9,506) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 548.21 Td (8,745) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 535.21 Td (Sales and marketing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 535.21 Td (17,994) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 535.21 Td (17,991) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 535.21 Td (10,303) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 522.21 Td (General and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 522.21 Td (16,878) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 522.21 Td (12,626) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 522.21 Td (10,332) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 509.21 Td (Amortization of purchased intangibles) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 509.21 Td (798) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 509.21 Td (652) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 509.21 Td (627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 496.21 Td (Total operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 496.21 Td (46,359) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 496.21 Td (40,775) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 496.21 Td (30,007) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 483.21 Td (Operating loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 483.21 Td (\(29,404) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 483.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 483.21 Td (\(28,726) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 483.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 483.21 Td (\(19,605) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 483.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 470.21 Td (Other income \(expense\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 470.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 470.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 470.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 457.21 Td (Interest, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 457.21 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 457.21 Td (60) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 457.21 Td (28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 444.21 Td (Other, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 444.21 Td (\(131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 444.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 444.21 Td (\(241) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 444.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 444.21 Td (\(40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 444.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 431.21 Td (Total other income \(expense\), net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 431.21 Td (\(124) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 431.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 431.21 Td (\(181) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 431.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 431.21 Td (\(12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 431.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 418.21 Td (Loss before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 418.21 Td (\(29,528) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 418.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 418.21 Td (\(28,907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 418.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 418.21 Td (\(19,617) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 418.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 405.21 Td (Income tax benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 405.21 Td (\(839) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 405.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 405.21 Td (\(6,564) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 405.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 405.21 Td (\(3,396) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 405.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 392.21 Td (Net loss from continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 392.21 Td (\(28,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 392.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 392.21 Td (\(22,343) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 392.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 392.21 Td (\(16,221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 392.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 379.21 Td (Net income \(loss\) from discontinued operations, net of tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 379.21 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 379.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 379.21 Td (13,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 379.21 Td (6,527) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 366.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 366.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 366.21 Td (\(28,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 366.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 366.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 366.21 Td (\(8,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 366.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 366.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 366.21 Td (\(9,694) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 366.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 353.21 Td (Net income \(loss\) per basic and diluted share:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 340.21 Td (Net loss from continuing operations per share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 340.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.25 340.21 Td (\(3.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 340.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 340.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.25 340.21 Td (\(2.53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 340.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 340.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 340.21 Td (\(1.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 340.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 327.21 Td (Net income from discontinued operations per share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 327.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 327.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 327.21 Td (1.57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 327.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.25 327.21 Td (0.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 314.21 Td (Net loss per share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 314.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.25 314.21 Td (\(3.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 314.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 314.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.25 314.21 Td (\(0.96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 314.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 314.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 314.21 Td (\(1.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 314.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 301.21 Td (Basic and diluted weighted average shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 301.21 Td (9,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 301.21 Td (8,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 301.21 Td (8,691) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.45 Td (See accompanying notes to consolidated financial statements.) 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 (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.85 742.25 Td (QUMU CORPORA) Tj ET Q q 0 0 0 rg BT 286.82 742.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 314.33 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.75 730.25 Td (Consolidated Statements of Compr) Tj ET Q q 0 0 0 rg BT 331.29 730.25 Td (ehensive Income \(Loss\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.10 719.45 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 686.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 686.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 686.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 686.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 686.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 686.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 660.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 660.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 660.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 660.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 660.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 660.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 634.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 634.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 634.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 634.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 634.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 634.95 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 697.95 m 432.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 697.95 m 436.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 697.95 m 497.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 697.95 m 501.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 697.95 m 562.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 686.95 m 432.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 686.95 m 497.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 686.95 m 562.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 686.95 m 432.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 686.95 m 497.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 686.95 m 562.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 634.95 m 432.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 621.95 m 432.5 621.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 634.95 m 497.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 621.95 m 497.5 621.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 634.95 m 562.5 634.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 621.95 m 562.5 621.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 608.95 m 432.5 608.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 608.95 m 497.5 608.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 608.95 m 562.5 608.95 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 701.03 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 690.03 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 690.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 690.03 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 678.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 678.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 678.21 Td (\(28,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 678.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 678.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 678.21 Td (\(8,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 678.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 678.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 678.21 Td (\(9,694) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 678.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 665.21 Td (Other comprehensive income \(loss\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 665.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 652.21 Td (Net change in foreign currency translation adjustments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 652.21 Td (\(749) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 652.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 652.21 Td (\(856) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 652.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 652.21 Td (65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 639.21 Td (Change in net unrealized gain \(loss\) on marketable securities, net of tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 639.21 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.50 639.21 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 639.21 Td (\(19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 639.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 626.21 Td (Total other comprehensive income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 626.21 Td (\(736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 626.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 626.21 Td (\(851) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 626.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 626.21 Td (46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 613.21 Td (Total comprehensive loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 613.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 613.21 Td (\(29,435) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 613.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 613.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 613.21 Td (\(9,371) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 613.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 613.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 613.21 Td (\(9,648) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 613.21 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.45 Td (See accompanying notes to consolidated financial statements.) 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 (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.85 742.25 Td (QUMU CORPORA) Tj ET Q q 0 0 0 rg BT 286.82 742.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 314.33 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.60 730.25 Td (Consolidated Statements of Stockholders) Tj ET Q q 0 0 0 rg BT 378.91 730.25 Td ( Equity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.85 718.25 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 279.35 718.25 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 672.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 672.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 672.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 672.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 672.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 672.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 672.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 672.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 672.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 644.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 644.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 644.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 644.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 644.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 644.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 644.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 644.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 644.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 616.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 616.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 616.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 616.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 616.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 616.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 616.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 616.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 616.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 581.75 155.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 581.75 41.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 581.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 581.75 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 581.75 42.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 581.75 67.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 581.75 62.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 581.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 581.75 40.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 546.75 155.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 546.75 41.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 546.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 546.75 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 546.75 42.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 546.75 67.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 546.75 62.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 546.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 546.75 40.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 511.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 511.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 511.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 511.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 511.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 511.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 511.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 511.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 511.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 483.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 483.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 483.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 483.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 483.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 483.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 483.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 483.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 483.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 455.75 155.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 455.75 41.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 455.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 455.75 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 455.75 42.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 455.75 67.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 455.75 62.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 455.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 455.75 40.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 413.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 413.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 413.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 413.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 413.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 413.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 413.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 413.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 413.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 378.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 378.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 378.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 378.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 378.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 378.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 378.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 378.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 350.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 350.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 350.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 350.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 350.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 350.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 350.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 350.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 322.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 322.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 322.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 322.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 322.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 322.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 322.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 322.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 322.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 294.75 155.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 294.75 41.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 294.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 294.75 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 294.75 42.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 294.75 67.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 294.75 62.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 294.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 294.75 40.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 252.75 155.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 252.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 252.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 252.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 252.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 252.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 252.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.50 252.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.50 252.75 40.00 -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 204.5 686.75 m 245.5 686.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245.5 686.75 m 249.5 686.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 686.75 m 287.5 686.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 672.75 m 245.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 672.75 m 287.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 672.75 m 334.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 672.75 m 380.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 672.75 m 451.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 672.75 m 517.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 672.75 m 561.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 672.75 m 245.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 672.75 m 287.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 672.75 m 334.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 672.75 m 380.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 672.75 m 451.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 672.75 m 517.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 672.75 m 561.5 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 525.75 m 245.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 525.75 m 287.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 525.75 m 334.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 525.75 m 380.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 525.75 m 451.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 525.75 m 517.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 525.75 m 245.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 525.75 m 287.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 525.75 m 334.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 525.75 m 380.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 525.75 m 451.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 525.75 m 517.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 525.75 m 561.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 364.75 m 245.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 364.75 m 287.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 364.75 m 334.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 364.75 m 380.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 364.75 m 451.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 364.75 m 517.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 364.75 m 561.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 238.75 m 245.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 224.75 m 245.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 238.75 m 287.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 224.75 m 287.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 238.75 m 334.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 224.75 m 334.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 238.75 m 380.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 224.75 m 380.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 238.75 m 451.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 224.75 m 451.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 238.75 m 517.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 224.75 m 517.5 224.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 238.75 m 561.5 238.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 224.75 m 561.5 224.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 219.15 690.98 Td (Common Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.25 692.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.05 684.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.80 676.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.65 699.83 Td (Retained) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.40 691.83 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.65 683.83 Td (\(Accum) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.30 675.83 Td (Deficit\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.80 699.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.35 691.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.90 683.83 Td (Compr) Tj ET Q q 0 0 0 rg BT 415.20 683.83 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 675.83 Td (Income \(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.25 684.98 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 492.55 684.98 Td (olling) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.70 676.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 486.88 676.98 Td (est) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 496.21 680.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 676.98 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 677.21 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.00 676.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.95 676.98 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 663.00 Td (Balance at December 31, 2012) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.75 663.21 Td (8,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 663.21 Td (87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.25 663.21 Td (56,706) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.25 663.21 Td (13,615) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.50 663.21 Td (116) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.50 663.21 Td (103) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.00 663.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 663.21 Td (70,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 649.00 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 649.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 649.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 649.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.75 649.21 Td (\(9,694) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 649.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 649.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.50 649.21 Td (\(125) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.00 649.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 649.21 Td (\(9,819) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 649.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 635.00 Td (Other comprehensive income, net of taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 635.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 635.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 635.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 635.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 635.21 Td (46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.50 635.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 635.21 Td (47) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 621.00 Td (Issuance of restricted stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 621.21 Td (26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 621.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 621.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 621.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 621.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 621.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 621.21 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 607.00 Td (Stock issued in stock option exercise) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.50 607.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 607.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.50 607.21 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 607.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 607.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 607.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.50 607.21 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 594.00 Td (Redemption of stock to cover tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 586.00 Td (withholding for employee stock plans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.50 586.21 Td (\(7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.00 586.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 586.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 586.21 Td (\(66) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 586.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 586.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 586.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 586.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 586.21 Td (\(66) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 586.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 573.00 Td (Net tax reductions relating to exercise and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 565.00 Td (expiration of stock options) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 565.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 565.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 565.21 Td (\(13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 565.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 565.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 565.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 565.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 565.21 Td (\(13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 565.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 551.00 Td (Stock-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 551.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 551.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.75 551.21 Td (1,778) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 551.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 551.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 551.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 551.21 Td (1,778) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 538.00 Td (Purchase of noncontrolling interest in) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 530.00 Td (consolidated subsidiary) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 530.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 530.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.50 530.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 530.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 530.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 530.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 530.21 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 530.21 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 516.00 Td (Balance at December 31, 2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.75 516.21 Td (8,674) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 516.21 Td (87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.25 516.21 Td (58,411) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.75 516.21 Td (3,921) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.50 516.21 Td (162) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 516.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.00 516.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 516.21 Td (62,581) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 502.00 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 502.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 502.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 502.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.75 502.21 Td (\(8,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 502.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 502.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 502.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 502.21 Td (\(8,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 502.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 488.00 Td (Other comprehensive income, net of taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 488.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 488.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 488.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 488.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.50 488.21 Td (\(851) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.00 488.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 488.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.50 488.21 Td (\(851) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 488.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 474.00 Td (Issuance of restricted stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.50 474.21 Td (156) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 474.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.50 474.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 474.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 474.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 474.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 474.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 474.21 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 460.00 Td (Stock issued in stock option exercise) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 460.21 Td (86) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 460.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.50 460.21 Td (192) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 460.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 460.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 460.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 460.21 Td (193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 447.00 Td (Redemption of stock to cover tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 439.00 Td (withholding for employee stock plans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.00 439.21 Td (\(64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.00 439.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.50 439.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.00 439.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 439.21 Td (\(98) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 439.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 439.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 439.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 439.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 439.21 Td (\(99) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 439.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 426.00 Td (Net tax reductions relating to exercise and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 418.00 Td (expiration of stock options) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 418.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 418.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.50 418.21 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 418.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 418.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 418.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 418.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 418.21 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 418.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 404.00 Td (Stock-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 404.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 404.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.75 404.21 Td (2,039) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 404.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 404.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 404.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 404.21 Td (2,039) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 391.00 Td (Foreign currency translation transfer related) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 383.00 Td (to the sale of foreign operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 383.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 383.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 383.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 383.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.00 383.21 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.00 383.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 383.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 383.21 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 383.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 369.00 Td (Shares issued for acquisition) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.50 369.21 Td (275) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 369.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.75 369.21 Td (3,031) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 369.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 369.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 369.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 369.21 Td (3,034) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 355.00 Td (Balance at December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.75 355.21 Td (9,127) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 355.21 Td (91) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.25 355.21 Td (63,566) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.75 355.21 Td (\(4,599) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 355.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.50 355.21 Td (\(785) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.00 355.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 355.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.00 355.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 355.21 Td (58,273) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 341.00 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 341.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 341.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 341.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.25 341.21 Td (\(28,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 341.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 341.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 341.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 341.21 Td (\(28,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 341.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 327.00 Td (Other comprehensive income, net of taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.50 327.21 Td (\(736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.00 327.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.50 327.21 Td (\(736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 327.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 313.00 Td (Issuance of restricted stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 313.21 Td (48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.50 313.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.50 313.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 313.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 313.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 313.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 313.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 313.21 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 299.00 Td (Stock issued in stock option exercise) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 299.21 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.50 299.21 Td (142) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 299.21 Td (142) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 286.00 Td (Redemption of stock to cover tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 278.00 Td (withholding for employee stock plans) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.50 278.21 Td (\(6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.00 278.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 278.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 278.21 Td (\(50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 278.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 278.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 278.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 278.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 278.21 Td (\(50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 278.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 265.00 Td (Net tax reductions relating to exercise and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 257.00 Td (expiration of stock options) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 257.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 257.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.50 257.21 Td (\(7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 257.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 257.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 257.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 257.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 257.21 Td (\(7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 257.21 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 243.00 Td (Stock-based compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 243.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 243.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.75 243.21 Td (1,834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 243.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 243.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 243.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 243.21 Td (1,834) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 229.00 Td (Balance at December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.75 229.21 Td (9,189) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 229.21 Td (92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.25 229.21 Td (65,484) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.25 229.21 Td (\(33,298) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 229.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.75 229.21 Td (\(1,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.00 229.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 229.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.00 229.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 229.21 Td (30,757) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 218.05 Td (_________________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 208.33 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.28 204.25 Td (Noncontrolling interest items are included in results of discontinued operations for all periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.25 Td (See accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.85 742.25 Td (QUMU CORPORA) Tj ET Q q 0 0 0 rg BT 286.82 742.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 314.33 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.80 730.25 Td (Consolidated Statements of Cash Flows) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.10 719.45 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 674.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 674.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 674.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 674.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 674.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 674.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 650.95 321.00 -12.00 re f 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0.9333333333333333 1 rg /GS0 gs 435.50 554.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 554.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 554.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 530.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 530.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 530.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 530.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 530.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 530.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 506.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 506.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 506.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 506.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 506.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 506.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 482.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 482.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 482.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 482.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 482.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 482.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 458.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 458.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 458.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 458.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 458.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 458.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 434.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 434.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 434.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 434.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 434.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 434.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 410.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 410.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 410.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 410.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 410.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 410.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 386.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 386.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 386.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 386.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 386.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 386.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 362.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 362.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 362.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 362.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 362.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 362.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 338.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 338.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 338.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 338.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 338.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 338.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 314.95 321.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 314.95 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 314.95 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 314.95 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 314.95 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 314.95 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 283.