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<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Business Overview</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify">Applied Optoelectronics, Inc.,
or AOI, was originally incorporated in Texas in February of 1997 and then converted to a Delaware corporation in March of 2013.
AOI together with its wholly-owned subsidiaries are collectively referred to as the Company. The Company is a leading, vertically
integrated provider of fiber-optic networking products, primarily for three networking end-markets: cable television, fiber-to-the-home
and internet data centers. The Company designs and manufactures a wide range of optical communications products at varying levels
of integration, from components, subassemblies and modules to complete turn-key equipment.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify">The Company has manufacturing
and research and development facilities in all three of its locations, located in the U.S., Taiwan and China. At its corporate
headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components
and performs research and development activities for laser component products. The Company operates a division in Taipei, Taiwan
that primarily manufactures transceivers for both the data center and FTTH markets and performs research and development activities
for the transceiver products. The Company operates in Ningbo, China through its wholly-owned subsidiary Prime World International
Holdings, Ltd. (incorporated in the British Virgin Islands), the sole parent of Global Technology, Inc. (incorporated in the People’s
Republic of China). Through Global Technology, the Company primarily manufactures Cable TV Broadband (“CATV”) systems
and equipment and performs research and development activities for the CATV products.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-align: justify"><i>Interim Financial Statements</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify">The condensed consolidated
financial statements of the Company, as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September
30, 2014 and 2013, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of
the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted
certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion
of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for
the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end
condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S.
generally accepted accounting principles (“GAAP”). These condensed consolidated financial statements should be read
in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form
10-K (“Annual Report”) for the fiscal year ended December 31, 2013. The results of operations for the three and nine
months ended September 30, 2014 are not necessarily indicative of the results expected for the entire fiscal year. All significant
intercompany accounts and transactions have been eliminated.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-align: justify"><i>Use of Estimates</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify">The preparation of financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual
results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates
and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for
doubtful accounts, valuation allowances for deferred tax assets, inventory reserve, share-based compensation expense, estimated
useful lives of property and equipment, and taxes.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">There have been no changes in the Company’s
significant accounting policies for the three months ended September 30, 2014, as compared to the significant accounting policies
described in its Annual Report.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; word-spacing: 0px; text-indent: -36pt; text-align: justify"><i>Recent accounting
pronouncements</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; word-spacing: 0px; text-indent: -36pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-indent: 36pt; text-align: justify">In May 2014, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, <i>Revenue
from Contracts with Customers </i>(“ASU 2014-09”). The standard provides companies with a single model for use
in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including
industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services
transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing
revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not
permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply
the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact
of adoption on its consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">The following table presents a summary
of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
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<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>As of September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>As of December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 1)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 2)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 3)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Total</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 1)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 2)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 3)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Total</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">Assets:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
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<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
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<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
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<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">7,970</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; text-align: right; line-height: 115%">7,970</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">Total assets</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,958</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,958</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,970</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,970</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Liabilities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 10pt; text-indent: -5pt; line-height: 115%">Bank acceptance payable</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total liabilities</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">The carrying value amounts of accounts
receivable, prepaid expenses and other current assets, borrowings from our credit facility, accounts payable, accrued expenses
and other current liabilities approximate fair value because of the short-term maturity of these instruments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">Basic net income (loss) per share has been
computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per
share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options
and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore
for those periods basic and dilutive earnings per share are the same.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">The following table sets forth the computation
of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Numerator:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 44%; padding-left: 5.4pt; line-height: 115%">Net income (loss)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; width: 1%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">1,577</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; width: 1%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">391</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 10%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">3,581</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 10%; border-bottom: black 1pt solid; text-align: right; line-height: 115%">(885</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Denominator:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Weighted average shares used to compute net income (loss) per share</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,806</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">8,995</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,135</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">273</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 21.4pt; text-indent: -8pt; line-height: 115%">Effective of dilutive options and warrants</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">789</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">160</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">815</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">15,595</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">9,155</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,950</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">273</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">Net income (loss) per share</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.11</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.04</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.25</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">(3.24</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.10</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.04</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.24</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">(3.24</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; text-align: justify">The following potentially dilutive securities
