0000002098
2014-08-07
0000002098
2013-12-31
0000002098
2014-06-30
0000002098
2014-01-01
2014-06-30
0000002098
ACU:UnitedStatesMember
2013-01-01
2013-06-30
0000002098
ACU:CanadaMember
2013-01-01
2013-06-30
0000002098
us-gaap:EuropeMember
2013-01-01
2013-06-30
0000002098
ACU:UnitedStatesMember
2014-01-01
2014-06-30
0000002098
ACU:CanadaMember
2014-01-01
2014-06-30
0000002098
us-gaap:EuropeMember
2014-01-01
2014-06-30
0000002098
ACU:UnitedStatesMember
2013-12-31
0000002098
ACU:UnitedStatesMember
2014-06-30
0000002098
ACU:CanadaMember
2013-12-31
0000002098
ACU:CanadaMember
2014-06-30
0000002098
us-gaap:EuropeMember
2013-12-31
0000002098
us-gaap:EuropeMember
2014-06-30
0000002098
2012-04-05
0000002098
2012-04-01
2012-04-30
0000002098
2013-04-25
0000002098
2013-04-01
2013-04-30
0000002098
2013-01-01
2013-06-30
0000002098
2013-06-30
0000002098
2012-12-31
0000002098
2014-04-01
2014-06-30
0000002098
2013-04-01
2013-06-30
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionMember
2008-12-31
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionMember
2008-12-01
2008-12-31
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionAMember
2014-04-07
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionAMember
2014-04-01
2014-04-07
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionMember
2014-06-30
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionAMember
2014-06-30
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionMember
2014-01-01
2014-06-30
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionAMember
2014-01-01
2014-06-30
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionMember
2013-12-31
0000002098
ACU:SignificantAcquisitionsAndDisposalsTransactionAMember
2013-12-31
0000002098
ACU:UnitedStatesMember
2014-04-01
2014-06-30
0000002098
ACU:UnitedStatesMember
2013-04-01
2013-06-30
0000002098
ACU:CanadaMember
2014-04-01
2014-06-30
0000002098
ACU:CanadaMember
2013-04-01
2013-06-30
0000002098
us-gaap:EuropeMember
2014-04-01
2014-06-30
0000002098
us-gaap:EuropeMember
2013-04-01
2013-06-30
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2014-06-02
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2014-04-01
2014-06-30
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2014-01-01
2014-06-30
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2013-01-01
2013-06-30
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2013-04-01
2013-06-30
0000002098
ACU:SeriesOfIndividuallyImmaterialBusinessAcquisitionsBMember
2014-06-01
2014-06-02
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
ACU:Y
Q2
2014
3236107
11644000
2426000
8458000
9750000
15629000
30794000
1494000
1970000
56986000
66075000
597000
454000
5854000
4516000
8905000
9977000
9420000
8370000
1085000
1084000
68079000
87987000
57068000
75565000
5329000
7676000
5682000
4746000
4790000
10919000
5087000
7466000
9877000
18385000
22912000
31325000
33075000
50149000
11407000
11439000
68079000
87987000
15356000
14947000
5936000
6577000
286000
439000
12283000
12283000
2.50
2.50
8000000
8000000
4563174
4575924
1362072
1362072
541000
455000
174000
135000
300000
272000
12796000
9181000
1000000
-667000
5249000
2637000
1989000
69000
-6100000
-5096000
1022000
463000
63000
50000
-14118000
-513000
17000
3000
357000
150000
-3189000
-2576000
8413000
1692000
8074000
1794000
-9218000
-1292000
4363000
3267000
463000
-24000
3916000
559000
-112000
3706000
3738000
3192000
3239000
2701000
527000
475000
-28000
16000
3206000
3144000
3210000
3156000
3488000
3234000
3539000
3266000
2873000
2223000
2707000
2172000
-38000
-297000
165000
-38000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance
at<br />
December 31, 2013</b></font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Estimated
Costs</b></font></td><td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Payments</b></font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance
at <br />
June 30, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 20%; font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">Fremont,
NC</font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">300</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(35</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">265</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">Bridgeport,
CT</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(22</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">17</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif"> Total</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">300</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(57</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">282</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
850000
2000000
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">In December 2008, the Company sold property it
owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which $2.0 million was secured by a mortgage
on the property.  The property consists of approximately four acres of land and 48,000 sq. feet of warehouse
space.  The property was the site of the Company’s original scissor factory which opened in 1887 and was
closed in 1996.</p>
1800000
300000
35000
33000
19000
16000
47000
35000
29000
17000
5000
5000
2000
2000
64000
93000
17000
47000
22912000
31325000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
5— Segment Information</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company
reports financial information based on the organizational structure used by management for making operating and investment decisions
and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada and
(3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S.
