0000351998
2020-01-01
2020-06-30
0000351998
2019-01-01
2019-06-30
0000351998
2019-12-31
0000351998
2020-06-30
0000351998
us-gaap:CostOfSalesMember
2020-01-01
2020-06-30
0000351998
us-gaap:ResearchAndDevelopmentExpenseMember
2020-01-01
2020-06-30
0000351998
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2020-01-01
2020-06-30
0000351998
2019-06-30
0000351998
us-gaap:CostOfSalesMember
2019-01-01
2019-06-30
0000351998
us-gaap:ResearchAndDevelopmentExpenseMember
2019-01-01
2019-06-30
0000351998
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-01-01
2019-06-30
0000351998
2018-12-31
0000351998
us-gaap:CommonStockMember
2018-12-31
0000351998
us-gaap:CommonStockMember
2019-12-31
0000351998
us-gaap:RetainedEarningsMember
2018-12-31
0000351998
us-gaap:RetainedEarningsMember
2019-12-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-12-31
0000351998
us-gaap:CommonStockMember
2020-06-30
0000351998
us-gaap:CommonStockMember
2019-06-30
0000351998
us-gaap:RetainedEarningsMember
2020-06-30
0000351998
us-gaap:RetainedEarningsMember
2019-06-30
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-06-30
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-30
0000351998
DAIO:EquipmentSalesMember
2020-01-01
2020-06-30
0000351998
DAIO:EquipmentSalesMember
2019-01-01
2019-06-30
0000351998
DAIO:AdapterSalesMember
2020-01-01
2020-06-30
0000351998
DAIO:AdapterSalesMember
2019-01-01
2019-06-30
0000351998
DAIO:SoftwareAndMaintenanceMember
2020-01-01
2020-06-30
0000351998
DAIO:SoftwareAndMaintenanceMember
2019-01-01
2019-06-30
0000351998
us-gaap:SeriesAPreferredStockMember
2020-06-30
0000351998
us-gaap:SeriesAPreferredStockMember
2019-12-31
0000351998
2020-04-01
2020-06-30
0000351998
2019-04-01
2019-06-30
0000351998
us-gaap:CommonStockMember
2020-01-01
2020-03-31
0000351998
us-gaap:CommonStockMember
2019-01-01
2019-03-31
0000351998
us-gaap:CommonStockMember
2019-04-01
2019-06-30
0000351998
us-gaap:CommonStockMember
2020-04-01
2020-06-30
0000351998
us-gaap:CommonStockMember
2020-03-31
0000351998
us-gaap:CommonStockMember
2019-03-31
0000351998
us-gaap:RetainedEarningsMember
2020-01-01
2020-03-31
0000351998
us-gaap:RetainedEarningsMember
2019-01-01
2019-03-31
0000351998
us-gaap:RetainedEarningsMember
2019-04-01
2019-06-30
0000351998
us-gaap:RetainedEarningsMember
2020-04-01
2020-06-30
0000351998
us-gaap:RetainedEarningsMember
2020-03-31
0000351998
us-gaap:RetainedEarningsMember
2019-03-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-01-01
2020-03-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-01-01
2019-03-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-04-01
2019-06-30
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-04-01
2020-06-30
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-03-31
0000351998
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-03-31
0000351998
2020-01-01
2020-03-31
0000351998
2019-01-01
2019-03-31
0000351998
2020-03-31
0000351998
2019-03-31
0000351998
DAIO:EquipmentSalesMember
2020-04-01
2020-06-30
0000351998
DAIO:AdapterSalesMember
2020-04-01
2020-06-30
0000351998
DAIO:SoftwareAndMaintenanceMember
2020-04-01
2020-06-30
0000351998
DAIO:EquipmentSalesMember
2019-04-01
2019-06-30
0000351998
DAIO:AdapterSalesMember
2019-04-01
2019-06-30
0000351998
DAIO:SoftwareAndMaintenanceMember
2019-04-01
2019-06-30
0000351998
us-gaap:CostOfSalesMember
2020-04-01
2020-06-30
0000351998
us-gaap:ResearchAndDevelopmentExpenseMember
2020-04-01
2020-06-30
0000351998
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2020-04-01
2020-06-30
0000351998
us-gaap:CostOfSalesMember
2019-04-01
2019-06-30
0000351998
us-gaap:ResearchAndDevelopmentExpenseMember
2019-04-01
2019-06-30
0000351998
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-04-01
2019-06-30
0000351998
2020-07-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
DATA I/O CORP
0000351998
10-Q
2020-06-30
false
--12-31
Yes
Non-accelerated Filer
false
true
false
Q2
2020
23979000
22844000
924000
2000000
5020000
4731000
4099000
2840000
28281000
26163000
1994000
1717000
640000
0
1668000
1602000
5482000
4869000
31000
64000
1372000
1259000
1387000
1334000
1541000
1304000
1151000
908000
91000
150000
1178000
834000
0
0
0
0
28281000
26163000
274000
94000
2508000
897000
18748000
19319000
80000
73000
5000000
5000000
200000
200000
0
0
0
0
30000000
30000000
8212748
8390943
8212748
8390943
772000
942000
1832000
1667000
2416000
2122000
5111000
5359000
6779000
6961000
395000
390000
1372000
1259000
124000
61000
126000
98000
77000
67000
678000
692000
1574000
1297000
13936000
13273000
15165000
18343000
21530000
20310000
22729000
23357000
19254000
18748000
3695000
2508000
408000
274000
19319000
18463000
897000
3848000
94000
418000
19001000
19235000
1954000
