<SEC-DOCUMENT>0000914121-20-004014.txt : 20201105
<SEC-HEADER>0000914121-20-004014.hdr.sgml : 20201105
<ACCEPTANCE-DATETIME>20201105162132
ACCESSION NUMBER:		0000914121-20-004014
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20201105
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20201105
DATE AS OF CHANGE:		20201105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			USA TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000896429
		STANDARD INDUSTRIAL CLASSIFICATION:	CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578]
		IRS NUMBER:				232679963
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33365
		FILM NUMBER:		201290778

	BUSINESS ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6109890340

	MAIL ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USA ENTERTAINMENT CENTER INC
		DATE OF NAME CHANGE:	19931029
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>us20201104-8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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    <div style="text-align: center; margin-top: 6pt; color: #000000; font-size: 18pt; font-weight: bold;">UNITED STATES<br>
      SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; margin-top: 6pt; font-size: 12pt; font-weight: bold;">WASHINGTON<font style="color: #000000;">, D.C. 20549</font></div>
    <div style="text-align: center; margin-top: 6pt; font-size: 18pt; font-weight: bold;">FORM<font style="color: #000000;"> 8-K</font></div>
    <div style="text-align: center; margin-top: 6pt; font-size: 12pt; font-weight: bold;">CURRENT<font style="color: #000000;"> REPORT</font><br>
      <font style="color: #000000;">PURSUANT TO SECTION 13 OR 15(d) OF THE</font><br>
      <font style="color: #000000;">SECURITIES EXCHANGE ACT OF 1934</font></div>
    <div style="text-align: center;"><br>
      <br>
      Date of Report (date of earliest event reported):<font style="font-weight: bold; color: #000000;"> November 5, 2020</font></div>
    <div style="text-align: center; margin-top: 6pt; color: #000000; font-size: 18pt; font-weight: bold;">USA TECHNOLOGIES, INC.</div>
    <div style="text-align: center;">(Exact name of registrant as specified in its charter)</div>
    <div><br>
    </div>
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            <div style="border-bottom: 0.5pt solid black;">
              <div style="text-align: center; color: #000000; font-weight: bold;">Pennsylvania</div>
            </div>
          </td>
          <td style="width: 2.06%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="border-bottom: 1px solid #000000; vertical-align: top; width: 26.23%;">
            <div style="border-bottom: 0.5pt solid black;">
              <div style="text-align: center; color: #000000; font-weight: bold;">001-33365</div>
            </div>
          </td>
          <td style="width: 2.06%; vertical-align: bottom;">&#160;</td>
          <td style="border-bottom: 1px solid #000000; vertical-align: top; width: 31.93%;">
            <div style="border-bottom: 0.5pt solid black;">
              <div style="text-align: center; color: #000000; font-weight: bold;">232679963</div>
            </div>
          </td>
        </tr>
        <tr>
          <td style="width: 37.71%; vertical-align: top;">
            <div style="text-align: center;">(State or other jurisdiction of incorporation<br>
              or organization)</div>
          </td>
          <td style="width: 2.06%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 26.23%; vertical-align: top;">
            <div style="text-align: center;">(Commission<br>
              File Number)</div>
          </td>
          <td style="width: 2.06%; vertical-align: bottom;">&#160;</td>
          <td style="width: 31.93%; vertical-align: top;">
            <div style="text-align: center;">(IRS employer<br>
              identification number)</div>
          </td>
        </tr>
        <tr>
          <td colspan="3" style="width: 48.96%; vertical-align: top;">&#160;</td>
          <td style="width: 2.16%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 48.88%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="3" style="width: 48.96%; vertical-align: top;">
            <div style="text-align: center; color: #000000; font-weight: bold;">100 Deerfield Lane, Suite 300</div>
          </td>
          <td style="width: 2.16%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 48.88%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td colspan="3" style="border-bottom: 1px solid #000000; vertical-align: top; width: 48.96%;">
            <div style="border-bottom: 0.5pt solid black;">
              <div style="text-align: center; color: #000000; font-weight: bold;">Malvern, Pennsylvania</div>
            </div>
          </td>
          <td style="width: 2.16%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="border-bottom: 1px solid #000000; vertical-align: top; width: 48.88%;">
            <div style="border-bottom: 0.5pt solid black;">
              <div style="text-align: center; color: #000000; font-weight: bold;">19355</div>
            </div>
          </td>
        </tr>
        <tr>
          <td colspan="3" style="width: 48.96%; vertical-align: top;">
            <div style="text-align: center;">(Address of principal executive offices)</div>
          </td>
          <td style="width: 2.16%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 48.88%; vertical-align: top;">
            <div style="text-align: center;">(Zip code)</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: center;">Registrant&#8217;s telephone number, including area code:<font style="font-weight: bold; color: #000000;"> 610-989-0340</font></div>
    <div style="text-align: justify; margin-top: 8pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</div>
    <div style="text-align: justify; margin-top: 8pt;"><font style="font-family: 'Times New Roman',serif; color: rgb(0, 0, 0);">&#9744; </font>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
    <div style="text-align: justify; margin-top: 8pt;"><font style="font-family: 'Times New Roman', serif; font-size: 3pt; color: #000000;"><font style="font-family: 'Times New Roman',serif; font-size: 10pt; color: rgb(0, 0, 0);">&#9744;&#160;</font></font>Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
    <div style="text-align: justify; margin-top: 8pt;"><font style="font-family: 'Times New Roman', serif; font-size: 3pt; color: #000000;"><font style="font-family: 'Times New Roman',serif; font-size: 10pt; color: rgb(0, 0, 0);">&#9744;&#160;</font></font>Pre-commencement