were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 44%; padding-left: 5.4pt; line-height: 115%">Employee stock options</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">1,347</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 10%; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 10%; text-align: right; line-height: 115%">1,484</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">Preferred stock warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">10</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">33</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Restricted stock units</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">1,357</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">1,517</td>
<td style="line-height: 115%"> </td></tr>
</table>
62071000
38327000
24403000
14445000
31987000
16353000
12146000
6321000
11749000
6112000
4194000
2210000
4452000
2994000
1622000
1034000
11964000
7257000
4458000
2436000
28165000
16363000
10274000
5680000
3822000
-10000
1872000
641000
280000
50000
95000
15000
277000
925000
55000
323000
-54000
-875000
-218000
-250000
3768000
-885000
1654000
391000
187000
0
77000
0
0.25
-3.24
0.11
0.04
0.24
-3.24
0.10
0.04
14135184
272878
14805668
8995727
14949827
272878
15594544
9154602
3581000
-885000
1577000
391000
-255000
305000
-115000
66000
3326000
-580000
1462000
457000
1182000
550000
4349000
2436000
-26000
0
1494000
375000
2171000
3446000
15016000
4389000
2404000
1850000
9137000
4350000
487000
405000
665000
-2454000
53000
0
-24773000
-4697000
45000
0
1034000
37000
3237000
83000
-29052000
-4817000
3150000
2851000
8076000
192000
30294000
16159000
27924000
15406000
5337000
4746000
5545000
3282000
21000
511000
310000
87000
0
494000
45630000
-1251000
43155000
3695000
260000
178000
15028000
-3398000
37034000
22006000
7325000
10723000
306000
852000
148000
2000
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -36pt"><i>Recent accounting
pronouncements</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; word-spacing: 0px; text-align: justify; text-indent: -36pt"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; word-spacing: 0px; text-align: justify; text-indent: 36pt">In May
2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, <i>Revenue
from Contracts with Customers </i>(“ASU 2014-09”). The standard provides companies with a single model for use
in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including
industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services
transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing
revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not
permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply
the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact
of adoption on its consolidated financial statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following table
presents a summary of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated
(in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>As of September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>As of December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 1)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 2)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 3)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Total</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 1)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 2)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>(Level 3)</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Total</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">Assets:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 20%; padding-left: 10pt; text-indent: -5pt; line-height: 115%">Short term investments</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">7,958</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">7,958</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">7,970</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: left; width: 1%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 10pt; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 7%; border-bottom: black 1pt solid; text-align: right; line-height: 115%">7,970</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">Total assets</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,958</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,958</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,970</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">7,970</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Liabilities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 10pt; text-indent: -5pt; line-height: 115%">Bank acceptance payable</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 10pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 10pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Total liabilities</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following table
sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share
amounts):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="14" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Numerator:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 42%; padding-left: 5.4pt; line-height: 115%">Net income (loss)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">1,577</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; width: 1%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">391</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; width: 1%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">3,581</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 11%; border-bottom: black 1pt solid; text-align: right; line-height: 115%">(885</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Denominator:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Weighted average shares used to compute net income (loss) per share</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,806</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">8,995</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,135</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">273</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 21.4pt; text-indent: -8pt; line-height: 115%">Effective of dilutive options and warrants</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">789</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">160</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 21.4pt; text-align: right; line-height: 115%">815</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 21.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">15,595</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">9,155</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,950</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">273</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">Net income (loss) per share</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.11</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.04</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.25</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">(3.24</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.10</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.04</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">0.24</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="text-align: right; line-height: 115%">(3.24</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt">  </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following potentially
dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive
(in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 42%; padding-left: 5.4pt; line-height: 115%">Employee stock options</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">1,347</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">1,484</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%">Preferred stock warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">10</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">33</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Restricted stock units</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">1,357</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">1,517</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Inventories consist
of the following for the periods indicated (in thousands): </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 71%; padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Raw materials</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">4,824</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">8,832</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Work in process</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,957</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">8,708</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Finished goods</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">13,348</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">2,068</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: left; vertical-align: middle">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">33,129</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">19,608</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Property, plant and
