0000814586 2016-01-01 2016-12-31 0000814586 2017-03-01 0000814586 2016-06-30 0000814586 us-gaap:BuildingAndBuildingImprovementsMember 2016-01-01 2016-12-31 0000814586 us-gaap:MachineryAndEquipmentMember 2016-01-01 2016-12-31 0000814586 us-gaap:OfficeEquipmentMember 2016-01-01 2016-12-31 0000814586 us-gaap:VehiclesMember 2016-01-01 2016-12-31 0000814586 lway:RecipesMember 2016-01-01 2016-12-31 0000814586 us-gaap:TradeNamesMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0000814586 us-gaap:TradeNamesMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0000814586 lway:FormulaMember 2016-01-01 2016-12-31 0000814586 us-gaap:CustomerRelationshipsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0000814586 us-gaap:CustomerRelationshipsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0000814586 us-gaap:CustomerListsMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0000814586 us-gaap:CustomerListsMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0000814586 2016-12-31 0000814586 2015-12-31 0000814586 lway:CustomerListsAndOtherCustomerRelatedIntangiblesMember 2015-12-31 0000814586 lway:FormulaMember 2015-12-31 0000814586 lway:RecipesMember 2015-12-31 0000814586 us-gaap:CustomerRelationshipsMember 2015-12-31 0000814586 us-gaap:TradeNamesMember 2015-12-31 0000814586 lway:RecipesMember 2016-12-31 0000814586 lway:CustomerListsAndOtherCustomerRelatedIntangiblesMember 2016-12-31 0000814586 us-gaap:CustomerRelationshipsMember 2016-12-31 0000814586 us-gaap:TradeNamesMember 2016-12-31 0000814586 lway:FormulaMember 2016-12-31 0000814586 2014-12-31 0000814586 2015-01-01 2015-12-31 0000814586 us-gaap:CommonStockMember 2014-12-31 0000814586 us-gaap:CommonStockMember 2015-12-31 0000814586 us-gaap:CommonStockMember 2016-12-31 0000814586 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0000814586 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0000814586 us-gaap:TreasuryStockMember 2014-12-31 0000814586 us-gaap:TreasuryStockMember 2015-12-31 0000814586 us-gaap:RetainedEarningsMember 2014-12-31 0000814586 us-gaap:RetainedEarningsMember 2015-12-31 0000814586 us-gaap:TreasuryStockMember 2016-12-31 0000814586 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0000814586 us-gaap:RetainedEarningsMember 2016-12-31 0000814586 us-gaap:TreasuryStockMember 2015-01-01 2015-12-31 0000814586 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0000814586 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0000814586 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0000814586 us-gaap:LeaseholdImprovementsMember 2016-01-01 2016-12-31 0000814586 us-gaap:BuildingAndBuildingImprovementsMember 2015-12-31 0000814586 us-gaap:ConstructionInProgressMember 2015-12-31 0000814586 us-gaap:LandMember 2015-12-31 0000814586 us-gaap:MachineryAndEquipmentMember 2015-12-31 0000814586 us-gaap:OfficeEquipmentMember 2015-12-31 0000814586 us-gaap:VehiclesMember 2015-12-31 0000814586 us-gaap:LandMember 2016-12-31 0000814586 us-gaap:BuildingAndBuildingImprovementsMember 2016-12-31 0000814586 us-gaap:MachineryAndEquipmentMember 2016-12-31 0000814586 us-gaap:VehiclesMember 2016-12-31 0000814586 us-gaap:OfficeEquipmentMember 2016-12-31 0000814586 us-gaap:ConstructionInProgressMember 2016-12-31 0000814586 lway:TermLoan1Member 2016-12-31 0000814586 lway:LifewayFarmerCheeseMember 2015-01-01 2015-12-31 0000814586 lway:DrinkableKefirotherthanProBugsMember 2015-01-01 2015-12-31 0000814586 lway:ProBugsMember 2015-01-01 2015-12-31 0000814586 lway:FrozenKefirMember 2015-01-01 2015-12-31 0000814586 lway:LifewayFarmerCheeseMember 2016-01-01 2016-12-31 0000814586 lway:DrinkableKefirotherthanProBugsMember 2016-01-01 2016-12-31 0000814586 lway:ProBugsMember 2016-01-01 2016-12-31 0000814586 lway:FrozenKefirMember 2016-01-01 2016-12-31 0000814586 lway:CommonStocksAndETFsMember 2005-01-01 2015-12-31 0000814586 lway:CommonStocksAndETFsMember 2005-12-31 0000814586 us-gaap:MutualFundMember 2005-01-01 2015-12-31 0000814586 us-gaap:MutualFundMember 2005-12-31 0000814586 lway:PreferredSecuritiesMember 2005-01-01 2015-12-31 0000814586 lway:PreferredSecuritiesMember 2005-12-31 0000814586 lway:CorporateBondsMember 2005-01-01 2015-12-31 0000814586 lway:CorporateBondsMember 2005-12-31 0000814586 lway:CommonStocksAndETFsMember lway:LessThan12MonthsMember 2005-01-01 2015-12-31 0000814586 lway:CommonStocksAndETFsMember lway:MonthsOrGreaterMember 2005-01-01 2015-12-31 0000814586 us-gaap:MutualFundMember lway:LessThan12MonthsMember 2005-01-01 2015-12-31 0000814586 us-gaap:MutualFundMember lway:MonthsOrGreaterMember 2005-01-01 2015-12-31 0000814586 lway:PreferredSecuritiesMember lway:LessThan12MonthsMember 2005-01-01 2015-12-31 0000814586 lway:PreferredSecuritiesMember lway:MonthsOrGreaterMember 2005-01-01 2015-12-31 0000814586 lway:CorporateBondsMember lway:LessThan12MonthsMember 2005-01-01 2015-12-31 0000814586 lway:CorporateBondsMember lway:MonthsOrGreaterMember 2005-01-01 2015-12-31 0000814586 lway:TermLoan1Member 2015-12-31 0000814586 lway:TermLoan1Member 2016-01-01 2016-12-31 0000814586 lway:TermLoan2Member 2016-12-31 0000814586 lway:TermLoan2Member 2015-12-31 0000814586 lway:TermLoan2Member 2016-01-01 2016-12-31 0000814586 us-gaap:RevolvingCreditFacilityMember 2016-01-01 2016-12-31 0000814586 us-gaap:RevolvingCreditFacilityMember 2016-12-31 0000814586 us-gaap:FairValueInputsLevel1Member us-gaap:MutualFundMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel2Member us-gaap:MutualFundMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel3Member us-gaap:MutualFundMember 2015-12-31 0000814586 us-gaap:MutualFundMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel1Member lway:CommonStocksAndETFsMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel2Member lway:CommonStocksAndETFsMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel3Member lway:CommonStocksAndETFsMember 2015-12-31 0000814586 lway:CommonStocksAndETFsMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel1Member lway:PreferredSecuritiesMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel2Member lway:PreferredSecuritiesMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel3Member lway:PreferredSecuritiesMember 2015-12-31 0000814586 lway:PreferredSecuritiesMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel1Member lway:CorporateBondsMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel2Member lway:CorporateBondsMember 2015-12-31 0000814586 us-gaap:FairValueInputsLevel3Member lway:CorporateBondsMember 2015-12-31 0000814586 lway:CorporateBondsMember 2015-12-31 0000814586 us-gaap:StockOptionMember 2016-01-01 2016-12-31 0000814586 us-gaap:StockOptionMember 2016-12-31 0000814586 us-gaap:StockOptionMember 2015-12-31 0000814586 us-gaap:RestrictedStockUnitsRSUMember 2016-01-01 2016-12-31 0000814586 us-gaap:RestrictedStockUnitsRSUMember 2016-12-31 0000814586 us-gaap:RestrictedStockUnitsRSUMember 2015-12-31 0000814586 lway:Omnibus2015Member 2016-12-31 0000814586 lway:Omnibus2015Member lway:KeyEmployeesMember 2016-01-01 2016-12-31 0000814586 us-gaap:StockOptionMember 2015-01-01 2015-12-31 0000814586 us-gaap:RestrictedStockUnitsRSUMember 2015-01-01 2015-12-31 0000814586 lway:CashIncentiveBonusMember 2016-01-01 2016-12-31 0000814586 lway:FullyVestedCommonStockMember 2016-01-01 2016-12-31 0000814586 us-gaap:SalesRevenueNetMember lway:TwoCustomersMember 2016-01-01 2016-12-31 0000814586 us-gaap:SalesRevenueNetMember lway:TwoCustomersMember 2015-01-01 2015-12-31 0000814586 us-gaap:AccountsReceivableMember lway:TwoCustomersMember 2016-01-01 2016-12-31 0000814586 us-gaap:AccountsReceivableMember lway:TwoCustomersMember 2015-01-01 2015-12-31 0000814586 us-gaap:TreasuryStockCommonMember 2016-01-01 2016-12-31 0000814586 us-gaap:TreasuryStockCommonMember 2015-01-01 2015-12-31 0000814586 lway:ConsultingFeesMember 2016-01-01 2016-12-31 0000814586 lway:ConsultingFeesMember 2015-01-01 2015-12-31 0000814586 lway:RoyaltyExpenseMember 2016-01-01 2016-12-31 0000814586 lway:RoyaltyExpenseMember 2015-01-01 2015-12-31 0000814586 us-gaap:RetainedEarningsMember 2015-01-01 2015-12-31 0000814586 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-01-01 2015-12-31 0000814586 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0000814586 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0000814586 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-12-31 0000814586 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0000814586 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares LIFEWAY FOODS INC 0000814586 10-K 2016-12-31 false --12-31 No No Yes Smaller Reporting Company FY 2016 16154095 44803227 P4Y P8Y P15Y P10Y P8Y P12Y P8Y P10Y 8244000 8244000 4529000 438000 44000 985000 2248000 44000 4529000 985000 2248000 438000 6597000 5900000 16154000 17274000 17274000 17274000 48362000 45257000 44700000 6509000 6509000 6509000 2033000 2033000 -8188000 -9730000 44544000 46516000 -10340000 2198000 49995000 -198000 -71000 0 5104000 6745000 1116000 52000 599000 48000 -2673000 2229000 584000 -184000 -140000 -691000 579000 1849000 -292000 -507000 0 73000 3020000 3129000 -360000 -1780000 3237000 1995000 0 635000 2751000 1714000 559000 1489000 3166000 2386000 -1578000 -2579000 840000 1037000 220000 235000 672000 635000 210000 130000 44727000 43419000 16387000 311000 1807000 22907000 709000 1298000 1747000 16428000 23122000 848000 709000 1873000 22895000 22044000 215000 302000 1560000 859000 7119000 3339000 3846000 3780000 4113000 3114000 3165000 840000 531000 585000 185000 48000 200000 120000 509000 278000 6859000 5006000 2689000 2605000 572000 717000 2117000 1888000 63000 265000 215000 63000 50000 1854000 1719000 166000 164000 331000 308000 39000 39000 1917000 1357000 0.340 .340 320000 337000 .057 .084 2000 0 0.00 0.000 0 19000 26000 0 0 26000 613000 0 0 613000 0 104000 0 104000 0 1187000 161000 1348000 250000 3500000 0 2091000 0 513000 8042000 7664000 9594000 9886000 785000 201000 662000 556000 309000 449000 28204000 27006000 21832000 21375000 1647000 2344000 65876000 64918000 840000 840000 5718000 8393000 2169000 1538000 654000 52000 9381000 10823000 6279000 7119000 1854000 1719000 17514000 19661000 6509000 6509000 2198000 2033000 10340000 9730000 49995000 46516000 0 -71000 65876000 64918000 1600000 1800000 40000000 40000000 16154000 16210000 123879000 118587000 9725000 100812000 6775000 1275000 10258000 105983000 6383000 1255000 86524000 86292000 2323000 2413000 88847000 88705000 35032000 29882000 14467000 11892000 13783000 12871000 1000 1000 600000 0 697000 716000 28947000 25479000 6085000 4403000 220000 236000 -448000 -411000 5637000 3992000 2158000 2020000 62000 -47000 0 130000 9000 44000 3550000 2099000 38000 30000 6000 -28000 8812000 5646000 3260000 15715000 16412000 14068000 14068000 125000 125000 -15000 -72000 0 475000 71000 119000 3479000 1972000 3479000 1972000 .22 0.12 .22 .12 16155000 16331000 16160000 16331000 71000 127000 127000 71000 136000 69000 136000 69000 738000 1542000 1542000 738000 1542000 738000 129000 117000 12000 1000 5000 29000 11000 18000 135000 135000 531000 585000 200000 0 326000 0 -284000 253000 513000 272000 172000 353000 738000 1542000 1421000 1920000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The accompanying consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;U.S. GAAP&#8221;). The Company&#8217;s consolidated financial statements include all of the assets, liabilities and results of operations of the Company&#8217;s wholly owned subsidiaries (collectively &#8220;Lifeway&#8221; or the &#8220;Company&#8221;). All inter-company balances and transactions have been eliminated in the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Use of estimates</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the reserve for promotional allowances, the fair value of investment securities, the valuation of goodwill and intangible assets, and deferred income taxes.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Revenue Recognition</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company records sales when the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable; and (iv) Collection is probable. In addition, shipping costs invoiced to the customers are included in net sales and the related costs are included in cost of sales.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company routinely offers sales allowances and discounts to our customers and consumers. These programs include rebates, in-store display and demo allowances, allowances for non-saleable product, coupons and other trade promotional activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to sales. Some of these incentives are recorded by estimating incentive costs based on our historical experience and expected levels of performance of the trade promotion. We maintain a reserve for the estimated allowances incurred but unpaid. Differences between estimated and actual allowances are normally insignificant and are recognized in income in the period such differences are determined. Product returns have historically not been material.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Bulk cream is a by-product of the Company&#8217;s fluid milk manufacturing process. The Company does not use bulk cream in any of its end products, but rather disposes of it through sales to other companies. Bulk cream by-product sales are included in net sales.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Cash and cash equivalents</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The Company considers cash and all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates or equals fair value due to their short-term nature.