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ACU:Y
Q1
2017
3354712
5911000
6175000
2426000
1474000
20021000
21251000
2293000
2879000
65463000
67589000
413000
414000
5669000
5808000
13428000
14129000
11537000
11971000
694000
762000
92066000
100204000
84104000
91891000
3882000
3903000
4080000
4410000
7339000
5731000
5481000
3204000
12820000
8935000
32936000
44382000
45946000
53601000
11972000
12003000
92066000
100204000
19510000
20351000
7973000
8380000
190000
284000
13870000
13870000
2.50
2.50
8000000
8000000
4788965
4801465
1464010
1464010
396000
357000
278000
218000
115000
102000
574000
-1748000
-502000
1619000
-1591000
-489000
-2271000
-2611000
-3711000
-2920000
504000
449000
10000
-7737000
-7430000
-6000
10000
566000
626000
-3052000
-2355000
11436000
9783000
11059000
8823000
264000
-952000
1192000
1108000
32000
52000
945000
32000
-22000
955000
100000
3329000
3336000
3730000
3572000
744000
817000
85000
252000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Balance
at <br />
December 31, 2016</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Payments</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Balance
at <br />
March 31, 2017</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Fremont, NC</font></td><td style="width: 3%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="text-align: left; width: 2%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">57</font></td><td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td><td style="width: 3%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="width: 2%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; text-align: right; border-bottom: Black 1pt solid">(0</td><td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">)<font style="font-size: 9pt; color: #000000"> </font></td><td style="width: 3%; color: #FF0000; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="width: 2%; color: #FF0000; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; color: #FF0000; text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">57</font></td><td style="width: 1%; color: #FF0000; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"></font></td><td style="width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
</tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; text-align: right">57<font style="font-size: 9pt; color: #000000"></font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; text-align: right"><font style="font-size: 9pt; color: #000000">(0</font></td><td style="border-bottom: Black 2pt double; text-align: left">)<font style="font-size: 9pt; color: #000000"> </font></td><td style="color: #FF0000; padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; color: #FF0000; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; color: #FF0000; text-align: right"><font style="font-size: 9pt; color: #000000">57</font></td><td style="padding-bottom: 2.5pt; color: #FF0000; text-align: left; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"></font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
</tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <b> </b></p>
14000
14000
20000
19000
2000
31000
35000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b>5. Segment Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reports financial information based
on the organizational structure used by the Company’s chief operating decision makers for making operating and investment
decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada;
and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S.
operations; accordingly, the Company’s chief operating decision makers review the financial results of both on a consolidated
basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one
reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives
its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware, sporting
and industrial use.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Domestic sales orders are filled primarily
from the Company’s distribution centers in North Carolina, Washington and Massachusetts. The Company is responsible for the
costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from
the Company’s inventory are generally for less than container-sized lots.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Direct import sales are products sold
by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales
are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales
are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 7%
of the Company’s total net sales for the three months ended March 31, 2017 compared to 13% for the comparable period in 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The chief operating decision maker
evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts are presented
after converting to U.S. dollars and consolidating eliminations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth certain
financial data by segment for the three months ended March 31, 2017 and 2016:</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif">(in
thousands)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br /> March 31,</td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">24,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">22,526</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,391</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,389</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,879</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">25,288</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">945</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">52</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(22</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,192</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">955</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">263</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other income, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(38</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before income taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">938</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 9pt Sans-Serif; margin: 0pt 0; text-align: center; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i></i></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left">Assets by segment:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 9pt Times New Roman, Times, Serif"><b>March
31</b></font></td><td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td>
<td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31</b></font></td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2017</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2016</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">91,891</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">84,104</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,903</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,410</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,080</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,204</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">92,066</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 9pt Times New Roman, Times, Serif">(in
thousands)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br /> March 31,</td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">24,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">22,526</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,391</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,389</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,879</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,373</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">27,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">25,288</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,108</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">945</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">32</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">52</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(22</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,192</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">955</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">263</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other income, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(38</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before income taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">938</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 9pt Sans-Serif; margin: 0pt 0; text-align: center; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i> </i></p>
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--12-31
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<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">1. Basis of Presentation</p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In the opinion of management,
the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial
position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of
a normal, recurring nature. However, the financial statements do not include all of the disclosures normally required by accounting
principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K.
Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016 for such disclosures. The condensed
consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated balance sheet as of that date. The
results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information
included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of
Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s 2016
Annual Report on Form 10-K.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Company has evaluated
events and transactions subsequent to March 31, 2017 and through the date these condensed consolidated financial statements were
included in this Form 10-Q and filed with the SEC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">Recently Issued Accounting Guidance</p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><font style="letter-spacing: -0.1pt">In</font>
March <font style="letter-spacing: 0.2pt">2016,</font> <font style="letter-spacing: 0.15pt">the</font> <font style="letter-spacing: -0.15pt">FASB</font>
issued <font style="letter-spacing: -0.15pt">ASU</font> <font style="letter-spacing: 0.15pt">2016-09</font> to <font style="letter-spacing: 0.1pt">improve</font>
<font style="letter-spacing: 0.15pt">the accounting</font> for <font style="letter-spacing: 0.1pt">employee</font> share-based
<font style="letter-spacing: 0.1pt">payments. This</font> standard simplifies several aspects <font style="letter-spacing: 0.1pt">of
</font><font style="letter-spacing: 0.15pt">the accounting</font> for share-based <font style="letter-spacing: 0.1pt">payment</font>
award <font style="letter-spacing: 0.1pt">transactions,</font> <font style="letter-spacing: 0.2pt">including</font> <font style="letter-spacing: 0.15pt">the</font>
<font style="letter-spacing: 0.1pt">income</font> tax <font style="letter-spacing: 0.1pt">consequences,</font> classification <font style="letter-spacing: 0.1pt">of</font>
awards as <font style="letter-spacing: 0.1pt">either</font> <font style="letter-spacing: 0.15pt">equity</font> <font style="letter-spacing: 0.1pt">or
liabilities, and</font> classification <font style="letter-spacing: 0.1pt">on</font> <font style="letter-spacing: 0.15pt">the</font>
statement <font style="letter-spacing: 0.1pt">of</font> cash flows, as part <font style="letter-spacing: 0.1pt">of</font> <font style="letter-spacing: -0.1pt">FASB’s</font>
<font style="letter-spacing: 0.1pt">simplification</font> <font style="letter-spacing: 0.15pt">initiative</font> to reduce cost
<font style="letter-spacing: 0.1pt">and</font> <font style="letter-spacing: 0.15pt">complexity</font> in <font style="letter-spacing: 0.15pt">accounting</font>
<font style="letter-spacing: 0.1pt">standards</font> while <font style="letter-spacing: 0.15pt">maintaining</font> <font style="letter-spacing: 0.1pt">or
improving</font> <font style="letter-spacing: 0.15pt">the</font> usefulness <font style="letter-spacing: 0.1pt">of</font> <font style="letter-spacing: 0.15pt">the</font>
information <font style="letter-spacing: 0.15pt">provided</font> to <font style="letter-spacing: 0.15pt">the</font> users <font style="letter-spacing: 0.1pt">of
financial</font> state. The new standard was effective for the Company beginning on January 1, 2017. The effect of ASU 2016-09
did not have a material impact on the consolidated financial statements for the three months ended March 31, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="letter-spacing: 0.05pt">In</font> <font style="letter-spacing: -0.15pt">February
2016,</font> the FASB issued guidance that will change the <font style="letter-spacing: -0.1pt">requirements</font> for accounting
for leases. The principal change <font style="letter-spacing: -0.15pt">under</font> the <font style="letter-spacing: -0.1pt">new
</font>accounting guidance is that lessees <font style="letter-spacing: -0.15pt">under</font> leases <font style="letter-spacing: 0.05pt">classified</font>
<font style="letter-spacing: -0.1pt">as operating</font> leases will recognize a right-of-use asset <font style="letter-spacing: -0.1pt">and</font>
a lease liability. <font style="letter-spacing: -0.15pt">Current </font>lease accounting <font style="letter-spacing: -0.15pt">does</font>
<font style="letter-spacing: -0.1pt">not</font> <font style="letter-spacing: -0.15pt">require</font> lessees <font style="letter-spacing: 0.05pt">to</font>
recognize <font style="letter-spacing: 0.05pt">assets</font> <font style="letter-spacing: -0.1pt">and</font> liabilities arising
<font style="letter-spacing: -0.15pt">under</font> <font style="letter-spacing: -0.1pt">operating</font> leases <font style="letter-spacing: -0.1pt">on</font>
the balance sheet. <font style="letter-spacing: -0.15pt">Under</font> the <font style="letter-spacing: -0.1pt">new guidance,</font>
lessees (including lessees <font style="letter-spacing: -0.15pt">under</font> leases <font style="letter-spacing: 0.05pt">classified</font>
<font style="letter-spacing: -0.1pt">as</font> finance leases <font style="letter-spacing: -0.1pt">and operating</font> leases)
will recognize a right-to-use asset <font style="letter-spacing: -0.1pt">and</font> a lease liability <font style="letter-spacing: -0.1pt">on</font>
the balance sheet, initially measured <font style="letter-spacing: -0.1pt">as</font> the <font style="letter-spacing: -0.1pt">present</font>
value <font style="letter-spacing: -0.1pt">of</font> lease payments <font style="letter-spacing: -0.15pt">under</font> the lease.
Expense recognition <font style="letter-spacing: -0.1pt">and</font> <font style="letter-spacing: 0.05pt">cash</font> flow presentation