equipment consisted of the following for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 71%; padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Land improvements</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">103</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">103</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Building and improvements</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">16,104</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">16,016</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Machinery and equipment</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">52,694</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">37,490</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Furniture and fixtures</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">1,434</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">1,047</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Computer equipment and software</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">4,567</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">3,563</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Transportation equipment</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">288</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">188</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">75,190</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">58,407</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Less accumulated depreciation and amortization</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">(30,977</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">(28,145</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">44,213</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">30,262</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Construction in progress</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">5,953</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">139</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Land</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">1,101</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">733</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Property, plant and equipment, net</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">51,267</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">31,134</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Notes payable and
long-term debt consisted of the following for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Long-Term and Short-Term Debt</b></td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 74%; padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%), maturing November 15, 2014</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%">$</td>
<td style="width: 9%; text-align: right; line-height: 115%">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 9%; text-align: right; line-height: 115%">3,076</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Revolving line of credit with a U.S. bank up to $15,000 with interest at LIBOR plus 2.75%, maturing July 15, 2017</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">14,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7,000</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 1, 2019</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">1,850</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Revolving line of credit with a China bank up to $12,000 with interest at 108% of China prime rate which was 6.48% in 2013</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7,053</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Revolving line of credit with a China bank up to $3,250 with interest ranged from 2.03% to 2.13% with various maturity dates from October 2014 to December 2014</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">1,309</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">2,413</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41%, maturing December 2014</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">3,676</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">3,795</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41%, maturing January 2015</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">3,749</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">658</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">921</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Total</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">23,392</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">26,108</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Less current portion</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">9,392</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">17,185</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Long term portion</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">14,000</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">8,923</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: center; line-height: 115%"><b>Bank Acceptance Payable</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $655, and maturity dates ranging from October 2014 to March 2015</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">2,115</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">2,347</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Accrued liabilities
consisted of the following for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>September 30, 2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>December 31, 2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 71%; padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued payroll</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">3,013</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">2,279</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued employee benefits</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">645</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">489</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued taxes</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">275</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">270</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued interest</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">34</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Advanced payments</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">70</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">128</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued commissions</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">63</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">148</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 8pt; line-height: 115%">Accrued other</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">887</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">1,167</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">4,960</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">4,515</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">Other income and expense
consisted of the following for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 42%; padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Unrealized foreign exchange gain (loss)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">(203</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">(65</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">(205</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">(257</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Realized foreign exchange gain (loss)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(17</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">57</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">53</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(7</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Government subsidy income</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">75</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">108</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">270</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Other non-operating gain (loss)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(11</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(9</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">16</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(14</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Gain (loss) on disposal of assets</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">(27</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">(29</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">8</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">(258</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">58</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">(57</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following table