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and cash equivalents.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Investments</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders' equity to the extent they are considered temporary in nature. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded as a component of other income. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in fair value has occurred include: the fair value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the fair value of the investment.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Inventories</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Inventories are stated at the lower of cost or market, valued on a first in, first out basis (&#8220;FIFO&#8221;). The costs of finished goods inventories include raw materials, direct labor, and overhead costs. Inventories are stated net of reserves for obsolete or excess inventory.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Property, plant and equipment</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs that do not improve or extend the life of the assets are charged to expense as incurred; significant renewals and betterments are capitalized.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Property, plant and equipment is being depreciated over the following useful lives:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Buildings and improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">31 and 39</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Machinery and equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5 - 12</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Office equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">3 - 7</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Vehicles</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Leasehold improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">Shorter of expected useful life or lease term</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Goodwill and other intangible assets </u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill and indefinite lived intangible assets are not amortized, but are reviewed for impairment at least annually.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Recipes</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">4</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Trade names</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-15</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Formula</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">10</font></td></tr> <tr style="background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Customer lists</font></td> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-10</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Customer relationships</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-12</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Impairment</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company reviews intangible assets for impairment at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, such as a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company's products or changes in the size of the market for the Company's products.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">If the estimated remaining useful life of an intangible asset is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Long-lived assets, including property, plant, and equipment, and cost method investments, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and prior to any goodwill impairment test. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment in 2016 or 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Income taxes</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the deferred tax assets or liabilities are expected to be realized or settled. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments,&#160;and the allowance for doubtful accounts.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company has analyzed filing positions in all the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. We recognize the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. We apply a more likely than not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect earnings in the quarter of such change. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. The total amount of unrecognized tax benefits can change due to audit settlements, tax examination activities, statute expirations and the recognition and measurement criteria under accounting for uncertainty in income taxes. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Treasury stock</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Treasury stock is recorded using the cost method.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Advertising costs</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company expenses advertising costs as incurred. For the years ended December 31, 2016 and 2015 total advertising expenses were $6,859 and $5,006, respectively.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Earnings per common share</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding during each period. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding and the effect of all dilutive common stock equivalents outstanding during each period. For the year ended December 31, 2016, there were 5 common stock equivalents outstanding. There were no common stock equivalents outstanding for the year ended December 31, 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>&#160;</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Recently Issued Accounting Pronouncements </u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance will be effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendment should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, such as debt prepayment or debt extinguishment costs, contingent consideration payments made after an acquisition, proceeds from the settlement of insurance claims, and other topics. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation &#8211; Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The new guidance will be effective for fiscal years beginning on or after December 15, 2016 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities in the balance sheet and disclose key information about leasing arrangements, such as information about variable lease payments and options to renew and terminate leases. The amended guidance will require both operating and finance leases to be recognized in the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The amendments in this ASU should be adopted using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. We do not intend to early adopt the standard. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In January, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless certain conditions exist. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is not permitted. The adoption of this amendment is not expected to have an impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In November 2015, the FASB issued ASU 2015-17, Income Taxes &#8211; Balance Sheet Classification of Deferred Taxes. This new guidance simplifies the presentation of deferred income taxes and requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Previous guidance required deferred tax assets and liabilities to be separated into current and noncurrent amounts on the balance sheet. The guidance is effective for fiscal years beginning on or after December 15, 2016, and interim periods within those years. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In July 2015, the FASB issued ASU 2015-11, Inventory &#8211; Simplifying the Measurement of Inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for financial statements issued for annual and interim periods beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements &#8211; Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern, which requires management to assess an entity&#8217;s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances, such as the existence of substantial doubt. The Company is required to evaluate going concern uncertainties at each annual and interim reporting period, considering the entity&#8217;s ability to continue as a going concern within one year after the issuance date. This guidance was effective on December 31, 2016. The adoption of this amendment had no impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In May 2014, the Financial Accounting Standards Board (&#34;FASB&#34;) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (&#34;ASU 2014-09&#34;), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific requirements. ASU 2014-09 establishes a five-step revenue recognition process in which an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard allows for either &#8220;full retrospective&#8221; adoption, meaning the standard is applied to all of the periods presented, or &#8220;modified retrospective&#8221; adoption, meaning the standard is applied only to the most current period presented in the financial statements. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. On August 12, 2015 the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for ASU 2014-09. Under the delayed effective date, the Company is required to adopt the new standard not later than January 1, 2018.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Management is currently evaluating the impact the adoption of this amendment will have on the Company's consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. Our completed evaluation will include the impact of the new standard on certain common practices currently employed by us, such as rebates, in-store display and demo allowances, allowances for non-saleable product, and coupons. We currently expect to utilize the modified retrospective transition method and to adopt the ASU on January 1, 2018. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position; however, our assessment is not yet complete. During 2017, we plan to finalize our review and method of adoption.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Use of estimates</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the reserve for promotional allowances, the fair value of investment securities, the valuation of goodwill and intangible assets, and deferred income taxes.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Revenue Recognition</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company records sales when the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable; and (iv) Collection is probable. In addition, shipping costs invoiced to the customers are included in net sales and the related costs are included in cost of sales.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company routinely offers sales allowances and discounts to our customers and consumers. These programs include rebates, in-store display and demo allowances, allowances for non-saleable product, coupons and other trade promotional activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to sales. Some of these incentives are recorded by estimating incentive costs based on our historical experience and expected levels of performance of the trade promotion. We maintain a reserve for the estimated allowances incurred but unpaid. Differences between estimated and actual allowances are normally insignificant and are recognized in income in the period such differences are determined. Product returns have historically not been material.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Bulk cream is a by-product of the Company&#8217;s fluid milk manufacturing process. The Company does not use bulk cream in any of its end products, but rather disposes of it through sales to other companies. Bulk cream by-product sales are included in net sales.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Cash and cash equivalents</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The Company considers cash and all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates or equals fair value due to their short-term nature.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and cash equivalents.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Investments</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders' equity to the extent they are considered temporary in nature. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded as a component of other income. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in fair value has occurred include: the fair value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the fair value of the investment.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Inventories</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Inventories are stated at the lower of cost or market, valued on a first in, first out basis (&#8220;FIFO&#8221;). The costs of finished goods inventories include raw materials, direct labor, and overhead costs. Inventories are stated net of reserves for obsolete or excess inventory.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Property, plant and equipment</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs that do not improve or extend the life of the assets are charged to expense as incurred; significant renewals and betterments are capitalized.