guidance will <font style="letter-spacing: -0.1pt">be</font> based <font style="letter-spacing: -0.15pt">upon</font> <font style="letter-spacing: -0.1pt">whether</font>
the lease is <font style="letter-spacing: 0.05pt">classified</font> <font style="letter-spacing: -0.1pt">as an operating</font>
lease <font style="letter-spacing: -0.1pt">or</font> a finance lease (the <font style="letter-spacing: 0.05pt">classification</font>
criteria for distinguishing <font style="letter-spacing: -0.1pt">between</font> finance leases <font style="letter-spacing: -0.1pt">and
operating</font> leases is substantially similar <font style="letter-spacing: 0.05pt">to</font> the <font style="letter-spacing: 0.05pt">classification</font>
criteria for distinguishing <font style="letter-spacing: -0.1pt">between</font> capital leases <font style="letter-spacing: -0.1pt">and
operating</font> leases <font style="letter-spacing: -0.15pt">under</font> <font style="letter-spacing: -0.1pt">current guidance).</font>
The standard is <font style="letter-spacing: 0.05pt">effective</font> for <font style="letter-spacing: 0.05pt">fiscal</font> years,
<font style="letter-spacing: -0.1pt">and</font> interim <font style="letter-spacing: -0.15pt">periods</font> within those <font style="letter-spacing: 0.05pt">fiscal</font>
years, <font style="letter-spacing: -0.1pt">beginning</font> after December <font style="letter-spacing: -0.1pt">15,</font> <font style="letter-spacing: -0.15pt">2018.</font>
Early <font style="letter-spacing: -0.1pt">adoption</font> is permitted. The <font style="letter-spacing: -0.1pt">new</font> standard
must <font style="letter-spacing: -0.1pt">be adopted</font> using a modified retrospective transition <font style="letter-spacing: -0.1pt">approach</font>
for capital <font style="letter-spacing: -0.1pt">and operating</font> leases existing at, <font style="letter-spacing: -0.1pt">or
entered</font> into <font style="letter-spacing: -0.15pt">after, </font>the <font style="letter-spacing: -0.1pt">beginning of</font>
the earliest comparative <font style="letter-spacing: -0.1pt">period</font> presented in the financial statements; the guidance
provides certain practical expedients. The Company is currently evaluating this guidance <font style="letter-spacing: 0.05pt">to</font>
determine <font style="letter-spacing: 0.05pt">its </font>impact <font style="letter-spacing: -0.1pt">on</font> the Company’s
results <font style="letter-spacing: -0.1pt">of</font> operations, <font style="letter-spacing: 0.05pt">cash</font> flows <font style="letter-spacing: -0.1pt">and</font>
financial position.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2017, the FASB issued ASU No. 2017-04,
Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent
measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new amendments, an entity should perform
its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity
should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. We adopted
this guidance prospectively at the beginning of first quarter 2017, which will simplify our future goodwill impairment testing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2017, the FASB issued ASU No. 2017-01,
Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance clarifies the definition of a business
in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or
businesses. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within
those fiscal years, with early adoption permitted. We are currently evaluating the impact of adopting this guidance. We do not
expect that ASU 2017-01 will have a material impact on our financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">2. Contingencies</p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is involved from time to time
in disputes and other litigation in the ordinary course of business and may encounter other contingencies, which may include environmental
and other matters. There are no pending material legal proceedings to which the registrant is a party, or, to the actual knowledge
of the Company, contemplated by any governmental authority.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2014, the Company sold its Fremont, NC distribution
facility for $850,000 in cash. Under the terms of the sale agreement, the Company is responsible to remediate any environmental
contamination on the property. In conjunction with the sale of the property, the Company recorded a liability of $300,000 in the
second quarter of 2014, related to the remediation of the property. The accrual includes the total estimated costs of remedial
activities and post-remediation monitoring costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Remediation work on the project was completed
in 2015. The monitoring period is expected to be completed by the end of 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The change in the accrual for environmental
remediation for the three months ended March 31, 2017 follows (in thousands):</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Balance
at <br />
December 31, 2016</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Payments</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Balance
at <br />
