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ACME UNITED CORP
0000002098
10-Q
2011-09-30
false
--12-31
No
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Yes
Smaller Reporting Company
Q3
2011
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<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 1 — Basis of Presentation
and Recent Accounting Pronouncements</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In the opinion of management,
the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial
position, results of operations and cash flows of Acme United Corporation (the “Company”).  These adjustments
are of a normal, recurring nature.  However, the financial statements do not include all of the disclosures normally
required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual
Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2010 for such disclosures.  The
condensed consolidated balance sheet as of December 31, 2010 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 2010 Annual Report on Form 10-K.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company has evaluated
events and transactions subsequent to September 30, 2011 and through the date these consolidated financial statements were included
in this Form 10-Q and filed with the SEC.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><i>Recent accounting pronouncements</i></p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In June 2011, the FASB issued
a new accounting standard on the presentation of comprehensive income. The new standard requires the presentation of comprehensive
income, the components of net income and the components of other comprehensive income either in a single continuous statement of
comprehensive income or in two separate but consecutive statements. The new standard also requires presentation of adjustments
for items that are reclassified from the other comprehensive income to net income in the statement where the components of net
income and the components of other comprehensive income are presented.  The Company is required to adopt this standard
for interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of adopting this
guidance, which may result in changes in the presentation of its financial statements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 2 — Contingencies</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">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 believes that none of these matters, individually or
in the aggregate, would be likely to have a material adverse impact on its financial position, results of operations or liquidity,
as set forth in these financial statements.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; 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>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Under the terms of the sale
agreement, and as required by the Connecticut Transfer Act, the Company is 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 includes the costs of required
investigation, remedial activities, and post-remediation operating and maintenance.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Remediation work on the project
began in the third quarter of 2009 and a major portion of the work has been completed. At September 30, 2011, the Company had approximately
$278,000 remaining in its accrual for environmental remediation, of which approximately $125,000 was classified as a current liability
at that date.   The Company believes that the remediation project will be completed within five years from the date
of the sale.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The change in the accrual
for environmental remediation for the nine months ended September 30, 2011 follows (in thousands):</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="width: 80%; font: 10pt times new roman">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; width: 33%; text-align: center; vertical-align: top">
<p style="margin: 0"><b>Balance at</b></p>
<p style="margin: 0"><b>December 31, 2010</b></p></td>
<td style="border-bottom: black 2px solid; width: 34%; font-weight: bold; text-align: center; text-indent: 0pt">Payments</td>
<td style="border-bottom: black 2px solid; width: 33%; text-align: center; vertical-align: top">
<p style="margin: 0"><b>Balance at</b></p>
<p style="margin: 0"><b>September 30, 2011</b></p></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt">$  343</td>
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt">$  (65)</td>
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt">$  278</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Also, as part of the sale, the
Company provided the buyer with a mortgage loan of $2.0 million at six percent interest. The mortgage is payable in monthly installments
of principal and interest with the remaining outstanding balance due in full, one year after remediation  and monitoring
on the property have been completed.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 3 —</b> <b>Pension</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Components of net periodic
benefit cost are as follows (in thousands):</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"> </td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Three
Months Ended September 30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Nine
Months Ended September 30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Components
of net periodic benefit cost:</font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 37%; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest
cost</font></td>
<td style="text-align: right; width: 1%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">26</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">16</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">77</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">92</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Service
cost</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">5</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">6</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">14</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">19</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Expected
return on plan assets</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(26</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(24</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(79</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(72</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization
of prior service costs</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">3</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">8</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"></font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">7</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization
of actuarial loss</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">38</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">32</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">113</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"></font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">116</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">46</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">32</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">133</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">162</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company’s funding
policy with respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations.