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 283.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 283.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 283.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 283.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 283.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 259.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 259.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 259.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 259.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 259.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 259.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 235.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 235.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 235.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 235.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 235.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 235.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 211.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 211.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 211.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 211.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 211.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 211.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 187.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 187.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 187.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 187.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 187.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 187.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 163.95 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 163.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 163.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 163.95 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 163.95 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 163.95 61.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 697.95 m 431.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 697.95 m 435.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 697.95 m 496.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 697.95 m 500.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 697.95 m 561.5 697.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 686.95 m 431.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 686.95 m 496.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 686.95 m 561.5 686.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 650.95 m 431.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 650.95 m 496.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 650.95 m 561.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 650.95 m 431.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 650.95 m 496.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 650.95 m 561.5 650.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 446.95000000000005 m 431.5 446.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 446.95000000000005 m 496.5 446.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 446.95000000000005 m 561.5 446.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 422.95000000000005 m 431.5 422.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 422.95000000000005 m 496.5 422.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 422.95000000000005 m 561.5 422.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 410.95000000000005 m 431.5 410.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 410.95000000000005 m 496.5 410.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 410.95000000000005 m 561.5 410.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 326.95000000000005 m 431.5 326.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 326.95000000000005 m 496.5 326.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 326.95000000000005 m 561.5 326.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 295.95000000000005 m 431.5 295.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 295.95000000000005 m 496.5 295.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 295.95000000000005 m 561.5 295.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 283.95000000000005 m 431.5 283.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 295.95000000000005 m 496.5 295.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 283.95000000000005 m 496.5 283.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 295.95000000000005 m 561.5 295.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 283.95000000000005 m 561.5 283.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 235.95000000000005 m 431.5 235.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 235.95000000000005 m 496.5 235.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 235.95000000000005 m 561.5 235.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 211.95000000000005 m 431.5 211.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 211.95000000000005 m 496.5 211.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 211.95000000000005 m 561.5 211.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 199.95000000000005 m 431.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 211.95000000000005 m 496.5 211.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 199.95000000000005 m 496.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 211.95000000000005 m 561.5 211.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 199.95000000000005 m 561.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 199.95000000000005 m 431.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 187.95000000000005 m 431.5 187.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 199.95000000000005 m 496.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 187.95000000000005 m 496.5 187.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 199.95000000000005 m 561.5 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 187.95000000000005 m 561.5 187.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 163.95000000000005 m 431.5 163.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 163.95000000000005 m 496.5 163.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 163.95000000000005 m 561.5 163.95000000000005 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 151.95000000000005 m 431.5 151.95000000000005 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 151.95000000000005 m 496.5 151.95000000000005 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 151.95000000000005 m 561.5 151.95000000000005 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.20 701.03 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.50 690.03 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.50 690.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 690.03 Td (2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 678.90 Td (Cash flows from \(used in\) operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.00 678.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 678.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.00 678.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 666.90 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.00 666.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.60 666.90 Td (\(28,699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 666.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.00 666.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 666.90 Td (\(8,520) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 666.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.00 666.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 666.90 Td (\(9,694) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 666.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 654.90 Td (Net income \(loss\) from discontinued operations, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.60 654.90 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 654.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 654.90 Td (13,823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 654.90 Td (6,527) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 642.90 Td (Net loss from continuing operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.60 642.90 Td (\(28,689) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 642.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 642.90 Td (\(22,343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 642.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 642.90 Td (\(16,221) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 642.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 630.90 Td (Adjustments to reconcile net loss to net cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.00 630.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 630.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.00 630.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 618.90 Td ( provided by \(used in\) operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 606.90 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 606.90 Td (3,118) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 606.90 Td (2,049) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 606.90 Td (1,787) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 594.90 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 594.90 Td (1,834) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 594.90 Td (1,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 594.90 Td (1,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 582.90 Td (Loss on disposal of property and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 582.90 Td (108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.30 582.90 Td (102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.30 582.90 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 570.90 Td (Deferred income tax expense \(benefit\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 570.90 Td (\(564) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 570.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.60 570.90 Td (\(126) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 570.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 570.90 Td (699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 558.90 Td (Current income tax benefit resulting from income generated from discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 558.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 558.90 Td (\(6,337) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 558.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 558.90 Td (\(3,445) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 558.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.00 546.90 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 534.90 Td (Receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.60 534.90 Td (\(1,331) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 534.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 534.90 Td (\(5,679) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 534.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 534.90 Td (1,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 522.90 Td (Income taxes receivable / payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 522.90 Td (\(378) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 522.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 522.90 Td (1,068) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 522.90 Td (2,493) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 510.90 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 510.90 Td (748) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 510.90 Td (\(2,032) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 510.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 510.90 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 498.90 Td (Accounts payable and other accrued liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 498.90 Td (443) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 498.90 Td (1,189) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 498.90 Td (745) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 486.90 Td (Accrued compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.60 486.90 Td (\(2,184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 486.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.30 486.90 Td (686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 486.90 Td (2,144) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 474.90 Td (Deferred revenue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 474.90 Td (2,729) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 474.90 Td (5,499) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 474.90 Td (801) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 462.90 Td (Deferred rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 462.90 Td (48) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.60 462.90 Td (\(105) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 462.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 462.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.00 450.90 Td (Other non-current liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 450.90 Td (226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 450.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 450.90 Td (\(121) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 450.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 438.90 Td (Net cash used in continuing operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.60 438.90 Td (\(23,892) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 438.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 438.90 Td (\(24,188) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 438.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 438.90 Td (\(8,051) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 438.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 426.90 Td (Net cash provided by discontinued operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 426.90 Td (665) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 426.90 Td (1,544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 426.90 Td (10,418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 414.90 Td (Net cash provided by \(used in\) operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.60 414.90 Td (\(23,227) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 414.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 414.90 Td (\(22,644) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 414.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 414.90 Td (2,367) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 402.90 Td (Cash flows from \(used in\) investing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.00 402.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 402.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.00 402.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 390.90 Td (Purchases of marketable securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.60 390.90 Td (\(10,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 390.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 390.90 Td (\(33,499) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 390.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 390.90 Td (\(28,755) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 390.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 378.90 Td (Sales and maturities of marketable securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.30 378.90 Td (27,465) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 378.90 Td (23,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 378.90 Td (37,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 366.90 Td (Purchases of property and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 366.90 Td (\(635) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 366.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 366.90 Td (\(1,051) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 366.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 366.90 Td (\(662) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 366.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 354.90 Td (Proceeds from sale of property and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 354.90 Td (43) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 354.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 354.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 342.90 Td (Purchase of cost method investment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 342.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 342.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 342.90 Td (\(350) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 342.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 330.90 Td (Cash paid for acquisition of business, net of cash acquired) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 330.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 330.90 Td (\(11,556) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 330.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 330.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 318.90 Td (Net cash provided by \(used in\) continuing investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.30 318.90 Td (16,623) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 318.90 Td (\(22,856) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 318.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 318.90 Td (7,233) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 306.90 Td (Net cash provided by \(used in\) discontinued investing activities, including proceeds) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 298.90 Td (from sale of business) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 300.20 Td (2,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 300.20 Td (19,676) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 300.20 Td (\(307) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 300.20 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 287.90 Td (Net cash provided by \(used in\) investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.30 287.90 Td (18,923) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.60 287.90 Td (\(3,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 287.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 287.90 Td (6,926) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 275.90 Td (Cash flows from \(used in\) financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.00 275.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 275.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.00 275.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 263.90 Td (Common stock repurchases to settle employee withholding liability) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.60 263.90 Td (\(50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 263.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.60 263.90 Td (\(99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 263.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 263.90 Td (\(66) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 263.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 251.90 Td (Principal payments on capital lease obligations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 251.90 Td (\(320) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 251.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 251.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 251.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 239.90 Td (Proceeds from employee stock plans) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 239.90 Td (142) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.30 239.90 Td (193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.30 239.90 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 227.90 Td (Net cash provided by \(used in\) continuing financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 227.90 Td (\(228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 227.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 227.90 Td (94) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 227.90 Td (\(59) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 227.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 215.90 Td (Net cash used in discontinued financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 215.90 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.60 215.90 Td (\(59) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 215.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 215.90 Td (\(70) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 215.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.00 203.90 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.60 203.90 Td (\(228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 203.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.30 203.90 Td (35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 203.90 Td (\(129) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 203.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 191.90 Td (Effect of exchange rate changes on cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.60 191.90 Td (\(80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 191.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.60 191.90 Td (\(252) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 191.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 191.90 Td (\(83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 191.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 179.90 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.60 179.90 Td (\(4,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.30 179.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 179.90 Td (\(26,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 179.90 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 179.90 Td (9,081) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 167.90 Td (Cash and cash equivalents, beginning of year) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.30 167.90 Td (11,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 167.90 Td (37,725) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 167.90 Td (28,644) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 155.90 Td (Cash and cash equivalents, end of year) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.00 155.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 155.90 Td (7,072) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.00 155.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 155.90 Td (11,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.00 155.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 155.90 Td (37,725) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 128.45 Td (See accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.85 742.25 Td (QUMU CORPORA) Tj ET Q q 0 0 0 rg BT 286.82 742.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 314.33 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 221.80 730.25 Td (Consolidated Statements of Cash Flows) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.30 718.25 Td (Supplemental Cash Flow Disclosur) Tj ET Q q 0 0 0 rg BT 376.30 718.25 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.10 707.45 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 676.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 676.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 676.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 676.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 676.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 676.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 650.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 650.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 650.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 650.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 650.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 650.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 624.95 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 624.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 624.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 624.95 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 624.95 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 624.95 61.00 -13.00 re f /GS0 gs 0.8 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($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 642.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 642.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 642.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 629.21 Td (Non-cash investing and financing activities:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 616.21 Td (Accrued liabilities and other non-current liabilities related to leasehold improvements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 616.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 616.21 Td (689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 616.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 616.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 616.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 616.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 603.21 Td (Financing obligations related to prepaid expenses and other assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 603.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 603.21 Td (402) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 603.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 603.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 603.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 603.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 590.21 Td (Financing obligations related to property and equipment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 590.21 Td (927) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 590.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 590.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 577.21 Td (Proceeds from sale of business held in escrow) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 577.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 577.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 577.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 577.21 Td (2,300) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 577.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 577.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 564.21 Td (Stock issued for acquisition of business) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 564.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 564.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 564.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 564.21 Td (3,034) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 564.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 564.21 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 536.45 Td (See accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.85 742.25 Td (QUMU CORPORA) Tj ET Q q 0 0 0 rg BT 286.82 742.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 314.33 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 175.30 730.25 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 211.52 730.25 Td (T) Tj ET Q q 0 0 0 rg BT 218.01 730.25 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 288.11 730.25 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 367.29 730.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 381.28 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 387.76 730.25 Td (TEMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (1\) Natur) Tj ET Q q 0 0 0 rg BT 86.20 697.25 Td (e of Business and Summary of Significant ) Tj ET Q q 0 0 0 rg BT 265.40 697.25 Td (Accounting Policies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 676.25 Td (Natur) Tj ET Q q 0 0 0 rg BT 75.37 676.25 Td (e of Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 655.25 Td (Qumu Corporation \(the "Company"\) provides the tools businesses need to create, manage, secure, deliver and measure the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 643.25 Td (success of their videos. ) Tj ET Q q 0 0 0 rg BT 145.07 643.25 Td (The Company's innovative solutions release the power in video to engage and empower employees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 631.25 Td (partners and clients. Or) Tj ET Q q 0 0 0 rg BT 143.12 631.25 Td (ganizations around the world realize the greatest possible value from video they create and publish. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.25 Td (Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does video. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (The Company views its operations and manages its business as one segment and one reporting unit. Factors used to identify the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (Company's single operating segment and reporting unit include the financial information available for evaluation by the chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (operating decision maker in making decisions about how to allocate resources and assess performance. ) Tj ET Q q 0 0 0 rg BT 463.85 574.25 Td (The Company manages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (the marketing of its products and services through regional sales representatives and independent distributors in the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (States and international markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (The Company previously conducted its operations through two businesses consisting of 1\) its enterprise video content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 517.25 Td (management software business and 2\) its disc publishing business. ) Tj ET Q q 0 0 0 rg BT 318.30 517.25 Td (As further described in Note 3, on June 27, 2014, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 505.25 Td (Company's shareholders approved the sale of the disc publishing assets and on July 1, 2014, the sale was completed. ) Tj ET Q q 0 0 0 rg BT 517.82 505.25 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 493.25 Td (result, ef) Tj ET Q q 0 0 0 rg BT 84.80 493.25 Td (fective June 27, 2014, the disc publishing business was classified as held for sale and qualified for presentation as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (discontinued operations ef) Tj ET Q q 0 0 0 rg BT 155.35 481.25 Td (fective with the reporting of the Company's financial results for the second quarter of 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 99.34 469.25 Td (, ef) Tj ET Q q 0 0 0 rg BT 111.92 469.25 Td (fective June 27, 2014, the Company had one remaining reportable segment, the enterprise video content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (management software business. ) Tj ET Q q 0 0 0 rg BT 179.23 457.25 Td (The operational results of the disc publishing business are presented in the Net income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (discontinued operations, net of tax line item on the Consolidated Statements of Operations. ) Tj ET Q q 0 0 0 rg BT 420.76 445.25 Td (All remaining amounts presented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (in the accompanying consolidated financial statements and notes reflect the financial results and financial position of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.25 Td (Company's continuing enterprise video content management software business, other than consolidated amounts reflecting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.25 Td (operating results and balances for both the continuing and discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (Certain reclassifications have been made to amounts for prior years to conform to the current year's presentation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 367.25 Td (Principles of Consolidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 495.17 346.25 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (intercompany accounts and transactions have been eliminated.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 313.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.25 Td (The preparation of financial statements in conformity with accounting principles generally accepted in the United States of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (America requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 343.33 280.25 Td (fect the reported amounts of assets and liabilities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.25 Td (expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 201.07 256.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 294.48 256.25 Td (fer from those estimates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 235.25 Td (Fair) Tj ET Q q 0 0 0 rg BT 68.14 235.25 Td ( ) Tj ET Q q 0 0 0 rg BT 70.46 235.25 Td (V) Tj ET Q q 0 0 0 rg BT 76.77 235.25 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 214.25 Td (s financial instruments consist primarily of cash, cash equivalents, and marketable securities, for which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (current carrying amounts approximate fair market values based on quoted market prices or net asset value.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 181.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (The Company generates revenue through the sale of enterprise video content management software solutions, hardware, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.25 Td (a term software license or a cloud-hosted software as a service \(SaaS\). Software licenses and appliances revenue includes sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (of perpetual software licenses and hardware. Service revenue includes term software licenses, SaaS, maintenance and support, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.25 Td (and professional and other services. ) Tj ET Q q 0 0 0 rg BT 195.33 112.25 Td (The Company commences revenue recognition when all of the following conditions are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.25 Td (met: there is persuasive evidence of an arrangement; the product has been delivered or the services have been provided to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.25 Td (customer; the collection of the fees is reasonably assured; and the amount of fees to be paid by the customer is fixed or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.25 Td (determinable. 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.10 Td (The Company allocates revenue to the software-related and non-software elements under one arrangement based on the relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (selling price. In such circumstances, the selling price for a deliverable is based on the following hierarchy: i\) vendor) Tj ET Q q 0 0 0 rg BT 514.09 607.10 Td (-specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (objective evidence \(VSOE\), if available, ii\) third-party evidence \(TPE\), if ) Tj ET Q q 0 0 0 rg BT 364.96 595.10 Td (VSOE is not available, or iii\) estimated selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (price \(ESP\), if neither ) Tj ET Q q 0 0 0 rg BT 148.95 583.10 Td (VSOE nor ) Tj ET Q q 0 0 0 rg BT 193.21 583.10 Td (TPE is available.) Tj ET Q q 0 0 0 rg BT 263.56 583.10 Td (The Company determines ) Tj ET Q q 0 0 0 rg BT 369.19 583.10 Td (VSOE of the selling price for software-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.10 Td (elements, including professional services and software maintenance and support contracts, based on the price char) Tj ET Q q 0 0 0 rg BT 506.32 571.10 Td (ged for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.10 Td (deliverable when sold separately) Tj ET Q q 0 0 0 rg BT 180.13 559.10 Td (. ) Tj ET Q q 0 0 0 rg BT 184.58 559.10 Td (After the arrangement consideration has been allocated to the software-related and non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (software related elements, the Company accounts for each respective element as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 526.10 Td (Revenue for each of the non-software elements is allocated based on the selling price hierarchy and recognized as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 514.10 Td (noted above provided all other criteria required for revenue recognition have been met. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 493.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 493.10 Td (Revenue for each of the software-related elements is allocated based on the ) Tj ET Q q 0 0 0 rg BT 389.57 493.10 Td (VSOE of each element and recognized as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 481.10 Td (noted above provided all other criteria required for revenue recognition have been met. In software-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 469.10 Td (arrangements for which the Company does not have the ) Tj ET Q q 0 0 0 rg BT 311.59 469.10 Td (VSOE of the fair value for all elements, revenue is deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 457.10 Td (until the earlier of when the ) Tj ET Q q 0 0 0 rg BT 199.11 457.10 Td (VSOE is determined for the undelivered elements \(residual method\) or when all elements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 445.10 Td (for which the Company does not have the ) Tj ET Q q 0 0 0 rg BT 255.22 445.10 Td (VSOE of the fair value have been delivered, unless the only undelivered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 433.10 Td (element is maintenance and support, in which case the entire amount of revenue is recognized over the maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 421.10 Td (and support period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (Other items relating to char) Tj ET Q q 0 0 0 rg BT 159.78 400.10 Td (ges collected from customers:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 379.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 379.10 Td (Shipping and handling char) Tj ET Q q 0 0 0 rg BT 196.08 379.10 Td (ges collected from customers as part of the Company's sales transactions are included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 367.10 Td (revenues and the associated costs are included in cost of revenues.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 346.10 Td (Sales taxes char) Tj ET Q q 0 0 0 rg BT 149.68 346.10 Td (ged to and collected from customers as part of the Company) Tj ET Q q 0 0 0 rg BT 393.50 346.10 Td (s sales transactions are excluded from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 334.10 Td (revenues and recorded as a liability to the applicable governmental taxing authority) Tj ET Q q 0 0 0 rg BT 418.84 334.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 313.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 78.13 313.10 Td (ed Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (Deferred revenue consists of billings or payments received in advance of revenue recognition and is recognized as the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (recognition criteria are met. ) Tj ET Q q 0 0 0 rg BT 163.37 280.10 Td (The deferred revenue balance does not represent the total contract value of annual or multi-year) Tj ET Q q 0 0 0 rg BT 545.57 280.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (non-cancelable subscription agreements. Deferred revenue that will be recognized during the succeeding 12 month period is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (recorded as current deferred revenue, and the remaining portion is recorded as non-current deferred revenue. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 78.13 235.10 Td (ed Commissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (Sales commissions represent the direct incremental costs related to the acquisition of customer contracts. ) Tj ET Q q 0 0 0 rg BT 471.64 214.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (recognizes commissions as sales and marketing expense at the time the associated product revenue is recognized, requiring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (establishment of a deferred cost in the event a commission is paid prior to recognition of revenue. ) Tj ET Q q 0 0 0 rg BT 443.04 190.10 Td (The deferred commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (amounts are recoverable through the related future revenue streams under non-cancelable customer contracts and also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (commission clawback provisions in the Company's sales compensation plans. Deferred commission costs included in prepaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (expenses and other assets were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.34 154.10 Td ($954,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.84 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.28 154.10 Td ($418,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 154.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 154.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.58 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.02 154.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.02 154.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 453.68 154.10 Td (. Deferred commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (costs in other assets, non-current were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.23 142.10 Td ($104,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.73 142.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.95 142.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.53 142.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (Cash and Cash Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (equivalents. Cash and cash equivalents are stated at fair value.) 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 301.00 31.60 Td (43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Marketable Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (designation as of each balance sheet date. Currently) Tj ET Q q 0 0 0 rg BT 256.49 709.25 Td (, all marketable securities held by the Company are classified as available-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (for) Tj ET Q q 0 0 0 rg BT 61.46 697.25 Td (-sale. ) Tj ET Q q 0 0 0 rg BT 84.79 697.25 Td (A) Tj ET Q q 0 0 0 rg BT 91.26 697.25 Td (vailable-for) Tj ET Q q 0 0 0 rg BT 137.71 697.25 Td (-sale securities are carried at fair value as determined by quoted market prices with unrealized gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (losses, net of tax, reported as a separate component of stockholders) Tj ET Q q 0 0 0 rg BT 321.39 685.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 348.24 685.25 Td (.) Tj ET Q q 0 0 0 rg BT 353.06 685.25 Td (The Company analyzes its marketable securities for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (impairment on an ongoing basis. Factors considered in determining whether an unrealized loss is a temporary loss or an other) Tj ET Q q 0 0 0 rg BT 551.89 673.25 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (than-temporary loss include the length of time and extent to which the securities have been in an unrealized loss position and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 106.38 649.25 Td (s ability and intent to hold the investment for a period of time suf) Tj ET Q q 0 0 0 rg BT 366.98 649.25 Td (ficient to allow for any anticipated market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.25 Td (recovery) Tj ET Q q 0 0 0 rg BT 84.33 637.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (Accounts Receivable and ) Tj ET Q q 0 0 0 rg BT 158.61 616.25 Td (Allowance for) Tj ET Q q 0 0 0 rg BT 218.13 616.25 Td ( Doubtful ) Tj ET Q q 0 0 0 rg BT 260.93 616.25 Td (Accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.25 Td (Accounts receivable are initially recorded at a selling price, which approximates fair value upon the sale of goods or services to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.25 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.37 583.25 Td (The Company maintains an allowance for doubtful accounts to reflect accounts receivable at net realizable value. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.25 Td (judging the adequacy of the allowance for doubtful accounts, the Company considers multiple factors, including historical bad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.25 Td (debt experience, the general economic environment, the need for specific client reserves and the aging of the Company) Tj ET Q q 0 0 0 rg BT 528.97 559.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.25 Td (receivables. ) Tj ET Q q 0 0 0 rg BT 99.42 547.25 Td (A) Tj ET Q q 0 0 0 rg BT 106.09 547.25 Td ( portion of this provision is included in operating expenses as a general and administrative expense and a portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.25 Td (of this provision is included as a reduction of license revenue. ) Tj ET Q q 0 0 0 rg BT 299.38 535.25 Td (A) Tj ET Q q 0 0 0 rg BT 306.05 535.25 Td ( considerable amount of judgment is required in assessing these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.25 Td (factors. If the factors utilized in determining the allowance do not reflect future performance, then a change in the allowance for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.25 Td (doubtful accounts would be necessary in the period such determination has been made, which would impact future results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (Changes to the allowance for doubtful accounts consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 434.75 380.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 434.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 434.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 434.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 434.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 434.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 434.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 408.75 380.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 408.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 408.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 408.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 408.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 408.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 408.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 382.75 380.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 382.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 382.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 382.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 382.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.50 382.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 382.75 40.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 446.75 m 474.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 446.75 m 478.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 446.75 m 518.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 446.75 m 522.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 446.75 m 562.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 434.75 m 474.5 434.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 434.75 m 518.5 434.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 434.75 m 562.5 434.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 382.75 m 474.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 382.75 m 518.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 382.75 m 562.5 382.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 369.75 m 474.5 369.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 369.75 m 518.5 369.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 369.75 m 562.5 369.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.70 450.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 438.83 Td (Allowance for Doubtful Accounts:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.00 438.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.00 438.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 534.00 438.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 426.01 Td (Balance at beginning of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 426.