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ACU:Y
Q3
2013
3196102
9750000
11809000
7853000
10105000
16442000
17488000
1925000
1884000
58409000
60461000
291000
449000
2294000
3977000
8283000
8241000
8515000
7607000
1702000
1124000
1112000
67828000
70738000
56115000
59745000
6107000
5762000
5606000
5231000
6480000
5016000
5250000
5267000
11730000
10283000
24320000
25031000
36962000
36286000
11218000
11395000
67828000
70738000
10868000
12667000
2353000
5060000
912000
972000
12283000
12283000
2.50
2.50
8000000
8000000
4487524
4557874
1362072
1362072
673000
623000
202000
162000
388000
326000
1216000
3140000
-1039000
5068000
-1447000
1558000
-70000
1423000
-418000
-4592000
3394000
516000
67000
103000
-1734000
-2093000
-14000
70000
-13000
476000
3061000
-1474000
711000
6752000
746000
5749000
2059000
2252000
5115000
1359000
3992000
753000
149000
4454000
592000
69000
1240000
182000
-63000
4895000
1409000
1183000
130000
96000
3158000
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<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 39%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Balance at <br />
December 31, 2012</b></td>
<td style="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Payments</b></td>
<td style="width: 40%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Balance at <br />
September 30, 2013</b></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  124</td>
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  (70)</td>
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  54</td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
2500000
2000000
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">In December 2008, the Company sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which
$2.0 million is secured by a mortgage on the property.  The property consists of approximately four acres of land and
48,000 sq. feet of warehouse space.  The property was the site of the Company’s original scissor factory which
opened in 1887 and was closed in 1996.</p>
1800000
2
48000
21000
64000
5000
53000
24000
71000
-2000
8000
2000
7000
3000
139000
43000
128000
52000
24319829
25030826
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b>Note 5— Segment Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="color: black">The Company reports financial information
based on the organizational structure used by management 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, management
reviews 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”. </font>Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and
safety products for school, office, home, hardware and industrial use.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Domestic sales orders are filled from the Company’s distribution
center in North Carolina. 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: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">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 15% and 22% of the Company’s
total net sales for the three and nine months ended September 30, 2013, respectively compared to 12% and 16% for the comparable
periods in 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="color: black">The chief operating decision maker evaluates
the performance of each operating segment based on segment revenues and operating income. </font>Segment amounts below are presented
after converting to U.S. dollars and consolidating eliminations.<font style="color: black"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">(in thousands) </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </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"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
months ended<br />
September 30,</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
months ended<br />
September 30,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif">Sales to external customers:</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">United States</font></td><td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">18,273</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">16,541</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">55,992</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">51,702</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Canada</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,782</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,170</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,549</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,137</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,080</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,652</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,657</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,996</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">22,135</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,363</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">68,198</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">64,835</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">Operating income (loss):</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </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: 8pt Times New Roman, Times, Serif">United States</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,183</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,240</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,454</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">3,992</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Canada</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">130</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">182</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">592</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">753</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">96</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(63</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">69</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">149</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,409</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,359</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,115</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Interest expense, net</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">99</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">83</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">242</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">200</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </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: 8pt Times New Roman, Times, Serif">Other expense (income),
net</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(13</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">15</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">93</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated income
before income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,323</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,269</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,858</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,602</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"></font></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"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Assets by segment:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">( in thousands )</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 9pt">September 30,</font></td><td style="font-weight: bold"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 9pt">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 61%; text-align: left"><font style="font-size: 9pt">United States</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">59,745</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 4%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">56,115</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Canada</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,762</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6,107</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"><font style="font-size: 9pt">Europe</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,231</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,606</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 9pt">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">70,738</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">67,828</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<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"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif">(in thousands) </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </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"><font style="font: 8pt Times New Roman, Times, Serif"><b>Three
months ended<br />
September 30,</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Nine
months ended<br />
September 30,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 8pt Times New Roman, Times, Serif">Sales to external customers:</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2013</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>2012</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">United States</font></td><td style="width: 1%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">18,273</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">16,541</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">55,992</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">51,702</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Canada</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,782</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,170</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,549</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,137</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">2,080</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,652</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,657</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,996</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">22,135</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">20,363</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">68,198</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">64,835</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">Operating income (loss):</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </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: 8pt Times New Roman, Times, Serif">United States</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,183</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,240</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,454</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">3,992</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Canada</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">130</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">182</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">592</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">753</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">96</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(63</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">69</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">149</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,409</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,359</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">5,115</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Interest expense, net</font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">99</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">83</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">242</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">200</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </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: 8pt Times New Roman, Times, Serif">Other expense (income),
net</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(13</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">15</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">93</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 8pt Times New Roman, Times, Serif">Consolidated income
before income taxes</font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,323</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,269</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,858</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">4,602</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b>Note 8 – Business Combination</b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On June 7, 2012, the Company purchased certain
assets of The C-Thru Ruler Company (“C-Thru”), a leading supplier of drafting, measuring, lettering and stencil products.