3721000
9000
536000
20964000
23492000
8338628
8212748
8390943
8261702
8221447
8287825
-57612
-188194
-908000
-313000
-908000
-313000
5190
4046
162071
169496
-163000
-228000
-10000
-9000
-228000
-163000
-10000
-9000
3509
2763
14000
15000
14000
15000
481000
364000
249000
287000
364000
481000
249000
287000
-1611000
153000
-1057000
127000
-554000
26000
127000
-1057000
-554000
26000
85000
-118000
-265000
128000
-118000
85000
-265000
128000
8390943
Yes
WA
0-10394
5223000
7269000
2439000
3584000
4217000
4623000
2216000
2250000
9440000
11892000
5063000
7247000
2669000
2882000
1708000
1763000
4655000
5834000
2476000
1324000
855000
3537000
1421000
876000
3196000
3361000
1614000
1680000
3514000
3803000
1703000
1829000
6710000
7164000
3317000
3509000
-1487000
105000
-878000
75000
9000
22000
1000
10000
0
60000
0
0
-31000
-36000
-83000
69000
-22000
46000
-82000
79000
-1509000
151000
-960000
154000
102000
-2000
97000
27000
-0.19
0.02
-0.13
0.02
-0.19
0.02
-0.13
0.02
8261
8280
8302
8257
8261
8375
8302
8332
-180000
10000
85000
-118000
-1791000
163000
-972000
9000
106000
-1455000
-912000
-88000
-264000
-312000
-77000
-62000
-541000
-2223000
1076000
-3000
-273000
28000
-1262000
63000
730000
651000
21000
196000
513000
16000
166000
469000
481000
364000
15000
132000
334000
10000
103000
251000
52000
-26000
446000
424000
-432000
-305000
0
60000
432000
365000
-159000
-1442000
0
1220000
-159000
-222000
-178000
24000
-485000
-3202000
69000
101000
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Data I/O Corporation (“Data I/O”,
“We”, “Our”, “Us”) prepared the financial statements as of June 30, 2020 and June 30, 2019
according to the rules and regulations of the Securities and Exchange Commission ("SEC").  These statements are unaudited
but, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary
to present fairly the results for the periods presented.  The balance sheet at December 31, 2019 has been derived from the
audited financial statements at that date.  We have condensed or omitted certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America
according to such SEC rules and regulations.  Operating results for the six months ended June 30, 2020 are not necessarily
indicative of the results that may be expected for the year ending December 31, 2020.  These financial statements should be
read in conjunction with the annual audited financial statements and the accompanying notes included in our Form 10-K for the year
ended December 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Topic 606 provides a single, principles-based
five-step model to be applied to all contracts with customers.  It generally provides for the recognition of revenue in an
amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts
or sales incentives, as well as taxes collected from customers when control over the promised goods or services are transferred
to the customer.    </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have elected the practical expedient to expense
contract acquisition costs, primarily sales commissions, for contracts with terms of one year or less and will capitalize and amortize
incremental costs with terms that exceed one year.  During 2020 and 2019, the impact of capitalization of incremental costs
for obtaining contracts was immaterial.  We have made a sales tax policy election to exclude sales, use, value added, some
excise taxes and other similar taxes from the measurement of the transaction price.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue upon transfer of control
of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange
for those products or services.  We have determined that our programming equipment has reached a point of maturity and stability
such that product acceptance can be assured by testing at the factory prior to shipment and that the installation meets the criteria
to be a separate performance obligation.  These systems are standard products with published product specifications and are
configurable with standard options.  The evidence that these systems could be deemed as accepted was based upon having standardized
factory production of the units, results from batteries of tests of product performance to our published specifications, quality
inspections and installation standardization, as well as past product operation validation with the customer and the history provided
by our installed base of products upon which the current versions were based.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The revenue related to products requiring installation
that is perfunctory is recognized upon transfer of control of the product to customers, which generally is at the time of shipment. 