operations; accordingly, management reviews the financial results of both on a consolidated basis, and the results of the Asian
operations have been aggregated with the results of the United States operations to form one reportable segment called the “United
States segment” or “U.S. segment”. 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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">Domestic
sales orders are filled from the Company’s distribution center in North Carolina. The Company is responsible for the costs
of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s
inventory are generally for less than container-sized lots.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">Direct import
sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products
in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia.
Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented
approximately 26% and 20% of the Company’s total net sales for the three and six months ended June 30, 2014 compared to
27% and 21% for the comparable periods in 2013.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="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 are presented after converting to U.S. dollars and consolidating eliminations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif">(in thousands)</font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br />
June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 44%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">27,870</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">23,496</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">43,974</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">37,721</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,673</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,139</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,184</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,765</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,853</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,777</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,390</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,577</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,396</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">28,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">52,548</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,063</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,239</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,701</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,916</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">527</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">475</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">559</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">463</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(28</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(112</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,738</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">4,363</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,706</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">106</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">142</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other (income) expense , net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,635</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,093</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,159</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets by segment:</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><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="3"><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">( in thousands )</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><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="3"><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"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>June
30,</b></font></td><td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"><b>2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"><b>2013</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">United States</font></td><td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 14%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">75,565</font></td><td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="width: 4%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 14%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,068</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</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">7,676</font></td><td 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">5,329</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,746</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,682</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">87,987</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">68,079</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif">Financial
data by segment:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 8pt Times New Roman, Times, Serif">(in thousands)</font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three months ended <br />
June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td>Sales to external customers:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 44%; text-align: left; padding-left: 10pt">United States</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">27,870</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">23,496</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">43,974</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">37,721</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,673</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,139</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,184</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,765</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,853</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,777</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,390</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,577</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">33,396</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">28,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">52,548</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,063</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Operating income (loss):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt">United States</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,239</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,701</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,916</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 10pt">Canada</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">527</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">475</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">559</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">463</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 10pt">Europe</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(28</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(112</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 10pt">Consolidated</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,738</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">4,363</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,706</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 10pt">Interest expense, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">106</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">142</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other (income) expense , net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">25</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">28</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10pt">Consolidated income before taxes</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,635</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,093</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,159</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,536</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
30000000
40000000
-58000
-71000
-23000
-35000
0000002098
10-Q
2014-06-30
false
--12-31
No
No
Yes
Smaller Reporting Company
26004000
26121000
187000
295000
2028000
4469000
6466000
6907000
30099000
32498000
106000
68000
18598000
16509000
11721000
10081000
14235000
12803000
7983000
6889000
197000
249000
108000
122000
9000
106000
2000
48000
-188000
-142000
-106000
-74000
-16000
-28000
3000
-25000
-204000
-171000
-103000
-99000
4159000
3536000
3635000
3093000
1248000
1015000
1093000
883000
281000
90000
329000
110000
512000
219000
35004000
37838000
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
1 — Basis of Presentation</b></font></p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><font style="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, 2013 for such disclosures.
