We have opted to take advantage of the extended transition period available to emerging growth companies pursuant to the Jumpstart Our Business Startups Act of (the “JOBS Act”) for new accounting standards.

 

 

In the FASB issued ASU - The new guidance is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance requires application using a retrospective transition method. The Company adopted this ASU in the quarter of fiscal The adoption of this ASU did have a material effect on the Company’s consolidated financial statements.

 

In the FASB issued ASU - (“ASU -), which is a comprehensive new revenue recognition model.

 

Under ASU - and the related clarifying ASUs, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU - is effective for entities other than public business entities in annual reporting periods beginning after and interim reporting periods within annual reporting periods beginning after and is to be adopted using either a full retrospective or modified retrospective transition method. The Company expects to adopt the guidance under the modified retrospective approach for the fiscal year ending The Company is currently evaluating the impact of the pending adoption of the new standard on the consolidated financial statements. 

 

In the FASB issued ASU  - (“ASU -), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU - requires entities to use a screen test to determine when an integrated set of assets and activities is a business or if the integrated set of assets and activities needs to be further evaluated against the framework. The new standard will be applied prospectively to any transactions occurring within the period of adoption and is effective for entities other than public business entities for fiscal years beginning after and interim periods within fiscal years beginning after Early adoption is permitted. The Company plans to adopt this standard in the quarter of the fiscal year ending

 

In the FASB issued ASU - Leases (“ASU -), which is codified in ASC (“ASC ) and supersedes current lease guidance in ASC . ASC requires a lessee to recognize a right-of-use asset and a corresponding lease liability for substantially all leases. The lease liability will be equal to the present value of the remaining lease payments while the right-of-use asset will be similarly calculated and then adjusted for initial direct costs. In addition, ASC expands the disclosure requirements to increase the transparency and comparability of the amount, timing and uncertainty of cash flows arising from leases. In the FASB issued ASU - , which allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.

 

The new standard is effective for emerging growth companies for fiscal years beginning after and interim periods within fiscal years beginning after The Company plans to adopt the new standard effective for the year ending The Company is currently evaluating the impact of the pending adoption of the new standard on the consolidated financial statements. 

 

In the FASB issued ASU - , This ASU, along with subsequently issued related ASUs, requires financial assets (or groups of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, among other provisions. This ASU is effective for annual and interim periods beginning after with early adoption permitted. The Company plans to adopt the new standard effective for the year ending The amendments of this ASU should be applied on a modified retrospective basis to all periods presented. The Company is currently evaluating the effects adoption of this guidance will have on the consolidated financial statements.