March 31, 2017</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 36%; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">Fremont, NC</font></td><td style="width: 3%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="text-align: left; width: 2%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">57</font></td><td style="width: 1%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td><td style="width: 3%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="width: 2%; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; text-align: right; border-bottom: Black 1pt solid">(0</td><td style="width: 1%; text-align: left; border-bottom: Black 1pt solid">)<font style="font-size: 9pt; color: #000000"> </font></td><td style="width: 3%; color: #FF0000; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="width: 2%; color: #FF0000; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000">$</font></td><td style="width: 15%; color: #FF0000; text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">57</font></td><td style="width: 1%; color: #FF0000; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"></font></td><td style="width: 1%; border-bottom: Black 1pt solid"><font style="font-size: 9pt; color: #000000"> </font></td>
</tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; text-align: right">57<font style="font-size: 9pt; color: #000000"></font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; text-align: right"><font style="font-size: 9pt; color: #000000">(0</font></td><td style="border-bottom: Black 2pt double; text-align: left">)<font style="font-size: 9pt; color: #000000"> </font></td><td style="color: #FF0000; padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
<td style="border-bottom: Black 2pt double; color: #FF0000; text-align: left"><font style="font-size: 9pt; color: #000000">$</font></td><td style="border-bottom: Black 2pt double; color: #FF0000; text-align: right"><font style="font-size: 9pt; color: #000000">57</font></td><td style="padding-bottom: 2.5pt; color: #FF0000; text-align: left; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"></font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 2pt double"><font style="font-size: 9pt; color: #000000"> </font></td>
</tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <b> </b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>3. Pension</b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Components of net periodic benefit cost
are as follows (in thousands):</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended March 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic benefit cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">Interest cost</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">14</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">14</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected return on plan assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Amortization of prior service costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s funding policy with
respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations. In 2017,
the Company is not required to contribute to the plan. As of March 31, 2017, the Company had not made any contributions to the
plan in 2017.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">4. Debt and Shareholders’ Equity<br />
<br />
</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 27, 2017, the Company amended its
revolving credit loan agreement with HSBC Bank, N.A. The amended facility provides for an increase in borrowings from $50 million
to $55 million for the period commencing on April 1, 2017 and ending on September 30, 2017. Commencing October 1, 2017, the maximum
amount outstanding at any time under the facility returns to $50 million. The interest rate on borrowings remains unchanged at
a rate of LIBOR plus 2.0%. The Company must pay a facility fee, payable quarterly, in an amount equal to two tenths of one percent
(.20%) per annum of the average daily unused portion of the revolving credit line. In addition, the amendment modified the debt
to net worth ratio covenant applicable during the same six month period. All principal amounts outstanding under the agreement
are required to be repaid in a single amount on May 6, 2019, the date the agreement expires; interest is payable monthly. Funds
borrowed under the agreement may be used for working capital, acquisitions, general operating expenses, share repurchases and certain
other purposes. Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth,
a specified debt to net worth ratio and a fixed charge coverage ratio and must have annual net income greater than $0, <font style="font-family: CalistoMT,serif">measured
as of the end of each fiscal year. </font>At March 31, 2017, the Company was in compliance with the covenants then in effect under
the loan agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2017 and December 31, 2016,
the Company had outstanding borrowings of $44,382,000 and $32,936,000, respectively, under the Company’s revolving loan agreement
with HSBC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2017,
the Company issued a total of 12,500 shares of common stock and received aggregate proceeds of $185,575 upon exercise of employee
stock options. Also during the three month period ended March 31, 2017, the Company paid approximately $231,000 to optionees who
had elected a net cash settlement of their respective options.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><b>6. Stock Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes share-based compensation
at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period.
Share-based compensation expenses were $115,000 and $102,198 for the three months ended March 31, 2017 and 2016, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2017, there was a total of
$1,274,233 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share–based payments
granted to the Company’s employees. As of that date, the remaining unamortized expense is expected to be recognized over