The Company purchased inventory and intellectual property for approximately $1.47 million using funds borrowed under its revolving
credit facility with HSBC. <font style="color: black">The Company recorded approximately $0.42 million for inventory, as well as
approximately $1.05 million for intangible assets, consisting primarily of customer relationships.</font></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">Assuming C-Thru was acquired on January 1, 2012,
unaudited proforma combined net sales for the three and nine months ended September 30, 2012 for the Company would have been approximately
$20.4 million and $66.0 million, respectively.</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">Unaudited net income for the three and nine months
ended September 30, 2012 attributable to C-Thru were not material to the Company’s financial statements for those periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
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10-Q
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false
--12-31
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<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">Note 1 — Basis of Presentation and Recent Accounting
Pronouncements</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: 0 0 0pt; 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 condensed consolidated 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, 2012 for such disclosures.
The condensed consolidated balance sheet as of December 31, 2012 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 the Management’s
Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto, included in
the Company’s 2012 Annual Report on Form 10-K.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">The Company has evaluated
events and transactions subsequent to September 30, 2013 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: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: left; text-indent: 0in">Recent accounting pronouncements</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">In February 2013, the
Financial Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of amounts reclassified
out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications present the effects
on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income – but only
if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
This standard update is effective for reporting periods beginning after December 15, 2012. The adoption of this accounting standard
did not have an impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">Note 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: 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. The Company presently has no matters other than the environmental remediation accrual described below.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">In December 2008, the Company sold property it owned in Bridgeport,
Connecticut to B&E Juices, Inc. for $2.5 million, of which $2.0 million was secured by a mortgage on the property. The property
consists of approximately four acres of land and 48,000 sq. feet of warehouse space. The property was the site of the Company’s
original scissor factory which opened in 1887 and was closed in 1996.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Under the terms of the sale agreement, and as required by the Connecticut
Transfer Act, the Company was required to remediate any environmental contamination on the property. During 2008, the Company hired
an independent environmental consulting firm to conduct environmental studies in order to identify the extent of the environmental
contamination on the property and to develop a remediation plan. As a result of those studies and the estimates prepared by the
independent environmental consulting firm, the Company recorded an undiscounted liability of approximately $1.8 million related
to the remediation of the property. This accrual included the costs of required investigation, remedial activities, and post-remediation
operating and maintenance.</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">The remediation work, which began in the third quarter of 2009,
was completed during the third quarter of 2012. The Company, with the assistance of its independent environmental consulting firm,
must continue to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company
expects that the monitoring period could last a minimum of two years from the time it started in the third quarter of 2012. Currently,
the Company expects to satisfy the monitoring requirements during the second half of 2014. At September 30, 2013, the Company had
approximately $54,000 remaining in its accrual for post-remediation monitoring and project closing costs, of which approximately
$34,000 was classified as a current liability.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The change in the accrual for environmental
remediation for the nine months ended September 30, 2013 follows <font style="color: black">(in thousands)</font>:</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 39%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Balance at <br />
December 31, 2012</b></td>
<td style="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Payments</b></td>
<td style="width: 40%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Balance at <br />
September 30, 2013</b></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  124</td>
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  (70)</td>
<td nowrap="nowrap" style="border-bottom: Black 2pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$  54</td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Also, as part of the sale, the Company
provided the buyer with a mortgage of $2.0 million at six percent interest per year. During the third quarter of 2013, the Company
received $1,726,888 from B&E Juices, Inc. as an early repayment of the outstanding balance on the mortgage.</p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 3 —</b> <b>Pension</b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 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: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="7" style="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Three
Months Ended September 30,</font></td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="7" style="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Nine
Months Ended September 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Components of net periodic benefit cost:</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left"><font style="font-size: 8pt">Interest cost</font></td><td style="width: 1%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">5</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">21</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">48</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">64</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Service cost</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">9</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">30</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">27</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Expected return on plan assets</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(24</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(53</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(71</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Amortization of prior service costs</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">3</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">8</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">7</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Amortization of actuarial loss</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">29</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">34</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">106</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">102</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">52</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">43</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">139</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">128</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/12pt Sans-Serif; margin: 0; text-align: justify; color: Red"> </p>
<p style="font: 9pt/12pt Sans-Serif; margin: 0; text-align: justify; color: Red"><font style="font: 10pt Times New Roman, Times, Serif; color: Black">Under
applicable laws and regulations, in 2013, the Company is required to contribute to its qualified plan approximately $225,000.