The condensed consolidated balance sheet as of December 31, 2013 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 the financial statements and notes thereto, included
in the Company’s 2013 Annual Report on Form 10-K.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has evaluated events and transactions subsequent to June 30, 2014 and through the date these condensed consolidated financial
statements were included in this Form 10-Q and filed with the SEC.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
2 — Contingencies</b></font></p>
<p style="font: bold 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="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 has no matters other than the environmental
remediation accrual described below.</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">In
December 2008, the Company sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which
$2.0 million was secured by a mortgage on the property. The property consists of approximately four acres of land and 48,000 sq.
feet of warehouse space. The property was the site of the Company’s original scissor factory which opened in 1887 and was
closed in 1996.</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="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 included the
costs of required investigation, remedial activities, and post-remediation operating and maintenance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">Remediation
work on the project began in the third quarter of 2009 and was completed during the third quarter of 2012. At June 30, 2014, the
Company had approximately $17,000 remaining in its accrual for environmental remediation, all of which was classified as a current
liability at that date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">In addition
to the completed remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue
to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that
the monitoring project will be completed by the end of 2014.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">On
April 7, 2014, the Company sold its Fremont, NC distribution facility for $850,000 in cash. The facility originally served as
a manufacturing site for the Company’s scissors and rulers. Manufacturing at the site ceased in 2002. In connection with
the sale and as part of the terms of the agreement, the Company is responsible to remediate any environmental contamination on
the property. 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, and in conjunction with the sale of the property,
the Company recorded a liability of $300,000 in the second quarter of 2014, related to the remediation of the property. The accrual
includes the total estimated costs of remedial activities and post-remediation operating and maintenance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Remediation
work on the project is expected to begin in the third quarter of 2014 and be completed in the first half of 2015. In addition
to the remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor
contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that the monitoring
period will last a period of five years and be complete by the year 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
change in the accrual for environmental remediation for the three months ended June 30, 2014 follows (in thousands):</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance
at<br />
December 31, 2013</b></font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Estimated
Costs</b></font></td><td><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Payments</b></font></td><td style="font: bold 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b>Balance
at <br />
June 30, 2014</b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td>
<td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 20%; font: 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">Fremont,
NC</font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">300</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(35</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="width: 2%; font: 10pt Times New Roman, Times, Serif"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">265</font></td><td style="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif">Bridgeport,
CT</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(22</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">17</font></td><td style="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font: 8pt Times New Roman, Times, Serif"> Total</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">39</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">300</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">(57</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">)</font></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">282</font></td><td style="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
3 —</b> <b>Pension</b></font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Components
of net periodic benefit cost are as follows (in thousands):</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic benefit cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 44%; text-align: left">Interest cost</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">19</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">16</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">35</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected return on plan assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(47</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(35</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Amortization of prior service costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">58</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">71</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">47</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">64</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">93</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="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 2014, the Company is required to contribute approximately $235,000. As of June 30, 2014 the Company contributed
approximately $160,000 to the plan.</font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
4 —Debt and Shareholders’ Equity</b></font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">On April
25, 2013, the Company amended its revolving loan agreement with HSBC Bank N.A. dated April 5, 2012. The amendment increased the
borrowing limit to $40 million from $30 million. The interest rate remains the same at LIBOR plus 1.75%. All principal amounts
outstanding under the agreement are required to be repaid in a single amount on April 5, 2017, the date the agreement expires;
interest is payable monthly. Funds borrowed under the agreement may be used for working capital, general operating expenses, share
repurchases, acquisitions and certain other purposes. During the fourth quarter of 2013, the Company and HSBC made certain
technical amendments to a covenant of the amended loan agreement to accommodate the purchase of the Rocky Mount facility. Under
the amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a debt/net worth ratio,
and a fixed charge coverage ratio. At June 30, 2014 the Company was in compliance with these covenants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">As of June
30, 2014 and December 31, 2013, the Company had outstanding borrowings of $31,324,528 and $22,911,829, respectively, under the
Company’s revolving loan agreement with HSBC.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">During
the first six months of 2014, the Company issued a total of 12,750 shares of common stock and received aggregate proceeds of $173,410
upon the exercise of employee stock options.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
6 – Stock Based Compensation</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense
is recognized over the required service period. Share-based compensation expenses were $174,000 and $167,410 for the quarters
ended June 30, 2014 and 2013, respectively. Share-based compensation expenses were $300,000 and $272,410 for the six months ended
June 30, 2014 and 2013, respectively. During the three months ended June 30, 2014, the Company issued 42,500 options with a weighted
average fair value of $3.36 per share. During the six months ended June 30, 2014 the Company issued 76,500 options with a weighted
average fair value of $3.35.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">As of June
30, 2014, there was a total of $874,191 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested
share –based payments granted to the Company’s employees. The remaining unamortized expense is expected to be recognized
over a weighted average period of approximately 3 years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
7 – Fair Value Measurements</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">The carrying
value of the Company’s bank debt and note receivable approximates fair value. Fair value was determined using a discounted
cash flow analysis.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
17000
13000
20000
3000
10000
2017-04-05
Under the amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a
debt/net worth ratio, and a fixed charge coverage ratio. At June 30, 2014 the Company was in compliance with these
covenants.