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Property, plant and equipment is being depreciated over the following useful lives:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Buildings and improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">31 and 39</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Machinery and equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5 - 12</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Office equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">3 - 7</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Vehicles</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Leasehold improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">Shorter of expected useful life or lease term</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Buildings and improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">31 and 39</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Machinery and equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5 - 12</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Office equipment</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">3 - 7</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Vehicles</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">5</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Leasehold improvements</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">Shorter of expected useful life or lease term</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Goodwill and other intangible assets </u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill and indefinite lived intangible assets are not amortized, but are reviewed for impairment at least annually.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Recipes</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">4</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Trade names</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-15</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Formula</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">10</font></td></tr> <tr style="background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Customer lists</font></td> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-10</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Customer relationships</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-12</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 54%; border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 8pt">Category</font></td> <td style="width: 5%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 41%; border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt">Years</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Recipes</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">4</font></td></tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Trade names</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-15</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Formula</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">10</font></td></tr> <tr style="background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Customer lists</font></td> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-10</font></td></tr> <tr style="vertical-align: top; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Customer relationships</font></td> <td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: center"><font style="font-size: 8pt">8-12</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Impairment</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company reviews intangible assets for impairment at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, such as a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company's products or changes in the size of the market for the Company's products.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">If the estimated remaining useful life of an intangible asset is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Long-lived assets, including property, plant, and equipment, and cost method investments, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and prior to any goodwill impairment test. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment in 2016 or 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Income taxes</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the deferred tax assets or liabilities are expected to be realized or settled. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments,&#160;and the allowance for doubtful accounts.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company has analyzed filing positions in all the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. We recognize the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. We apply a more likely than not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect earnings in the quarter of such change. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. The total amount of unrecognized tax benefits can change due to audit settlements, tax examination activities, statute expirations and the recognition and measurement criteria under accounting for uncertainty in income taxes. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Treasury stock</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Treasury stock is recorded using the cost method.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Advertising costs</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company expenses advertising costs as incurred. For the years ended December 31, 2016 and 2015 total advertising expenses were $6,859 and $5,006, respectively.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Earnings per common share</u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding during each period. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding and the effect of all dilutive common stock equivalents outstanding during each period. For the year ended December 31, 2016, there were 5 common stock equivalents outstanding. There were no common stock equivalents outstanding for the year ended December 31, 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b></b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><u>Recently Issued Accounting Pronouncements </u></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance will be effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendment should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, such as debt prepayment or debt extinguishment costs, contingent consideration payments made after an acquisition, proceeds from the settlement of insurance claims, and other topics. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation &#8211; Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The new guidance will be effective for fiscal years beginning on or after December 15, 2016 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities in the balance sheet and disclose key information about leasing arrangements, such as information about variable lease payments and options to renew and terminate leases. The amended guidance will require both operating and finance leases to be recognized in the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The amendments in this ASU should be adopted using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. We do not intend to early adopt the standard. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In January, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless certain conditions exist. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is not permitted. The adoption of this amendment is not expected to have an impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In November 2015, the FASB issued ASU 2015-17, Income Taxes &#8211; Balance Sheet Classification of Deferred Taxes. This new guidance simplifies the presentation of deferred income taxes and requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Previous guidance required deferred tax assets and liabilities to be separated into current and noncurrent amounts on the balance sheet. The guidance is effective for fiscal years beginning on or after December 15, 2016, and interim periods within those years. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In July 2015, the FASB issued ASU 2015-11, Inventory &#8211; Simplifying the Measurement of Inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for financial statements issued for annual and interim periods beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements &#8211; Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern, which requires management to assess an entity&#8217;s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances, such as the existence of substantial doubt. The Company is required to evaluate going concern uncertainties at each annual and interim reporting period, considering the entity&#8217;s ability to continue as a going concern within one year after the issuance date. This guidance was effective on December 31, 2016. The adoption of this amendment had no impact on the consolidated financial statements.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In May 2014, the Financial Accounting Standards Board (&#34;FASB&#34;) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (&#34;ASU 2014-09&#34;), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific requirements. ASU 2014-09 establishes a five-step revenue recognition process in which an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard allows for either &#8220;full retrospective&#8221; adoption, meaning the standard is applied to all of the periods presented, or &#8220;modified retrospective&#8221; adoption, meaning the standard is applied only to the most current period presented in the financial statements. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. On August 12, 2015 the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for ASU 2014-09. Under the delayed effective date, the Company is required to adopt the new standard not later than January 1, 2018.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Management is currently evaluating the impact the adoption of this amendment will have on the Company's consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. Our completed evaluation will include the impact of the new standard on certain common practices currently employed by us, such as rebates, in-store display and demo allowances, allowances for non-saleable product, and coupons. We currently expect to utilize the modified retrospective transition method and to adopt the ASU on January 1, 2018. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position; however, our assessment is not yet complete. During 2017, we plan to finalize our review and method of adoption.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Goodwill and indefinite-lived intangible assets consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Goodwill</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">10,368</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">10,368</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Brand names</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,700</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,700</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 11.25pt"><font style="font-size: 8pt">Goodwill and indefinite lived intangible assets</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">14,068</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">14,068</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Other intangible assets, net consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Recipes</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">44</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">44</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Customer lists and other customer related intangibles</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">4,529</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">4,529</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Customer relationships</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">985</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">985</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Trade names</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,248</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,248</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Formula</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">438</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">438</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8,244</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8,244</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(6,597</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(5,900</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 11.25pt"><font style="font-size: 8pt">Intangible assets, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,647</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,344</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The estimated annual intangible asset amortization expense related to amortizable intangible assets as of December 31, 2016 is as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 17%; text-align: center"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">672</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">635</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center"><font style="font-size: 8pt">2019</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">210</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"><font style="font-size: 8pt">2020</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">130</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,647</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Goodwill</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">10,368</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">10,368</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Brand names</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,700</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,700</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 11.25pt"><font style="font-size: 8pt">Goodwill and indefinite lived intangible assets</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">14,068</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">14,068</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Recipes</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">44</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">44</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Customer lists and other customer related intangibles</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">4,529</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">4,529</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Customer relationships</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">985</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">985</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Trade names</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,248</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,248</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Formula</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">438</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">438</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8,244</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8,244</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Accumulated amortization</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(6,597</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(5,900</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 11.25pt"><font style="font-size: 8pt">Intangible assets, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,647</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,344</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 17%; text-align: center"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">672</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">635</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center"><font style="font-size: 8pt">2019</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">210</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"><font style="font-size: 8pt">2020</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">130</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: center; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,647</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The cost and fair value of investments classified as available for sale are as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized <br />Gains</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized <br />Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair <br />Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 32%; text-align: justify"><font style="font-size: 8pt">Common stocks &#38; ETF's</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">690</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">17</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">(94</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">613</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">27</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">98</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Corporate Bonds</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,393</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">43</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(88</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,348</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,208</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">66</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(183</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,091</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Gross gains of $185 and $48, and gross losses of $200 and $120 were realized on the sales of investments during the years ended December 31, 2016 and 2015, respectively.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Less Than 12 Months</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">12 Months or Greater</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 22%; text-align: justify"><font style="font-size: 8pt">Common stocks &#38; ETF's</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">225</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(72</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">152</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(22</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">377</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(94</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Corporate Bonds</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">370</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(32</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">479</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(56</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">849</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(88</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">621</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(105</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">631</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(78</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,252</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(183</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company's investments in equity securities, mutual funds, preferred securities and corporate bonds consist of investments in common stock, preferred stock, structured notes and other debt securities of companies in various industries. The Company recorded other-than-temporary impairment losses related to certain structured notes of $0 and $475 during the years ended December 31, 2016 and 2015, respectively. The impairment losses are included in &#34;other income (expense)&#34; in the accompanying consolidated statements of income and comprehensive income. The structured notes allow the issuer to settle at an amount less than par in certain circumstances. In reaching a conclusion to record these other-than-temporary impairment losses, the Company evaluated the near-term prospects of the issuers and determined it was probable the issuers would have the ability to settle the bonds for an amount less than par value at maturity.</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized <br />Gains</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized <br />Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair <br />Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 32%; text-align: justify"><font style="font-size: 8pt">Common stocks &#38; ETF's</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">690</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">17</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">(94</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">613</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">27</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">98</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Corporate Bonds</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,393</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">43</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(88</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,348</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,208</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">66</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(183</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,091</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Less Than 12 Months</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">12 Months or Greater</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fair Value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Unrealized Losses</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 22%; text-align: justify"><font style="font-size: 8pt">Common stocks &#38; ETF's</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">225</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(72</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">152</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(22</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">377</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">(94</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">26</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Corporate Bonds</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">370</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(32</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">479</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(56</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">849</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(88</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">621</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(105</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">631</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(78</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,252</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(183</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Inventories consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Ingredients</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,256</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,082</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Packaging</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,770</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,636</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Finished goods</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,016</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,946</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total inventories, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">8,042</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,664</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Ingredients</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,256</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,082</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Packaging</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,770</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,636</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Finished goods</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,016</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,946</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total inventories, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">8,042</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,664</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Property, plant and equipment consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Land</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,747</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,807</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Buildings and improvements</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">16,428</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">16,387</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Machinery and equipment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">23,122</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">22,907</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Vehicles</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">848</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,298</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Office equipment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">709</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">709</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Construction in process</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,873</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">311</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">44,727</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">43,419</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Less accumulated depreciation</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,044</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total property, plant and