Installation that is considered perfunctory includes any installation that is expected to be performed by other parties, such as
distributors, other vendors, or the customers themselves.  This considers the complexity, skill and training needed as well
as customer expectations regarding installation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We enter into arrangements with multiple performance
obligations that arise during the sale of a system that includes an installation component, a service and support component and
a software maintenance component.  The transaction price is allocated to the separate performance obligations on relative
standalone sales price.  We allocate the transaction price of each element based on relative selling prices.  Relative
selling price is based on the selling price of the standalone system.  For the installation and service and support performance
obligations, we use the value of the discount given to distributors who perform these components.  For software maintenance
performance obligations, we use what we charge for annual software maintenance renewals after the initial year the system is sold. 
Revenue is recognized on the system sale based on shipping terms, installation revenue is recognized after the installation is
performed, and hardware service and support and software maintenance revenue is recognized ratably over the term of the agreement,
typically one year.  Deferred revenue includes service, support and maintenance contracts and represents the undelivered performance
obligation of agreements that are typically for one year.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">When we sell software separately, we recognize
revenue upon the transfer of control of the software, which is generally upon shipment, provided that only inconsequential performance
obligations remain on our part and substantive acceptance conditions, if any, have been met.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue when there is an approved
contract that both parties are committed to perform, both parties’ rights have been identified, the contract has substance,
collection of substantially all the consideration is probable, the transaction price has been determined and allocated over the
performance obligations, the performance obligations including substantive acceptance conditions, if any, in the contract have
been met, the obligation is not contingent on resale of the product, the buyer’s obligation would not be changed in the event
of theft, physical destruction or damage to the product, the buyer acquiring the product for resale has economic substance apart
from us and we do not have significant obligations for future performance to directly bring about the resale of the product by
the buyer.  We establish a reserve for sales returns based on historical trends in product returns and estimates for new items. 
Payment terms are generally 30 days from shipment. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We transfer certain products out of service
from their internal use and make them available for sale.  The products transferred are typically our standard products in
one of the following areas: service loaners, rental or test units; engineering test units; or sales demonstration equipment. 
Once transferred, the equipment is sold by our regular sales channels as used equipment inventory.  These product units often
involve refurbishing and an equipment warranty, and are conducted as sales in our normal and ordinary course of business. 
The transfer amount is the product unit’s net book value and the sale transaction is accounted for as revenue and cost of
goods sold.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table represents our revenues
by major categories:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 8pt"><b>Net sales by type</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt">(in thousands)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 42%; font-size: 8pt; text-align: left">Equipment Sales</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">2,476</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.0%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">3,537</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">5,063</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.1%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">7,247</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Adapter Sales</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,324</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(6.8%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,421</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,669</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(7.4%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,882</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Software and Maintenance Sales</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">855</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(2.4%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">876</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,708</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(3.1%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,763</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Total</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">4,655</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.2%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,834</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">9,440</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.6%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">11,892</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: white"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Share-Based Compensation</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All stock-based compensation awards are measured
based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line single-option method. 