In 2011, the Company is required to contribute approximately $250,000.  As of September 30, 2011, the Company has contributed
approximately $193,389 to the plan. The Company expects to make contributions to the plan as required during the remainder of the
year.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 4 —Debt and Shareholders
Equity</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company’s revolving
loan agreement, as amended, provides for borrowings up to $20 million, with all principal amounts outstanding thereunder required
to be repaid in a single amount on March 31, 2013. In addition, the Company’s revolving loan agreement requires monthly interest
payments.  As of September 30, 2011 and December 31, 2010, the Company had outstanding borrowings of $18,106,000 and
$13,522,000, respectively, under the revolving loan agreement.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">During the nine months ended
September 30, 2011, the Company issued 42,250 shares of common stock upon the exercise of outstanding stock options and received
total proceeds of $145,925.  There were no stock options exercised during the three months ended September 30, 2011.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 5— Segment Information</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company reports financial
information based on the organization 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. The activities
of the Company’s Asian operating segment are closely linked to those of the U.S. operating segment; accordingly, management
reviews the financial results of both segments on a consolidated basis, and the results of the Asian operating segment have been
aggregated with the results of the United States operating segment to form one reportable segment called the “United States
operating segment”. 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="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The chief operating decision
maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts below
are presented after converting to U.S. dollars and consolidating eliminations.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Financial data by segment:</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">(in thousands)</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Three
months ended September 30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Nine
months ended September 30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales
to external customers:</font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-size: 9pt; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="width: 38%; text-align: left; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">United
States</font></td>
<td style="text-align: right; width: 1%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">15,020</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">12,220</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">44,104</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">36,845</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">1,829</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">1,765</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">7,008</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">6,214</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,187</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,098</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">6,354</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">6,730</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated</font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">19,036</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">16,083</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">57,466</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">49,789</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; font-size: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating
income (loss):</font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">United
States</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">923</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">583</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,904</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,462</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">114</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">185</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">863</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">703</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">83</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(111</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(4</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(262</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">1,120</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">657</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">3,763</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,903</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest
expense, net</font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">70</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">47</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">191</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">105</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Other
expense (income), net</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">20</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(3</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">(2</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">36</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt; padding-left: 27pt; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated
income before taxes</font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">1,030</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">613</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">3,574</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">2,762</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 9pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets by segment:</font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">(in thousands)</font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: center; vertical-align: top"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>September
30,</b></font></p></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: center; vertical-align: top"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31,</b></font></p></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 38%"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">United
States</font></p></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">43,319</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> 37,685</font></td>
<td nowrap="nowrap" style="width: 33%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Canada</font></p></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">5,899</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,205</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></p></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">6,126</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,691</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated</font></p></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">55,344</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">49,581</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 6 – Stock Based
Compensation</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">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 expense was $108,766 and $90,866 for the quarters ended September 30, 2011 and September 30, 2010,
respectively. Share-based compensation expense was $318,204 and $280,066 for the nine months ended September 30, 2011 and September
30, 2010, respectively. During the three months ended September 30, 2011, the Company issued 107,000 options with a weighted average