equipment, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">21,832</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">21,375</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>&#160;</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b>&#160;</b></font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Land</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,747</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,807</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Buildings and improvements</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">16,428</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">16,387</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Machinery and equipment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">23,122</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">22,907</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Vehicles</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">848</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,298</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Office equipment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">709</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">709</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Construction in process</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,873</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">311</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">44,727</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">43,419</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Less accumulated depreciation</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(22,044</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total property, plant and equipment, net</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">21,832</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">21,375</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Accrued expenses consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Payroll and incentive compensation</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,560</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">859</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Real estate tax</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">394</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">377</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Other</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">215</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">302</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total accrued expenses</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,169</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,538</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Payroll and incentive compensation</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,560</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">859</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Real estate tax</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">394</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">377</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Other</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">215</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">302</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total accrued expenses</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,169</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">1,538</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Notes payable consisted of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Variable rate term loan due May 31, 2018. Principal and interest (3.11% at December 31, 2016) payable monthly with a balloon payment due at maturity.</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">3,339</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">3,846</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Variable rate term loan due May 31, 2019. Principal and interest (3.12% at December 31, 2016) payable monthly with a balloon payment due at maturity.</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,780</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,113</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">Total notes payable</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7,959</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Less current portion</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total long-term portion</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">6,279</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The variable rate term loans are subject to interest at the prime rate or at the LIBOR rate plus 2.5% and are collateralized by substantially all of the assets of the Company. In addition, under the terms of the related agreements, the Company is subject to minimum fixed charged ratio and tangible net worth thresholds, which among other things may limit the Company's ability to pay dividends or repurchase shares of its common stock. Further, under the agreements the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified timeframes. The Company was in compliance with these financial covenants at December 31, 2016.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In addition, the Company has a $5 million revolving credit facility. Borrowings under the facility are subject to interest at the prime rate or LIBOR plus 2.5%. As of December 31, 2016 there were no borrowings under the facility. Unless renewed the facility expires in July 2017.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Future maturities of notes payable at December 31, 2016, are as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 17%; text-align: justify; text-indent: 11.25pt"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">840</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 11.25pt"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">3,165</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 11.25pt"><font style="font-size: 8pt">2019</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,114</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 22.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Variable rate term loan due May 31, 2018. Principal and interest (3.11% at December 31, 2016) payable monthly with a balloon payment due at maturity.</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">3,339</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">3,846</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Variable rate term loan due May 31, 2019. Principal and interest (3.12% at December 31, 2016) payable monthly with a balloon payment due at maturity.</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,780</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,113</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">Total notes payable</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7,959</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Less current portion</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total long-term portion</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">6,279</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 30%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 17%; text-align: justify; text-indent: 11.25pt"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">840</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 11.25pt"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">3,165</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 11.25pt"><font style="font-size: 8pt">2019</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,114</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 22.5pt"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">7,119</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>Lease obligations</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>&#160;</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company leases certain machinery and equipment, office space and three retail stores for its Lifeway Kefir Shop subsidiary under operating leases. Total rent expense was $509 and $278 for the years ended December 31, 2016 and 2015, respectively. Future annual minimum base rental payments under non-cancelable leases with a lease term in excess of one year as of December 31, 2016 were as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Year</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Operating <br />Leases</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 27%; text-align: left"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">170</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">110</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">2019</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">67</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">2020</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">45</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">2021</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">13</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Thereafter</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Total minimum lease payments</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">406</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>&#160;</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>Litigation</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>&#160;</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company is engaged in various legal actions, claims and proceedings arising in the normal course of business, including commercial disputes, product liabilities, intellectual property matters and employment-related matters resulting from the Company&#8217;s business activities.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company evaluates, on a periodic basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. Currently, none of the Company&#8217;s accruals for outstanding legal matters are material individually or in the aggregate to the Company&#8217;s financial position and it is management&#8217;s opinion that the ultimate resolution of these outstanding legal matters will not have a material adverse effect on our business, financial condition, results of operations, or cash flows. However, if the Company ultimately is required to make payments in connection with an adverse outcome, it is possible that it could have a material adverse effect on the Company&#8217;s business, financial condition, results of operations or cash flows.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company&#8217;s contingencies are subject to substantial uncertainties, including for each such contingency the following, among other factors: (i) the procedural status of the case; (ii) whether the case has or may be certified as a class action suit; (iii) the outcome of preliminary motions; (iv) the impact of discovery; (v) whether there are significant factual issues to be determined or resolved; (vi) whether the proceedings involve a large number of parties and/or parties and claims in multiple jurisdictions or jurisdictions in which the relevant laws are complex or unclear; (vii) the extent of potential damages, which are often unspecified or indeterminate; and (viii) the status of settlement discussions, if any, and the settlement posture of the parties.&#160; Consequently, the Company cannot predict with any reasonable certainty the timing or outcome of such contingencies, and the Company is unable to estimate a possible loss or range of loss.</font></p> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"><font style="font-size: 8pt">Year</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Operating <br />Leases</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 27%; text-align: left"><font style="font-size: 8pt">2017</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">170</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">2018</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">110</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">2019</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">67</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">2020</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">45</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">2021</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">13</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Thereafter</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Total minimum lease payments</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">406</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The provision for income taxes consists of the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">For the Years Ended December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Current:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Federal</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,117</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,888</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">State and local</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">572</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">717</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Total current</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,689</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,605</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Deferred</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(531</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(585</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt">Provision