      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
    <div style="text-align: justify; margin-top: 8pt;"><font style="font-family: 'Times New Roman', serif; font-size: 3pt; color: #000000;"><font style="font-family: 'Times New Roman',serif; font-size: 10pt; color: rgb(0, 0, 0);">&#9744;&#160;</font></font>Pre-commencement


      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
    <div style="margin: 8pt 0px; color: #000000; text-align: justify;">Securities registered pursuant to Section 12(b) of the Act:</div>
    <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;" id="z4e28946d3dce4907afb3282e192dc71b">

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          <td style="width: 39.06%; vertical-align: bottom; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; margin-right: 0.75pt; color: #231F20;">Title of each class</div>
          </td>
          <td style="width: 21.24%; vertical-align: bottom; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; color: #231F20;">Trading</div>
            <div style="text-align: center; color: #231F20;">Symbol(s)</div>
          </td>
          <td style="width: 39.7%; vertical-align: bottom; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; color: #231F20;">Name of each exchange on which registered</div>
          </td>
        </tr>
        <tr>
          <td style="width: 39.06%; vertical-align: top; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; margin-right: 0.75pt; color: #000000;">None</div>
          </td>
          <td style="width: 21.24%; vertical-align: top; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; color: #000000;">None</div>
          </td>
          <td style="width: 39.7%; vertical-align: top; border-left: #000000 2px double; border-right: #000000 2px double; border-top: #000000 2px double; border-bottom: #000000 2px double;">
            <div style="text-align: center; color: #000000;">None</div>
          </td>
        </tr>