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 426.01 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 426.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 426.01 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 426.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 426.01 Td (62) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 413.01 Td (Write-offs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 413.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.50 413.01 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.00 413.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 413.01 Td (\(25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 413.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 400.01 Td (Recoveries) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 400.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 400.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 400.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 387.01 Td (Change in provision) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.00 387.01 Td (\(31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.00 387.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 387.01 Td (43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 387.01 Td (\(17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 387.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 374.01 Td (Balance at end of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 374.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 374.01 Td (24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 374.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 374.01 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 374.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 374.01 Td (20) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 349.25 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.25 Td (Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. ) Tj ET Q q 0 0 0 rg BT 449.43 328.25 Td (The Company records ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.25 Td (provisions for potential excess, obsolete and slow moving inventory) Tj ET Q q 0 0 0 rg BT 321.81 316.25 Td (. Results could be dif) Tj ET Q q 0 0 0 rg BT 406.34 316.25 Td (ferent if demand for the Company) Tj ET Q q 0 0 0 rg BT 545.46 316.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.25 Td (products decreased because of economic or competitive conditions, or if products became obsolete because of technical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.25 Td (advancements in the industry or by the Company) Tj ET Q q 0 0 0 rg BT 245.70 292.25 Td (. Inventory included in prepaid expenses and other current assets was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td ($250,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 280.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.94 280.25 Td ($168,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.44 280.25 Td ( as of December 31, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 339.28 280.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 259.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.37 259.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Property and equipment are stated at cost and depreciated on a straight-line basis over estimated useful lives ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.12 238.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.56 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.28 226.25 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.05 226.25 Td ( years for most assets. Leasehold improvements are amortized using the straight-line method over the shorter of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (property) Tj ET Q q 0 0 0 rg BT 86.66 214.25 Td (s useful life or the term of the underlying lease. Repairs and maintenance costs are char) Tj ET Q q 0 0 0 rg BT 435.79 214.25 Td (ged to operations as incurred. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (The asset cost and related accumulated depreciation or amortization are adjusted for asset retirement or disposal, with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (resulting gain or loss, if any) Tj ET Q q 0 0 0 rg BT 161.00 190.25 Td (, credited or char) Tj ET Q q 0 0 0 rg BT 228.56 190.25 Td (ged to results of operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 169.25 Td (Long-lived ) Tj ET Q q 0 0 0 rg BT 98.07 169.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.25 Td (lived assets, including property and equipment and intangible assets may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 422.77 136.25 Td (When such events or changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (circumstances occur) Tj ET Q q 0 0 0 rg BT 130.95 124.25 Td (, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.25 Td (such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.25 Td (less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.25 Td (amount over the fair value of the assets. ) 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 301.00 31.60 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (more frequently if facts and circumstances warrant a review) Tj ET Q q 0 0 0 rg BT 289.24 697.25 Td (. ) Tj ET Q q 0 0 0 rg BT 294.06 697.25 Td (The Company has determined that there is a single reporting unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (for the purpose of goodwill impairment tests. For purposes of assessing the impairment of goodwill, the Company annually) Tj ET Q q 0 0 0 rg BT 542.89 685.25 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (its fiscal year end, estimates the fair value of the reporting unit and compares this amount to the carrying value of the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment char) Tj ET Q q 0 0 0 rg BT 523.82 661.25 Td (ge is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.25 Td (recognized in the amount by which the carrying amount of the asset exceeds its fair value. ) Tj ET Q q 0 0 0 rg BT 412.38 649.25 Td (As of December 31, 2015, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.25 Td (Company completed its annual impairment test of goodwill. Based upon that evaluation, the Company determined that its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.25 Td (goodwill was not impaired. See Note 6"Intangible ) Tj ET Q q 0 0 0 rg BT 257.38 625.25 Td (Assets and Goodwill.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (Investment in Nonconsolidated Company) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 583.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 583.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.47 583.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.47 583.25 Td (, the Company held an investment totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.66 583.25 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.55 583.25 Td ( in convertible preferred stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.25 Td (Briefcam, Ltd. \("Briefcam"\) a privately-held Israeli company that develops video synopsis technology to augment security and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.25 Td (surveillance systems to facilitate review of surveillance video. ) Tj ET Q q 0 0 0 rg BT 301.12 559.25 Td (The investment is included in other non-current assets. Because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.25 Td (Qumu's ownership interest is less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.67 547.25 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.00 547.25 Td ( and it has no other rights or privileges that enable it to exercise significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.25 Td (influence over the operating and financial policies of Briefcam, Qumu accounts for this equity investment using the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.25 Td (method. Equity securities accounted for under the cost method are reviewed quarterly for changes in circumstances or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.25 Td (occurrence of events that suggest the Company) Tj ET Q q 0 0 0 rg BT 241.61 511.25 Td (s investment may not be fully recoverable. If an unrealized loss for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.25 Td (investment is considered to be other) Tj ET Q q 0 0 0 rg BT 193.93 499.25 Td (-than-temporary) Tj ET Q q 0 0 0 rg BT 258.25 499.25 Td (, the loss will be recognized in the Consolidated Statements of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 Td (in the period the determination is made. Qumu monitors Briefcam's results of operations, business plan and capital raising ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.25 Td (activities and is not aware of any events or circumstances that would indicate a decline in the carrying value of its investment. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (The Company measures stock-based compensation based on the fair value of the award at the date of grant. ) Tj ET Q q 0 0 0 rg BT 482.17 433.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.25 Td (recognizes stock-based compensation on a straight-line basis over the requisite service period for the entire awards, net of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.25 Td (estimated forfeiture rate. Compensation cost is recognized for all awards over the vesting period to the extent the requisite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.25 Td (service requirements are met, whether or not the award is ultimately exercised. Conversely) Tj ET Q q 0 0 0 rg BT 412.55 397.25 Td (, when the requisite service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.25 Td (requirements are not met and the award is forfeited prior to vesting, any compensation expense previously recognized for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.25 Td (award is reversed. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 352.25 Td (ch and Development Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.25 Td (Costs related to research, design and development of products are char) Tj ET Q q 0 0 0 rg BT 332.22 331.25 Td (ged to research and development expense as incurred. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.25 Td (Software development costs are capitalized beginning when a product) Tj ET Q q 0 0 0 rg BT 332.68 319.25 Td (s technological feasibility has been established and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td (ending when a product is available for general release to customers. ) Tj ET Q q 0 0 0 rg BT 323.60 307.25 Td (The Company uses the working model approach to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (determine technological feasibility) Tj ET Q q 0 0 0 rg BT 188.19 295.25 Td (. ) Tj ET Q q 0 0 0 rg BT 193.01 295.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 252.72 295.25 Td (s products are released soon after technological feasibility has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (established. ) Tj ET Q q 0 0 0 rg BT 98.88 283.25 Td (As a result, the Company has not capitalized any software development costs because such costs have not been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.25 Td (significant.) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 50.00 252.40 Td (Royalties for) Tj ET Q q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 104.53 252.40 Td ( ) Tj ET Q q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 106.85 252.40 Td (Third Party ) Tj ET Q q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 160.55 252.40 Td (T) Tj ET Q q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 166.30 252.40 Td (echnology) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 231.40 Td (Royalties for third party technology are either paid in advance and capitalized as prepaid royalties or are accrued as incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.40 Td (and subsequently paid. ) Tj ET Q q 0 0 0 rg BT 143.69 219.40 Td (These royalties are generally expensed to cost of revenue generally at the greater of the contractual rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.40 Td (or an ef) Tj ET Q q 0 0 0 rg BT 80.36 207.40 Td (fective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Each quarter) Tj ET Q q 0 0 0 rg BT 537.27 207.40 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.40 Td (Company also evaluates the expected future realization of its prepaid royalties, as well as any minimum commitments not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.40 Td (paid to determine amounts it deems unlikely to be realized through product sales. ) Tj ET Q q 0 0 0 rg BT 377.14 183.40 Td (Any impairments or losses determined before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.40 Td (the launch of a product are generally char) Tj ET Q q 0 0 0 rg BT 216.12 171.40 Td (ged to general and administrative expense, and any impairments or losses determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.40 Td (post-launch are char) Tj ET Q q 0 0 0 rg BT 130.89 159.40 Td (ged to cost of revenue. Unrecognized minimum royalty-based commitments are accounted for as executory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.40 Td (contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.40 Td (abandoned \(i.e., cease use\) or the contractual rights to use the intellectual property are terminated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.40 Td (During the fourth quarter 2015, the Company recognized a loss relating to a third party license agreement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.69 114.40 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.58 114.40 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.40 Td (general and administration expense which included the write-of) Tj ET Q q 0 0 0 rg BT 304.45 102.40 Td (f of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.05 102.40 Td ($606,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.55 102.40 Td ( prepaid royalty and the accrual of the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.40 Td ($606,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 90.40 Td ( minimum royalty payments. ) 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 301.00 31.60 Td (45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.98 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 89.73 742.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (The Company provides for income taxes using the liability method, which requires recognition of deferred tax assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (assets and liabilities are determined based on the dif) Tj ET Q q 0 0 0 rg BT 258.09 697.25 Td (ference between the financial statement and tax basis of assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (liabilities using enacted tax rates in ef) Tj ET Q q 0 0 0 rg BT 200.88 685.25 Td (fect for the year in which the dif) Tj ET Q q 0 0 0 rg BT 329.81 685.25 Td (ferences are expected to reverse. Deferred tax assets are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.25 Td (reduced by a valuation allowance when it is more likely than not that some component or all of the deferred tax assets will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.25 Td (be realized. ) Tj ET Q q 0 0 0 rg BT 98.40 661.25 Td (T) Tj ET Q q 0 0 0 rg BT 103.81 661.25 Td (ax rate changes are reflected in income during the period such changes are enacted.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 640.25 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 640.25 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 107.12 640.25 Td (ency ) Tj ET Q q 0 0 0 rg BT 128.88 640.25 Td (T) Tj ET Q q 0 0 0 rg BT 134.81 640.25 Td (ranslation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.25 Td (The functional currency for each of the Company) Tj ET Q q 0 0 0 rg BT 250.75 619.25 Td (s international subsidiaries is the respective local currency) Tj ET Q q 0 0 0 rg BT 483.08 619.25 Td (. ) Tj ET Q q 0 0 0 rg BT 487.90 619.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.25 Td (translates its financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 543.88 607.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.25 Td (Company translates its assets and liabilities at the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 326.12 595.25 Td (fect as of the financial statement date and translates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.25 Td (statement of operations accounts using the average exchange rate for the period. Exchange rate dif) Tj ET Q q 0 0 0 rg BT 443.26 583.25 Td (ferences resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.25 Td (translation adjustments are accounted for as a component of accumulated other comprehensive loss. Gains or losses, whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.25 Td (realized or unrealized, due to transactions in foreign currencies are reflected in the consolidated statements of operations under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.25 Td (the line item other income \(expense\). Losses on foreign currency transactions were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 547.25 Td ($131,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.10 547.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.10 547.25 Td ($201,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.60 547.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.04 547.25 Td ($40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.54 547.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.25 Td (years ended December 31, 2015, 2014 and 2013, respectively) Tj ET Q q 0 0 0 rg BT 295.66 535.25 Td (, and are included in other expenses in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.25 Td (Statements of Operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (Net Loss Per) Tj ET Q q 0 0 0 rg BT 104.25 502.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 127.13 502.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (outstanding during the period. Diluted net loss per common share is computed by giving ef) Tj ET Q q 0 0 0 rg BT 413.92 469.25 Td (fect to all potentially dilutive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (common shares including options and restricted stock units. Basic and diluted net loss per common share was the same for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (Compr) Tj ET Q q 0 0 0 rg BT 80.37 424.25 Td (ehensive Income \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.25 Td (Comprehensive income \(loss\) includes net income and items defined as other comprehensive income, such as unrealized gains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.25 Td (and losses on certain marketable securities and foreign currency translation adjustments. Such items are reported in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.25 Td (consolidated statements of comprehensive income \(loss\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (New ) Tj ET Q q 0 0 0 rg BT 70.83 358.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 132.59 358.25 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.25 Td (In November 2015, the F) Tj ET Q q 0 0 0 rg BT 150.07 337.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 198.97 337.25 Td (ASU 2015-17, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 259.81 337.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 296.38 337.25 Td (axes \(T) Tj ET Q q 0 0 0 rg BT 324.62 337.25 Td (opic 740\): Balance Sheet Classification of Deferr) Tj ET Q q 0 0 0 rg BT 522.55 337.25 Td (ed T) Tj ET Q q 0 0 0 rg BT 539.13 337.25 Td (axes,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.40 337.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 325.25 Td (which amends the guidance requiring companies to separate deferred income tax liabilities and assets into current and non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 313.25 Td (current amounts in a classified statement of financial position. ) Tj ET Q q 0 0 0 rg BT 300.86 313.25 Td (This accounting guidance simplifies the presentation of deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 301.25 Td (income taxes, such that deferred tax liabilities and assets be classified as non-current in a classified statement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 289.25 Td (position. ) Tj ET Q q 0 0 0 rg BT 87.05 289.25 Td (This accounting guidance is ef) Tj ET Q q 0 0 0 rg BT 209.05 289.25 Td (fective for the Company beginning in the first quarter of 2017, but the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.25 Td (elected to adopt this guidance prospectively as of December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 332.41 277.25 Td (As a result, all deferred tax liabilities and assets are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.25 Td (classified as non-current in the consolidated balance sheet at December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (In ) Tj ET Q q 0 0 0 rg BT 60.28 244.25 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 128.42 244.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 177.32 244.25 Td (ASU 2015-05, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 238.16 244.25 Td (Customer) Tj ET Q q 0 0 0 rg BT 277.42 244.25 Td () Tj ET Q q 0 0 0 rg BT 279.46 244.25 Td (s ) Tj ET Q q 0 0 0 rg BT 285.67 244.25 Td (Accounting for Fees Paid in a Cloud Computing ) Tj ET Q q 0 0 0 rg BT 482.14 244.25 Td (Arrangement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.91 244.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.25 Td (which provides guidance to customers about whether a cloud computing arrangement includes software. If a cloud computing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (arrangement includes a software license, the customer should account for the software license element of the arrangement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (license, the customer should account for the arrangement as a service contract. ) Tj ET Q q 0 0 0 rg BT 366.35 196.25 Td (The new guidance does not change the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (accounting for a customer) Tj ET Q q 0 0 0 rg BT 154.50 184.25 Td () Tj ET Q q 0 0 0 rg BT 157.28 184.25 Td (s accounting for service contracts. ) Tj ET Q q 0 0 0 rg BT 295.56 184.25 Td (ASU 2015-05 is ef) Tj ET Q q 0 0 0 rg BT 370.65 184.25 Td (fective for the Company on January 1, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (with early adoption permitted using either of two methods: \(i\) prospective to all arrangements entered into or materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (modified after the ef) Tj ET Q q 0 0 0 rg BT 131.72 160.25 Td (fective date and represent a change in accounting principle; or \(ii\) retrospectively) Tj ET Q q 0 0 0 rg BT 456.21 160.25 Td (. ) Tj ET Q q 0 0 0 rg BT 461.03 160.25 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (currently evaluating the impact of the standard on its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.25 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 126.20 127.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 175.10 127.25 Td (ASU 2014-09, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 235.93 127.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 278.59 127.25 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.77 127.25 Td (, which requires an entity to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.25 Td (the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ) Tj ET Q q 0 0 0 rg BT 514.69 115.25 Td (The ) Tj ET Q q 0 0 0 rg BT 532.18 115.25 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.25 Td (will replace most existing revenue recognition guidance in U.S. GAAP) Tj ET Q q 0 0 0 rg BT 333.73 103.25 Td ( when it becomes ef) Tj ET Q q 0 0 0 rg BT 413.52 103.25 Td (fective. In July 2015, the F) Tj ET Q q 0 0 0 rg BT 520.26 103.25 Td (ASB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (voted to amend ) Tj ET Q q 0 0 0 rg BT 113.60 91.25 Td (ASU 2014-09 by approving a one-year deferral of the ef) Tj ET Q q 0 0 0 rg BT 338.61 91.25 Td (fective date as well as providing the option to early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.25 Td (adopt the standard on the original ef) Tj ET Q q 0 0 0 rg BT 194.22 79.25 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 245.40 79.25 Td (The new standard is ef) Tj ET Q q 0 0 0 rg BT 335.74 79.25 Td (fective for the Company on January 1, 2018 but may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.25 Td (early adopted ef) Tj ET Q q 0 0 0 rg BT 114.23 67.25 Td (fective January 1, 2017. ) Tj ET Q q 0 0 0 rg BT 212.35 67.25 Td (The standard permits the use of either the retrospective or cumulative ef) Tj ET Q q 0 0 0 rg BT 500.11 67.25 Td (fect transition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.25 Td (method. ) Tj ET Q q 0 0 0 rg BT 84.81 55.25 Td (The Company is currently evaluating the timing of its adoption and the ef) Tj ET Q q 0 0 0 rg BT 379.01 55.25 Td (fect that ) Tj ET Q q 0 0 0 rg BT 413.44 55.25 Td (ASU 2014-09 will have on its ) 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 301.00 31.60 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (consolidated financial statements and related disclosures. ) Tj ET Q q 0 0 0 rg BT 281.13 742.10 Td (The Company has not yet selected a transition method nor has it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (determined the ef) Tj ET Q q 0 0 0 rg BT 119.79 730.10 Td (fect of the standard on its ongoing financial reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (2\) ) Tj ET Q q 0 0 0 rg BT 60.28 709.10 Td (Acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 146.51 709.10 Td (V) Tj ET Q q 0 0 0 rg BT 152.81 709.10 Td (alley) Tj ET Q q 0 0 0 rg BT 172.26 709.10 Td (, Ltd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.82 709.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 688.10 Td (On October 3, 2014, the Company entered into share purchase agreements to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.38 688.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.71 688.10 Td ( of the outstanding shares \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.10 Td ("Share Purchase ) Tj ET Q q 0 0 0 rg BT 117.77 676.10 Td (T) Tj ET Q q 0 0 0 rg BT 123.53 676.10 Td (ransaction"\) of Kulu ) Tj ET Q q 0 0 0 rg BT 207.68 676.10 Td (V) Tj ET Q q 0 0 0 rg BT 213.79 676.10 Td (alley Ltd., a private limited company incorporated in England and ) Tj ET Q q 0 0 0 rg BT 480.20 676.10 Td (W) Tj ET Q q 0 0 0 rg BT 488.83 676.10 Td (ales \(Kulu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.11 664.10 Td (alley\). ) Tj ET Q q 0 0 0 rg BT 88.13 664.10 Td (The acquisition was made to expand Qumu) Tj ET Q q 0 0 0 rg BT 264.20 664.10 Td (s addressable market through the of) Tj ET Q q 0 0 0 rg BT 406.48 664.10 Td (fering of Kulu ) Tj ET Q q 0 0 0 rg BT 466.01 664.10 Td (V) Tj ET Q q 0 0 0 rg BT 472.12 664.10 Td (alley) Tj ET Q q 0 0 0 rg BT 494.33 664.10 Td (s best-in-class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (video content creation capabilities and easy-to-deploy pure cloud solution, and provides Kulu ) Tj ET Q q 0 0 0 rg BT 426.66 652.10 Td (V) Tj ET Q q 0 0 0 rg BT 432.77 652.10 Td (alley) Tj ET Q q 0 0 0 rg BT 454.99 652.10 Td (s customers with access to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (industry leading video content management and delivery capability) Tj ET Q q 0 0 0 rg BT 318.43 640.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.10 Td (After inclusion of working capital and other adjustments required under the share purchase agreements, the aggregate net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (purchase price totaled approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.49 607.10 Td ($14,591,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.49 607.10 Td ( consisting of a cash outlay of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.67 607.10 Td ($1) Tj ET Q q 0 0 0 rg BT 442.30 607.10 Td (1,556,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.30 607.10 Td (, net of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (acquired in the transaction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.12 595.10 Td ($2,466,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.12 595.10 Td (, and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.32 595.10 Td (275,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.82 595.10 Td ( shares of Qumu Corporation's common stock. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (purposes of calculating the purchase price attributable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.52 583.10 Td (275,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.02 583.10 Td ( shares of Company common stock issuable in the Share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.10 Td (Purchase ) Tj ET Q q 0 0 0 rg BT 88.42 571.10 Td (T) Tj ET Q q 0 0 0 rg BT 94.17 571.10 Td (ransaction, the parties agreed upon a value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.71 571.10 Td ($13.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.21 571.10 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 348.53 571.10 Td (All of the shares of the Company) Tj ET Q q 0 0 0 rg BT 484.05 571.10 Td (s common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 559.10 Td (issued in the Share Purchase ) Tj ET Q q 0 0 0 rg BT 166.18 559.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.94 559.10 Td (ransaction were issued to shareholders of Kulu ) Tj ET Q q 0 0 0 rg BT 361.43 559.10 Td (V) Tj ET Q q 0 0 0 rg BT 367.54 559.10 Td (alley who are also employees of Kulu ) Tj ET Q q 0 0 0 rg BT 520.92 559.10 Td (V) Tj ET Q q 0 0 0 rg BT 527.04 559.10 Td (alley) Tj ET Q q 0 0 0 rg BT 545.82 559.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (Pursuant to the terms of a lock-up letter agreement, the shares issued in the Share Purchase ) Tj ET Q q 0 0 0 rg BT 416.10 547.10 Td (T) Tj ET Q q 0 0 0 rg BT 421.86 547.10 Td (ransaction were restricted from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 535.10 Td (transfer) Tj ET Q q 0 0 0 rg BT 80.14 535.10 Td (, subject to certain exceptions. ) Tj ET Q q 0 0 0 rg BT 203.53 535.10 Td (The restrictions lapsed for all of the shares issued 365 days following the closing of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 523.10 Td (Share Purchase ) Tj ET Q q 0 0 0 rg BT 113.69 523.10 Td (T) Tj ET Q q 0 0 0 rg BT 119.44 523.10 Td (ransaction. Following the acquisition, Kulu ) Tj ET Q q 0 0 0 rg BT 295.07 523.10 Td (V) Tj ET Q q 0 0 0 rg BT 301.19 523.10 Td (alley) Tj ET Q q 0 0 0 rg BT 323.40 523.10 Td (s liabilities consisted of trade payables, accrued expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.10 Td (deferred tax liabilities and deferred revenue related primarily to active software subscription agreements. Of the cash amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (payable in the acquisition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.47 499.10 Td ($2,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.47 499.10 Td ( was subject to escrow for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.04 499.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.14 499.10 Td ( month period to secure certain warranty and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (indemnification obligations to the Company; the escrow was released in January 2016. ) Tj ET Q q 0 0 0 rg BT 399.46 487.10 Td (The acquisition was funded through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (use of cash held by the Company at the acquisition date and the Company's common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (The acquisition was accounted for under the provisions of ) Tj ET Q q 0 0 0 rg BT 284.11 454.10 Td (ASC 805, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 326.06 454.10 Td (Business Combinations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.68 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 424.50 454.10 Td (The results of operations of Kulu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.11 442.10 Td (alley are included in the Company) Tj ET Q q 0 0 0 rg BT 196.35 442.10 Td (s Consolidated Statements of Operations since October 3, 2014, the date of the acquisition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (After the impact of applying fair value purchase accounting adjustments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.40 430.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.29 430.10 Td ( to reduce the carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (deferred revenues, the Company recorded revenues for Kulu ) Tj ET Q q 0 0 0 rg BT 294.44 418.10 Td (V) Tj ET Q q 0 0 0 rg BT 300.55 418.10 Td (alley of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.57 418.10 Td ($464,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.07 418.10 Td ( during the post-acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (period in 2014. ) Tj ET Q q 0 0 0 rg BT 113.14 406.10 Td (The acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 210.72 406.10 Td (V) Tj ET Q q 0 0 0 rg BT 216.84 406.10 Td (alley) Tj ET Q q 0 0 0 rg BT 239.05 406.10 Td (s assets and liabilities does not constitute a material business combination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (accordingly) Tj ET Q q 0 0 0 rg BT 96.55 394.10 Td (, pro forma results have not been included. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (The following table summarizes the purchase accounting allocation of the total purchase price to Kulu ) Tj ET Q q 0 0 0 rg BT 461.63 373.10 Td (V) Tj ET Q q 0 0 0 rg BT 467.74 373.10 Td (alley) Tj ET Q q 0 0 0 rg BT 489.95 373.10 Td (s net tangible and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 361.10 Td (intangible assets, with the residual allocated to goodwill \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 341.60 431.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 341.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.60 431.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 315.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 289.60 431.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 289.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 263.60 431.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 263.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 237.60 431.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 237.60 81.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 315.6 m 562.5 315.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 302.6 m 562.5 302.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 224.60000000000002 m 562.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 211.60000000000002 m 562.5 211.60000000000002 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 332.86 Td (Aggregate purchase price, net of cash acquired) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 332.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 332.86 Td (15,118) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 319.86 Td (Less: discount applied to Qumu Corporation stock for trade restrictions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 319.86 Td (\(527) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 319.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 306.86 Td (Net transaction consideration) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 306.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 306.86 Td (14,591) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 293.86 Td (Current assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 293.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 293.86 Td (1,494) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 280.86 Td (Property and equipment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 280.86 Td (140) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 267.86 Td (Intangible assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 267.86 Td (6,663) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 254.86 Td (Goodwill) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 254.86 Td (8,795) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 241.86 Td (Current liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 241.86 Td (\(1,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 241.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 228.86 Td (Net deferred tax liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 228.86 Td (\(1,331) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 228.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 215.86 Td (Total net assets acquired) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 215.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 215.86 Td (14,591) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 191.10 Td (The aggregate purchase price for purchase accounting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.33 191.10 Td ($14,591,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.33 191.10 Td ( reflects the cash consideration, net of cash acquired, plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (the valuation of issued Qumu Corporation \(NASDAQ:QUMU\) stock at the closing price per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.86 179.10 Td ($12.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.36 179.10 Td ( on the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td (acquisition. ) Tj ET Q q 0 0 0 rg BT 98.70 167.10 Td (The Company is not aware of further adjustments required in the purchase price allocation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (The aggregate purchase price was allocated to the fair values of the tangible and intangible assets acquired and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (assumed. ) Tj ET Q q 0 0 0 rg BT 89.26 134.10 Td (The fair values assigned to intangible assets were determined through the use of forecasted cash inflows and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (outflows, primarily applying a relief-from royalty and a multi-period excess earnings method. ) Tj ET Q q 0 0 0 rg BT 427.49 122.10 Td (These valuation methods were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (based on management) Tj ET Q q 0 0 0 rg BT 141.64 110.10 Td (s estimates as of the acquisition date of October 3, 2014. ) Tj ET Q q 0 0 0 rg BT 370.01 110.10 Td (The excess of the purchase price over the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (tangible and identifiable intangible assets acquired was recorded as goodwill, which is non-deductible for tax purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.76 86.10 Td (ransaction costs of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.94 86.10 Td ($245,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.44 86.10 Td ( were expensed as incurred and were included in the Company) Tj ET Q q 0 0 0 rg BT 483.68 86.10 Td (s general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (administrative expenses. ) 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 301.00 31.60 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (The guidance under ) Tj ET Q q 0 0 0 rg BT 131.36 742.10 Td (ASC 805 provides that intangible assets with finite lives be amortized over their estimated remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (useful lives, while goodwill and other intangible assets with indefinite lives will not be amortized, but rather tested for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (impairment on at least an annual basis. Useful lives for intangible assets were determined based upon the remaining useful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (In the aggregate, the identifiable intangible assets were valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.28 685.10 Td ($6,663,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.28 685.10 Td (, of which) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.05 685.10 Td ($4,233,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.05 685.10 Td ( was allocated to developed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.78 673.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.78 673.10 Td ($2,315,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.78 673.10 Td ( was allocated to customer relationships, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.46 673.10 Td ($74,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.96 673.10 Td ( was allocated to trade name and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.96 673.10 Td ($41,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.46 673.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (allocated to covenant not-to-compete agreements.) Tj ET Q q 0 0 0 rg BT 251.40 661.10 Td (The acquired intangible assets will be amortized based on estimated expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (future cash flows for a period ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.50 649.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.59 649.10 Td ( months to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.32 649.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.54 649.10 Td ( years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td (As part of the opening balance sheet purchase accounting, the Company established a net deferred tax liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.57 628.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.46 628.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (This consisted of a deferred tax liability of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.98 616.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.88 616.10 Td ( for the estimated future impact of the dif) Tj ET Q q 0 0 0 rg BT 496.64 616.10 Td (ference in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.10 Td (U.S. book vs. U.K. statutory and tax basis of the purchased intangible assets, deferred revenues and accrued compensation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (Partially of) Tj ET Q q 0 0 0 rg BT 94.53 592.10 Td (fsetting this was the impact of the establishment of deferred tax assets amounting to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.49 592.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.38 592.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (the future benefit of utilization of acquired net operating losses and the impact of cumulative temporary U.S. book to tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 568.10 Td (ferences. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 547.10 Td (3\) Divestitur) Tj ET Q q 0 0 0 rg BT 103.42 547.10 Td (e of Disc Publishing Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (On ) Tj ET Q q 0 0 0 rg BT 64.17 526.10 Td (April 24, 2014, the Company entered into an asset purchase agreement \(the asset purchase agreement\) with Equus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (Holdings, Inc. and Redwood ) Tj ET Q q 0 0 0 rg BT 166.66 514.10 Td (Acquisition, Inc. \(now known as Rimage Corporation, Buyer\). Under the terms of the asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (purchase agreement, the Company agreed to sell to Buyer all of the assets primarily used or primarily held for use in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (connection with its disc publishing business. Buyer also agreed to assume on the closing date certain agreements and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (relating to the disc publishing business and the acquired assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.10 Td (At a special meeting of the Company's shareholders held on June 27, 2014, the Company's shareholders approved the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.10 Td (the disc publishing assets as contemplated by the asset purchase agreement. ) Tj ET Q q 0 0 0 rg BT 354.36 445.10 Td (As a result, ef) Tj ET Q q 0 0 0 rg BT 409.72 445.10 Td (fective June 27, 2014, the disc ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.10 Td (publishing business was classified as held for sale and qualified for discontinued operations presentation in the Company) Tj ET Q q 0 0 0 rg BT 537.12 433.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 187.55 421.10 Td (The results of the discontinued disc publishing business have been presented as discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (operations ef) Tj ET Q q 0 0 0 rg BT 101.74 409.10 Td (fective with the reporting of financial results for the second quarter 2014. ) Tj ET Q q 0 0 0 rg BT 396.92 409.10 Td (As such, financial results for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (ended December 31, 2015, 2014 and 2013 have been reported on this basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (On July 1, 2014, the Company) Tj ET Q q 0 0 0 rg BT 175.27 376.10 Td (s sale of the disc publishing business was completed. ) Tj ET Q q 0 0 0 rg BT 389.51 376.10 Td (The Company also entered into a mutual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (transition services agreement with Buyer and entered into a lease agreement with Buyer for the lease from Buyer of a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (the property located at 7725 ) Tj ET Q q 0 0 0 rg BT 164.50 352.10 Td (W) Tj ET Q q 0 0 0 rg BT 173.14 352.10 Td (ashington ) Tj ET Q q 0 0 0 rg BT 213.97 352.10 Td (A) Tj ET Q q 0 0 0 rg BT 220.45 352.10 Td (venue South, Minneapolis, MN 55439. ) Tj ET Q q 0 0 0 rg BT 378.60 352.10 Td (The Company terminated the lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (agreement in September 2015 due to the Company relocating its corporate headquarters to 510 1st ) Tj ET Q q 0 0 0 rg BT 445.17 340.10 Td (A) Tj ET Q q 0 0 0 rg BT 451.65 340.10 Td (venue North, Suite 305, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (Minneapolis, MN 55403.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.10 Td (The adjusted purchase price paid to the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.54 307.10 Td ($22.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.44 307.10 Td (, of which) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.21 307.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 307.10 Td ( wasplaced in an escrow account to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.10 Td (support the Company) Tj ET Q q 0 0 0 rg BT 138.88 295.10 Td (s indemnification obligations under the asset purchase agreement for a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.23 295.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.33 295.10 Td (-month escrow period. ) Tj ET Q q 0 0 0 rg BT 541.90 295.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 283.10 Td ( escrow was classified as restricted cash on the Consolidated Balance Sheets as of December 31, 2014 and was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.10 Td (released from escrow to the Company in October 2015. In the third quarter of 2014, the Company recorded a gain on sale of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (disc publishing business of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.56 259.10 Td ($16.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.45 259.10 Td (, exclusive of the impact of transaction related expenses recorded through September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (30, 2014. ) Tj ET Q q 0 0 0 rg BT 89.82 247.10 Td (The gain on sale attributable to the U.S. is of) Tj ET Q q 0 0 0 rg BT 268.76 247.10 Td (fset for federal income tax purposes by current or prior) Tj ET Q q 0 0 0 rg BT 488.20 247.10 Td (-year tax losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (but is subject to applicable state income taxes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (The operational results of the disc publishing business are presented in the Net income from discontinued operations, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (tax line item on the Consolidated Statements of Operations.) Tj ET Q q 0 0 0 rg BT 294.95 202.10 Td (Also included in this line item for the 2014 period is the gain on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (sale of the disc publishing business and non-recurring expenses incurred by the Companyas a result of the sale of the disc ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (publishing business, including third party transaction specific costs, one-time income tax related impacts and the acceleration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (of vesting of cash-based long-term incentive and stock-based awards payable to employees of the disc publishing business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (upon completion of the asset sale transaction. ) Tj ET Q q 0 0 0 rg BT 234.21 154.10 Td (The described non-recurring expenses and income tax related impacts amounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.54 142.10 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.43 142.10 Td ( for the year ended December 31, 2014. No general corporate char) Tj ET Q q 0 0 0 rg BT 434.40 142.10 Td (ges were allocated to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (discontinued business. ) Tj ET Q q 0 0 0 rg BT 142.31 130.10 Td (The assets and liabilities of the discontinued business are presented on the Consolidated Balance Sheets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (as assets and liabilities from discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (Other than consolidated amounts reflecting operating results and balances for both the continuing and discontinued operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (all remaining amounts presented in the accompanying consolidated financial statements and notes reflect the financial results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.10 Td (and financial position of the Company's continuing enterprise video content management software business.) 