Interest rate of LIBOR plus 1.75%
ACME UNITED CORP
28219000
30885000
52548000
37721000
4765000
3577000
43974000
5184000
3390000
46063000
33396000
28412000
27870000
23496000
3673000
3139000
1853000
1777000
1800000
1800000
33950000
29554000
21675000
18331000
2911000
2520000
2542000
2210000
.91
.80
.79
.70
.83
.78
.72
.68
4072000
14251000
791000
791000
-685000
-723000
.16
.15
.08
.08
39000
282000
17000
265000
39000
0
57000
22000
35000
300000
272000
174000
167000
76500
42500
3.35
3.36
874000
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic benefit cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 44%; text-align: left">Interest cost</td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">19</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">16</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">35</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 2%; text-align: left">$</td><td style="width: 9%; text-align: right">33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Service cost</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Expected return on plan assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(47</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(35</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Amortization of prior service costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Amortization of actuarial loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">58</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">71</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">47</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">64</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">93</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b></b></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets by segment:</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><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="3"><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">( in thousands )</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><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="3"><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"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>June
30,</b></font></td><td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"><b>2014</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"><b>2013</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">United States</font></td><td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 14%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">75,565</font></td><td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="width: 4%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 14%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,068</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</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">7,676</font></td><td 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">5,329</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,746</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,682</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated</font></td><td style="padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">87,987</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">68,079</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
.20
.21
.26
.27
173000
322000
235000
0.0175
0.0175
200000
200000
13806000
773000
300000
0
300000
160000
12750
173000
P3Y
36700000
59600000
54000000
32800000
13800000
2544000
600000
10250000
1200000
80000
2700000
3100000
2700000
2400000
463000
110000
15071000
1019000
252000
1271000
140000
135000
2500000
850000
75000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
8 – Business Combination</b></font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font: 10pt Times New Roman, Times, Serif">On June
2, 2014, the Company purchased certain assets of First Aid Only, Inc. (“First Aid Only”), a supplier of Smart Compliance®
first aid kits, refills, and safety products that meet regulatory requirements for a broad range of industries. First Aid Only
pioneered consultative selling and support of first aid items to large corporate customers, and is recognized as an innovative
leader in the safety products industry. The Company purchased inventory, accounts receivable, equipment, patents, trademarks and
other intellectual property for approximately $13.8 million using funds borrowed under its revolving credit facility with HSBC.
