As of september 30, 2014, based on our calculations under the above noted approach, the fair value of the reporting unit  exceeded its carrying value by approximately $69.0 million or 74%. In performing these calculations, management used  its most reasonable estimates of the key assumptions discussed above. Based on management’s review, if any of these  individual key assumptions were to change, or if a combination of these key assumptions were to change, the fair value  of the reporting unit could be reduced below the carrying value. As a result, if our actual operating results and/or the key  assumptions utilized in management’s calculations differ from our expectations, it is possible that a future impairment  charge may be necessary. As the Company has elected our fiscal year-end as the annual impairment testing date, the Company assessed qualitative  factors as of December 31, 2014, and determined that as there were no material changes in the results of operations or  financial condition from the september 30, 2014 impairment test, it was more likely than not that the fair value of its  reporting unit exceeded its carrying amount at December 31, 2014. Factors considered included financial performance,  forecasts and trends, market cap, regulatory and environmental issues, macro-economic conditions, industry and market  considerations, raw material costs and management stability •  accounts receivable  the Company periodically reviews the collectability of its accounts receivable. provisions are  recorded for accounts that are potentially uncollectible. Determining adequate reserves for accounts receivable requires  management’s judgment. Conditions impacting the realizability of the Company’s receivables could cause actual asset  write-offs to be materially different than the reserved balances as of December 31, 2014. • inventories  Inventories include material, labor, and manufacturing overhead and are valued at the lower of cost or market.  Cost is determined using the first-in, first-out (FIFO) method. •  recent accounting Pronouncements  Refer to note 1, “summary of significant Accounting policies,” in the accompanying  notes to the consolidated financial statements for a discussion of recent accounting pronouncements.  the Company periodically reviews the realizability of its inventory for potential obsolescence. Determining the net  realizable value of inventory requires management’s judgment. Conditions impacting the realizability of the Company’s  inventory could cause actual asset write-offs to be materially different than the Company’s current estimates as of  December 31, 2014. there were no new accounting pronouncements adopted during 2014 that had a material effect on our consolidated  financial statements. the following discussion of the Company’s market risk includes “forward-looking statements” that involve risk and uncertainties.  Actual results could differ materially from those projected in the forward-looking statements. Market risk represents the risk of changes in value of a financial instrument caused by fluctuations in interest rates, foreign exchange  rates, and equity prices. At December 31, 2014, the Company’s cash and cash equivalents consisted of bank accounts in U.s. dollars,  and their valuation would not be affected by market risk. Interest under the Company’s credit facility with Bank of America, n.A. is  based upon either the prime rate or LIBOR and, therefore, future operations could be affected by interest rate changes. However, as  of December 31, 2014, the Company had no borrowings outstanding under the revolving credit facility, and the Company believes the  market risk associated with the facility is minimal. QUANTITATIvE ANd QUAlITATIvE dISCloSURES AboUT MARkET RISk  14