EFTA01366602.pdf

Amendment #4 Page 173 of 868 metric and a tack of marketability dscoun of 5% The illiquidity discount mar utilized the fdlomng assunpions (I) a In to [Ruddy event of tree months. (0) a risk free rate of 2.3%, and (id volatility of 40% over the one to a liquidity event Estimates of the volatility of as common stock were based an available information on It. volatility d common stock of comparable publody laded companies Ott board of directors corsdered the proximity relate to the March 31. 2015 valuaton and our financial pedamance in establishing the far value of the common stock JOBS Act Section 107(b) of the JOBS Act provides that an emengrg growth company can take advartage of the extended trans4on penod prowled in Section 7(a)(2)(S) of the Secarbes Act for complyrg with new or revised accourtng standards In other wads, an emergng growth company can &by the Swan of eaten accountrg standards untl those standards would otherwise apply to private companies. We are choosey to 'opt in to such extended trans4ron penod elect.on under Section 107(,) Therefore, we are electing to delay adoption of new a revised accountrig standards and, as a result, we rrey choose not to canary with new or revised accourting standards on the relevant dates on which adoption of such standards is required for non-armrgirg growth companies. As a result of such election, our financial statements may net be comparable to the funeral statements of other public convenes. Recent accounting pronouncemenle h July 2013. FASS issued ASU No 2013-11. Income Taxes (Topic 740) Aesentdon San Unrecognized Tax Brent When a Net Operating Less Canyforward. a Sanger Tax Loss or e Tax Credit Caryforward Exists. cr ASU No 2013.11 The amendments of ASU No 2013.11. which were adopted on Jaruary 1. 2014, require an entity to present an unrecognized tax benefit. Or a portion of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss. or NCI_ a smiled tax loss or tax credt carryforward rather than a liability when the uncertain tax poston would reduce ere NU or other carryforward under she lax law ci the applicable esisOcton and the entry intends to use tee deferred tax asset for that purpose. Tie adopoon of this guidance did not result in any material impact to out combined financial staterrerts In May 2014. FASS issued MU No 2014-09. Revenue from Cortracts with Ciatomers, whech requires an entity to recograe the amount of revenue to which t expects to be ended fa the transfer of promised goods or services to customers. MU 2014-09 wet replace most existing revenue recogrition guidance in GAAP when it becomes effective. ASU 201409 is effective fa us on January 1. 2017 Early application is not permted A detey in the effective date is currently being considered by the PASS. which we expect dirt rate mat least a ore year deferral The stardard permit the use of either a retrospectme or comdative effect framed, method We have not detemined which transition method we will adopt ard we are currently evaluatrg to mesa that ASU 201403 wit have on es centred Inane's& statements and related disciosures upon adoption In August 2014, FASS issued ASU 201415, Deoteure S Unoarteerbas about an Entity's Abet), to Continue as a Gang Cavern which descnbes how en telly shora assess Is study to meet obegatons end sets rules for tow the intometon should be disclosed in tre financial staterneas The standard provides accouring gadanoe Met wilt be used along with existing auditing standards The new standard applies to all eases for the first annual penal en:Ing after Decerrter 15. 2016. and interim periods thereafter. Management has evaluated de gudarce and concluded fret me adoption of the gadance will not result in arty matenal mpect to our conned mancot statements 165 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058130 CONFIDENTIAL SDNY GM_00204314 EFTA01366602