The Company recorded approximately $1.7 million for inventory, $2.5 million for accounts receivables and $0.6 million for equipment
and other assets, as well as approximately $10.3 million for intangible assets expected to consist primarily of trade names, customer
list and goodwill. Management’s assessment of the valuation of intangible assets is preliminary and finalization of the
Company’s purchase accounting assessment may result in changes to the valuation of the identified intangible assets. The
Company will finalize the purchase price allocation as soon as practicable within the measurement period in accordance with Accounting
Standards Codification Topic 805 “Business Combinations”. In addition, the Company assumed
approximately $1.2 million in accounts payables and accrued expenses. During the three and six months ended June 30, 2014, the
Company incurred approximately $80,000 of integration and transaction costs associated with the acquisition.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">The
purchase price was allocated to assets acquired and liabilities assumed as follows (in thousands):</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Accounts
Receivable</font></td><td style="width: 4%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,544</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Inventory</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">1,704</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Equipment</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">463</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Prepaid expenses</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">110</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Intangible
Assets</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,250</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Total assets</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">$</font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,071</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: 9pt Times New Roman, Times, Serif">Liabilities</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Accounts Payable</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,019</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif">Accrued Expense</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">252</font></td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Total liabilities</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">1,271</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Net
sales for the three and six months ended June 30, 2014 attributable to First Aid Only were approximately $1.8 million. Net income
for the three and six months ended June 30, 2014 attributable to First Aid Only was not material to the Company’s financial
statements for those periods.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Assuming
First Aid Only was acquired on January 1, 2014, unaudited proforma combined net sales for the three and six months ended June
30, 2014 for the Company would have been approximately $36.7 million and $59.6 million, respectively. Unaudited proforma combined
net income for the three and six months ended June 30, 2014 for the Company would have been approximately $2.7 million and $3.1
million, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Assuming
First Aid Only was acquired on January 1, 2013, unaudited proforma combined net sales for the three and six months ended June
30, 2013, for the Company would have been approximately $32.8 million and $54.0 million, respectively. Unaudited
proforma combined net income for the three and six months ended June 30, 2013 for the Company would have been approximately
$2.4 million and $2.7 million, respectively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note
9 –Sale of Property</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">On
April 7, 2014, the Company sold its Fremont, NC plant for $850,000 in cash. The facility originally served as a manufacturing
site for the Company’s scissors and rulers. Manufacturing at the site ceased in 2002. Under the terms of the sale
agreement, the Company is responsible to remediate any environmental contamination on the property. 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, and in conjunction with the sale of the property, the Company
recorded a liability of $300,000 in the second quarter of 2014, related to the remediation of the property. The accrual
includes the costs of remedial activities and post-remediation operating and maintenance.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">Remediation
work on the project is expected to begin in the third quarter of 2014 and be completed in the first half of 2015. In addition
to the remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor
contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that the monitoring
period will last a period of five years and be complete by the year 2020.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">The
gain on the sale is calculated as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">(in
thousands)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales Price</font></td><td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"> </td>
<td style="width: 12%"> </td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">850</font></td><td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"><i>Less:</i></font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Transaction costs</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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">75</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Land</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><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">140</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
(gross book value)</font></td><td><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: right; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif">1,715</font></p></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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
- accum. Depreciation</font></td><td><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: right; vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">1,580</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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
(net book value)</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><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">135</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Environmental
Remediation Liability</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">300</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Gain
on Sale</b></font></td><td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td> </td>
<td> </td>
<td style="font-weight: bold; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b>$</b></font></td><td style="font-weight: bold; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"><b>200</b></font></td><td style="font-weight: bold; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets:</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Accounts
Receivable</font></td><td style="width: 4%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 4%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 21%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,544</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Inventory</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">1,704</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Equipment</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">463</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Prepaid expenses</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">110</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Intangible
Assets</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,250</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Total assets</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">$</font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,071</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: 9pt Times New Roman, Times, Serif">Liabilities</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Accounts Payable</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,019</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt; padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif">Accrued Expense</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">252</font></td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font: 9pt Times New Roman, Times, Serif">Total liabilities</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">$</font></td><td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,271</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
P5Y
1704000
1715000
1580000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">The
gain on the sale is calculated as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">(in
thousands)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 69%; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales Price</font></td><td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"> </td>
<td style="width: 12%"> </td>
<td style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">850</font></td><td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-style: italic; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"><i>Less:</i></font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Transaction costs</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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">75</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Land</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><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">140</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
(gross book value)</font></td><td><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: right; vertical-align: bottom"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif">1,715</font></p></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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
- accum. Depreciation</font></td><td><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: right; vertical-align: bottom; border-bottom: Black 1pt solid"><font style="font: 9pt Times New Roman, Times, Serif">1,580</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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Building and Equipment
(net book value)</font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><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">135</font></td><td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif">Environmental
Remediation Liability</font></td><td style="padding-bottom: 1pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">300</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td> </td>
<td> </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 style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-left: 5.4pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Gain
on Sale</b></font></td><td style="font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td> </td>
<td> </td>
<td style="font-weight: bold; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b>$</b></font></td><td style="font-weight: bold; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"><b>200</b></font></td><td style="font-weight: bold; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>