Our share-based compensation is reduced for estimated forfeitures at the time of grant and revised as necessary in subsequent periods
if actual forfeitures differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Tax</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are computed at current enacted
tax rates, less tax credits using the asset and liability method.  Deferred taxes are adjusted both for items that do not
have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred
tax assets or liabilities.  Tax provisions include amounts that are currently payable, changes in deferred tax assets and
liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for
financial reporting and income tax purposes, and any changes in the valuation allowance caused by a change in judgment about the
realization of the related deferred tax assets.  A valuation allowance is established when necessary to reduce deferred tax
assets to amounts expected to be realized.  The CARES Act, enacted in Q1 2020, accelerated the AMT credit refund of $640,000
to be a current asset instead of non-current.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recently Adopted Accounting Pronouncements</u></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Inventories consisted of the following
components:</p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Raw material</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">2,122</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">2,416</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">Work-in-process</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,667</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,832</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Finished goods</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">942</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">772</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Inventories</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">4,731</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,020</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment consisted of the following
components:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: justify">Leasehold improvements</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">390</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">395</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: justify">Equipment</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">5,666</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">5,606</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 1pt">Sales demonstration equipment    </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">905</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">778</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">6,961</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">6,779</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 1pt">Less accumulated depreciation</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">5,359</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">5,111</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,602</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,668</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other accrued liabilities consisted of the following
components:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Lease liability - short term</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">692</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">678</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Product warranty</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">341</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">367</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Sales return reserve</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">67</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">77</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Other taxes</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">98</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">126</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; padding-bottom: 1pt">Other</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">61</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">124</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Other accrued liabilities</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,259</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,372</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The changes in our product warranty liability
for the six months ending June 30, 2020 are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30,<br /> 2020</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">(in thousands)</td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: left">Liability, beginning balance</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">367</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">341</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Warranty claims</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(341</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Accrual revisions</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(26</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Liability, ending balance</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">341</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Our leasing arrangements are primarily
for facility leases we use to conduct our operations. The following table presents our future lease payments for long-term operating
leases as of June 30, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: left; font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>Operating<br /> Lease Commitments</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">(in thousands) </font></td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 44%; text-align: left"><font style="font-size: 8pt">2020 (remaining)</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">381</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">711</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">317</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2023</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2024</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">141</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,724</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">  Less Imputed interest</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(198</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Total operating lease liabilities</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,526</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Cash paid for operating lease liabilities
for the three and six months ended June 30, 2020 was $189,000 and $374,000, respectively.  There was one new or modified leases
during the six months ended June 30, 2020 included in the lease liability for approximately $15,000 relating to a new three-year
automobile lease.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The following table presents supplemental
balance sheet information related to leases as of June 30, 2020:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Balance at June 30, 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Balance at December 31, 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Right-of-use assets (Long-term other assets)</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">1,297</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">1,574</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Lease liability-short term (Other accrued liabilities)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">692</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">678</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Lease liability-long term (Long-term other payables)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">834</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,178</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2020, the weighted average remaining
lease term is 3.08 years and the weighted average discount rate used is 5%.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of our lease expense for the
three and six months ended June 30, 2020 include operating lease costs of $164,000 and $326,000, respectively, and short-term lease
costs of $8,000 and $16,000, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our real estate facility leases are described
below:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarter of 2017, we amended
our lease agreement, extending the lease for the Redmond, Washington headquarters facility through July 31, 2022.  This lease
is for approximately 20,460 square feet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We signed a lease agreement effective November
1, 2015 that extends the lease for a facility located in Shanghai, China through October 31, 2021.  This lease is for approximately
19,400 square feet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the fourth quarter of 2016, we signed
a lease agreement for a new facility located near Munich, Germany which was effective March 1, 2017 and extends the lease through
February 28, 2022.  This lease is for approximately 4,895 square feet.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have purchase obligations for inventory and
production costs as well as other obligations such as capital expenditures, service contracts, marketing, and development agreements. 
Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities
to be purchased, a pricing structure and approximate timing of the transaction.  Most arrangements are cancelable without
a significant penalty, and with short notice, typically less than 90 days.  At June 30, 2020, the purchase commitments and
other obligations totaled $1.2 million of which all but $228,000 are expected to be paid over the next twelve months.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2020, we were not a party to
any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion,
individually or in the aggregate, would have a material adverse effect on our results of operations or financial position. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings per share is calculated based
on the weighted average number of common shares outstanding during each period.  Diluted earnings per share is calculated
based on these same weighted average shares outstanding plus the effect of potential shares issuable upon assumed exercise of stock
options based on the treasury stock method. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Potential shares issuable upon the exercise
of stock options are excluded from the calculation of diluted earnings per share to the extent their effect would be anti-dilutive.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table sets forth the computation of basic and diluted
earnings per share:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt">(in thousands except per share data)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Numerator for basic and diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; font-size: 8pt; text-align: left">      Net income (loss)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">(1,057</td><td style="width: 1%; font-size: 8pt; text-align: left">)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">127</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">(1,611</td><td style="width: 1%; font-size: 8pt; text-align: left">)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">153</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Denominator for basic</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">      Weighted-average shares</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,302</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,257</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,261</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,280</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Employee stock options and awards</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">46</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">75</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">51</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">95</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Denominator for diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">      Adjusted weighted-average shares &</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">      assumed conversions of stock options</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,348</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,332</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,312</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,375</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Basic and diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">      Total basic earnings (loss) per share</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.13</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.19</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">      Total diluted earnings (loss) per share</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.13</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.19</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Weighted average options to purchase 25,000
shares for both the three and six month periods ending June 30, 2020 and weighted average options to purchase 35,422 and 30,240
shares for the three and six months ending June 30, 2019, respectively, were excluded from the computation of diluted earnings
per share for the periods then ended because the options were anti-dilutive.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For share-based awards granted, we have recognized
compensation expense based on the estimated grant date fair value method.  For these awards we have recognized compensation
expense using a straight-line amortization method reduced for estimated forfeitures.  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 10pt">The impact on our results of operations of recording share-based
compensation, net of forfeitures, for the three and six months ended June 30, 2020 and 2019, respectively, were as follows:</p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">(in thousands)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; font-size: 8pt; text-align: left">Cost of goods sold</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">15</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">10</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">21</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">16</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Research and development</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">132</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">103</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">196</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">166</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Selling, general and administrative</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">334</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">251</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">513</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">469</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Total share-based compensation</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">481</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">364</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">730</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">651</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Equity awards granted during the three and six
months ended June 30, 2020 and 2019 were as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; font-size: 8pt; text-align: justify">Restricted Stock Units</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">376,200</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">276,700</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">376,200</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">276,700</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify">Stock Options</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">—  </td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">25,000</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">—  </td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">25,000</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Non-employee directors Restricted Stock Units
(“RSU’s”) vest over one year and options vest over three years and have a six-year exercise period.  Employee
RSU’s typically vest over four years and employee Non-Qualified stock options typically vest quarterly over 4 years and have
a six-year exercise period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The remaining unamortized expected future equity
compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted
stock unit awards at June 30, 2020 are:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30,<br /> 2020</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left">Unamortized future equity compensation expense (in thousands)</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,731</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Remaining weighted average amortization period (in years)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.63</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All stock-based compensation awards are measured
based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line single-option method. 
Our share-based compensation is reduced for estimated forfeitures at the time of grant and revised as necessary in subsequent periods
if actual forfeitures differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income taxes are computed at current enacted
tax rates, less tax credits using the asset and liability method.  Deferred taxes are adjusted both for items that do not
have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred
tax assets or liabilities.  Tax provisions include amounts that are currently payable, changes in deferred tax assets and
liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for
financial reporting and income tax purposes, and any changes in the valuation allowance caused by a change in judgment about the
realization of the related deferred tax assets.  A valuation allowance is established when necessary to reduce deferred tax
assets to amounts expected to be realized.  The CARES Act, enacted in Q1 2020, accelerated the AMT credit refund of $640,000
to be a current asset instead of non-current.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Raw material</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">2,122</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">2,416</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">Work-in-process</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,667</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,832</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Finished goods</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">942</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">772</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Inventories</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">4,731</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,020</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Lease liability - short term</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">692</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">678</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Product warranty</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">341</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">367</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Sales return reserve</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">67</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">77</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Other taxes</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">98</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">126</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; padding-bottom: 