a weighted average period of approximately 3 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> <b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>7. Fair Value Measurements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying value of the Company’s bank
debt approximates fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">  </p>
9000
9000
ACME UNITED CORP
37238000
37284000
27745000
24475000
1391000
1879000
22526000
1389000
1373000
25288000
1200000
17181000
16103000
659000
565000
.20
.17
.18
.16
13988000
19525000
664000
664000
-2336000
-2251000
.1
.1
57000
57000
57000
57000
115000
102000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended March 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic benefit cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left">Interest cost</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">14</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">14</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected return on plan assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Amortization of prior service costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">31</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i></i></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left">Assets by segment:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 9pt Times New Roman, Times, Serif"><b>March
31</b></font></td><td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td>
<td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31</b></font></td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2017</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2016</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">91,891</td><td style="width: 1%; text-align: left"> </td><td style="width: 4%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 14%; text-align: right">84,104</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,903</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,410</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,080</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,204</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">92,066</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><i> </i></p>
.07
.13
186000
351000
0.02
12500
P3Y
6970000
7200000
262000
296000
176000
7344000
7233000
192000
181000
373000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b>8. Business Combination</b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 1, 2016, the Company acquired the
assets of Vogel Capital, Inc., d/b/a Diamond Machining Technology (“DMT”) based in Marlborough, MA for $6.97 million
in cash. The DMT products are leaders in sharpening tools for knives, scissors, chisels, and other cutting tools. The DMT products
use finely dispersed diamonds on the surfaces of sharpeners. The acquired assets include over 50 patents and trademarks.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #333333"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purchase price was allocated to assets
acquired and liabilities assumed as follows (in thousands):</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></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">
<td><font style="font: 10pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts
Receivable</font></td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,145</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Inventory</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-size: 10pt">280</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">262</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid
expenses</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">176</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 10pt">Intangible Assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 10pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">5,481</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
assets</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,344</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font-size: 10pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 21%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; width: 1%"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts
Payable</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-size: 10pt">192</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Accrued
Expense</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">181</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
liabilities</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming the assets of DMT were acquired on
January 1, 2016, unaudited pro forma combined net sales for the three months ended March 31, 2016 for the Company would have been
approximately $25.9 million. Unaudited pro forma combined net income for the three months ended March 31, 2016 for the Company
would have been approximately $0.6 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; color: red"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 1, 2017, the Company purchased
the assets of Spill Magic, Inc., located in Santa Ana, CA and Smyrna, TN for $7.2 million in cash. The Spill Magic products are
leaders in absorbents that encapsulate spills into dry powders that can be safely disposed. Many large retail chains use its products
to remove liquids from broken glass containers, oil and gas spills, bodily fluids and solvents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #333333"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purchase price was allocated to assets