summarizes employee share-based compensation expense resulting from stock options and RSUs for the periods indicated (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 42%; padding-left: 5.4pt; line-height: 115%">Cost of sales</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">7</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">14</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">60</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">40</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Research and development</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">28</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">12</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">84</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">36</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Sales and marketing</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">24</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">11</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">72</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">32</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">General and administrative</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">428</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">98</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">1,278</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">267</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">487</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">135</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">1,494</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">375</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following is a
summary of stock option activity during the nine month period ending September 30, 2014 (in thousands, except price data):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Shares</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Weighted Average Exercise Price</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Weighted Average Fair Value</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Weighted Average Remaining Contractual Life</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Aggregate Intrinsic Value</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 28%; padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Outstanding, December 31, 2013</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%">1,468</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">8.38</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">4.17</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 11%; text-align: right; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">9,731</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Granted</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">108</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">13.84</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7.24</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Exercised</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(108</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">6.21</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">2.56</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">1,658</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Forfeited</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">(30</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">8.96</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">6.82</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">363</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Expired</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 13.4pt; text-align: right; line-height: 115%">(1</td>
<td style="line-height: 115%">)</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">6.21</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">2.21</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">11</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Outstanding, September 30, 2014</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; text-align: right; line-height: 115%">1,437</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">8.94</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">4.47</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">8.332</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">10,287</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Exercisable, September 30, 2014</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; text-align: right; line-height: 115%">532</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">7.69</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">3.22</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">7.543</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">4,473</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 13.4pt; text-indent: -8pt; line-height: 115%">Vested and expected to vest</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; padding-left: 13.4pt; text-align: right; line-height: 115%">1,335</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">8.87</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">4.40</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">8.290</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="padding-left: 13.4pt; text-align: right; line-height: 115%">9,652</td>
<td style="padding-left: 13.4pt; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The following tables
set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the location of
the Company’s product manufacturing plants. Long-lived assets in the tables below comprise only property, plant, equipment
and intangible assets (in thousands):</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Three months ended September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>Nine months ended September 30,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Revenues:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 42%; padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">United States</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">7,826</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">3,742</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">19,950</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">8,364</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">Taiwan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">23,795</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7,576</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">58,684</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">22,615</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">China</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">4,928</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">9,448</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">15,424</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">23,701</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">36,549</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">20,766</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">94,058</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">54,680</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>As of the period ended</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>September 30,</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>December 31,</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2014</b></td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><b>2013</b></td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%">Long-lived assets:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 71%; padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">United States</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">14,502</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; text-align: right; line-height: 115%">9,415</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">Taiwan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">24,843</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="text-align: right; line-height: 115%">7,192</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-indent: 16pt; line-height: 115%">China</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; line-height: 115%">16,682</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%">16,337</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; line-height: 115%">56,027</td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%">32,944</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> </p>
33129000
19608000
13348000
2068000
4824000
8832000
12000000
3300000
108% of the China prime rate
2.03% to 2.13%
-57000
0
-258000
58000
-29000
8000
-27000
16000
-14000
-11000
-9000
108000
270000
75000
53000
-7000
-17000
57000
-205000
-257000
-203000
-65000
1437
1468
1
30
108
108
532
1335
8.94
8.38
6.21
8.96
6.21
13.84
8.87
7.69
P8Y3M30D
P7Y6M16D
P8Y3M15D
10287000
9731000
1658000
363000
11000
9652000
4473000
P2Y10M6D
21226
56027000
32944000
14502000
9415000
24843000
7192000
16682000
16337000
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Inventories consist of the following for
the periods indicated (in thousands): </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December 31, 2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 70%; text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Raw materials</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">4,824</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">8,832</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Work in process</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">14,957</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">8,708</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Finished goods</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">13,348</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">2,068</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">33,129</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">19,608</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The lower of cost or market adjustment
expensed for inventory for the three months ended September 30, 2014 and 2013 was $0.4 million and $0.1 million, respectively.