for income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,158</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,020</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">A reconciliation of the U.S. federal statutory rate to the effective tax rate used in the provision for income taxes is as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Amount</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Percentage</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Amount</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Percentage</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 48%; text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Federal income tax expense computed at the statutory rate</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,917</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">34.0%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,357</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">34.0%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">State and local tax expense, net</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">320</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">5.7%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">337</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8.4%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">U.S. domestic manufacturers' deduction &#38; other permanent differences</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">113</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2.0%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">300</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7.5%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Changes for tax positions of prior years</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(202</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(3.5</font></td><td style="text-align: left"><font style="font-size: 8pt">)%</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1.3%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Change in tax rates</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">0.0%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8212;%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Change in tax estimate</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">8</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">0.1%</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(24</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(0.6</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)%</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Provision for income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,158</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">38.3%</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,020</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">50.6%</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Amounts for deferred tax assets and liabilities are as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Non-current deferred tax assets (liabilities) arising from:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Accumulated depreciation and amortization</font></td><td style="width: 2%; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(1,854</font></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td><td style="width: 2%; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(1,719</font></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 20pt"><font style="font-size: 8pt">Total non-current net deferred tax liabilities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1,854</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1,719</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Current deferred tax assets arising from:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Capital loss carry-forward &#38; investment impairment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">166</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">164</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Unrealized losses (gain) on investments</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">45</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Share-based and other compensation</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">126</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt"><font style="font-size: 8pt">Inventory</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">331</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">308</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 8pt">Allowances for doubtful accounts and discounts</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">39</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">39</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><font style="font-size: 8pt">Total current deferred tax assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">662</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">556</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt"><font style="font-size: 8pt">Net deferred tax liability</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(1,192</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(1,163</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Balance at January 1</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">265</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">215</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Additions for tax positions of prior years</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">63</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Release for tax positions of prior years</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(265</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Balance at December 31</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">63</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">265</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Periods subject to examination for the Company's federal income tax returns are the 2014 and 2015 tax years. The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was not significant as of December 31, 2016 and not significant as of December 31, 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The amount of interest and penalties recognized in the consolidated statements of income and comprehensive income was approximately $19 and $-- during 2016 and 2015, respectively. The amount of interest and penalties recognized in the consolidated balance sheets was approximately $19 and $65 at December 31, 2016 and 2015, respectively.</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">For the Years Ended December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Current:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Federal</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">2,117</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">1,888</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">State and local</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">572</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">717</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Total current</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,689</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2,605</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Deferred</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(531</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(585</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt">Provision for income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,158</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,020</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Balance at January 1</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">265</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">215</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Additions for tax positions of prior years</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">63</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Release for tax positions of prior years</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(265</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Balance at December 31</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">63</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">265</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">FASB <i>Accounting Standards Codification</i> (&#34;ASC&#34;) 820, <i>Fair Value Measurements and Disclosures</i>, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b><i>Level 1. </i></b>Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b><i>Level 2. </i></b>Inputs to the valuation methodology include the following:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">&#183;</font></td><td><font style="font: 8pt Times New Roman, Times, Serif">Quoted prices for similar assets or liabilities in active markets;</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">&#183;</font></td><td><font style="font: 8pt Times New Roman, Times, Serif">Quoted prices for identical or similar assets or liabilities in inactive markets;</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">&#183;</font></td><td><font style="font: 8pt Times New Roman, Times, Serif">Inputs other than quoted prices that are observable for the asset or liability;</font></td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font: 8pt Symbol">&#183;</font></td><td><font style="font: 8pt Times New Roman, Times, Serif">Inputs that are derived principally from or corroborated by observable market data by correlation or other means.</font></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><b><i>Level 3. </i></b>Inputs to the valuation methodology are unobservable and significant to the fair value measurement.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used as of December 31, 2016 and 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The majority of the Company's fair value measurements for investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company's Level 1 fair value measurements, which include mutual funds and common stock, is based on quoted market prices in active markets for identical securities. The Company's Level 2 fair value measurements, which include corporate bonds and preferred securities, is based on quoted prices in inactive markets for identical or similar assets. The Company's level 3 fair value measurements which include other than temporarily impaired bonds are based on the present value of the estimated proceeds expected to be received at maturity of the bond. Those bonds were reclassified to level 3 from level 2 during 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The following table sets forth by level, within the fair value hierarchy, the Company's financial assets measured at fair value on a recurring basis for the year ended December 31, 2015. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="14" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Assets at Fair Value as of December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 1</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 2</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 3</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">26</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">26</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Common Stocks &#38; ETF's</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">613</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">613</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Corporate Bonds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,187</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">161</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,348</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company's financial assets and liabilities which are not carried at fair value on a recurring basis include cash and cash equivalents, certificates of deposit, accounts receivable, other receivables, accounts payable, accrued expenses and notes payable for which carrying value approximates fair value.</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="14" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Assets at Fair Value as of December 31, 2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 1</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 2</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 3</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: justify"><font style="font-size: 8pt">Mutual Funds</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">26</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 8pt">26</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Common Stocks &#38; ETF's</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">613</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">613</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">Preferred Securities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">104</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Corporate Bonds</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,187</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">161</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1,348</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>Stock Options</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In December 2015, Lifeway shareholders approved the 2015 Omnibus Incentive Plan, which authorized the issuance of an aggregate of 3.5 million shares to satisfy awards of stock options, stock appreciation rights, unrestricted stock, restricted stock, restricted stock units, performance shares and performance units. At December 31, 2016, 3.448 million shares remain available under the Omnibus Incentive Plan. The Company has not established a pace for the frequency of awards under the Omnibus plan, and may choose to suspend the issuance of new awards in the future and may grant additional awards at any time including issuing special grants of restricted stock, restricted stock units,&#160;and&#160;stock options to attract and retain new and existing executives.