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 301.00 31.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Revenue, operating income, gain on sale of business, income tax expense and net income from discontinued operations were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 688.60 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 688.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 688.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 688.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 688.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 688.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 688.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 662.60 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 662.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 662.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 662.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 662.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 662.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 662.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 636.60 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 636.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 636.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 636.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 636.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 636.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 636.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 610.60 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 610.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 610.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 610.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 610.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 610.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 610.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 699.6 m 432.5 699.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 699.6 m 436.5 699.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 699.6 m 497.5 699.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 699.6 m 501.5 699.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 699.6 m 562.5 699.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 688.6 m 432.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 688.6 m 497.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 688.6 m 562.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 688.6 m 432.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 688.6 m 497.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 688.6 m 562.5 688.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.35 702.68 Td ( Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 691.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 691.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 691.68 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 679.86 Td (Net revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 679.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 679.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 679.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 679.86 Td (29,922) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 679.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 679.86 Td (64,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 666.86 Td (Operating income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 666.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 666.86 Td (4,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 666.86 Td (9,918) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 653.86 Td (Gain on sale of discontinued operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 653.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 653.86 Td (16,167) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 653.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 640.86 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 640.86 Td (\(92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 640.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 640.86 Td (6,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 640.86 Td (3,336) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 627.86 Td (Net income \(loss\) from discontinued operations, net of tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 627.86 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 627.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 627.86 Td (13,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 627.86 Td (6,402) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 614.86 Td (Net loss from discontinued operations attributable to noncontrolling interest) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 614.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 614.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 614.86 Td (125) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 601.86 Td (Net income \(loss\) from discontinued operations attributable to Qumu) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 601.86 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 601.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 601.86 Td (13,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 601.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 601.86 Td (6,527) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 Td (The major classes of assets and liabilities from discontinued operations were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 537.60 380.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 537.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 537.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 537.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 511.60 380.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 511.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 511.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 511.60 64.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 537.6 m 493.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 537.6 m 561.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 537.6 m 493.5 537.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 524.6 m 493.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 537.6 m 561.5 537.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 524.6 m 561.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 498.6 m 493.5 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 498.6 m 561.5 498.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 485.6 m 493.5 485.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 485.6 m 561.5 485.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 542.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.75 549.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 541.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.75 549.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 541.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 528.86 Td (Current assets from discontinued operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 528.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 528.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 528.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 528.86 Td (1,026) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 515.86 Td (Accrued compensation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 515.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 515.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 515.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 515.86 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 502.86 Td (Other current liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 502.86 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 502.86 Td (417) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 489.86 Td (Current liabilities from discontinued operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 489.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 489.86 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 489.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 489.86 Td (448) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 465.10 Td (4\) Marketable Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 444.10 Td (Marketable securities consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 385.60 278.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 385.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 385.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 385.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 385.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 385.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 385.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 385.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 306.60 278.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 306.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 306.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 306.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 306.60 56.00 -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 328.5 413.6 m 383.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 413.6 m 387.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 413.6 m 442.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 413.6 m 446.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 413.6 m 502.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 413.6 m 506.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 413.6 m 562.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 385.6 m 383.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 385.6 m 442.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 385.6 m 502.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 385.6 m 562.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 371.6 m 383.5 371.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 357.6 m 383.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 371.6 m 442.5 371.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 357.6 m 442.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 371.6 m 502.5 371.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 357.6 m 502.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 371.6 m 562.5 371.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 357.6 m 562.5 357.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 357.6 m 383.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 335.6 m 383.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 335.6 m 387.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 335.6 m 442.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 335.6 m 446.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 335.6 m 502.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 335.6 m 506.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 335.6 m 562.5 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 306.6 m 383.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 306.6 m 442.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 306.6 m 502.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 306.6 m 562.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 292.6 m 383.5 292.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 278.6 m 383.5 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 292.6 m 442.5 292.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 278.6 m 442.5 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 292.6 m 502.5 292.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 278.6 m 502.5 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 292.6 m 562.5 292.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 278.6 m 562.5 278.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.75 416.68 Td (December 31, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.25 397.83 Td (Amortized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.70 389.83 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.55 405.68 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.90 397.68 Td (Unrealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.45 389.68 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.05 405.68 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.40 397.68 Td (Unrealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.85 389.68 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.60 389.83 Td (Fair value) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 376.06 Td (Certificates of deposit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 376.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.75 376.06 Td (6,250) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.00 376.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.00 376.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 376.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 376.06 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 376.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 376.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 376.06 Td (6,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 362.06 Td (Total marketable securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 362.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.75 362.06 Td (6,250) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.00 362.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.00 362.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 362.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.50 362.06 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 362.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 362.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 362.06 Td (6,249) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.75 339.83 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.25 318.83 Td (Amortized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.70 310.83 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.55 326.83 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.90 318.83 Td (Unrealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.45 310.83 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.05 326.83 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.40 318.83 Td (Unrealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.85 310.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.60 310.83 Td (Fair value) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 297.06 Td (Certificates of deposit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 297.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.25 297.06 Td (23,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.00 297.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.00 297.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 297.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.00 297.06 Td (\(14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 297.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 297.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 297.06 Td (23,486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 283.06 Td (Total marketable securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 283.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.25 283.06 Td (23,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.00 283.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.00 283.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 283.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.00 283.06 Td (\(14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 283.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.00 283.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 283.06 Td (23,486) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (5\) Pr) Tj ET Q q 0 0 0 rg BT 71.20 258.10 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (Property and equipment consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 195.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 195.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 195.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 195.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 169.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 169.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 169.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 169.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 143.60 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 143.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 143.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 143.60 71.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 206.60000000000002 m 487.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 206.60000000000002 m 491.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 206.60000000000002 m 562.5 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 195.60000000000002 m 487.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 195.60000000000002 m 562.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 156.60000000000002 m 487.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 156.60000000000002 m 562.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 130.60000000000002 m 487.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 130.60000000000002 m 562.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 117.60000000000002 m 487.5 117.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 117.60000000000002 m 562.5 117.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.75 209.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.50 198.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.50 198.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 186.86 Td (Computer, network equipment and furniture) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 186.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 186.86 Td (3,642) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 186.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 186.86 Td (2,646) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 173.86 Td (Leasehold improvements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 173.86 Td (1,915) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 173.86 Td (1,085) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 160.86 Td (Building and building improvements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 160.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 160.86 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 147.86 Td (Total property and equipment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 147.86 Td (5,557) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 147.86 Td (3,741) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 134.86 Td (Less accumulated depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.75 134.86 Td (\(2,615) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 134.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 134.86 Td (\(1,842) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 134.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 121.86 Td (Total property and equipment, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 121.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 121.86 Td (2,942) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 121.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 121.86 Td (1,899) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (Depreciation and amortization expense associated with property and equipment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.77 97.10 Td ($1,052,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.77 97.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.77 97.10 Td ($747,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.27 97.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.71 97.10 Td ($600,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.21 97.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.69 85.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.28 85.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.28 85.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.28 85.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.71 85.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.71 85.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 310.38 85.10 Td (.) 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 301.00 31.60 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (6\) Intangible ) Tj ET Q q 0 0 0 rg BT 106.68 742.25 Td (Assets and Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 95.85 721.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 700.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 700.25 Td (s amortizable intangible assets consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 648.75 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 648.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 648.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 648.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 648.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 648.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 648.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 648.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 648.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 648.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 620.75 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 620.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 620.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 620.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 620.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 620.75 59.00 -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 250.5 669.75 m 309.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 669.75 m 313.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 669.75 m 372.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 669.75 m 376.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 669.75 m 435.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 669.75 m 439.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 669.75 m 498.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 669.75 m 502.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 669.75 m 561.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 648.75 m 309.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 648.75 m 372.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 648.75 m 435.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 648.75 m 498.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 648.75 m 561.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 620.75 m 309.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 620.75 m 372.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 620.75 m 435.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 620.75 m 498.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 620.75 m 561.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 606.75 m 309.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 606.75 m 372.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 606.75 m 435.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 606.75 m 498.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 606.75 m 561.5 606.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 592.75 m 309.5 592.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 592.75 m 372.5 592.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 592.75 m 435.5 592.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 592.75 m 498.5 592.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 592.75 m 561.5 592.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 672.83 Td (December 31, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.65 660.98 Td (Customer) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.35 652.98 Td (Relationships) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.70 660.98 Td (Developed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.05 652.98 Td (Technology) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.35 660.98 Td (Trademarks /) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.45 652.98 Td (Trade-Names) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.25 660.98 Td (Covenants Not) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.80 652.98 Td (to Compete) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.75 652.98 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 639.21 Td (Original cost) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.00 639.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 639.21 Td (5,115) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.00 639.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.75 639.21 Td (8,567) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 639.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 639.21 Td (2,190) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.00 639.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 639.21 Td (38) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 639.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 639.21 Td (15,910) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 625.21 Td (Accumulated amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.75 625.21 Td (\(1,075) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.00 625.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.75 625.21 Td (\(3,261) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 625.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 625.21 Td (\(528) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 625.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 625.21 Td (\(14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.00 625.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 625.21 Td (\(4,878) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 625.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 611.21 Td (Net identifiable intangible assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.00 611.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 611.21 Td (4,040) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.75 611.21 Td (5,306) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 611.21 Td (1,662) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 611.21 Td (24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 611.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 611.21 Td (11,032) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 597.21 Td (Weighted-average useful lives \(years\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.00 597.21 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.50 597.21 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.00 597.21 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 597.21 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.50 597.21 Td (9) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 530.75 201.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 530.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 530.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 530.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 530.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 530.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 530.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 530.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 530.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 530.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 504.75 201.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 504.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 504.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 504.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 504.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 504.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 504.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 504.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 504.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 504.75 59.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 562.75 m 309.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 562.75 m 313.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 562.75 m 372.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 562.75 m 376.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 562.75 m 435.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 562.75 m 439.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 562.75 m 498.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 562.75 m 502.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 562.75 m 561.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 530.75 m 309.5 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 530.75 m 372.5 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 530.75 m 435.5 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 530.75 m 498.5 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 530.75 m 561.5 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 504.75 m 309.5 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 504.75 m 372.5 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 504.75 m 435.5 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 504.75 m 498.5 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 504.75 m 561.5 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 491.75 m 309.5 491.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 491.75 m 372.5 491.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 491.75 m 435.5 491.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 491.75 m 498.5 491.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 491.75 m 561.5 491.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 478.75 m 309.5 478.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 478.75 m 372.5 478.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 478.75 m 435.5 478.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 478.75 m 498.5 478.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 478.75 m 561.5 478.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 565.83 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.65 542.98 Td (Customer) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.35 534.98 Td (Relationships) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.70 542.98 Td (Developed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.05 534.98 Td (Technology) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.35 542.98 Td (Trademarks /) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.45 534.98 Td (Trade-Names) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.25 542.98 Td (Covenants Not) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.80 534.98 Td (to Compete) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.75 534.98 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 522.01 Td (Original cost) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.00 522.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 522.01 Td (5,226) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.00 522.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.75 522.01 Td (8,770) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 522.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 522.01 Td (2,193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.00 522.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 522.01 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 522.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 522.01 Td (16,229) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 509.01 Td (Accumulated amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.50 509.01 Td (\(671) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.00 509.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.75 509.01 Td (\(1,832) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 509.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 509.01 Td (\(334) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 509.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 509.01 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.00 509.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 509.01 Td (\(2,845) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 509.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 496.01 Td (Net identifiable intangible assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.00 496.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 496.01 Td (4,555) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.75 496.01 Td (6,938) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 496.01 Td (1,859) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 496.01 Td (32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.00 496.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 496.01 Td (13,384) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 483.01 Td (Weighted-average useful lives \(years\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.00 483.01 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.50 483.01 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.00 483.01 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.50 483.01 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.50 483.01 Td (9) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (Changes to the carrying amount of net amortizable intangible assets for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.77 458.25 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.35 458.25 Td ( consisted of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 403.75 425.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 403.75 87.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 377.75 425.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 377.75 87.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 403.75 m 561.5 403.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 403.75 m 561.5 403.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 364.75 m 561.5 364.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 351.75 m 561.5 351.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.45 415.98 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.25 407.98 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 395.01 Td (Balance, beginning of period) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 395.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 395.01 Td (13,384) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 382.01 Td (Amortization expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 382.01 Td (\(2,066) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 382.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 369.01 Td (Currency translation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.50 369.01 Td (\(286) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 369.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 356.01 Td (Balance, end of period) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 356.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 356.01 Td (11,032) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.25 Td (Amortization expense of intangible assets consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 287.75 321.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 287.75 61.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 287.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 287.75 61.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 287.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 287.75 61.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 241.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 241.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 241.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 241.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 241.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 241.75 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 299.75 m 432.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 299.75 m 436.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 299.75 m 497.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 299.75 m 501.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 299.75 m 562.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 299.75 m 432.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 287.75 m 432.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 299.75 m 497.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 287.75 m 497.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 287.75 m 562.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 287.75 m 432.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 287.75 m 497.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 287.75 m 562.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 241.75 m 432.5 241.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 228.75 m 432.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 241.75 m 497.5 241.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 228.75 m 497.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 241.75 m 562.5 241.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 228.75 m 562.5 228.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 303.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 303.83 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 291.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 291.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 291.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 291.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 278.21 Td (Amortization expense associated with the developed technology included in cost of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 269.21 Td (revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 269.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 269.21 Td (1,268) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 269.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 269.21 Td (650) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 269.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 269.21 Td (560) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 255.21 Td (Amortization expense associated with other acquired intangible assets included in) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 246.21 Td (operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 246.21 Td (798) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 246.21 Td (652) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 246.21 Td (627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 233.01 Td (Total amortization expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 233.01 Td (2,066) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 233.01 Td (1,302) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 233.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 233.01 Td (1,187) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (The Company estimates that amortization expense associated with intangible assets will be as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 708.60 425.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 708.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 680.60 425.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 680.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 652.60 425.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 652.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 624.60 425.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 624.60 87.00 -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 475.5 624.6 m 562.5 624.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 610.6 m 562.5 610.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 712.83 Td (Year Ending December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 699.06 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.00 699.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 699.06 Td (2,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 685.06 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 685.06 Td (2,234) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 671.06 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 671.06 Td (2,023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 657.06 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 657.06 Td (1,322) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 643.06 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 643.06 Td (1,020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 629.06 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 629.06 Td (2,198) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 615.06 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.00 615.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 615.06 Td (11,032) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.10 Td (On October 3, 2014, the Company completed the acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 328.93 569.10 Td (V) Tj ET Q q 0 0 0 rg BT 335.04 569.10 Td (alley) Tj ET Q q 0 0 0 rg BT 353.83 569.10 Td (, Ltd. and recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.02 569.10 Td ($8.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.91 569.10 Td ( of goodwill and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 557.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 557.10 Td ( of intangible assets. ) Tj ET Q q 0 0 0 rg BT 182.86 557.10 Td (The goodwill balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.83 557.10 Td ($8.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.72 557.10 Td ( at December 31, 2015 reflects the impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.10 Td (currency exchange rate fluctuations since the acquisition date. See Note 2 to the Consolidated Financial Statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.10 Td (additional information on the acquisition of Kulu ) Tj ET Q q 0 0 0 rg BT 248.95 533.10 Td (V) Tj ET Q q 0 0 0 rg BT 255.06 533.10 Td (alley) Tj ET Q q 0 0 0 rg BT 273.85 533.10 Td (. ) Tj ET Q q 0 0 0 rg BT 278.67 533.10 Td (The gross carrying amount of goodwill related to the 201) Tj ET Q q 0 0 0 rg BT 506.85 533.10 Td (1 acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 521.10 Td (of Qumu, Inc. of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.43 521.10 Td ($22.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.32 521.10 Td ( was fully impaired in 2012.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 500.10 Td (During the year ended December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 281.60 500.10 Td (s stock price traded at levels which caused the Company) Tj ET Q q 0 0 0 rg BT 510.14 500.10 Td (s enterprise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 488.10 Td (value, excluding any control premium, to approximate its book value, resulting in increased risk of a potential impairment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 476.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 90.00 476.10 Td (As of December 31, 2015, the Company) Tj ET Q q 0 0 0 rg BT 254.41 476.10 Td (s market capitalization, without a control premium, was less than its book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (value suggesting a possible goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 250.63 464.10 Td (The Company engaged a third party valuation firm to assist the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (with its goodwill impairment analysis. Based on the analysis, the Company determined its enterprise value using a discounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 440.10 Td (cash flow analysis and a comparable public company analysis, giving both equal weight, was greater than the Company) Tj ET Q q 0 0 0 rg BT 531.81 440.10 Td (s book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (value by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.66 428.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.99 428.10 Td (. ) Tj ET Q q 0 0 0 rg BT 109.43 428.10 Td (As a result, the Company concluded there was no goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 398.91 428.10 Td (While not a factor used for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 416.10 Td (December 31, 2015 goodwill impairment analysis, the Company's market capitalization increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.91 416.10 Td ($48.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.80 416.10 Td ( as of March ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (14, 2016 which was in excess of its book value at December 31, 2015 by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.10 404.10 Td (58%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.43 404.10 Td (. Declines in the Company) Tj ET Q q 0 0 0 rg BT 471.58 404.10 Td (s market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (capitalization could require the Company to record goodwill and other impairment char) Tj ET Q q 0 0 0 rg BT 399.98 392.10 Td (ges. ) Tj ET Q q 0 0 0 rg BT 418.13 392.10 Td (While a goodwill impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 380.10 Td (ge is a non-cash char) Tj ET Q q 0 0 0 rg BT 150.70 380.10 Td (ge, it would have a negative impact on the Company's results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 359.10 Td (7\) Commitments and Contingencies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Leases and Other) Tj ET Q q 0 0 0 rg BT 124.82 338.10 Td ( Financing Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.10 Td (During the year ended December 31, 2015, the Company acquired computer and network equipment and furniture through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.10 Td (capital leases. Balances for assets acquired under capital lease obligations and included in property and equipment were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 249.60 378.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 249.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 249.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 249.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 225.60 378.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 225.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 225.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 225.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 201.60 378.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 201.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 201.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 201.60 64.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 261.6 m 492.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 261.6 m 496.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 261.6 m 560.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 249.60000000000002 m 492.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 249.60000000000002 m 560.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 249.60000000000002 m 492.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 249.60000000000002 m 560.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 225.60000000000002 m 492.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 225.60000000000002 m 560.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 201.60000000000002 m 492.5 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 201.60000000000002 m 560.5 201.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 189.60000000000002 m 492.5 189.