The lower of cost or market adjustment expensed for inventory for the nine months ended September 30, 2014 and 2013 was $1.1 million
and $0.5 million, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Property, plant and equipment consisted
of the following for the periods indicated (in thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December 31, 2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 70%; text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Land improvements</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">103</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">103</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Building and improvements</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">16,104</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">16,016</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Machinery and equipment</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">52,694</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">37,490</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Furniture and fixtures</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">1,434</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">1,047</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Computer equipment and software</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">4,567</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">3,563</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Transportation equipment</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">288</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">188</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">75,190</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">58,407</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Less accumulated depreciation and amortization</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">(30,977</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">(28,145</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">44,213</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">30,262</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Construction in progress</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">5,953</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">139</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Land</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">1,101</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">733</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">51,267</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">31,134</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">For the three and nine months ended September
30, 2014, depreciation expense of property, plant and equipment was $1.6 million and $4.1 million, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Notes payable and long-term debt consisted of the following
for the periods indicated (in thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December 31, 2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Long-Term and Short-Term Debt</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td colspan="6" style="font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 70%; text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%), maturing November 15, 2014</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">3,076</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Revolving line of credit with a U.S. bank up to $15,000 with interest at LIBOR plus 2.75%, maturing July 15, 2017</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">14,000</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7,000</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 1, 2019</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">1,850</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Revolving line of credit with a China bank up to $12,000 with interest at 108% of China prime rate which was 6.48% in 2013</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7,053</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Revolving line of credit with a China bank up to $3,250 with interest ranged from 2.03% to 2.13% with various maturity dates from October 2014 to December 2014</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">1,309</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">2,413</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41%, maturing December 2014</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">3,676</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">3,795</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41%, maturing January 2015</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">3,749</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">658</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">921</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Total</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">23,392</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">26,108</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Less current portion</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">9,392</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">17,185</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Long term portion</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">14,000</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">8,923</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt; border-bottom: Black 1pt solid">Bank Acceptance Payable</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $655, and maturity dates ranging from October 2014 to March 2015</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">2,115</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">2,347</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The current portion of long-term debt is
the amount payable within one year of the balance sheet date of September 30, 2014. The prime rate of interest was 3.25% on December 31,
2013. The one-month LIBOR rate was 0.15% on September 30, 2014.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The U.S. bank loans and line of credit agreement
require the Company to meet certain financial covenants including a minimum current ratio. Collateral for the U.S. bank loans and
line of credit includes substantially all of the assets of the Company. As of September 30, 2014, the Company was in compliance
with all of its financial and operational covenants associated with these loans. As of September 30, 2014, the Company had $1.0 million
of unused borrowing capacity on its line of credit, $3.1 million on its real estate term loan and $5.0 million on its equipment
term loan.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">On July 15, 2014, the Company renewed its
revolving line of credit with a U.S. bank, increasing the line from $7.0 million to $15.0 million, and extending the maturity date
to July 15, 2017.  The interest rate on this line of credit is the LIBOR Borrowing Rate plus 2.75%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">On July 31, 2014, the Company renewed its
$5.0 million credit agreement with a U.S. bank, extending the maturity date to July 1, 2019. The interest rate on this line of
credit is the LIBOR Borrowing Rate plus 2.75%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Company, through its China subsidiary,
established RMB and USD currency lines of credit for $12.0 million and $3.3 million, respectively, with a China bank as of
September 30, 2014. The interest rate for the RMB line of credit is 108% of the China prime rate. The interest rate for the USD
line of credit ranged from 2.03% to 2.13%. These credit lines are revolving lines that are renewable by its anniversary. Collateral
for the loans includes the land use rights, building and equipment located in China. As of September 30, 2014, the Company had
approximately $14.0 million of unused borrowing capacity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Company extended its equipment financing
agreement of $1.0 million with a Taiwan bank in 2013. The financing agreement required equipment collateral. The agreement
requires monthly installment payments over 24 months and ends in July 2015. The financing agreement bears interest at the
rate of 4.95%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Company, through its Taiwan branch,
established two $4.0 million revolving lines of credit with Taiwan banks in 2013 totaling $8.0 million. The financing agreements
require collateral of its time deposits of $8.0 million that is included in short-term investment. The two revolving lines of credit
bear interest at a rate (which adjusts quarterly) equal to the Taiwan Time Deposit Interest Rate Index plus 0.41%, currently 1.78%,
and at a base rate equal to TAIBOR plus 1%, currently 1.75%. As of September 30, 2014, $7.4 million was outstanding under these
credit facilities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Accrued liabilities consisted of the following
for the periods indicated (in thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">September 30, 2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December 31, 2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 70%; text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued payroll</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">3,013</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">2,279</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued employee benefits</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">645</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">489</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued taxes</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">275</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">270</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued interest</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">34</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Advanced payments</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">70</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">128</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued commissions</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">63</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">148</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 8pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Accrued other</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">887</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">1,167</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">4,960</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">4,515</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Other income and expense consisted of the