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Pursuant to the Omnibus Incentive Plan, Lifeway granted 26 stock options to certain key employees of the Company effective January 1, 2016 and 24 stock options on July 1, 2016 (the &#34;2016 options&#34;). The 2016 options generally vest over a three-year period, on a relatively accelerated basis. The accelerated vesting reflects the landmark nature of the awards and the relative tenure of individual participants.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">For the years ended December 31, 2016 and 2015 total pre-tax stock-based compensation expense recognized in the consolidated statements of income and comprehensive income was $134 and $0, respectively. For the years ended December 31, 2016 and 2015 tax-related benefits of $51 and $0 were also recognized. As of December 31, 2016, the total remaining unearned compensation related to non-vested stock options was $60, which is expected to be amortized over the weighted-average remaining service period of 1.41 years.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The following table summarizes stock option activity during the year ended December 31, 2016:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Options</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Weighted <br />average <br />exercise price</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Weighted <br />average <br />remaining contractual life</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Aggregate <br />intrinsic value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 48%"><font style="font-size: 8pt">Outstanding at December 31,2015</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Granted</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">10.37</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Exercised</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(5</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">9.57</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Forfeited</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Outstanding at December 31, 2016</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">45</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">10.45</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 8pt">9.20</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 8pt">48</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Exercisable at December 31, 2016</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">3</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">9.57</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">9.50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">6</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">We measure the fair value of stock options using the Black-Scholes option pricing model. The expected term of options granted was based on the weighted average time of vesting and the end of the contractual term. We utilized this simplified method as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The following assumptions were used for the 2016 stock option grants:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Risk free interest rate</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">1.00 - 1.11%</font></td><td><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 31%; text-align: left"><font style="font-size: 8pt">Expected dividend yield</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"></td><td style="width: 15%; text-align: right"><font style="font-size: 8pt">0.27%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Expected volatility</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">38.96 - 39.94%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">Expected term (years)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">5.03 - 5.88 </font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><i>Restricted Stock Units</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><i>&#160;</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">Pursuant to the 2015 Omnibus Incentive Plan, Lifeway granted 2 Restricted Stock Units (&#8220;RSUs&#8221;) to certain key employees in December 2016. An RSU represents the right to receive one share of common stock in the future. RSUs have no exercise price.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">The following table summarizes RSU activity during the year ended December 31, 2016:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">RSU&#8217;s</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Outstanding at December 31,2015</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 67%"><font style="font-size: 8pt">Granted</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">2</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Shares issued upon vesting</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Forfeited</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Outstanding at December 31, 2016</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Weighted average grant date fair value per share</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">10.54</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">We expense RSU&#8217;s over the service period. For the years ended December 31, 2016 and 2015 total pre-tax stock-based compensation expense recognized in the consolidated statements of income and comprehensive income was $1 and $0, respectively. For the years ended December 31, 2016 and 2015 tax-related benefits of $0 were also recognized. As of December 31, 2016, the total remaining unearned compensation related to non-vested RSU&#8217;s was $20, which is expected to be amortized over the weighted-average remaining service period of 1.46 years.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><i>Incentive Compensation</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><i>&#160;</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In March 2016 Lifeway established an incentive-based compensation program (the &#8220;2016 Plan&#8221;) for certain senior executives and key employees (the &#8220;participants&#8221;). The incentive compensation was based on the achievement of certain sales and EBITDA performance levels versus respective targets in 2016. Under the 2016 Plan, the senior executives had the opportunity to earn cash and equity-based incentive compensation in amounts ranging from $0 to $11,363 for fiscal 2016 depending on the performance levels compared to the respective targets. For the year ended December 31, 2016, senior executive participants earned bonuses of $1,720 under the 2016 Plan, all of which was paid or was payable in cash at December 31, 2016.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In December 2016 Lifeway awarded 12 shares of fully vested common stock to key employee participants. Stock-based compensation of $191 was recognized in 2016.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">In January 2017 Lifeway established an incentive-based compensation program (the &#8220;2017 Plan&#8221;) for certain senior executives and key employees (the &#8220;participants&#8221;). Under the 2017 Plan, incentive compensation is based on the achievement of certain sales and EBITDA performance levels versus respective targets in 2017. Under the 2017 Plan, collectively the participants may earn cash and equity based incentive compensation in amounts ranging from $0 to $4,000 depending on the performance levels compared to the respective targets. The equity portion of the incentive compensation is payable in restricted stock that vests one-third in each of the three years from the 2017 grant dates. No compensation expense has been recognized for the 2017 Plan.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"><i>Retirement Benefits</i></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company has a defined contribution plan which is available to substantially all full-time employees. Under the terms of the plan the Company matches employee contributions under a prescribed formula. For the years ended December 31, 2016 and 2015 total contribution expense recognized in the consolidated statements of income and comprehensive income was $368 and $316, respectively.</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Options</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Weighted <br />average <br />exercise price</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Weighted <br />average <br />remaining contractual life</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Aggregate <br />intrinsic value</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 48%"><font style="font-size: 8pt">Outstanding at December 31,2015</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Granted</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">10.37</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Exercised</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(5</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">9.57</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Forfeited</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Outstanding at December 31, 2016</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">45</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">10.45</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 8pt">9.20</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">$</font></td><td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 8pt">48</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Exercisable at December 31, 2016</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">3</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">9.57</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">9.50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">6</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Risk free interest rate</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: right"><font style="font-size: 8pt">1.00 - 1.11%</font></td><td><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 31%; text-align: left"><font style="font-size: 8pt">Expected dividend yield</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"></td><td style="width: 15%; text-align: right"><font style="font-size: 8pt">0.27%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Expected volatility</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">38.96 - 39.94%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><font style="font-size: 8pt">Expected term (years)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">5.03 - 5.88 </font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td> </tr> </table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">RSU&#8217;s</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td><font style="font-size: 8pt">Outstanding at December 31,2015</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 67%"><font style="font-size: 8pt">Granted</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">2</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Shares issued upon vesting</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><font style="font-size: 8pt">Forfeited</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">Outstanding at December 31, 2016</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><font style="font-size: 8pt">Weighted average grant date fair value per share</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">10.54</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company manufactures probiotic, cultured, functional dairy health food products. The Company's primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several package configurations. In addition to the drinkable products, Lifeway manufactures &#34;Lifeway Farmer Cheese,&#34; a line of various farmer cheeses.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">The Company has determined that it has one reportable segment based on how the Company's chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing Company performance, has been identified collectively as the Chief Financial Officer, the Chief Operating Officer, the Chief Executive Officer and Chairperson of the board of directors.&#160;&#160;Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumers through a network of distributors and retailers in the United States.