fair value of $2.10 per share. During the nine months ended September 30, 2011, the Company issued 185,500 options with a weighted
average fair value of $2.20.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 7 – Comprehensive
Income</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Comprehensive income for the
three and nine months ended September 30, 2011 and September 30, 2010 consisted of the following (in thousands):</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; font-weight: bold"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Three
Months Ended</b></font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Nine
Months Ended</b></font></td>
<td nowrap="nowrap" style="text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>September
30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>September
30,</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2010</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 38%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net income</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">682</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">612</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,545</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,391</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other comprehensive (loss)
income  -</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">  Foreign
currency translation</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(530</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">547</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(107</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(58</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Comprehensive
income</font></td>
<td style="text-align: right; padding-bottom: 4px"> </td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">152</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,159</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,438</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,333</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 8 – Fair Value
Measurements</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The carrying values of cash
and cash equivalents, accounts receivable, accounts payable and bank debt are a reasonable estimate of fair value because of their
short term nature. The carrying value of the Company’s note receivable approximates fair value. Fair value was determined
using a discounted cash flow analysis.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Note 9 – Business Combination</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">On February 28, 2011, the Company
purchased substantially all of the assets of The Pac-Kit Safety Equipment Company, a leading manufacturer of first aid kits for
the industrial, safety, transportation and marine markets. The Company purchased the accounts receivable, inventory, equipment
and intangible assets of Pac-Kit for approximately $3.4 million, less liabilities assumed of $310,000, using funds borrowed under
the Company’s revolving loan agreement with Wells Fargo.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company recorded $1.9 million
for assets acquired including accounts receivable, inventory and fixed assets, as well as $1.5 million for intangible assets, consisting
of customer relationships and the Pac-Kit trade name. During the nine months ended September 30, 2011, the Company incurred approximately
$125,000, of integration and transaction costs associated with the acquisition.  These costs were recorded in selling,
general and administrative expenses.  The Company did not incur any of these expenses during the three months ended September
30, 2011.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The purchase price was allocated
to assets acquired and liabilities assumed as follows (in thousands):</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b> </b></p>
<table cellpadding="0" cellspacing="0" style="background-color: white; width: 70%; font: 9pt Times New Roman, Times, Serif; font-size: 10pt; font-family: times new roman">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; font-size: 10pt">Assets:</td>
<td style="font-size: 10pt"> </td>
<td colspan="2" style="font-size: 10pt"> </td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="width: 82%; text-align: left; text-indent: 0pt">           Accounts Receivable</td>
<td style="width: 1%; font-size: 10pt"> </td>
<td style="width: 1%; text-align: left; font-size: 10pt">$</td>
<td style="width: 15%; text-align: right; font-size: 10pt">592</td>
<td nowrap="nowrap" style="width: 1%; text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="font-size: 10pt">           Inventory</td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left; font-size: 10pt">$</td>
<td style="text-align: right; font-size: 10pt">1,196</td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="font-size: 10pt">           Equipment</td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left; font-size: 10pt">$</td>
<td style="text-align: right; font-size: 10pt">150</td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt">           Intangible Assets</td>
<td style="padding-bottom: 2px; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid; text-align: left; font-size: 10pt">$</td>
<td style="border-bottom: black 2px solid; text-align: right; font-size: 10pt">1,500</td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-size: 10pt"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="font-size: 10pt">           Total assets</td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left; font-size: 10pt">$</td>
<td style="text-align: right; font-size: 10pt">3,438</td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="font-size: 10pt"> </td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left; font-size: 10pt"> </td>
<td style="text-align: right; font-size: 10pt"> </td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">  </font> <font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left; font-size: 10pt"> </td>
<td style="text-align: right; font-size: 10pt"> </td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="font-size: 10pt">           Accounts Payable</td>
<td style="font-size: 10pt"> </td>
<td style="text-align: left"> </td>
<td style="text-align: right; font-size: 10pt">310</td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Unaudited proforma net sales for the three and
nine months ended September 30, 2011 attributable to Pac-Kit were approximately $1.6 million and $4.0 million, respectively. Unaudited
proforma net sales attributable to Pac-Kit for the comparable period in 2010 were approximately $1.3 million and $3.4 million,
respectively.  The nine month period ended September 30, 2011 represents a comparable period based on the acquisition
date.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Unaudited proforma net income,
attributable to Pac-Kit, for the three months ended September 30, 2011 was approximately $100,000.  Unaudited proforma
net income, excluding one time transaction and integration costs of $125,000, for the nine months ended September 30, 2011, attributable
to Pac-Kit was approximately $225,000. Net income for the comparable periods in 2010 was immaterial to the Company’s financial
statements.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Assuming Pac-Kit was acquired
on January 1, 2011, unaudited proforma net sales and net income for the nine months ended September 30, 2011 attributable to Pac-Kit
were approximately $4.8 million and $255,000, respectively. Assuming Pac-Kit was acquired on January 1, 2011, unaudited proforma
net sales for the comparable period in 2010 were approximately $4.2 million.  Unaudited proforma net income for the comparable
period in 2010 was immaterial to the Company’s consolidated financial statements.</p>
<p style="margin: 0pt"></p>