following for the periods indicated (in thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Three months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 40%; text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Unrealized foreign exchange gain (loss)</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">(203</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">(65</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">(205</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">(257</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Realized foreign exchange gain (loss)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(17</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">57</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">53</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(7</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Government subsidy income</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">75</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">108</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">270</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Other non-operating gain (loss)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(11</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(9</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">16</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(14</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Gain (loss) on disposal of assets</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">(27</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">(29</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">8</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">(258</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">58</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">(57</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">–</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Accounting Standards Codification (“ASC”)
718 requires companies to record compensation expense for stock options measured at fair value, on the date of grant, using an
option –pricing model.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Company’s board of directors and
stockholders previously approved the 1998 Share Incentive Plan, the 2000 Share Incentive Plan, the 2004 Share Incentive Plan and
the 2006 Share Incentive Plan, (collectively the “Prior Plans”). Following the Company’s initial public offering,
no further awards will be granted under the Prior Plans. However, all outstanding awards under the Prior Plans will continue to
exist and will continue to be governed by their existing terms.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">On April 12, 2013, the Company’s board
of directors adopted and approved the Company’s 2013 Equity Incentive Plan, (the “2013 Plan”), and it was subsequently
approved by the Company’s stockholders on May 21, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Company provides share-based compensation
to employees, consultants and non-employee directors. Share-based awards for the Prior Plans and the 2013 Plan generally vest over
a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price
equal to the fair market value of the common stock on the date of the grant. Nonqualified and incentive stock options and restrictive
stock units (“RSUs”) have been granted from these plans. Prior to the Company’s initial public offering, the
fair market value of the Company’s stock had been historically determined by the board of directors and from time to time
with the assistance of third party valuation specialists.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">As of September 30, 2014, the Company had
outstanding equity awards to purchase 1,437,044 shares of common stock under its share incentive plans with a weighted average
exercise price of $8.94.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">   </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following table summarizes employee
share-based compensation expense resulting from stock options and RSUs for the periods indicated (in thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Three months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="width: 40%; text-indent: 0pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Cost of sales</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">7</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">14</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">60</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">40</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Research and development</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">28</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">12</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">84</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">36</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Sales and marketing</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">24</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">11</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">72</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">32</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">General and administrative</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">428</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">98</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">1,278</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">267</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">487</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">135</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">1,494</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">375</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following is a summary of stock option
activity during the nine month period ending September 30, 2014 (in thousands, except price data):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Shares</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Weighted Average Fair Value</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Weighted Average Remaining Contractual Life</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; width: 25%; font: 8pt Times New Roman, Times, Serif">Outstanding, December 31, 2013</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">1,468</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">8.38</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">4.17</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">9,731</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Granted</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">108</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">13.84</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7.24</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">–</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Exercised</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(108</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">6.21</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">2.56</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">1,658</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Forfeited</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">(30</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">8.96</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">6.82</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">363</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Expired</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif">)</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; text-align: right; font: 8pt Times New Roman, Times, Serif">6.21</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; text-align: right; font: 8pt Times New Roman, Times, Serif">2.21</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; text-align: right; font: 8pt Times New Roman, Times, Serif">11</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Outstanding, September 30, 2014</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">1,437</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">8.94</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">4.47</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">8.332</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">10,287</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Exercisable, September 30, 2014</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">532</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">7.69</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">3.22</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">7.543</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">4,473</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: -8pt; padding-left: 13.4pt; font: 8pt Times New Roman, Times, Serif">Vested and expected to vest</td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">1,335</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">8.87</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">4.40</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">8.290</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="padding-bottom: 2.5pt; text-align: right; font: 8pt Times New Roman, Times, Serif">9,652</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">As of September 30, 2014, total compensation
cost related to unvested stock options not yet recognized was $3.9 million, which is expected to be expensed over a weighted-average
period of 2.85 years. The aggregated intrinsic value of options outstanding and options exercisable as of September 30, 2014 was
$10.3 million and $4.5 million, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Under the 2013 Plan, participants may be
granted RSUs, representing an unfunded, unsecured right to receive common stock on the date specified in the recipient’s
award. The Company recognizes compensation expense on a straight-line basis over the applicable vesting term of the award.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">During the three months ended September
30, 2014, the Company granted 21,226 RSUs with a total grant-date fair market value of $0.4 million. As of September 30, 2014,
there was approximately $0.2 million of unrecognized compensation cost related to RSUs.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><i></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">1. <i>          Common
Stock</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has authorized the issuance
of up to 45,000,000 shares of common stock, all of which have been designated voting common stock, under its Amended and Restated
Certificate of Incorporation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">2. <i>          Convertible
Preferred Stock</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has authorized the issuance
of up to 5,000,000 shares of preferred stock under the Company’s Amended and Restated Certificate of Incorporation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">3.          