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 189.60000000000002 m 560.5 189.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.75 265.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 253.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 253.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 240.86 Td (Computer and network equipment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 240.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 240.86 Td (511) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 240.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 240.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 228.86 Td (Furniture) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 228.86 Td (287) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 228.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 216.86 Td (Assets acquired under capital lease obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 216.86 Td (798) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 216.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 204.86 Td (Accumulated depreciation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 204.86 Td (\(123) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 204.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 204.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 192.86 Td (Assets acquired under capital lease obligations, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 192.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 192.86 Td (675) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 192.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 192.86 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 169.10 Td (The current and long-term portions of capital leases and other financing obligations were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 125.60 378.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 125.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 125.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 125.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 101.60 378.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 101.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 101.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 101.60 64.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 137.60000000000002 m 492.5 137.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 137.60000000000002 m 496.5 137.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 137.60000000000002 m 560.5 137.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 125.60000000000002 m 492.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 125.60000000000002 m 560.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 125.60000000000002 m 492.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 125.60000000000002 m 560.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 101.60000000000002 m 492.5 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 101.60000000000002 m 560.5 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 101.60000000000002 m 492.5 101.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 89.60000000000002 m 492.5 89.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 101.60000000000002 m 560.5 101.60000000000002 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 89.60000000000002 m 560.5 89.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.75 141.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 129.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 129.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 116.86 Td (Capital leases and other financing obligations, current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 116.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 116.86 Td (502) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 116.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 116.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 104.86 Td (Capital leases and other financing obligations, noncurrent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 104.86 Td (519) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 104.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 92.86 Td (Total capital leases and other financing obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 92.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.75 92.86 Td (1,021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 92.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.00 92.86 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (The Company leases certain of its facilities and some of its equipment under non-cancelable operating lease arrangements. ) Tj ET Q q 0 0 0 rg BT 542.97 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (rental payments under these leases are char) Tj ET Q q 0 0 0 rg BT 222.51 730.10 Td (ged to expense on a straight-line basis over the non-cancelable term of the lease.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.10 Td (Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (excluding property taxes and other operating expenses as ofDecember31, 2015are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 640.60 321.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 640.60 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 640.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 640.60 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 640.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 640.60 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 615.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 615.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 615.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 615.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 615.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 615.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 589.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 589.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 589.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 589.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 589.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 589.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 563.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 563.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 563.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 563.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 563.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 563.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 537.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 537.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 537.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 537.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 537.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 537.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 640.6 m 431.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 640.6 m 496.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 640.6 m 561.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 550.6 m 431.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 550.6 m 496.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 550.6 m 561.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 550.6 m 431.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 550.6 m 496.5 550.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 537.6 m 496.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 550.6 m 561.5 550.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 537.6 m 561.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 524.6 m 431.5 524.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 511.6 m 431.5 511.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.05 668.83 Td (Capital leases) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 660.83 Td (and other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.45 652.83 Td (financing) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.80 644.83 Td (obligations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.90 652.83 Td (Operating) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.70 644.83 Td (leases) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.75 644.83 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 631.86 Td (Years ending December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 619.86 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 619.86 Td (561) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 619.86 Td (1,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 619.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 619.86 Td (1,779) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 606.86 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 606.86 Td (375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 606.86 Td (1,268) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 606.86 Td (1,643) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 593.86 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.50 593.86 Td (179) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 593.86 Td (1,062) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 593.86 Td (1,241) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 580.86 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 580.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 580.86 Td (571) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 580.86 Td (571) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 567.86 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 567.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 567.86 Td (309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 567.86 Td (309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 554.86 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 554.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 554.86 Td (658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 554.86 Td (658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 541.86 Td (Total minimum lease payments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.75 541.86 Td (1,115) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 541.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 541.86 Td (5,086) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 541.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 541.86 Td (6,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 528.86 Td (Less amount representing interest) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.00 528.86 Td (\(94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 528.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 515.86 Td (Present value of net minimum lease payments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 515.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.75 515.86 Td (1,021) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.10 Td (On March 5, 2015, the Company entered into an of) Tj ET Q q 0 0 0 rg BT 254.49 491.10 Td (fice facility lease agreement for space that will serve as its corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 479.10 Td (headquarters. ) Tj ET Q q 0 0 0 rg BT 105.90 479.10 Td (The eighty-nine month lease commenced on September 1, 2015, provides the Company approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.41 479.10 Td (17,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.91 479.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.10 Td (square feet in Minneapolis, Minnesota, with the initial term expiring January 31, 2023. ) Tj ET Q q 0 0 0 rg BT 399.47 467.10 Td (T) Tj ET Q q 0 0 0 rg BT 404.88 467.10 Td (otal base rent payable over the lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.10 Td (period is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 455.10 Td ($1,822,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.22 455.10 Td (. ) Tj ET Q q 0 0 0 rg BT 137.04 455.10 Td (The Company has one option to extend the term of the lease for an additional five year period with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td (respect to the leased premises. ) Tj ET Q q 0 0 0 rg BT 173.66 443.10 Td (The lease agreement allowed the Company to construct leasehold improvements to the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.10 Td (space prior to the ef) Tj ET Q q 0 0 0 rg BT 129.23 431.10 Td (fective date of the lease. ) Tj ET Q q 0 0 0 rg BT 228.07 431.10 Td (As the leasehold improvements are the property of the Company) Tj ET Q q 0 0 0 rg BT 485.96 431.10 Td (, the associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.10 Td (costs, amounting to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.81 419.10 Td ($713,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.31 419.10 Td (, were capitalized in property and equipment as of September 30, 2015 and will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.10 Td (depreciated over the term of the lease. ) Tj ET Q q 0 0 0 rg BT 204.37 407.10 Td (As an incentive to enter into the lease agreement, the lessor provided the Company a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 395.10 Td (one-time tenant improvement allowance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.66 395.10 Td ($689,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.16 395.10 Td ( to apply against the cost of the leasehold improvements. ) Tj ET Q q 0 0 0 rg BT 491.65 395.10 Td (The one-time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (tenant improvement allowance is included in deferred rent and will be amortized as a reduction of rent expense over the term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.10 Td (the lease.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (During the third quarter 2015, the Company recognized an equipment operating lease loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.51 350.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.40 350.10 Td ( relating to equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (the Company no longer plans to utilize as part of it managed services of) Tj ET Q q 0 0 0 rg BT 337.24 338.10 Td (ferings. Under this obligation, there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.19 338.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.86 338.10 Td ( remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (lease payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.14 326.10 Td ($71,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.64 326.10 Td ( payable through the first quarter of 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.10 Td (Rent expense under operating leases amounted to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.47 305.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.37 305.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.37 305.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.26 305.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.70 305.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.59 305.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 293.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.58 293.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.58 293.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.02 293.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.02 293.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 245.68 293.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (The Company is exposed to a number of asserted and unasserted legal claims encountered in the ordinary course of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.34 239.10 Td (Although the outcome of any such legal actions cannot be predicted, management believes that there are no pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (legal proceedings against or involving the Company for which the outcome is likely to have a material adverse ef) Tj ET Q q 0 0 0 rg BT 503.01 227.10 Td (fect upon its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (financial position or results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 194.10 Td (s standard arrangements include provisions indemnifying customers against liabilities if the Company's products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (infringe a third-party) Tj ET Q q 0 0 0 rg BT 136.64 182.10 Td (s intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 253.93 182.10 Td (The Company has not incurred any costs in its continuing operations as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (result of such indemnifications and has not accrued any liabilities related to such contingent obligations in the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (condensed consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (8\) Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.10 Td (The Company issues shares pursuant to the 2007 Stock Incentive Plan \(the 2007 Plan\) which provides for the grant of stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 104.10 Td (incentive awards in the form of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.10 Td (stock units, performance stock, performance units and other awards in stock and/or cash to certain key employees, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 80.10 Td (employee directors and service providers. ) Tj ET Q q 0 0 0 rg BT 219.20 80.10 Td (The exercise price of stock options granted under the 2007 Plan is equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 68.10 Td (market value on the date of grant. ) Tj ET Q q 0 0 0 rg BT 186.62 68.10 Td (As of December 31, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.64 68.10 Td (2,230,320) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.64 68.10 Td ( shares are authorized under the 2007 Plan of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 56.10 Td (337,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 56.10 Td ( were available for future grant. ) 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 301.00 31.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (In addition to awards granted under the 2007 Plan, the Company granted non-qualified options to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.18 742.10 Td (200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.68 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.68 742.10 Td (100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.18 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 730.10 Td (130,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.44 730.10 Td ( shares of its common stock to newly hired senior management level employees on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.25 730.10 Td (April1, 2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.86 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (November26, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.71 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.71 718.10 Td (January7, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.31 718.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.74 718.10 Td (May18, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.57 718.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 326.24 718.10 Td (, all of which were outstanding as of December 31, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (The options in all cases were granted outside of any shareholder) Tj ET Q q 0 0 0 rg BT 306.38 706.10 Td (-approved plan as inducements to accept employment with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Company) Tj ET Q q 0 0 0 rg BT 88.24 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 93.06 694.10 Td (The options have an exercise price equal to the closing price of the Company) Tj ET Q q 0 0 0 rg BT 404.34 694.10 Td (s common stock as reported by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Nasdaq Stock Market on the date of grant, vest in four equal installments on each of the first four anniversaries of the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (grant and have terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.91 670.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.68 670.10 Td ( years. In other respects, the options were structured to mirror the terms of the options granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (under the 2007 Plan and are subject to stock option agreements between the Company and the employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (The Company recognized the following amounts related to the Company) Tj ET Q q 0 0 0 rg BT 344.65 637.10 Td (s share-based payment arrangements \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 593.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 593.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 593.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 593.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 593.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 593.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 567.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 567.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 567.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 567.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 567.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 567.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 541.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 541.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 541.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 541.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 515.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 515.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 515.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 515.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 605.6 m 432.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 605.6 m 436.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 605.6 m 497.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 605.6 m 501.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 605.6 m 562.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 605.6 m 432.5 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 593.6 m 432.5 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 593.6 m 497.5 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 593.6 m 562.5 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 593.6 m 432.5 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 554.6 m 432.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 554.6 m 497.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 554.6 m 562.5 554.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 541.6 m 432.5 541.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 541.6 m 497.5 541.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 541.6 m 562.5 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 502.6 m 432.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 502.6 m 497.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 502.6 m 562.5 502.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 489.6 m 432.5 489.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 489.6 m 497.5 489.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 489.6 m 562.5 489.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 608.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 609.68 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 596.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 597.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 597.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 597.68 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 584.86 Td (Stock-based compensation cost charged against loss, before income tax benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 571.86 Td (Stock options) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 571.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 571.86 Td (686) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 571.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 571.86 Td (812) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 571.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 571.86 Td (928) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 558.86 Td (Restricted stock and restricted stock units) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 558.86 Td (1,148) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 558.86 Td (1,029) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 558.86 Td (507) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 545.86 Td (Total expense included in continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 545.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 545.86 Td (1,834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 545.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 545.86 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 545.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 545.86 Td (1,435) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 532.86 Td (Stock-based compensation cost included in:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 519.86 Td (Cost of revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 519.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 519.86 Td (159) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 519.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 519.86 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 519.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 519.86 Td (25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 506.86 Td (Operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 506.86 Td (1,675) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 506.86 Td (1,786) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 506.86 Td (1,410) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 493.86 Td (Total expense included in continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 493.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 493.86 Td (1,834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 493.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 493.86 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 493.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 493.86 Td (1,435) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 469.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 469.10 Td (, total stock option compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.54 469.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.44 469.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.88 469.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.77 469.10 Td ( was not yet recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.10 Td (related to non-vested option awards and related to non-vested shares and share unit awards, respectively) Tj ET Q q 0 0 0 rg BT 465.60 457.10 Td (, and is expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.10 Td (recognized over a weighted average period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.19 445.10 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.69 445.10 Td ( years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.72 445.10 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.22 445.10 Td ( years, respectively) Tj ET Q q 0 0 0 rg BT 379.48 445.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (In addition to the stock-based compensation costs recognized in continuing operations related to the Company) Tj ET Q q 0 0 0 rg BT 493.78 424.10 Td (s share-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (payment arrangements, stock-based compensation costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.88 412.10 Td ($198,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.38 412.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.81 412.10 Td ($343,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.31 412.10 Td ( are included in discontinued operations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (the years ended December 31, 2014 and 2013, respectively) Tj ET Q q 0 0 0 rg BT 285.38 400.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (Stock Options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (The fair value of each option award is estimated at the date of grant using the Black-Scholes option pricing model. ) Tj ET Q q 0 0 0 rg BT 510.51 358.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (assumptions used to determine the fair value of stock option awards granted were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 304.60 175.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 304.60 116.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 304.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 304.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 304.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 304.60 107.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 278.60 175.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 278.60 116.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 278.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 278.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 278.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.50 278.60 107.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 315.6 m 341.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 315.6 m 345.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 315.6 m 451.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 315.6 m 455.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 315.6 m 562.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 304.6 m 341.5 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 304.6 m 451.5 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 304.6 m 562.5 304.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.20 318.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.00 307.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.00 307.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.50 307.68 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 295.86 Td (Expected life of options in years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.10 295.86 Td (4.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.10 295.86 Td (4.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 295.86 Td (2.00 - 4.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 282.86 Td (Risk-free interest rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.50 282.86 Td (1.3% - 1.6%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.50 282.86 Td (1.4% - 1.6%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 282.86 Td (0.3% - 1.3%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 269.86 Td (Expected volatility) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.00 269.86 Td (34.5% - 53.2%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.00 269.86 Td (33.1% - 34.5%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.50 269.86 Td (31.5% - 43.7%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 256.86 Td (Expected dividend yield) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.60 256.86 Td (0.0%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.60 256.86 Td (0.0%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.10 256.86 Td (0.0%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (The Company reviews these assumptions at the time of each new option award and adjusts them as necessary to ensure proper ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.10 Td (option valuation. ) Tj ET Q q 0 0 0 rg BT 120.09 220.10 Td (The expected life represents the period that the stock option awards are expected to be outstanding. Ef) Tj ET Q q 0 0 0 rg BT 528.37 220.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.10 Td (April 2008, the Company) Tj ET Q q 0 0 0 rg BT 154.99 208.10 Td (s Board of Directors approved a change in the contractual term of stock options granted to employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.94 196.10 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.16 196.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.93 196.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.70 196.10 Td ( years. Given the reduction in the contractual term of its employee stock option awards, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (determined it was unable to rely on its historical exercise data as a basis for estimating the expected life of stock options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (granted to employees subsequent to this change. ) Tj ET Q q 0 0 0 rg BT 244.96 172.10 Td (As such, the Company used the simplified method for determining the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (expected life of stock options granted to employees in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.55 160.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.55 160.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.55 160.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.55 160.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.99 160.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.99 160.10 Td (, which bases the expected life calculation on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (average of the vesting term and the contractual term of the awards. ) Tj ET Q q 0 0 0 rg BT 319.43 148.10 Td (The risk-free interest rate is based on the yield of constant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (maturity U.S. treasury bonds with a remaining term equal to the expected life of the awards. ) Tj ET Q q 0 0 0 rg BT 420.54 136.10 Td (The Company estimated the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (price volatility using weekly price observations over the most recent historical period equal to the expected life of the awards. ) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 742.10 Td ( summary of share option activity is presented in the table below \(in thousands, except per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 669.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 669.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 669.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 669.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 669.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 669.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 669.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 669.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 643.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 643.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 643.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 643.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 643.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 643.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 643.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 643.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 617.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 617.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 617.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 617.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 617.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 617.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 617.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 617.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 591.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 591.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 591.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 591.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 591.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 591.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 591.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 591.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 565.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 565.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 565.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 565.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 565.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 565.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 565.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 565.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 539.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 539.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 539.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 539.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 539.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 539.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 539.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 539.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 513.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 513.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 513.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 513.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 513.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 513.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 513.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 513.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 487.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 487.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 487.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 487.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 487.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 487.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 487.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 487.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 461.60 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 461.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 461.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 461.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 461.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 461.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 461.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 461.60 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 669.6 m 361.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 669.6 m 422.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 669.6 m 492.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 669.6 m 562.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 669.6 m 361.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 669.6 m 422.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 669.6 m 492.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 669.6 m 562.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 617.6 m 361.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 565.6 m 361.5 565.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 513.6 m 361.5 513.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 500.6 m 361.5 500.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.00 673.83 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.25 689.83 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.55 681.83 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.25 673.83 Td (Exercise Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.75 713.83 Td (W) Tj ET Q q 0 0 0 rg BT 450.31 713.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.05 705.83 Td (A) Tj ET Q q 0 0 0 rg BT 450.23 705.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.30 697.83 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.30 689.83 Td (Contractual ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.80 681.83 Td (T) Tj ET Q q 0 0 0 rg BT 454.40 681.83 Td (erm) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.85 673.83 Td (\(in years\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.50 681.83 Td (Aggr) Tj ET Q q 0 0 0 rg BT 528.68 681.83 Td (egate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.70 673.83 Td (Intrinsic ) Tj ET Q q 0 0 0 rg BT 531.89 673.83 Td (V) Tj ET Q q 0 0 0 rg BT 536.93 673.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 551.16 677.46 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 660.86 Td (Options outstanding at December 31, 2012) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 660.86 Td (1,925) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 660.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 660.86 Td (13.81) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 660.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 660.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 647.86 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 647.86 Td (389) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 647.86 Td (11.78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 647.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 647.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 634.86 Td (Exercised) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.50 634.86 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 634.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.25 634.86 Td (9.26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 634.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 634.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 621.86 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 621.86 Td (\(565) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 621.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 621.86 Td (15.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 621.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 621.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 608.86 Td (Options outstanding at December 31, 2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 608.86 Td (1,748) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 608.86 Td (12.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 595.86 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 595.86 Td (133) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 595.86 Td (14.58) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 582.86 Td (Exercised) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.00 582.86 Td (\(86) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 582.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 582.86 Td (12.28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 569.86 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 569.86 Td (\(160) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 569.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 569.86 Td (15.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 556.86 Td (Options outstanding at December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 556.86 Td (1,635) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 556.86 Td (12.84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 543.86 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 543.86 Td (617) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.25 543.86 Td (4.73) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 543.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 543.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 530.86 Td (Exercised) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.00 530.86 Td (\(20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 530.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.25 530.86 Td (7.27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 530.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 530.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 517.86 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 517.86 Td (\(419) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 517.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 517.86 Td (13.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 517.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 517.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 504.86 Td (Options outstanding at December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 504.86 Td (1,813) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 504.86 Td (10.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.75 504.86 Td (4.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 504.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 504.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 491.86 Td (Total vested and expected to vest as of December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 478.86 Td (Options exercisable as of:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 465.86 Td (December 31, 2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 465.86 Td (881) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 465.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 465.86 Td (15.55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 452.86 Td (December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 452.86 Td (1,003) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 452.86 Td (14.15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 439.86 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.50 439.86 Td (969) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 439.86 Td (13.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.75 439.86 Td (2.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.00 439.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 439.86 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F4 6.00 Tf ET q 0 0 0 rg BT 50.00 425.90 Td (________________________________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 50.00 416.18 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 412.10 Td (Aggregate intrinsic value includes only those options with intrinsic value \(options where the exercise price is below the market value\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.10 Td (Other information pertaining to options is as follows \(in thousands, except per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 347.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 347.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 347.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 347.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 347.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 347.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 321.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 321.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 321.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 321.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 321.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 321.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 359.6 m 432.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 359.6 m 436.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 359.6 m 497.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 359.6 m 501.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 359.6 m 562.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 359.6 m 432.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 347.6 m 432.5 347.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 359.6 m 497.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 347.6 m 497.5 347.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 347.6 m 562.5 347.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 362.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 363.68 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 350.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 351.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 351.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 351.68 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 338.86 Td (Fair value of options granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 338.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 338.86 Td (1,119) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 338.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 338.86 Td (612) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 338.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 338.86 Td (1,382) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 325.86 Td (Per share weighted average fair value of options granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 325.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.25 325.86 Td (1.81) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 325.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 325.86 Td (4.60) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 325.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.25 325.86 Td (3.55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 312.86 Td (Total intrinsic value of stock options exercised) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 312.