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Net sales of products by category were as follows for the years ended December 31:</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt; font-weight: bold"><font style="font-size: 8pt">&#160;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt; font-weight: bold"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Drinkable Kefir other than ProBugs</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">105,983</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">100,812</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Lifeway cheese products</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">10,258</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">9,725</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">ProBugs Kefir products</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6,383</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6,775</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Frozen Kefir</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,255</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,275</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Net sales</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">123,879</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">118,587</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 8pt"><b><i>Significant Customers</i></b> &#8211; Sales are predominately to companies in the retail food industry, located within the United States. Two major customers accounted for approximately 23% of net sales for the years ended December 31, 2016 and 2015. These customers accounted for approximately 25% and 16% of accounts receivable as of December 31, 2016 and 2015, respectively.</font></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt; font-weight: bold"><font style="font-size: 8pt">&#160;</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt; font-weight: bold"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: justify"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 46%; text-align: justify"><font style="font-size: 8pt">Drinkable Kefir other than ProBugs</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">105,983</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right"><font style="font-size: 8pt">100,812</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"><font style="font-size: 8pt">Lifeway cheese products</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">10,258</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">9,725</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify"><font style="font-size: 8pt">ProBugs Kefir products</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6,383</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">6,775</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt"><font style="font-size: 8pt">Frozen Kefir</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,255</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,275</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: justify; padding-bottom: 2.5pt"><font style="font-size: 8pt">Net sales</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">123,879</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">118,587</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">On September 24, 2015, the Company's Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $3,500 of the Company's common stock not to exceed an aggregate of 250 shares, in the open market or in privately negotiated transactions, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which the Company repurchases its shares and the timing of such repurchases will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by management. The repurchase program may be suspended or discontinued at any time.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt">Pursuant to the share repurchase program, during the year ended December 31, 2016, the Company repurchased 69 shares at a cost of $738, or approximately $10.68 per share. During the year ended December 31, 2015, the Company repurchased 136 shares at a cost of $1,542, or about $11.32 per share. Approximately $1,220 remained available under this program as of December 31, 2016.</font></p> 31 and 39 years 5-12 years 3-7 years 5 years Shorter of expected useful life or lease term 0 0 5000 0 10368000 10368000 3700000 3700000 2208000 690000 27000 98000 1393000 2091000 613000 26000 104000 1348000 66000 17000 0 6000 43000 183000 94000 1000 0 88000 72000 22000 1000 0 0 0 32000 56000 621000 225000 26000 0 370000 631000 152000 0 0 479000 1252000 377000 26000 0 849000 2256000 2082000 3016000 2946000 2770000 2636000 394000 377000 2018-05-31 2019-05-31 .0311 .0312 5000000 LIBOR plus 2.5% 2017-07-31 170000 110000 67000 45000 13000 1000 406000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Amount</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Percentage</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Amount</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Percentage</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 48%; text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Federal income tax expense computed at the statutory rate</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,917</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">34.0%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,357</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 2%"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="width: 9%; text-align: right"><font style="font-size: 8pt">34.0%</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">State and local tax expense, net</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">320</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">5.7%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">337</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">8.4%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">U.S. domestic manufacturers' deduction &#38; other permanent differences</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">113</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2.0%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">300</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">7.5%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Changes for tax positions of prior years</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(202</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(3.5</font></td><td style="text-align: left"><font style="font-size: 8pt">)%</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">50</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">1.3%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Change in tax rates</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">0.0%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8212;%</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Change in tax estimate</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">8</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">0.1%</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(24</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(0.6</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)%</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"><font style="font-size: 8pt">Provision for income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,158</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">38.3%</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">2,020</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">50.6%</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> </table> -.035 .013 .383 .506 .001 -.006 .020 .075 113000 300000 -202000 50000 0 45000 126000 0 662000 556000 265000 0 45000 0 50000 26000 0 3000 10.37 9.57 10.45 9.57 P9Y6M26D P9Y6M26D 48000 6000 .01 .011 .0027 .3896 .3994 5.03-5.88 years 2000 0 2000 0 0 10.54 3500000 3448000 134000 1000 0 0 1720000 191000 51000 0 0 0 60000 P1Y4M28D P1Y5M16D 20000 12000 368000 316000 .23 .23 .25 .16 1220000 928000 1064000 1120000 12000 8000 -24000 1192000 1163000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="6" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">December 31,</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2016</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td colspan="2" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2015</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Non-current deferred tax assets (liabilities) arising from:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; padding-left: 10pt; padding-bottom: 1pt"><font style="font-size: 8pt">Accumulated depreciation and amortization</font></td><td style="width: 2%; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(1,854</font></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td><td style="width: 2%; padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">$</font></td><td style="width: 13%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 8pt">(1,719</font></td><td style="width: 1%; text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 20pt"><font style="font-size: 8pt">Total non-current net deferred tax liabilities</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1,854</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">(1,719</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left"><font style="font-size: 8pt">Current deferred tax assets arising from:</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Capital loss carry-forward &#38; investment impairment</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">166</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">164</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Unrealized losses (gain) on investments</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">45</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"><font style="font-size: 8pt">Share-based and other compensation</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">126</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">&#8211;</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt"><font style="font-size: 8pt">Inventory</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">331</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td><font style="font-size: 8pt">&#160;</font></td> <td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="text-align: right"><font style="font-size: 8pt">308</font></td><td style="text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 8pt">Allowances for doubtful accounts and discounts</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">39</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">39</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt"><font style="font-size: 8pt">Total current deferred tax assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">662</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">&#160;</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">556</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">&#160;</font></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt"><font style="font-size: 8pt">Net deferred tax liability</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(1,192</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt">&#160;</font></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(1,163</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">The Company obtains consulting services from the Chairperson of its board of directors. Fees earned by the Chairperson are included in general and administrative expenses in the accompanying consolidated statements of income and comprehensive income and were $1,000 during the years ended December 31, 2016 and 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">On December 14, 2015, the Company entered into a stock purchase agreement (the &#34;Stock Purchase Agreement&#34;) with Ludmila Smolyansky, the Company's Chairperson of the Board pursuant to which Ms. Smolyansky agreed to sell to the Company 30 and the Company agreed to purchase such shares under its previously disclosed repurchase plan at a purchase price equal to the product of (a) 30 multiplied by (b) the average of the last reported closing sale price of the Common Stock on the Nasdaq Global Market for each of the five (5) Trading Days (as defined in the Stock Purchase Agreement) immediately preceding the date of the Stock Purchase Agreement. The transaction was consummated on December 15, 2015.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">On March 14, 2016, the Company entered into an endorsement agreement (the &#34;Agreement&#34;) with Ludmila Smolyansky, the Company's Chairperson of the Board. Under the terms and conditions of the Agreement, Ms. Smolyansky grants an unlimited, perpetual, non-exclusive, worldwide and, except as set forth therein, royalty free, right to use, reuse, publish, reproduce, perform, copy, create derivative works, exhibit, broadcast and display Ms. Smolyansky's name, image and likeness in Marketing Materials (as defined in the Agreement). As consideration for such license, the Company agrees to pay Ms. Smolyansky a royalty equal to $0.02 for each Company product or item sold by Lifeway during each calendar month bearing Ms. Smolyansky's first name, last name or other identifying personal characteristics; provided however that such royalty will not exceed $50 in any month and such royalty payments will cease upon the death of Ms. Smolyansky. The Agreement was effective as of January 1, 2016. Royalties earned by the Chairperson are included in selling expenses in the accompanying consolidated statements of income and comprehensive income and were $600 during the year ended December 31, 2016.</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 8pt">&#160;</font></p> 0 84000