1pt">Other</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">61</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">124</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Other accrued liabilities</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,259</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,372</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30,<br /> 2020</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">(in thousands)</td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; text-align: left">Liability, beginning balance</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">367</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">341</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Warranty claims</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(341</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Accrual revisions</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(26</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt">Liability, ending balance</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">341</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt">(in thousands except per share data)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Numerator for basic and diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; font-size: 8pt; text-align: left">      Net income (loss)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">(1,057</td><td style="width: 1%; font-size: 8pt; text-align: left">)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">127</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">(1,611</td><td style="width: 1%; font-size: 8pt; text-align: left">)</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">153</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Denominator for basic</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">      Weighted-average shares</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,302</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,257</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,261</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">8,280</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Employee stock options and awards</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">46</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">75</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">51</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">95</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Denominator for diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">      Adjusted weighted-average shares &</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">      assumed conversions of stock options</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,348</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,332</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,312</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">8,375</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Basic and diluted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">earnings (loss) per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">      Total basic earnings (loss) per share</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.13</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.19</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">      Total diluted earnings (loss) per share</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.13</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">(0.19</td><td style="font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left">$</td><td style="font-size: 8pt; text-align: right">0.02</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt">(in thousands)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; font-size: 8pt; text-align: left">Cost of goods sold</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">15</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">10</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">21</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 10%; font-size: 8pt; text-align: right">16</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Research and development</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">132</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">103</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">196</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">166</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Selling, general and administrative</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">334</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">251</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">513</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">469</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Total share-based compensation</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">481</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">364</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">730</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">651</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; font-size: 8pt; text-align: justify">Restricted Stock Units</td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">376,200</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">276,700</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">376,200</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 3%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 10%; font-size: 8pt; text-align: right">276,700</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify">Stock Options</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">—  </td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">25,000</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">—  </td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">25,000</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>June 30,<br /> 2020</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: left">Unamortized future equity compensation expense (in thousands)</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">2,731</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Remaining weighted average amortization period (in years)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.63</td><td style="text-align: left"> </td></tr>
</table>
-.2060
-.3010
-.0740
-.0310
-.2020
-.3000
-.0680
-.0240
5606000
5666000
778000
905000
367000
341000
341000
341000
26000
381000
711000
317000
91000
83000
141000
1724000
198000
1526000
P3Y29D
.0500
326000
164000
16000
8000
1200000
228000
51
95
46
75
8261
8280
8302
8257
8312
8375
8348
8332
25000
30240
25000
35422
0
25000
0
25000
376200
276700
376200
276700
2731000
P2Y7M17D
374000
189000
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 8pt"><b>Net sales by type</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt">(in thousands)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 42%; font-size: 8pt; text-align: left">Equipment Sales</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">2,476</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.0%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">3,537</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">5,063</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.1%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">7,247</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Adapter Sales</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,324</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(6.8%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,421</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,669</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(7.4%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,882</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Software and Maintenance Sales</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">855</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(2.4%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">876</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,708</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(3.1%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,763</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Total</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">4,655</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.2%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,834</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">9,440</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.6%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">11,892</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Topic 606 provides a single, principles-based
five-step model to be applied to all contracts with customers.  It generally provides for the recognition of revenue in an
amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts
or sales incentives, as well as taxes collected from customers when control over the promised goods or services are transferred
to the customer.    </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have elected the practical expedient to expense
contract acquisition costs, primarily sales commissions, for contracts with terms of one year or less and will capitalize and amortize
incremental costs with terms that exceed one year.  During 2020 and 2019, the impact of capitalization of incremental costs
for obtaining contracts was immaterial.  We have made a sales tax policy election to exclude sales, use, value added, some
excise taxes and other similar taxes from the measurement of the transaction price.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue upon transfer of control
of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange
for those products or services.  We have determined that our programming equipment has reached a point of maturity and stability
such that product acceptance can be assured by testing at the factory prior to shipment and that the installation meets the criteria
to be a separate performance obligation.  These systems are standard products with published product specifications and are
configurable with standard options.  The evidence that these systems could be deemed as accepted was based upon having standardized
factory production of the units, results from batteries of tests of product performance to our published specifications, quality
inspections and installation standardization, as well as past product operation validation with the customer and the history provided
by our installed base of products upon which the current versions were based.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The revenue related to products requiring installation
that is perfunctory is recognized upon transfer of control of the product to customers, which generally is at the time of shipment. 