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 312.86 Td (131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 312.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 312.86 Td (242) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 312.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 312.86 Td (2) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (The aggregate impact of the exercise of stock options, expirations of vested stock options and lapse of restrictions on restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (stock generated a net tax impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.88 276.10 Td ($7,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.38 276.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.38 276.10 Td ($6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.88 276.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.32 276.10 Td ($13,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.82 276.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.60 276.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.60 276.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.60 276.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.60 276.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.04 276.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.04 276.10 Td ( respectively) Tj ET Q q 0 0 0 rg BT 451.20 276.10 Td (, recorded as a reduction in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (additional paid-in capital.) 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 301.00 31.60 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Restricted Stock and Restrict Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Restricted stock and restricted stock units are valued based on the market value of the Company) Tj ET Q q 0 0 0 rg BT 436.83 721.25 Td (s shares on the date of grant, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (which was equal to the intrinsic value of the shares on that date. ) Tj ET Q q 0 0 0 rg BT 308.08 709.25 Td (These awards vest and the restrictions lapse over varying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.25 Td (periods from the date of grant. ) Tj ET Q q 0 0 0 rg BT 173.95 697.25 Td (The Company recognizes compensation expense for the intrinsic value of the restricted awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.25 Td (ratably over the vesting period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 664.25 Td ( summary of restricted stock and restricted stock units activity is presented in the table below \(in thousands, except per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 604.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 604.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 604.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 578.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 578.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 578.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 578.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 552.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 552.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 552.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 552.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 526.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 526.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 526.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 526.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 500.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 500.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 500.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 500.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 474.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 474.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 474.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 474.75 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 448.75 361.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 448.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 448.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 448.75 81.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 604.75 m 477.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 604.75 m 562.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 604.75 m 477.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 604.75 m 562.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 552.75 m 477.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 500.75 m 477.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 448.75 m 477.5 448.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 435.75 m 477.5 435.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.50 616.98 Td (Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 608.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.55 624.83 Td (W) Tj ET Q q 0 0 0 rg BT 498.11 624.83 Td (eighted ) Tj ET Q q 0 0 0 rg BT 524.55 624.83 Td (A) Tj ET Q q 0 0 0 rg BT 529.74 624.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.45 616.83 Td (Grant-Date Fair) Tj ET Q q 0 0 0 rg BT 549.51 616.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 608.83 Td (V) Tj ET Q q 0 0 0 rg BT 516.89 608.83 Td (alue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 596.01 Td (Nonvested at December 31, 2012) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 596.01 Td (150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 596.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 596.01 Td (11.21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 583.01 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.00 583.01 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 583.01 Td (10.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 570.01 Td (Vested) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 570.01 Td (\(66) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 570.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 570.01 Td (10.72) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 557.01 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 557.01 Td (\(21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 557.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 557.01 Td (11.46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 544.01 Td (Nonvested at December 31, 2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 544.01 Td (118) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 544.01 Td (10.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 531.01 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 531.01 Td (184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 531.01 Td (14.92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 518.01 Td (Vested) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 518.01 Td (\(76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 518.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 518.01 Td (10.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 505.01 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 505.01 Td (\(12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 505.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 505.01 Td (10.63) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 492.01 Td (Nonvested at December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 492.01 Td (214) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 492.01 Td (14.59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 479.01 Td (Granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 479.01 Td (129) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.25 479.01 Td (9.96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 466.01 Td (Vested) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 466.01 Td (\(92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 466.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 466.01 Td (14.52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 453.01 Td (Canceled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.00 453.01 Td (\(76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 453.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 453.01 Td (12.64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 440.01 Td (Nonvested at December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.50 440.01 Td (175) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.00 440.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 440.01 Td (12.05) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.25 Td (Other information pertaining to restricted stock and restricted stock units is as follows \(in thousands, except per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 371.75 321.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 371.75 61.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 371.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 371.75 61.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 371.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 371.75 61.00 -24.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 383.75 m 432.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 383.75 m 436.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 383.75 m 497.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 383.75 m 501.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 383.75 m 562.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 383.75 m 432.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 371.75 m 432.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 383.75 m 497.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 371.75 m 497.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 371.75 m 562.5 371.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 387.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 387.83 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 375.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 375.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 375.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 375.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 361.21 Td (Per share weighted average grant-date fair value of restricted stock and restricted stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 352.21 Td (units granted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 352.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.25 352.21 Td (9.96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 352.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 352.21 Td (14.92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 352.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 352.21 Td (10.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 338.21 Td (Total fair value of restricted stock and restricted stock units vested) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 338.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.50 338.21 Td (667) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 338.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 338.21 Td (1,076) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 338.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 338.21 Td (593) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 313.25 Td (9\) Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.25 Td (Since October 2010, the Company) Tj ET Q q 0 0 0 rg BT 190.81 292.25 Td (s Board of Directors has approved common stock repurchases of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.62 292.25 Td (3,500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.62 292.25 Td ( shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (Shares may be purchased at prevailing market prices in the open market or in private transactions, subject to market conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (share price, trading volume and other factors. ) Tj ET Q q 0 0 0 rg BT 233.92 268.25 Td (The repurchase program may be discontinued at any time. ) Tj ET Q q 0 0 0 rg BT 468.65 268.25 Td (The repurchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.25 Td (program has been funded to date using cash on hand. ) Tj ET Q q 0 0 0 rg BT 264.48 256.25 Td (The Company repurchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.72 256.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.72 256.25 Td ( shares under the share repurchase program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (during the years ended December 31, 2015, 2014 and 2013. ) Tj ET Q q 0 0 0 rg BT 290.77 244.25 Td (As of December 31, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.80 244.25 Td (778,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.30 244.25 Td ( shares were available under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.25 Td (Board authorizations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (10\) 401\(K\) Savings Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (The Company has a savings plan under Section 401\(k\) of the Internal Revenue Code. ) Tj ET Q q 0 0 0 rg BT 393.90 178.25 Td (The plan allows employees to contribute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.78 166.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.11 166.25 Td ( of pretax compensation. ) Tj ET Q q 0 0 0 rg BT 197.29 166.25 Td (The Company matches a percentage of employees) Tj ET Q q 0 0 0 rg BT 400.90 166.25 Td ( contributions. Matching contributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.71 154.25 Td ($359,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.21 154.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.21 154.25 Td ($324,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.71 154.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.15 154.25 Td ($1) Tj ET Q q 0 0 0 rg BT 188.78 154.25 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.28 154.25 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.63 154.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.22 154.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.22 154.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.22 154.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 154.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 154.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 493.32 154.25 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 301.00 31.60 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (1) Tj ET Q q 0 0 0 rg BT 54.45 742.25 Td (1\) Income ) Tj ET Q q 0 0 0 rg BT 99.26 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.01 742.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 727.25 Td (The components of loss before income taxes consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 689.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 689.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 689.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 689.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 689.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 689.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 663.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 663.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 663.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 663.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 663.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 663.75 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 701.75 m 432.5 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 701.75 m 436.5 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 701.75 m 497.5 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 701.75 m 501.5 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 701.75 m 562.5 701.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 689.75 m 432.5 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 689.75 m 497.5 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 689.75 m 562.5 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 650.75 m 432.5 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 650.75 m 497.5 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 650.75 m 562.5 650.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 637.75 m 432.5 637.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 637.75 m 497.5 637.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 637.75 m 562.5 637.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 705.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 705.83 Td (Year Ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 693.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 693.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 693.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 693.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 681.01 Td (Loss before income taxes:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 681.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 681.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 681.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 668.01 Td (Domestic) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 668.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 668.01 Td (\(26,889) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 668.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 668.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 668.01 Td (\(26,271) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 668.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 668.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 668.01 Td (\(18,450) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 668.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 655.01 Td (Foreign) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.75 655.01 Td (\(2,639) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 655.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 655.01 Td (\(2,636) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 655.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 655.01 Td (\(1,167) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 655.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 642.01 Td (Total loss before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 642.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 642.01 Td (\(29,528) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 642.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 642.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 642.01 Td (\(28,907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 642.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 642.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 642.01 Td (\(19,617) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 642.01 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (The provision for income tax expense \(benefit\) consists of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 573.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 573.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 573.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 573.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 573.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 573.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 547.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 547.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 547.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 547.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 547.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 547.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 521.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 521.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 521.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 521.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 495.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 495.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 495.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 495.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 469.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 469.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 469.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 469.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 469.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 469.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 443.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 443.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 443.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 443.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 443.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 443.75 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 585.75 m 432.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 585.75 m 436.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 585.75 m 497.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 585.75 m 501.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 585.75 m 562.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 573.75 m 432.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 573.75 m 497.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 573.75 m 562.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 521.75 m 432.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 521.75 m 497.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 521.75 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 371.5 508.75 m 432.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 521.75 m 497.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 508.75 m 497.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 521.75 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 501.5 508.75 m 562.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 456.75 m 432.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 456.75 m 497.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 456.75 m 562.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 443.75 m 432.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 456.75 m 497.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 443.75 m 497.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 456.75 m 562.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 443.75 m 562.5 443.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 430.75 m 432.5 430.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 443.75 m 497.5 443.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 430.75 m 497.5 430.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 443.75 m 562.5 443.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 430.75 m 562.5 430.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 589.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 589.83 Td (Year Ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 210.50 577.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 577.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 577.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 577.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 565.01 Td (Current:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 565.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 565.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 565.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 552.01 Td (U.S. Federal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 552.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.50 552.01 Td (\(3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 552.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 552.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 552.01 Td (\(122) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 552.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 552.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 552.01 Td (\(627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 552.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 539.01 Td (State) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 539.01 Td (27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 539.01 Td (35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 539.01 Td (28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 526.01 Td (Foreign) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 526.01 Td (\(817) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 526.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.00 526.01 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 526.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 526.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 513.01 Td (Total current) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 513.01 Td (\(793) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 513.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 513.01 Td (\(183) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 513.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 513.01 Td (\(599) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 513.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 500.01 Td (Deferred:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 500.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 500.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 500.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 487.01 Td (U.S. Federal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 487.01 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 487.01 Td (\(5,693) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 487.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 487.01 Td (\(2,475) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 487.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 474.01 Td (State) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 474.01 Td (\(47) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 474.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 474.01 Td (\(562) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 474.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 474.01 Td (\(322) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 474.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 461.01 Td (Foreign) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 461.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 461.01 Td (\(126) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 461.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 461.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 448.01 Td (Total deferred) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 448.01 Td (\(46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 448.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 448.01 Td (\(6,381) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 448.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 448.01 Td (\(2,797) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 448.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 435.01 Td (Total provision for income tax expense \(benefit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 435.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 435.01 Td (\(839) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 435.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 435.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 435.01 Td (\(6,564) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 435.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 435.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 435.01 Td (\(3,396) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 435.01 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 410.25 Td (otal income tax expense \(benefit\) dif) Tj ET Q q 0 0 0 rg BT 202.11 410.25 Td (fers from the expected income tax expense \(benefit\), computed by applying the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.81 398.25 Td (34%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.14 398.25 Td ( to earnings before income taxes as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 354.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 354.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 354.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 354.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 354.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 354.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 328.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 328.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 328.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 328.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 328.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 328.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 302.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 302.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 302.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 302.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 302.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 302.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 276.75 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 276.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 276.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 276.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 276.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 276.75 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 366.75 m 432.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 366.75 m 436.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 366.75 m 497.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 366.75 m 501.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 366.75 m 562.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 366.75 m 432.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 354.75 m 432.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 366.75 m 497.5 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 354.75 m 497.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 354.75 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 371.5 354.75 m 432.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 354.75 m 497.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 354.75 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 371.5 263.75 m 432.5 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 263.75 m 497.5 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 263.75 m 562.5 263.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 250.75 m 432.5 250.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 263.75 m 497.5 263.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 250.75 m 497.5 250.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 263.75 m 562.5 263.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 250.75 m 562.5 250.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 370.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.20 370.83 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 358.01 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 358.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 358.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 358.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 346.01 Td (Expected income tax expense \(benefit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 346.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 346.01 Td (\(10,040) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 346.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 346.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 346.01 Td (\(9,828) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 346.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 346.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 346.01 Td (\(6,671) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 346.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 333.01 Td (State income taxes, net of federal tax effect) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 333.01 Td (\(830) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 333.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 333.01 Td (\(347) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 333.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 333.01 Td (\(549) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 333.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 320.01 Td (Change in tax rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 320.01 Td (48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 320.01 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 320.01 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 307.01 Td (Federal R&D credit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 307.01 Td (\(82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 307.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.00 307.01 Td (\(88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 307.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 307.01 Td (\(57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 307.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 294.01 Td (Change in valuation allowance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 294.01 Td (9,906) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 294.01 Td (2,957) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 294.01 Td (3,659) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 281.01 Td (Foreign tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 281.01 Td (80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 281.01 Td (690) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 281.01 Td (108) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 268.01 Td (Other, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 268.01 Td (79) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 268.01 Td (32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 268.01 Td (113) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 255.01 Td (Total provision for income tax expense \(benefit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 255.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 255.01 Td (\(839) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 255.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 255.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 255.01 Td (\(6,564) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 255.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 255.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 255.01 Td (\(3,396) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 255.01 Td (\)) 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 301.00 31.60 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (The tax ef) Tj ET Q q 0 0 0 rg BT 90.35 742.10 Td (fects of temporary dif) Tj ET Q q 0 0 0 rg BT 177.08 742.10 Td (ferences that give rise to significant portions of deferred tax assets \(liabilities\) are presented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 685.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 685.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 685.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 685.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 659.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 659.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 659.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 659.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 633.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 633.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 633.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 633.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 607.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 607.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 607.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 607.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 581.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 581.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 581.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 581.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 555.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 555.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 555.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 529.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 529.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 529.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 529.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 503.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 503.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 503.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 503.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 477.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 477.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 477.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 477.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 696.6 m 497.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 696.6 m 501.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 696.6 m 562.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 685.6 m 497.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 685.6 m 562.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 568.6 m 497.5 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 568.6 m 562.5 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 568.6 m 562.5 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 542.6 m 497.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 529.6 m 497.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 542.6 m 562.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 529.6 m 562.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 490.6 m 497.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 490.6 m 562.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 477.6 m 497.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 490.6 m 562.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 477.6 m 562.5 477.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 464.6 m 497.5 464.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 464.6 m 562.5 464.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 701.06 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.75 700.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 688.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 688.68 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 677.00 Td (Deferred tax assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 676.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 676.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 663.86 Td (Inventory provisions and uniform capitalization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 663.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 663.86 Td (24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 663.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 663.86 Td (35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 650.86 Td (Accounts receivable allowances) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.50 650.86 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 650.86 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 637.86 Td (Non-qualified stock option and restricted stock expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 637.86 Td (1,789) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 637.86 Td (2,176) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 624.86 Td (Deferred maintenance revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 624.86 Td (76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 624.86 Td (221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 611.86 Td (Loss and credit carryforwards of U.S. subsidiary) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 611.86 Td (28,366) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 611.86 Td (19,153) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 598.86 Td (Loss carryforward of foreign subsidiaries) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 598.86 Td (382) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 598.86 Td (221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 585.86 Td (Other accruals and reserves) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 585.86 Td (1,108) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 585.86 Td (907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 572.86 Td (Other) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 572.86 Td (122) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 572.86 Td (33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 559.86 Td (Total deferred tax assets before valuation allowance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 559.86 Td (31,876) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 559.86 Td (22,766) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 546.86 Td (Less valuation allowance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 546.86 Td (\(28,928) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 546.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 546.86 Td (\(19,916) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 546.86 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 534.00 Td (Total deferred tax assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 533.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 533.86 Td (2,948) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 533.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 533.86 Td (2,850) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 521.00 Td (Deferred tax liabilities:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 520.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 520.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 507.86 Td (Acquired intangibles) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 507.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 507.86 Td (\(3,067) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 507.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 507.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 507.86 Td (\(3,865) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 507.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 494.86 Td (Fixed Assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 494.86 Td (\(399) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 494.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 494.86 Td (\(100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 494.86 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 482.00 Td (Total deferred tax liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 481.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.75 481.86 Td (\(3,466) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 481.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 481.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 481.86 Td (\(3,965) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 481.86 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 469.00 Td (Total net deferred tax assets \(liabilities\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 468.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.50 468.86 Td (\(518) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 468.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 468.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 468.86 Td (\(1,115) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 468.86 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 444.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.03 444.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 444.10 Td (, the Company had net operating loss carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.52 444.10 Td ($68.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.41 444.10 Td ( for U.S. federal tax purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 432.10 Td (The Company also had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.98 432.10 Td ($58.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.87 432.10 Td ( of various state net operating loss carryforwards. ) Tj ET Q q 0 0 0 rg BT 398.91 432.10 Td (The loss carryforwards for federal tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 420.10 Td (purposes will expire between 2023 and 2035 if not utilized. ) Tj ET Q q 0 0 0 rg BT 290.04 420.10 Td (The loss carryforwards for state tax purposes will expire between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 408.10 Td (2022 and 2035 if not utilized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.03 387.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 387.10 Td (, the Company had federal and state research and development credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 387.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.55 387.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (net of Section 383 limitations, which will begin to expire in 2022 if not utilized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (As a result of its acquisition of Qumu, Inc. in October 201) Tj ET Q q 0 0 0 rg BT 282.64 354.10 Td (1, utilization of U.S. net operating losses and tax credits of Qumu, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (Inc. are subject to annual limitations under Internal Revenue Code Sections 382 and 383, respectively) Tj ET Q q 0 0 0 rg BT 456.46 342.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (The Company assessed that the valuation allowance against its U.S. deferred tax assets is still appropriate as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (2015, based on the consideration of all available positive and negative evidence, using the more likely than not standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (required by ) Tj ET Q q 0 0 0 rg BT 97.76 297.10 Td (ASC 740, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 139.72 297.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 176.29 297.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.06 297.10 Td (. ) Tj ET Q q 0 0 0 rg BT 198.88 297.10 Td (The valuation allowance will be reviewed quarterly and will be maintained until suf) Tj ET Q q 0 0 0 rg BT 534.14 297.10 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (positive evidence exists to support the reversal of the valuation allowance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (The Company generally believes that it is more likely than not that the future results of the operations of its subsidiaries in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td (U.K. will generate suf) Tj ET Q q 0 0 0 rg BT 138.40 252.10 Td (ficient taxable income due to the reversal of deferred tax liabilities to realize the tax benefits related to its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (deferred tax assets. ) Tj ET Q q 0 0 0 rg BT 128.30 240.10 Td (As of December 31, 2015, the Company had a cumulative foreign tax loss carryforward of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.91 240.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.80 240.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (the U.K. ) Tj ET Q q 0 0 0 rg BT 86.48 228.10 Td (This amount can be carried forward indefinitely) Tj ET Q q 0 0 0 rg BT 277.42 228.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (The Company has not provided deferred taxes on unremitted earnings attributable to its international subsidiaries that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (considered to be reinvested indefinitely) Tj ET Q q 0 0 0 rg BT 207.08 195.10 Td (. ) Tj ET Q q 0 0 0 rg BT 211.52 195.10 Td (Accumulated undistributed foreign earnings relate primarily to operations of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (Company's subsidiaries in Japan and the U.K. and amount to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.91 183.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 183.10 Td ( as of December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 512.37 183.10 Td (The amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (of cash, cash equivalent and marketable securities held by the Company's international subsidiaries that are not available to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (fund domestic operations unless repatriated was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.39 159.