At September 30, 2013, the Company had contributed approximately $185,000 to the plan for 2013.</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0">Note 4 —Debt and Shareholders Equity</p>
<p style="font: normal 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b><br />
On April 25, 2013, the Company amended its revolving loan agreement with HSBC Bank N.A. dated April 5, 2012. The amendment increased
the borrowing limit to $40 million from $30 million. The interest rate remains the same at LIBOR plus 1.75%. All principal amounts
outstanding under the agreement are required to be repaid in a single amount on April 5, 2017, the date the agreement expires;
interest is payable monthly. Funds borrowed under the agreement may be used for working capital, general operating expenses, share
repurchases, acquisitions and certain other purposes. Under the amended loan agreement, the Company is required to maintain specific
amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2013 and December 31, 2012, the Company had
outstanding borrowings of $25,030,826 and $24,319,829, respectively, under the Company’s revolving loan agreement with HSBC.
At September 30, 2013 the Company was in compliance with the financial covenants referenced above.</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: left">During the three months ended September 30, 2013,
the Company issued 16,825 shares of common stock upon the exercise of outstanding stock options and received total proceeds of
$185,865.</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: 0; text-align: left">During the nine months ended September 30, 2013,
the Company issued 70,650 shares of common stock upon the exercise of outstanding stock options and received total proceeds of
$507,857.</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 0 0pt 10pt; text-indent: -10pt"><b>Note 6 – Stock Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt 10pt; text-indent: -10pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt">The Company recognizes share-based compensation at fair value
of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based compensation
expenses were $115,543 and $93,000 for the quarters ended September 30, 2013 and September 30, 2012, respectively. Share-based
compensation expense was $387,953 and $325,753 for the nine months ended September 30, 2013 and September 30, 2012, respectively.
During the three months ended September 30, 2013, the Company issued 152,500 options with a weighted average fair value of $3.37
per share. During the nine months ended September 30, 2013 the Company issued 210,500 options with a weighted average fair value
of $3.18.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2013, there was a total of $998,224 of unrecognized
compensation cost related to non-vested share –based payments granted to the Company’s employees. 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: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 7 – Fair Value Measurements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The carrying value of the Company’s bank debt and note receivable
approximates fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
34000
.06
225000
30000
9000
27000
13000
2017-04-05
Under the amended loan agreement, the Company is required to maintain specific
amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio. At September 30, 2013 the Company was in compliance with the financial covenants referenced above.
Interest rate of LIBOR plus 1.75%
70650
16825
507857
185865
ACME UNITED CORP
30292000
29280000
68198000
20363000
51702000
7137000
5996000
55992000
6549000
5657000
16541000
2170000
1652000
64835000
22135000
18273000
1782000
2080000
43749000
12937000
41644000
14195000
3479000
798000
3118000
959000
1.10
.26
1.00
.30
1.07
.26
1.00
.29
4240000
4105000
1032000
1032000
-787000
-846000
.23
.07
.21
.08
124000
54000
70000
387953
93000
325753
115543
210500
152500
3.18
3.37
998224
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="7" style="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Three
Months Ended September 30,</font></td><td style="font-size: 9pt; font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="7" style="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Nine
Months Ended September 30,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Components of net periodic benefit cost:</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 41%; text-align: left"><font style="font-size: 8pt">Interest cost</font></td><td style="width: 1%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">5</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">21</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">48</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">64</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Service cost</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">9</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">30</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">27</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Expected return on plan assets</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(24</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(53</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(71</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Amortization of prior service costs</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">3</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">2</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">8</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">7</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Amortization of actuarial loss</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">29</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">34</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">106</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">102</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">52</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">43</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">139</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">128</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 9pt/12pt Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 8pt Times New Roman, Times, Serif"></font></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"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Assets by segment:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">( in thousands )</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 9pt">September 30,</font></td><td style="font-weight: bold"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 9pt">December 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 61%; text-align: left"><font style="font-size: 9pt">United States</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">59,745</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 4%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">56,115</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Canada</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,762</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6,107</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"><font style="font-size: 9pt">Europe</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,231</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,606</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"><font style="font-size: 9pt">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">70,738</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">67,828</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
.22
.12
.16
.15
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in">In February
2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of
amounts reclassified out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications
present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive
income – but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety
in the same reporting period. This standard update is effective for reporting periods beginning after December 15, 2012. The adoption
of this accounting standard did not have an impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0in"> </p>
P3Y
185000
1474000
370000
1726888
1727000