    </table>
    <div style="text-align: justify; margin-top: 8pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act
      of 1934 (&#167;240.12b-2 of this chapter).</div>
    <div style="text-align: justify; margin-top: 8pt;">Emerging growth company<font style="font-family: 'Times New Roman',serif; color: rgb(0, 0, 0);"> &#9744; </font></div>
    <div style="text-align: justify; margin-top: 8pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
      provided pursuant to Section 13(a) of the Exchange Act.<font style="font-family: 'Times New Roman',serif; color: rgb(0, 0, 0);"> &#9744; </font></div>
    <div style="margin-top: 0.3pt;"><br>
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    <div><font style="font-weight: bold; color: #000000;">Item 2.02</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 108pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-weight: bold; color: #000000;">Results of
        Operations and Financial Condition.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; color: #000000;">On November 5, 2020, USA Technologies, Inc. (the &#8220;Company&#8221;) issued a press release announcing the Company&#8217;s financial results for the first quarter ended September 30, 2020. A copy of this press release
      is attached hereto as Exhibit 99.1.</div>
    <div><br>
    </div>
    <div style="text-align: justify; color: #000000;">The information contained in this Current Report on Form 8-K pursuant to this &#8220;Item 2.02 Results of Operations and Financial Condition&#8221; is being furnished. This information shall not be deemed to be
      filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the &#8220;Exchange Act&#8221;) or otherwise subject to the liabilities of that section or shall such information be deemed incorporated by reference in any filing under the Securities
      Act of 1933 or the Exchange Act, unless specifically identified therein as being incorporated by reference.</div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-weight: bold; color: #000000;">Item 9.01</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 108pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-weight: bold; color: #000000;">Financial Statements and Exhibits.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="color: #000000;">(d)</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="color: #000000; font-style: italic;">Exhibits</font></div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" border="0" style="font-family: Arial,Helvetica,sans-serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: rgb(0, 0, 0);" id="zd4f645de947749578b02ede6fafe05c8">

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            <td style="width: 20%; vertical-align: top;">
              <div style="text-align: justify; color: #000000; font-family: Arial, Helvetica, sans-serif;"><u>Exhibit No.</u></div>
            </td>
            <td style="width: 80%; vertical-align: top;">
              <div style="text-align: justify; color: #000000; font-family: Arial, Helvetica, sans-serif;"><u>Description</u></div>
            </td>
          </tr>
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            <td style="width: 20%; vertical-align: top;">
              <div style="text-align: justify; color: #000000; font-family: Arial, Helvetica, sans-serif;"><a href="us20201104-ex99_1.htm">99.1</a></div>
            </td>
            <td style="width: 80%; vertical-align: top;">
              <div style="text-align: justify; color: #000000; font-family: Arial, Helvetica, sans-serif;"><a href="us20201104-ex99_1.htm">Press release dated
                  November 5, 2020.</a></div>
            </td>
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    <div style="text-align: center; font-family: Arial,Helvetica,sans-serif; font-weight: bold;"> <br>
    </div>
    <div style="text-align: center; font-family: Arial,Helvetica,sans-serif; font-weight: bold;">SIGNATURES</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 18pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</div>
    <div style="margin-top: 4.6pt;"><br>
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          <tr>
            <td valign="top" style="width: 50%;">&#160;</td>
            <td valign="top" colspan="2" style="width: 38%;"><strong>USA TECHNOLOGIES, INC.</strong><br>
            </td>
            <td valign="top" style="width: 12%;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" rowspan="1" style="width: 50%;">&#160;</td>
            <td valign="top" rowspan="1" colspan="2" style="width: 38%;">&#160;</td>
            <td valign="top" rowspan="1" style="width: 12%;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" style="width: 50%;">&#160;</td>
            <td valign="top" style="width: 3%;">&#160;</td>
            <td valign="top" style="width: 35%;">&#160;</td>
            <td valign="top" style="width: 12%;">&#160;</td>
          </tr>
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            <td valign="top" align="left" style="width: 50%; padding-bottom: 2px;">
              <div align="left" style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><br>
              </div>
            </td>
            <td valign="top" style="width: 3%; padding-bottom: 2px;">
              <div align="left" style="margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">By: </div>
            </td>
            <td style="border-bottom: 1px solid #000000; vertical-align: top; white-space: nowrap; width: 35%; text-align: left;">/s/ Davina Furnish<br>
            </td>
            <td valign="top" style="width: 12%; padding-bottom: 2px;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" style="width: 50%;">&#160;</td>
            <td valign="top" style="width: 3%;">&#160;</td>
            <td valign="bottom" nowrap="nowrap" align="left" style="width: 35%;">Davina Furnish<br>
            </td>
            <td valign="top" style="width: 12%;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" style="width: 50%;">&#160;</td>
            <td valign="top" style="width: 3%;">&#160;</td>
            <td valign="top" style="width: 35%;">General Counsel and Secretary<br>
            </td>
            <td valign="top" style="width: 12%;">&#160;</td>
          </tr>
          <tr>
            <td valign="top" style="width: 50%;">Dated:&#160; November 5, 2020<br>
            </td>
            <td valign="top" style="width: 3%;">&#160;</td>
            <td valign="top" style="width: 35%;">&#160;</td>
            <td valign="top" style="width: 12%;">&#160;</td>
          </tr>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>us20201104-ex99_1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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  <div>
    <div style="text-align: right;">Exhibit 99.1<br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-size: 14pt; font-weight: bold;">USA Technologies Reports First Quarter Fiscal Year 2021 Results</div>
    <div><br>
    </div>
    <div style="text-align: center; font-style: italic;">Sequential Revenue Growth<font style="color: #000000;"> of 13%</font></div>
    <div><br>
    </div>
    <div style="text-align: center; color: #000000; font-style: italic;">$5.2 Million in Operating Cash Flow for the Quarter</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-weight: bold;">MALVERN, Pa -- November 5, 2020</font> -- <u>USA Technologies, Inc</u>. (OTC:USAT) (&#8220;USAT&#8221; or the &#8220;Company&#8221;), a cashless payments and software services company that provides end-to-end
      technology solutions for the self-service retail market, today reported results for the fiscal year 2021 first quarter.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">&#8220;We delivered a quarter with solid sequential revenue growth, and in line with our expectations,&#8221; said Sean Feeney, chief executive officer, USA Technologies. &#8220;We continue to execute on the initiatives I outlined last
      quarter and remain focused on growth, operational execution and delivering for our customers. As the demand for contactless payment solutions grows, we are seeing demand in the market for an end-to-end solution that can help vending operators get
      through these challenging economic times. We are well positioned to capitalize on these trends and during the first quarter, we won significant deals against our competition, selling across all product lines, as customers leverage our Platform as a
      Service.&#8221;</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Financial Highlights:</div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z51f6f60a81734b05b255508b54e19b71">