Installation that is considered perfunctory includes any installation that is expected to be performed by other parties, such as
distributors, other vendors, or the customers themselves.  This considers the complexity, skill and training needed as well
as customer expectations regarding installation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We enter into arrangements with multiple performance
obligations that arise during the sale of a system that includes an installation component, a service and support component and
a software maintenance component.  The transaction price is allocated to the separate performance obligations on relative
standalone sales price.  We allocate the transaction price of each element based on relative selling prices.  Relative
selling price is based on the selling price of the standalone system.  For the installation and service and support performance
obligations, we use the value of the discount given to distributors who perform these components.  For software maintenance
performance obligations, we use what we charge for annual software maintenance renewals after the initial year the system is sold. 
Revenue is recognized on the system sale based on shipping terms, installation revenue is recognized after the installation is
performed, and hardware service and support and software maintenance revenue is recognized ratably over the term of the agreement,
typically one year.  Deferred revenue includes service, support and maintenance contracts and represents the undelivered performance
obligation of agreements that are typically for one year.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">When we sell software separately, we recognize
revenue upon the transfer of control of the software, which is generally upon shipment, provided that only inconsequential performance
obligations remain on our part and substantive acceptance conditions, if any, have been met.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue when there is an approved
contract that both parties are committed to perform, both parties’ rights have been identified, the contract has substance,
collection of substantially all the consideration is probable, the transaction price has been determined and allocated over the
performance obligations, the performance obligations including substantive acceptance conditions, if any, in the contract have
been met, the obligation is not contingent on resale of the product, the buyer’s obligation would not be changed in the event
of theft, physical destruction or damage to the product, the buyer acquiring the product for resale has economic substance apart
from us and we do not have significant obligations for future performance to directly bring about the resale of the product by
the buyer.  We establish a reserve for sales returns based on historical trends in product returns and estimates for new items. 
Payment terms are generally 30 days from shipment. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We transfer certain products out of service
from their internal use and make them available for sale.  The products transferred are typically our standard products in
one of the following areas: service loaners, rental or test units; engineering test units; or sales demonstration equipment. 
Once transferred, the equipment is sold by our regular sales channels as used equipment inventory.  These product units often
involve refurbishing and an equipment warranty, and are conducted as sales in our normal and ordinary course of business. 
The transfer amount is the product unit’s net book value and the sale transaction is accounted for as revenue and cost of
goods sold.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table represents our revenues
by major categories:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td><b> </b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Three Months Ended</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="10" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-size: 8pt"><b>Net sales by type</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="2" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Change</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 8pt">(in thousands)</td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="2"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 42%; font-size: 8pt; text-align: left">Equipment Sales</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">2,476</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.0%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">3,537</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">5,063</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 6%; font-size: 8pt; text-align: right">(30.1%)</td><td style="width: 2%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 6%; font-size: 8pt; text-align: right">7,247</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Adapter Sales</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,324</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(6.8%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,421</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,669</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">(7.4%)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">2,882</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt">Software and Maintenance Sales</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">855</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(2.4%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">876</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,708</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(3.1%)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">1,763</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Total</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">4,655</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.2%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">5,834</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">9,440</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(20.6%)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">11,892</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: white"> </p>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>June 30,<br /> 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>December 31,<br /> 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: justify">Leasehold improvements</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">390</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">395</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: justify">Equipment</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">5,666</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">5,606</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 1pt">Sales demonstration equipment    </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">905</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">778</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">6,961</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">6,779</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 1pt">Less accumulated depreciation</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">5,359</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">5,111</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,602</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">1,668</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: left; font-size: 12pt"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><b>Operating<br /> Lease Commitments</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">(in thousands) </font></td><td style="text-align: left"> </td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 44%; text-align: left"><font style="font-size: 8pt">2020 (remaining)</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">381</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">711</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">317</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2023</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">2024</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Thereafter</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">141</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,724</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">  Less Imputed interest</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(198</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Total operating lease liabilities</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,526</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Balance at June 30, 2020</b></td><td style="font-size: 8pt; padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: center"><b>Balance at December 31, 2019</b></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">(in thousands)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font-size: 8pt; text-align: left">Right-of-use assets (Long-term other assets)</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">1,297</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">1,574</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left">Lease liability-short term (Other accrued liabilities)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">692</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">678</td><td style="font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left">Lease liability-long term (Long-term other payables)</td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">834</td><td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt"> </td>
<td style="font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; text-align: right">1,178</td><td style="font-size: 8pt; text-align: left"> </td></tr>
</table>