<i>Warrants</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of September 30, 2014, the Company had
no outstanding warrants to purchase common or preferred stock. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">4. <i>          Public
Offerings of Common Stock</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 25, 2013, our registration
statement on Form S-1 for our initial public offering was declared effective by the Securities and Exchange Commission. The offering
commenced on September 26, and the Company sold 3.6 million shares of its common stock in its initial public offering at a
price of $10.00 per share, providing proceeds of $31.5 million, net of expenses and underwriting discounts and commissions. The
Company’s initial public offering closed on October 1, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 19, 2014, the Company sold 2.0 million
shares of its common stock in a secondary offering at a price of $24.25 per share, providing proceeds of $45.6 million, net of
expenses and underwriting discounts and commissions. The Company’s sale of 1.6 million shares in the secondary offering closed
on March 25, 2014 and the Company’s sale of an additional 0.4 million shares as a result of the underwriters’ exercise
of their option to purchase additional shares closed on March 28, 2014.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company operates in one reportable segment.
The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker, manages the Company’s
operations as a whole and reviews financial information presented on a consolidated basis, accompanied by information about product
revenue, for purposes of evaluating financial performance and allocating resources.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following tables set forth the Company’s
revenue and asset information by geographic region. Revenue is classified based on the location of the Company’s product
manufacturing plants. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in
thousands):</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Three months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Nine months ended September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Revenues:</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="width: 40%; text-align: left; text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">United States</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">7,826</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">3,742</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">19,950</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">8,364</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Taiwan</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">23,795</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7,576</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">58,684</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">22,615</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">China</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">4,928</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">9,448</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">15,424</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">23,701</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">36,549</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">20,766</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">94,058</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">54,680</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="6" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">As of the period ended</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">September 30,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December 31,</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="font: 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td><td style="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font: bold 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Long-lived assets:</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="width: 70%; text-align: left; text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">United States</td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">14,502</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="width: 2%; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif">$</td><td style="width: 11%; text-align: right; font: 8pt Times New Roman, Times, Serif">9,415</td><td style="width: 1%; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">Taiwan</td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">24,843</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="font: 8pt Times New Roman, Times, Serif"> </td>
<td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="text-align: right; font: 8pt Times New Roman, Times, Serif">7,192</td><td style="text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: White; font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 1pt; text-indent: 16pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif">China</td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">16,682</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right">16,337</td><td style="padding-bottom: 1pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(238,238,238); font: 8pt Times New Roman, Times, Serif">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">56,027</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td><td style="padding-bottom: 2.5pt; font: 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right">32,944</td><td style="padding-bottom: 2.5pt; text-align: left; font: 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 3, 2014, the Company paid down
$14.0 million of borrowings of its US bank line of credit facility.</p>
14816055
14957000
8708000
1100000
500000
400000
100000