acquired as follows (in thousands):</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></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">
<td><font style="font: 10pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt">Accounts receivable</td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">684</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Inventory</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-size: 10pt">453</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">296</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 10pt">Intangible assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 10pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">5,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
assets</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 2.5pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font: 10pt Times New Roman, Times, Serif">7,233</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font-size: 10pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management’s assessment of the valuation
of intangible assets is preliminary and finalization of the Company’s purchase price accounting assessment may result in
changes to the valuation of the identified intangible assets. The Company will finalize the purchase price allocation as soon as
practicable within the measurement period in accordance with Accounting Standards Codification Topic 805 “Business Combinations”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming Spill Magic asset were acquired on
January 1, 2017, unaudited pro forma combined net sales for the three months ended March 31, 2017 for the Company would have been
approximately $28.1 million. Unaudited pro forma combined net income for the three months ended March 31, 2017 for the Company
would have been approximately $0.7 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net sales for the three months ended March
31, 2017 attributable to Spill Magic products were approximately $1.2 million. Net income for the three months ended March 31,
2017 attributable to Spill Magic products was approximately $0.1 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: red"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming Spill Magic assets were acquired on
January 1, 2016, unaudited proforma combined net sales for the three months ended March 31, 2016, for the Company would have been
approximately $26.8 million. Unaudited proforma combined net income for the three months ended March 31, 2016 for the Company would
have been approximately $0.7 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; color: red"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></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">
<td><font style="font: 10pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts
Receivable</font></td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,145</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Inventory</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-size: 10pt">280</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">262</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid
expenses</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">176</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 10pt">Intangible Assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 10pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">5,481</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
assets</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">7,344</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font-size: 10pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; width: 21%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; width: 1%"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts
Payable</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font-size: 10pt">192</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Accrued
Expense</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">181</font></td><td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
liabilities</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></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">
<td><font style="font: 10pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt">Accounts receivable</td><td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">684</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Inventory</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font-size: 10pt">453</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 10pt Times New Roman, Times, Serif">Equipment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">296</font></td><td style="text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 10pt">Intangible assets</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 10pt"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font-size: 10pt">5,800</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
assets</font></td><td style="padding-bottom: 2.5pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 2.5pt double"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right; border-bottom: Black 2.5pt double"><font style="font: 10pt Times New Roman, Times, Serif">7,233</font></td><td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font></td></tr>
</table>
<p style="margin: 0"><font style="font-size: 10pt"> </font></p>
3948000
3948000
1145000
684000
280000
453000
850000
32936000
44382000
300000
846000
7233000
6971000
231000
130000
Interest rate of LIBOR plus 2.0%
2019-05-06
25900000
28100000
26800000
600000
700000
700000
5481000
5800000
0
0
.002
6000
-263000
-184000
59000
589000
236000
164000
186000
1274233000