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.28 159.10 Td ( as of December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 400.84 159.10 Td (The Company currently does not intend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (to repatriate the cash and related balances held by its international subsidiaries. However) Tj ET Q q 0 0 0 rg BT 404.75 147.10 Td (, if circumstances change and these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (funds are needed to meet cash requirements in the U.S., the Company may be required to accrue and pay U.S. taxes, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.10 Td (related foreign tax credits, to repatriate these funds. Based on current tax laws and structures, the Company does not believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.10 Td (this would have a material impact on its consolidated financial statements and cash flows.) 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 301.00 31.60 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 742.10 Td ( reconciliation of the beginning and ending amounts of gross unrecognized tax benefits for the years ended December 31 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (presented in the table below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 686.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 686.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 686.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 686.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 660.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 660.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 660.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 660.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 634.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 634.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 634.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 634.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 608.60 386.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 608.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 608.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 608.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 698.6 m 497.5 698.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 698.6 m 501.5 698.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 698.6 m 562.5 698.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 686.6 m 497.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 686.6 m 562.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 686.6 m 497.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 686.6 m 562.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 634.6 m 497.5 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 634.6 m 562.5 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 608.6 m 497.5 608.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 608.6 m 562.5 608.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 608.6 m 497.5 608.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 595.6 m 497.5 595.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 595.6 m 562.5 595.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 701.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.70 702.68 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 689.86 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 690.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 690.68 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 677.86 Td (Gross unrecognized tax benefits at beginning of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 677.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 677.86 Td (900) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 677.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 677.86 Td (1,036) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 664.86 Td (Increases related to:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 664.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 664.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 651.86 Td (Prior year income tax positions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.50 651.86 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 651.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 638.86 Td (Current year income tax positions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 638.86 Td (68) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 638.86 Td (64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 625.86 Td (Decreases related to:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 625.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 625.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 612.86 Td (Prior year income tax positions - closure of statute of limitations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 612.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 612.86 Td (\(200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 612.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 599.86 Td (Gross unrecognized tax benefits at end of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 599.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 599.86 Td (970) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 599.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 599.86 Td (900) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 575.10 Td (Included in the balance of unrecognized tax benefits at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.88 575.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.88 575.10 Td ( are potential benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.56 575.10 Td ($9,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.06 575.10 Td ( that if recognized, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 563.10 Td (would af) Tj ET Q q 0 0 0 rg BT 85.09 563.10 Td (fect the ef) Tj ET Q q 0 0 0 rg BT 124.88 563.10 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 189.10 563.10 Td (The Company does not anticipate that the total amount of unrecognized tax benefits as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 551.10 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.58 551.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 551.10 Td ( will change significantly by December 31, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (expense. ) Tj ET Q q 0 0 0 rg BT 87.03 518.10 Td (T) Tj ET Q q 0 0 0 rg BT 92.44 518.10 Td (otal accrued interest and penalties amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.64 518.10 Td ($4,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.14 518.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.58 518.10 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.08 518.10 Td ( on a gross basis at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.43 518.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.43 518.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.87 518.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.87 518.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 506.10 Td (, and are excluded from the reconciliation of unrecognized tax benefits presented above. Interest and penalties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (recognized in the Consolidated Statements of Operations related to uncertain tax positions amounted to a net tax benefit in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 482.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.33 482.10 Td ($3,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.83 482.10 Td ( and net tax expense in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.69 482.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.69 482.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.02 482.10 Td ($18,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.52 482.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 461.10 Td (The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. ) Tj ET Q q 0 0 0 rg BT 501.56 461.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.10 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.58 449.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 449.10 Td (, the Company was no longer subject to income tax examinations for taxable years before 2013 in the case ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 437.10 Td (of U.S. federal taxing authorities, and taxable years generally before 201) Tj ET Q q 0 0 0 rg BT 340.35 437.10 Td (1 in the case of state taxing authorities, consisting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 425.10 Td (primarily of Minnesota and California.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (12\) Computation of Net Loss Fr) Tj ET Q q 0 0 0 rg BT 185.64 404.10 Td (om Continuing Operations Per) Tj ET Q q 0 0 0 rg BT 317.41 404.10 Td ( Shar) Tj ET Q q 0 0 0 rg BT 340.29 404.10 Td (e of Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (The following table identifies the components of net loss from continuing operations per basic and diluted share \(in thousands, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.10 Td (except for per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 327.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 327.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 327.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 327.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 327.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 327.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 301.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 301.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 301.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 301.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 301.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 301.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 275.60 321.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 275.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 275.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 275.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 275.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 275.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 339.6 m 432.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 339.6 m 436.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 339.6 m 497.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 339.6 m 501.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 339.6 m 562.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 339.6 m 432.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 327.6 m 432.5 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 327.6 m 497.5 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 327.6 m 562.5 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 327.6 m 432.5 327.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 314.6 m 432.5 314.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 314.6 m 497.5 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 327.6 m 562.5 327.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 314.6 m 562.5 314.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 314.6 m 432.5 314.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 314.6 m 497.5 314.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 314.6 m 562.5 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 288.6 m 432.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 288.6 m 497.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 288.6 m 562.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 288.6 m 432.5 288.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 275.6 m 432.5 275.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 275.6 m 497.5 275.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 288.6 m 562.5 288.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 275.6 m 562.5 275.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 275.6 m 432.5 275.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 275.6 m 497.5 275.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 275.6 m 562.5 275.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 342.86 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 416.65 343.00 Td (Year Ended December 31,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 330.86 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 331.00 Td (2015) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 457.50 331.00 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.50 331.00 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 318.86 Td (Shares outstanding at end of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 318.86 Td (9,189) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 318.86 Td (9,127) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 318.86 Td (8,674) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 305.86 Td (Basic weighted average shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 305.86 Td (9,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 305.86 Td (8,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 305.86 Td (8,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 292.86 Td (Dilutive effect of stock options and restricted stock units) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 292.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 292.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 292.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 279.86 Td (Total diluted weighted average shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 279.86 Td (9,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 279.86 Td (8,836) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 279.86 Td (8,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 266.86 Td (Net loss from continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 266.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.25 266.86 Td (\(28,689) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 266.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 266.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.25 266.86 Td (\(22,343) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 266.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 266.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 266.86 Td (\(16,221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 266.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 253.86 Td (Net loss from continuing operations per basic and diluted share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.25 253.86 Td (\(3.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 253.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.25 253.86 Td (\(2.53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 253.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 253.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 253.86 Td (\(1.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 253.86 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.10 Td (Stock options and restricted stock units to acquire weighted average common shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.18 229.10 Td (1,676,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.18 229.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.18 229.10 Td (1,724,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.18 229.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.62 229.10 Td (1,921,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.62 229.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.69 217.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.28 217.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.28 217.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.28 217.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.71 217.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.71 217.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 310.38 217.10 Td (, have been excluded from the computation of diluted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 205.10 Td (weighted average shares outstanding for each respective period as their ef) Tj ET Q q 0 0 0 rg BT 344.69 205.10 Td (fect is anti-dilutive.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (13\) Significant Customers and Geographic Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (Customers accounting for more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 286.62 163.10 Td (s total revenue are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 121.60 312.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 121.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 121.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 121.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 121.60 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 121.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 121.60 63.00 -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 366.5 132.60000000000002 m 429.5 132.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 132.60000000000002 m 433.5 132.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 132.60000000000002 m 495.5 132.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 132.60000000000002 m 499.5 132.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 132.60000000000002 m 562.5 132.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 121.60000000000002 m 362.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 121.60000000000002 m 429.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 121.60000000000002 m 495.5 121.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 121.60000000000002 m 562.5 121.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.05 135.68 Td (Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 124.68 Td (Revenues) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.50 124.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.00 124.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 124.68 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 112.06 Td (Customer A) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 112.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.75 112.06 Td (4,375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 112.06 Td (*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 112.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 112.06 Td (1,941) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 100.90 Td (_________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.90 Td (* Sales did not exceed 10% ) 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 301.00 31.60 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Customers accounting for more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 286.62 742.10 Td (s accounts receivable are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 696.60 312.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 696.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 696.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 696.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 696.60 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 696.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 696.60 63.00 -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 366.5 709.6 m 429.5 709.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 709.6 m 433.5 709.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 709.6 m 495.5 709.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 709.6 m 499.5 709.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 709.6 m 562.5 709.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 696.6 m 362.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 696.6 m 429.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 696.6 m 495.5 696.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 696.6 m 562.5 696.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.75 713.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 700.83 Td (Accounts Receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.50 700.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.00 700.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 700.83 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 687.06 Td (Customer A) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 687.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.75 687.06 Td (1,144) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 687.06 Td (*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 687.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 687.06 Td (294) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 673.06 Td (Customer B) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 673.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.75 673.06 Td (1,173) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 673.06 Td (*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 673.06 Td (*) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 661.90 Td (_________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.90 Td (* ) Tj ET Q q 0 0 0 rg BT 56.95 646.90 Td (Accounts receivable balance did not exceed 10% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.90 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 625.90 Td (s revenues from each of its principal geographic regions are presented based on customer location as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 613.90 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 572.40 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 572.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 572.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 572.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 572.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 572.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 572.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 546.40 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 546.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 546.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 546.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 546.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 546.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 546.40 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 583.4 m 432.5 583.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 583.4 m 436.5 583.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 583.4 m 497.5 583.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 583.4 m 501.5 583.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 583.4 m 562.5 583.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 572.4 m 432.5 572.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 572.4 m 497.5 572.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 572.4 m 562.5 572.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 533.4 m 432.5 533.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 533.4 m 497.5 533.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 533.4 m 562.5 533.4 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 520.4 m 432.5 520.4 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 520.4 m 497.5 520.4 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 520.4 m 562.5 520.4 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.55 586.48 Td (Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 575.48 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 575.48 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 575.48 Td (2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 563.66 Td (North America) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 563.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 563.66 Td (25,254) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 563.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 563.66 Td (22,634) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 563.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 563.66 Td (13,273) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 550.66 Td (Europe) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 550.66 Td (8,128) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 550.66 Td (2,712) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 550.66 Td (4,463) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 537.66 Td (Asia) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.75 537.66 Td (1,072) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 537.66 Td (1,175) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 537.66 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 524.66 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 524.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.25 524.66 Td (34,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 524.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.25 524.66 Td (26,521) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 524.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 524.66 Td (17,736) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.90 Td (Net property and equipment of the Company were located as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 458.40 382.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 458.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 458.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 458.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 458.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 432.40 382.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 432.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 432.40 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 432.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 432.40 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 469.4 m 497.5 469.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 469.4 m 501.5 469.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 469.4 m 562.5 469.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 458.4 m 497.5 458.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 458.4 m 562.5 458.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 419.4 m 497.5 419.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 419.4 m 562.5 419.4 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 406.4 m 497.5 406.4 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 406.4 m 562.5 406.4 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.75 472.48 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 461.48 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 461.48 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 449.66 Td (North America) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 449.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 449.66 Td (2,715) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 449.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 449.66 Td (1,748) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 436.66 Td (Europe) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 436.66 Td (209) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 436.66 Td (132) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 423.66 Td (Asia) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 423.66 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 423.66 Td (19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 410.66 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 410.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 410.66 Td (2,942) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 410.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 410.66 Td (1,899) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 385.90 Td (14\) Supplemental Quarterly Data Unaudited \(In thousands, except per) Tj ET Q q 0 0 0 rg BT 358.17 385.90 Td ( shar) Tj ET Q q 0 0 0 rg BT 379.38 385.90 Td (e data\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 338.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 338.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 338.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 312.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 312.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 312.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 286.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 286.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 286.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 260.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 260.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 260.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 234.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 234.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 234.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 208.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 208.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 208.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 182.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 182.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 182.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 156.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 156.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 156.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 130.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 130.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 130.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 97.40 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 97.40 36.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 97.40 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 97.40 36.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 352.4 m 282.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 352.4 m 286.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 352.4 m 322.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 352.4 m 326.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 352.4 m 362.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 352.4 m 366.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 352.4 m 402.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 352.4 m 406.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 352.4 m 442.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 352.4 m 446.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 352.4 m 482.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 352.4 m 486.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 352.4 m 522.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 352.4 m 526.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 352.4 m 562.5 352.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 338.4 m 282.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 338.4 m 322.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 338.4 m 362.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 338.4 m 402.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 338.4 m 442.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 338.4 m 482.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 338.4 m 522.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 338.4 m 562.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 338.4 m 282.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 338.4 m 322.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 338.4 m 362.5 338.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 338.4 m 402.5 338.4 l s 0 0 0 RG 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0 0 0 rg BT 415.75 342.63 Td (First) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.75 342.63 Td (Second) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.95 342.63 Td (Third) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 342.63 Td (Fourth) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 329.66 Td (Revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 249.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 329.66 Td (3,929) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 329.66 Td (8,404) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 329.66 Td (5,853) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 329.66 Td (8,335) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 329.66 Td (5,969) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 329.66 Td (8,764) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 329.66 Td (9,602) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.00 329.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 329.66 Td (10,119) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 316.66 Td (Cost of revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 316.66 Td (2,539) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 316.66 Td (4,242) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 316.66 Td (3,223) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 316.66 Td (4,468) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 316.66 Td (3,775) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 316.66 Td (4,492) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 316.66 Td (4,870) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 316.66 Td (4,362) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 303.66 Td (Gross profit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 303.66 Td (1,390) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 303.66 Td (4,162) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 303.66 Td (2,630) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 303.66 Td (3,867) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 303.66 Td (2,194) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 303.66 Td (4,272) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 303.66 Td (4,732) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 303.66 Td (5,757) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 290.66 Td (Operating expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 277.66 Td (Research and development) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 277.66 Td (2,024) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 277.66 Td (2,264) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 277.66 Td (2,321) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 277.66 Td (2,897) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 277.66 Td (2,802) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 277.66 Td (2,858) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 277.66 Td (2,848) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 277.66 Td (2,181) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 264.66 Td (Sales and marketing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 264.66 Td (3,759) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 264.66 Td (4,601) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 264.66 Td (4,157) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 264.66 Td (5,474) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 264.66 Td (4,828) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 264.66 Td (4,740) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 264.66 Td (4,706) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 264.66 Td (3,720) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 251.66 Td (General and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 251.66 Td (2,758) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 251.66 Td (2,820) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 251.66 Td (3,316) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.75 251.66 Td (3,732) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.75 251.66 Td (4,364) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.75 251.66 Td (3,558) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.75 251.66 Td (4,353) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 251.66 Td (4,603) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 238.66 Td (Amortization of intangibles) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.50 238.66 Td (157) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.50 238.66 Td (156) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.50 238.66 Td (157) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.50 238.66 Td (182) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.50 238.66 Td (199) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 238.66 Td (200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.50 238.66 Td (200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 238.66 Td (199) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 225.66 Td (Total operating expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 225.66 Td (8,698) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.75 225.66 Td (9,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 225.66 Td (9,951) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.25 225.66 Td (12,285) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.25 225.66 Td (12,193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.25 225.66 Td (11,356) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.25 225.66 Td (12,107) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 225.66 Td (10,703) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 212.66 Td (Operating loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 212.66 Td (\(7,308) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.75 212.66 Td (\(5,679) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 212.66 Td (\(7,321) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 212.66 Td (\(8,418) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.75 212.66 Td (\(9,999) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.75 212.66 Td (\(7,084) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.75 212.66 Td (\(7,375) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 212.66 Td (\(4,946) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 212.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 199.66 Td (Other income \(expense\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 186.66 Td (Interest, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.00 186.66 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.00 186.66 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.00 186.66 Td (11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.00 186.66 Td (27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.00 186.66 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.00 186.66 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.00 186.66 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 186.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 186.66 Td (\(14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 186.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 173.66 Td (Other, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 173.66 Td (\(27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.50 173.66 Td (\(6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.00 173.66 Td (\(61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.50 173.66 Td (\(147) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 173.66 Td (\(64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.50 173.66 Td (\(4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.00 173.66 Td (\(89) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 173.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 173.66 Td (26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 160.66 Td (Total other income \(loss\), net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 160.66 Td (\(15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 160.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.50 160.66 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.00 160.66 Td (\(50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 160.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.50 160.66 Td (\(120) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 160.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 160.66 Td (\(48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 160.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.00 160.66 Td (11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.00 160.66 Td (\(99) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 160.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 160.66 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 147.66 Td (Loss before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 147.66 Td (\(7,323) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.75 147.66 Td (\(5,675) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 147.66 Td (\(7,371) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 147.66 Td (\(8,538) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 147.66 Td (\(10,047) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.75 147.66 Td (\(7,073) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.75 147.66 Td (\(7,474) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 147.66 Td (\(4,934) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 147.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 134.66 Td (Income tax benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 134.66 Td (\(1,150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.50 134.66 Td (\(296) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 134.66 Td (\(4,492) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.50 134.66 Td (\(626) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.50 134.66 Td (\(174) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.50 134.66 Td (\(146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.50 134.66 Td (\(163) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 134.66 Td (\(357) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 134.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 121.66 Td (Net loss from continuing operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 121.66 Td (\(6,173) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.75 121.66 Td (\(5,379) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 121.66 Td (\(2,879) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 121.66 Td (\(7,912) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.75 121.66 Td (\(9,873) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.75 121.66 Td (\(6,927) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.75 121.66 Td (\(7,311) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 121.66 Td (\(4,577) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 121.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 108.66 Td (Net income \(loss\) from discontinued operations, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 99.71 Td (of tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.75 101.86 Td (2,244) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.50 101.86 Td (562) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.25 101.86 Td (11,559) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.50 101.86 Td (\(542) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 101.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 101.86 Td (\(67) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 101.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.00 101.86 Td (\(22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 101.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 101.86 Td (79) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 101.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 88.66 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 249.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 88.66 Td (\(3,929) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.75 88.66 Td (\(4,817) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.75 88.66 Td (8,680) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 88.66 Td (\(8,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.75 88.66 Td (\(9,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.75 88.66 Td (\(6,949) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.75 88.66 Td (\(7,232) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.00 88.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 88.66 Td (\(4,577) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 88.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 75.66 Td (Net income \(loss\) per basic and diluted share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 249.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.25 75.66 Td (\(0.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.25 75.66 Td (\(0.55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.25 75.66 Td (0.99) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.25 75.66 Td (\(0.93) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.25 75.66 Td (\(1.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.25 75.66 Td (\(0.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.25 75.66 Td (\(0.78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 75.66 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.00 75.66 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 75.66 Td (\(0.50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 75.66 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F3 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 151.60 742.25 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 262.56 742.25 Td (WITH ) Tj ET Q q 0 0 0 rg BT 291.36 742.25 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 338.59 742.25 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 383.22 742.25 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 451.47 742.25 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 529.73 742.25 Td ( ) Tj ET Q BT /F3 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 50.00 709.25 Td (None.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 688.25 Td (ITEM 9A. CONTROLS ) Tj ET Q q 0 0 0 rg BT 149.64 688.25 Td (AND PROCEDURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 667.25 Td (a\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 667.25 Td (Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 185.83 667.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 218.14 667.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 261.30 667.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 290.56 667.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 145.62 646.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 163.54 646.25 Td (, ) Tj ET Q q 0 0 0 rg BT 168.35 646.25 Td (V) Tj ET Q q 0 0 0 rg BT 174.47 646.25 Td (ern Hanzlik, and our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 333.96 646.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 351.88 646.25 Td (, Peter J. Goepfrich, have evaluated the Company) Tj ET Q q 0 0 0 rg BT 552.92 646.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (disclosure controls and procedures as of December31, 2015. Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 391.93 634.25 Td (ficer and our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 520.32 634.25 Td (ficer used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (the definition of disclosure controls and procedures as set forth in Rule 13a-15\(e\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 467.64 622.25 Td (Act in making their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (conclusion as to the ef) Tj ET Q q 0 0 0 rg BT 139.24 610.25 Td (fectiveness of such controls and procedures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.25 Td (Based upon such evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 260.32 589.25 Td (ficer and our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 388.70 589.25 Td (ficer have concluded that our disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.25 Td (controls and procedures were not ef) Tj ET Q q 0 0 0 rg BT 192.82 577.25 Td (fective as of December 31, 2015 because of material weaknesses in internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 565.25 Td (financial reporting described below in Management) Tj ET Q q 0 0 0 rg BT 264.09 565.25 Td (s Report on Internal Control Over Financial Reporting. Notwithstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 553.25 Td (the identified material weaknesses, management believes the consolidated financial statements included in this ) Tj ET Q q 0 0 0 rg BT 494.86 553.25 Td (Annual Report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td (on Form 10-K fairly present, in all material respects, our financial condition, results of operations and cash flows as of and for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.25 Td (the periods presented in accordance with U.S. generally accepted accounting principles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 508.25 Td (b\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 508.25 Td (Management) Tj ET Q q 0 0 0 rg BT 145.06 508.25 Td (s Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 259.87 508.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 291.63 508.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 Td (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 50.00 475.25 Td (Rules 13a-15\(f\) and 15d-15\(f\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 254.65 475.25 Td (Act. Under the supervision of our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 469.14 475.25 Td (ficer and our Chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.25 Td (Financial Of) Tj ET Q q 0 0 0 rg BT 100.08 463.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 118.00 463.25 Td (, we conducted an evaluation of the ef) Tj ET Q q 0 0 0 rg BT 269.98 463.25 Td (fectiveness of our internal control over financial reporting based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.25 Td (framework in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 106.65 451.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 164.33 451.25 Td (ol - Integrated Framework \(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.42 451.25 Td ( issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 473.83 451.25 Td (ganizations of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.76 439.25 Td (readway Commission \(COSO\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 418.25 Td ( company) Tj ET Q q 0 0 0 rg BT 98.60 418.25 Td (s internal control over financial reporting is a process designed to provide reasonable assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 217.43 394.25 Td (A) Tj ET Q q 0 0 0 rg BT 224.10 394.25 Td ( company) Tj ET Q q 0 0 0 rg BT 266.03 394.25 Td (s internal control over financial reporting includes those policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (procedures that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 370.25 Td (Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 358.25 Td (dispositions of the assets of the company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 346.25 Td (Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 334.25 Td (statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 322.25 Td (the company are being made only in accordance with authorizations of management and directors of the company; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 310.25 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 298.25 Td (Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 286.25 Td (disposition of the company) Tj ET Q q 0 0 0 rg BT 206.38 286.25 Td (s assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 351.97 286.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.25 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 518.20 265.25 Td (Also, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.25 Td (projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 187.27 253.25 Td (fectiveness to future periods are subject to the risk that controls may become inadequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.25 Td (because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 220.25 Td ( material weakness is a deficiency) Tj ET Q q 0 0 0 rg BT 192.35 220.25 Td (, or combination of deficiencies, in internal control over financial reporting such that there ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.25 Td (is a reasonable possibility that a material misstatement of the Company) Tj ET Q q 0 0 0 rg BT 337.71 208.25 Td (s annual or interim financial statements will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (prevented or detected on a timely basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.25 Td (Based on our assessment and those criteria, management believes that our internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.25 Td (December31, 2015 was not ef) Tj ET Q q 0 0 0 rg BT 172.00 163.25 Td (fective due to the material weaknesses described as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 142.25 Td (Risk ) Tj ET Q q 0 0 0 rg BT 106.29 142.25 Td (Assessment and Monitoring. ) Tj ET Q q 0 0 0 rg BT 223.32 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 231.96 142.25 Td (e did not maintain ef) Tj ET Q q 0 0 0 rg BT 314.54 142.25 Td (fective risk assessment and monitoring processes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 130.25 Td (Specifically) Tj ET Q q 0 0 0 rg BT 133.11 130.25 Td (, with respect to our risk assessment process, we did not adequately identify and analyze changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 118.25 Td (business and personnel and implement ef) Tj ET Q q 0 0 0 rg BT 250.50 118.25 Td (fective process level controls and monitoring activities that are responsive to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 106.25 Td (those changes and aligned with our financial reporting objectives. ) Tj ET Q q 0 0 0 rg BT 350.92 106.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 400.82 106.25 Td (, our risk assessment process did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 94.25 Td (adequately evaluate the impact of information technology control deficiencies that af) Tj ET Q q 0 0 0 rg BT 425.68 94.25 Td (fect the design and operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 82.25 Td (ef) Tj ET Q q 0 0 0 rg BT 93.59 82.25 Td (fectiveness of controls related to the completeness and accuracy of underlying data included in system generated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 70.25 Td (reports. ) Tj ET Q q 0 0 0 rg BT 118.59 70.25 Td (W) Tj ET Q q 0 0 0 rg BT 127.63 70.25 Td (ith respect to our monitoring process, we did not design and maintain ef) Tj ET Q q 0 0 0 rg BT 414.88 70.25 Td (fective controls for the timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 58.25 Td (identification, evaluation, communication and remediation of internal control deficiencies. ) 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 301.00 31.60 Td (60) 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 (Control ) Tj ET Q q 0 0 0 rg BT 118.50 742.10 Td (Activities - Manual Journal Entries. ) Tj ET Q q 0 0 0 rg BT 263.85 742.10 Td (The design of our controls were inadequate to ensure that a complete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (population of manual journal entries had been appropriately identified and subjected to appropriate levels of review ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (and approval. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 697.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 697.10 Td (Control ) Tj ET Q q 0 0 0 rg BT 118.50 697.10 Td (Activities - ) Tj ET Q q 0 0 0 rg BT 165.17 697.10 Td (Account Reconciliations. ) Tj ET Q q 0 0 0 rg BT 268.57 697.10 Td (The design and operating ef) Tj ET Q q 0 0 0 rg BT 380.01 697.10 Td (fectiveness of our controls were inadequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 685.10 Td (to ensure that account reconciliations were consistently performed, that support was retained, and that reconciliations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 673.10 Td (were approved to ensure the balances were complete and accurate. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 652.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 652.10 Td (Control ) Tj ET Q q 0 0 0 rg BT 118.50 652.10 Td (Activities - Revenue Review) Tj ET Q q 0 0 0 rg BT 233.10 652.10 Td (. ) Tj ET Q q 0 0 0 rg BT 237.92 652.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.56 652.10 Td (e did not maintain ef) Tj ET Q q 0 0 0 rg BT 329.13 652.10 Td (fective controls over the accuracy and appropriateness of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 640.10 Td (revenue entries recorded to the general ledger) Tj ET Q q 0 0 0 rg BT 268.13 640.10 Td (. Specifically) Tj ET Q q 0 0 0 rg BT 320.24 640.10 Td (, we did not maintain adequate documentation to ensure that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 628.10 Td (all entries had been subject to an appropriate level of review and approval. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.10 Td (Although no material misstatements were identified in our consolidated financial statements, these control deficiencies create a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 595.10 Td (reasonable possibility that a material misstatement to the consolidated financial statements will not be prevented or detected on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 583.10 Td (a timely basis. ) Tj ET Q q 0 0 0 rg BT 109.81 583.10 Td (W) Tj ET Q q 0 0 0 rg BT 118.45 583.10 Td (e concluded that the deficiencies represent material weaknesses in our internal control over financial reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.10 Td (and our internal control over financial reporting was not ef) Tj ET Q q 0 0 0 rg BT 284.46 571.10 Td (fective as of December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.71 550.10 Td (s internal control over financial reporting as of December 31, 2015 was audited by KPMG LLP) Tj ET Q q 0 0 0 rg BT 490.17 550.10 Td (, an independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (registered public accounting firm, who has issued an adverse report which is included in Item 8 of this Form 10-K.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 517.10 Td (c\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.77 517.10 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 517.10 Td (Remediation Plan for) Tj ET Q q 0 0 0 rg BT 177.47 517.10 Td ( Material ) Tj ET Q q 0 0 0 rg BT 219.50 517.10 Td (W) Tj ET Q q 0 0 0 rg BT 228.94 517.10 Td (eakness in Internal Contr) Tj ET Q q 0 0 0 rg BT 337.94 517.10 Td (ol over) Tj ET Q q 0 0 0 rg BT 366.91 517.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 496.10 Td (e are in the process of implementing our remediation plans. During 2015, we hired a new chief financial of) Tj ET Q q 0 0 0 rg BT 486.09 496.10 Td (ficer and corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (controller) Tj ET Q q 0 0 0 rg BT 88.47 484.10 Td (, created and hired for the new role of SEC reporting and compliance manager) Tj ET Q q 0 0 0 rg BT 401.28 484.10 Td (, and hired additional accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (personnel over the past six months. ) Tj ET Q q 0 0 0 rg BT 193.04 472.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 242.94 472.10 Td (, the Company is expecting to complete the implementation of new financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (reporting software by the end of the third quarter of 2016. ) Tj ET Q q 0 0 0 rg BT 283.64 460.10 Td (W) Tj ET Q q 0 0 0 rg BT 292.68 460.10 Td (ith the oversight of senior management and our audit committee, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.10 Td (the new accounting and finance team has begun to further develop a plan to remediate the underlying causes of the material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (weaknesses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (The remediation plan will involve a review of our risk assessment process and monitoring activities, to ensure that our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.10 Td (control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.10 Td (the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (and enhancing the design of existing controls and implementing additional controls to ensure journal entries and account ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (reconciliations are appropriately prepared, reviewed and approved, including the validation of the completeness and accuracy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.10 Td (of underlying data used in the performance of the redesigned controls. Management expects that a substantial portion of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (remediation ef) Tj ET Q q 0 0 0 rg BT 107.85 343.10 Td (forts will be completed by the end of the third quarter of 2016, with final testing of the ef) Tj ET Q q 0 0 0 rg BT 463.96 343.10 Td (fectiveness of the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.10 Td (and enhanced controls occurring at the end of 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (d\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.33 310.10 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 310.10 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 198.89 310.10 Td (ol Over) Tj ET Q q 0 0 0 rg BT 230.64 310.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 289.10 Td (There were no material changes in our internal control over financial reporting identified in connection with the evaluation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.10 Td (required by Rule 13a-15\(d\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 228.55 277.10 Td (Act that occurred during our most recent fiscal quarter that have materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 265.10 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 244.54 265.10 Td (fect, our internal control over financial reporting.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (ITEM 9B. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 178.36 244.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (None.) 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 301.00 31.60 Td (61) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (ITEM 10. DIRECT) Tj ET Q q 0 0 0 rg BT 130.11 713.25 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 0 rg BT 266.46 713.25 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 336.75 713.25 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 692.25 Td (The information required by this item is incorporated herein by reference to the following sections of the Company) Tj ET Q q 0 0 0 rg BT 513.48 692.25 Td (s Proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (Statement for its 2016 ) Tj ET Q q 0 0 0 rg BT 140.55 680.25 Td (Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (pursuant to Regulation14A) Tj ET Q q 0 0 0 rg BT 160.27 668.25 Td ( within 120days after the close of the fiscal year for which this report is filed \(the Proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (Statement\):) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 633.09 cm /I26 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 635.25 Td (Ownership of ) Tj ET Q q 0 0 0 rg BT 143.03 635.25 Td (V) Tj ET Q q 0 0 0 rg BT 148.96 635.25 Td (oting Securities by Principal Holders and Management;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 612.09 cm /I27 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 614.25 Td (Proposal 1Election of Directors;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 591.09 cm /I28 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 593.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 138.85 593.25 Td (ficers;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 570.09 cm /I29 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 572.25 Td (Executive Compensation;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 549.09 cm /I30 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 551.25 Td (Section 16\(a\) Beneficial Ownership Reporting Compliance;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 528.09 cm /I31 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 530.25 Td (Corporate Governance; and) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 68.00 507.09 cm /I32 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 509.25 Td (Code of Ethics.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 488.25 Td (ITEM 1) Tj ET Q q 0 0 0 rg BT 82.51 488.25 Td (1. EXECUTIVE COMPENSA) Tj ET Q q 0 0 0 rg BT 206.71 488.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (The information required by this item is incorporated herein by reference to the sections of the Company) Tj ET Q q 0 0 0 rg BT 472.09 467.25 Td (s Proxy Statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (entitled Executive Compensation and Director Compensation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (ITEM 12. SECURITY) Tj ET Q q 0 0 0 rg BT 141.59 434.25 Td ( OWNERSHIP) Tj ET Q q 0 0 0 rg BT 203.74 434.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 219.95 434.25 Td ( CERT) Tj ET Q q 0 0 0 rg BT 248.01 434.25 Td (AIN BENEFICIAL) Tj ET Q q 0 0 0 rg BT 329.06 434.25 Td ( OWNERS ) Tj ET Q q 0 0 0 rg BT 375.92 434.25 Td (AND MANAGEMENT ) Tj ET Q q 0 0 0 rg BT 473.90 434.25 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 523.08 434.25 Td (TED ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (ST) Tj ET Q q 0 0 0 rg BT 61.49 422.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 141.23 422.25 Td (TTERS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 401.25 Td (The information required by this item is incorporated herein by reference to the section of the Company) Tj ET Q q 0 0 0 rg BT 468.20 401.25 Td (s Proxy Statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.25 Td (entitled Ownership of ) Tj ET Q q 0 0 0 rg BT 143.96 389.25 Td (V) Tj ET Q q 0 0 0 rg BT 149.89 389.25 Td (oting Securities by Principal Holders and Management, and is incorporated herein by reference to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 377.25 Td (Part II, Item 5 entitled Market for Common Equity) Tj ET Q q 0 0 0 rg BT 256.80 377.25 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.25 Td (this ) Tj ET Q q 0 0 0 rg BT 66.40 365.25 Td (Annual Report on Form 10-K.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (ITEM 13. CERT) Tj ET Q q 0 0 0 rg BT 118.63 344.25 Td (AIN RELA) Tj ET Q q 0 0 0 rg BT 164.48 344.25 Td (TIONSHIPS ) Tj ET Q q 0 0 0 rg BT 219.95 344.25 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 269.13 344.25 Td (TED TRANSACTIONS ) Tj ET Q q 0 0 0 rg BT 369.34 344.25 Td (AND DIRECT) Tj ET Q q 0 0 0 rg BT 430.00 344.25 Td (OR INDEPENDENCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td (The information required by this item is incorporated by reference to the sections of the Company) Tj ET Q q 0 0 0 rg BT 444.60 323.25 Td (s Proxy Statement entitled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 311.25 Td (Certain Relationships and Related Person ) Tj ET Q q 0 0 0 rg BT 222.84 311.25 Td (T) Tj ET Q q 0 0 0 rg BT 228.59 311.25 Td (ransactions and Corporate Governance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (ITEM 14. PRINCIP) Tj ET Q q 0 0 0 rg BT 132.88 290.25 Td (AL) Tj ET Q q 0 0 0 rg BT 145.29 290.25 Td ( ) Tj ET Q q 0 0 0 rg BT 147.42 290.25 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 194.65 290.25 Td (ANT FEES ) Tj ET Q q 0 0 0 rg BT 244.85 290.25 Td (AND SER) Tj ET Q q 0 0 0 rg BT 287.18 290.25 Td (VICES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.25 Td (The information required by this item is incorporated herein by reference to the section of the Company) Tj ET Q q 0 0 0 rg BT 468.20 269.25 Td (s Proxy Statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.25 Td (entitled Relationship with Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 284.95 257.25 Td (Accounting Firm.) Tj ET Q endstream endobj 125 0 obj <>] /Rotate 0 /Contents 126 0 R>> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (62) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (ITEM 15. EXHIBITS ) Tj ET Q q 0 0 0 rg BT 142.43 713.25 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 220.69 713.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 234.31 713.25 Td (A) Tj ET Q q 0 0 0 rg BT 240.42 713.25 Td (TEMENT SCHEDULES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 693.32 Td (\(a\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.00 694.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 693.32 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.16 693.32 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.75 693.32 Td (. See Part II, Item 8 of this report) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 680.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 668.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.00 668.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 667.32 Td (\(2\) Exhibits. See Index to Exhibits on page 64 of this report) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 654.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.00 654.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 91.00 654.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 641.32 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.00 642.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 641.32 Td (See Index to Exhibits on page 64 of this report) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 273.85 740.68505859375 m 338.12734375 740.68505859375 l s q 0 0 0 rg BT 273.85 742.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 742.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Pursuant to the requirements of Section 13 or 15 \(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 369.37 721.25 Td (Act of 1934, the registrant caused this report to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (be signed on its behalf by the undersigned, thereto duly authorized.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 644.75 m 382.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 644.75 m 562.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 590.75 m 382.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 590.75 m 562.5 590.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 676.01 Td (Dated: March 15, 2016) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.00 676.15 Td (QUMU CORPORATION) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 662.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 662.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 662.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 662.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 650.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 650.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.95 650.01 Td (By:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 650.01 Td (/s/ Vern Hanzlik) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 636.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 636.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 636.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 636.01 Td (Vern Hanzlik) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 622.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 622.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 622.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 622.01 Td (Chief Executive Officer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 608.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 608.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 608.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 608.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 596.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 596.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.95 596.01 Td (By:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 596.01 Td (/s/ Peter J. Goepfrich) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 582.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 582.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 582.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 582.01 Td (Peter J. Goepfrich) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 568.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.00 568.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.00 568.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 568.01 Td (Chief Financial Officer) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 276.05 542.25 Td (Act of 1934, this report has been signed below by the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (persons on behalf of the registrant and in the capacities and on the dates indicated. Each person whose signature appears below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (constitutes and appoints ) Tj ET Q q 0 0 0 rg BT 148.42 518.25 Td (V) Tj ET Q q 0 0 0 rg BT 154.53 518.25 Td (ern Hanzlik and Peter J. Goepfrich as his or her true and lawful attorneys-in-fact and agents, each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (acting alone, with full power of substitution and re-substitution, for him or her and in his or her name, place and stead, in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (and all capacities, to sign any and all amendments to this ) Tj ET Q q 0 0 0 rg BT 279.39 494.25 Td (Annual Report on Form 10-K and to file the same, with all exhibits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (thereto, and other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (attorneys-in-fact and agents, each acting alone, full power and authority to do and perform each and every act and thing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (in person, hereby ratifying and confirming all said attorneys-in-fact and agents, each acting alone, or his substitute or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (substitutes, may lawfully do or cause to be done by virtue thereof.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 399.75 m 86.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 399.75 m 216.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248.5 399.75 m 271.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 399.75 m 418.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 399.75 m 473.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 399.75 m 562.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 373.75 m 86.5 373.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 373.75 m 216.5 373.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 333.75 m 86.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 333.75 m 216.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 293.75 m 86.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 293.75 m 216.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 293.75 m 86.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 293.75 m 216.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 251.75 m 86.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 251.75 m 216.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 213.75 m 86.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 213.75 m 216.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 177.75 m 86.5 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 177.75 m 216.5 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 141.75 m 86.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 141.75 m 216.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 105.75 m 86.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 105.75 m 216.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 105.75 m 86.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 105.75 m 216.5 105.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 403.15 Td (Signature) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 403.01 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 251.00 403.15 Td (Title) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 403.01 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.00 403.15 Td (Date) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 391.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 391.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 391.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 391.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 391.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 379.01 Td (/s/ Vern Hanzlik) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 379.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 379.01 Td (Chief Executive Officer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 379.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 379.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 365.01 Td (Vern Hanzlik) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 365.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 365.01 Td (\(Principal Executive Officer\), Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 365.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 365.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 351.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 351.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 351.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 351.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 351.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 339.01 Td (/s/ Peter J. Goepfrich) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 339.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 339.01 Td (Chief Financial Officer \(Principal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 339.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 339.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 325.01 Td (Peter J. Goepfrich) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 325.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 325.01 Td (Financial and Accounting Officer\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 325.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 325.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 311.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 311.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 311.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 311.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 311.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 299.01 Td (/s/ Daniel R. Fishback) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 299.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 299.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 285.01 Td (Daniel R. Fishback) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 257.01 Td (/s/ Thomas F. Madison) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 257.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 257.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 257.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 257.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 243.01 Td (Thomas F. Madison) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 243.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 243.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 243.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 243.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 217.01 Td (/s/ Kimberly K. Nelson) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 217.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 217.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 217.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 217.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 205.01 Td (Kimberly K. Nelson) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 205.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 205.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 205.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 205.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 181.01 Td (/s/ Donald T. Netter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 181.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 181.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 181.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 181.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 169.01 Td (Donald T. Netter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 169.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 169.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 169.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 169.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 145.01 Td (/s/ Robert F. Olson) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 145.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 145.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 145.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 145.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 133.01 Td (Robert F. Olson) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.00 133.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 133.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 133.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 133.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 109.01 Td (/s/ Justin A. Orlando) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.00 109.01 Td (Director) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 109.01 Td (March 15, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 97.01 Td (Justin A. Orlando) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 84.55 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 91.04 742.25 Td (O EXHIBITS ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 710.75 m 92.5 710.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 92.5 710.75 m 562.5 710.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 723.15 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 714.15 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 95.00 715.20 Td (Description) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 702.01 Td (2.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 702.01 Td (Asset Purchase Agreement dated April 24, 2014 by and among Equus Holdings, Inc., as Parent, Redwood Acquisition, Inc. as) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 693.01 Td (Buyer and Qumu Corporation as Seller \(Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 684.01 Td (dated April 24, 2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 670.01 Td (2.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 670.01 Td (Majority Share Purchase Agreement dated October 3, 2014 by and among Qumu Corporation and Sellers identified therein) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 661.01 Td (\(Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K dated October 3, 2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 649.01 Td (2.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 649.01 Td (Form of Minority Share Purchase Agreement dated October 3, 2014 by and among Qumu Corporation and Sellers identified) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 640.01 Td (therein \(Incorporated by reference to Exhibit 2.2 to the Company's Current Report on Form 8-K dated October 3, 2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 628.01 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 628.01 Td (1992 Restated Articles of Incorporation of Rimage Corporation \(Incorporated by reference to Exhibit 3.1 to the Companys) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 619.01 Td (Registration Statement on Form SB-2 \(File No. 33-22558\)\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 607.01 Td (3.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 607.01 Td (Articles of Amendment to 1992 Restated Articles of Incorporation of Rimage Corporation \(Incorporated by reference to Exhibit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 598.01 Td (4.2 to the Companys Registration Statement on Form S-8 \(File No. 333-69550\)\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 586.01 Td (3.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 586.01 Td (Amended and Restated Bylaws of Rimage Corporation, as amended \(Incorporated by reference to Exhibit 3.2 to the Companys) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 577.01 Td (Current Report on Form 8-K dated March 7, 2007\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 565.01 Td (3.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 565.01 Td (Articles of Amendment to Articles of Incorporation of Rimage Corporation as filed with the Minnesota Secretary of State) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 556.01 Td (effective as of September 16, 2013 \(Incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 547.01 Td (dated September 16, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 535.01 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 535.01 Td (Amendments effective March 2, 2016 to Bylaws of Qumu Corporation \(Incorporated by reference to Exhibit 3.1 to the) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 526.01 Td (Companys Current Report on Form 8-K dated March 2, 2016\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 512.01 Td (4.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 512.01 Td (Rights Agreement dated as of September 17, 2003 between Rimage Corporation and Wells Fargo Bank, as Rights Agent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 503.01 Td (\(Incorporated by reference to Exhibit 1 to the Companys Registration Statement on Form 8-A \(File No. 000-20728\)\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 491.01 Td (4.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 491.01 Td (Amendment No. 1 dated September 11, 2013 to Rights Agreement by and between Rimage Corporation and Wells Fargo Bank) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 482.01 Td (Minnesota, N.A., as Rights Agent \(Incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 473.01 Td (dated September 11, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 461.01 Td (4.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 461.01 Td (Amendment No. 2 dated March 10, 2014 to Rights Agreement by and between Rimage Corporation and Wells Fargo Bank) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 452.01 Td (Minnesota, N.A., as Rights Agent, as amended by Amendment No. 1 dated September 11, 2013 \(Incorporated by reference to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 443.01 Td (Exhibit 4.1 to the Companys Current Report on Form 8-K dated March 10, 2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 429.01 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 429.01 Td (Rimage Corporation Amended and Restated 1992 Stock Option Plan \(as amended through May 17, 2005\) * \(Incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 420.01 Td (reference to Exhibit 4.1 to the Companys Registration Statement on Form S-8 \(File No. 333-127244\)\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 408.01 Td (10.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 408.01 Td (Rimage Corporation 2001 Stock Option Plan for Non-Employee Directors * \(Incorporated by reference to Exhibit 10.2 to the) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 399.01 Td (Companys Annual Report on Form 10-K for the year ended December 31, 2001\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 387.01 Td (10.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 387.01 Td (Second Amended and Restated 2007 Stock Incentive Plan * \(Incorporated by reference to Appendix A to the Companys Proxy) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 378.01 Td (Statement for the 2014 Annual Meeting of Shareholders held on May 20, 2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 366.01 Td (10.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 366.01 Td (Letter from Rimage Corporation to Sherman L. Black regarding offer of employment, accepted on January 29, 2009 *) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 357.01 Td (\(Incorporated by reference to Exhibit 10.1 of the Companys Current Report on Form 8-K dated January 29, 2009\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 345.01 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 345.01 Td (Restricted Stock Agreement dated April 1, 2009 by and between Sherman L. Black and the Company * \(Incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 336.01 Td (reference to Exhibit 10.2 of the Companys Current Report on Form 8-K dated January 29, 2009\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 324.01 Td (10.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 324.01 Td (Stock Option Agreement dated April 1, 2009 by and between Sherman L. Black and the Company * \(Incorporated by reference) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 315.01 Td (to Exhibit 10.1 of the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2009\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 303.01 Td (10.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 303.01 Td (Letter Agreement dated November 4, 2009 by and between Rimage Corporation and Sherman L. Black * \(Incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 294.01 Td (reference to Exhibit 10.1 of the Companys Current Report on Form 8-K dated November 4, 2009\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 282.01 Td (10.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 282.01 Td (Form of Non-Employee Director Restricted Stock Unit Agreement with Deferral Election *\(Incorporated by reference to Exhibit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 273.01 Td (10.18 of the Companys Annual Report on Form 10-K dated March 12, 2010\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 261.01 Td (10.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 261.01 Td (Letter from Rimage Corporation to James R. Stewart regarding offer of employment, accepted on July 7, 2010 * \(Incorporated) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 252.01 Td (by reference to Exhibit 10.1 of the Companys Current Report on Form 8-K dated July 7, 2010\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 240.01 Td (10.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 240.01 Td (Long Term Incentive Bonus Agreement dated February 21, 2013 by and between Rimage Corporation and Sherman L. Black *) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 231.01 Td (\(Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated February 21, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 217.01 Td (10.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 217.01 Td (Long Term Incentive Bonus Agreement dated February 21, 2013 by and between Rimage Corporation and James R. Stewart *) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 208.01 Td (\(Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated February 21, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 194.01 Td (10.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 194.01 Td (Amended and Restated Form of Severance/Change in Control Letter Agreement dated February 21, 2013, between the Company) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 185.01 Td (and certain executive officers * \(Incorporated by reference to Exhibit 10.3 of the Companys Current Report on Form 8-K dated) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 176.01 Td (February 21, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 162.01 Td (10.13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 162.01 Td (Agreement dated March 18, 2013 among Rimage Corporation and Dolphin Limited Partnership III, L.P., Dolphin Associates III,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 153.01 Td (LLC, and Dolphin Holdings Corp. III \(Incorporated by reference to Exhibit 10.1 of the Companys Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 144.01 Td (dated March 18, 2013.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 131.01 Td (10.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 131.01 Td (Amendment No. 1 to Agreement dated October 23, 2013 by and among Qumu Corporation,Dolphin Limited Partnership III,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 122.01 Td (L.P., Dolphin Associates III, LLC, and Dolphin Holdings Corp. III \(Incorporated by reference to Exhibit 10.1 to the Companys) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 113.01 Td (Current Report on Form 8-K dated October 23, 2013\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 100.01 Td (10.15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 100.01 Td (Agreement dated March 18, 2015 among Qumu Corporation and Dolphin Limited Partnership III, L.P., Dolphin Associates III,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 91.01 Td (LLC, and Dolphin Holdings Corp. III \(Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 82.01 Td (dated March 18, 2015\).) 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 301.00 31.60 Td (65) 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 92.5 726.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 92.5 726.5 m 562.5 726.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 738.90 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 729.90 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 95.00 730.95 Td (Description) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 717.76 Td (10.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 717.76 Td (Form of Lock-Up Letter Agreement dated October 3, 2014 by each Recipient of Qumu Corporation Common Stock in the Share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 708.76 Td (Purchase Transaction \(Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated October 3,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 699.76 Td (2014\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 685.76 Td (10.17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 685.76 Td (Transition Agreement dated March 4, 2015 by and between Qumu Corporation and James R. Stewart * \(Incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 676.76 Td (reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated March 4, 2015\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 662.76 Td (10.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 662.76 Td (Building Lease dated March 5, 2015 by and between Qumu Corporation, as Tenant, and Butler North, LLC, as Landlord) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 653.76 Td (\(Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated March 5, 2015\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 639.76 Td (10.19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 639.76 Td (Letter Agreement effective April 27, 2015 regarding Offer of Employment by Qumu Corporation and Peter J. Goepfrich *) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 630.76 Td (\(Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated April 27, 2015\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 616.76 Td (10.20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 616.76 Td (Stock Option Agreement dated May 18, 2015 by and between Qumu Corporation and Peter J. Goepfrich * \(Incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 607.76 Td (reference to Exhibit 4.1 to the Companys Registration Statement on Form S-8 \(File No. 333-206270\)\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 593.76 Td (10.21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 593.76 Td (Separation Letter Agreement dated October 19, 2015 by and between Qumu Corporation and Sherman L. Black * \(Incorporated) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 584.76 Td (by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K dated October 29, 2015\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 570.76 Td (21.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 570.76 Td (Subsidiaries of Qumu Corporation.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 557.76 Td (23.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 557.76 Td (Consent of KPMG LLP, Independent Registered Public Accounting Firm.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 544.76 Td (31.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 544.76 Td (Certificate of Chief Executive Officer pursuant to Rules 13a-14\(a\) and 15d-14\(a\) of the Exchange Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 531.76 Td (31.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 531.76 Td (Certificate of Chief Financial Officer pursuant to Rules 13a-14\(a\) and 15d-14\(a\) of the Exchange Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 518.76 Td (32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 518.76 Td (Certification pursuant to 18 U.S.C. 1350.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 505.76 Td (101.INS) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 505.76 Td (XBRL Instance Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 492.76 Td (101.SCH) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 492.76 Td (XBRL Taxonomy Extension Schema Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 479.76 Td (101.CAL) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 479.76 Td (XBRL Taxonomy Extension Calculation Linkbase Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 466.76 Td (101.DEF) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 466.76 Td (XBRL Taxonomy Extension Definition Linkbase Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 453.76 Td (101.LAB) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 453.76 Td (XBRL Taxonomy Extension Label Linkbase Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 440.76 Td (101.PRE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.00 440.76 Td (XBRL Taxonomy Extension Presentation Linkbase Document.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 427.76 Td (* Indicates a management contract or compensatory plan or arrangement) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 401.76 Td (Effective September 16, 2013, Rimage Corporation changed its corporate name to Qumu Corporation.) 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