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            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Revenue of $36.9 million, <font style="color: #000000;">an increase of 13.0% versus fourth quarter 2020, and a decrease of 15.0% year over year</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zcf9d4d3fb754410bbdfd2fbf63427ce2">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt;">o</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">License and transaction fee revenue of $33.1 million, a decrease of 4.3% year-over-year and an increase of <font style="color: #000000;">18.9% versus fourth quarter 2020</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z243474854a244dbba2e14cb7e78f463b">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt;">o</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Equipment revenue of $3.8 million, a decrease of 21.5% over fourth quarter 2020 and decrease of 56.9% year over year</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z6662b6ea31244c69a5043bd593667e29">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Net new connections of approximately 15,000 bring total connections to approximately 1,335,000</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z1a8a0b0f59d945b5ac7e1af00bdf4f33">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Gross margin of 38.6% compared with 26.3% in the prior year period</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z025798aa47134cb889a2286ab2739a8b">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Operating loss of $(3.6) million compared to operating loss of $(11.3) million in the prior year period</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z8f8020133769414aa7d94ebe3a17ac9e">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Net loss applicable to common shares of $(6.9) million, or $(0.11) per basic share compared to net loss applicable to common shares of $(11.8) million, or $(0.20) per basic share in the prior year period</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z0f190c0657d54c63ba6170e025e7fe1f">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Adjusted EBITDA of $(0.5) million compared to $(4.9) million in the prior year period</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z2244966fd6ac4ec6ab66db3fe07b22ad">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Ended the quarter with $34.7 million in cash and cash equivalents</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">&#8220;While our revenue decreased year over year, mostly due to the COVID-19 pandemic, we experienced solid sequential growth trends during the quarter. Our overall revenue was up over the fourth quarter of 2020, mostly
      driven by the increase in license fees.&#160; We are also pleased to have generated a $5.0 million increase in operating cash flow in the current quarter<font style="color: #000000;"> over the prior year quarter,&#8221; said </font>Wayne Jackson<font style="color: #000000;">, chief financial officer, </font>USA Technologies<font style="color: #000000;">.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Operational Highlights:</div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zd91160fceeb24f2694dc02c2229aba6e">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; color: #000000;">Announced the upgrade and expansion of the Company&#8217;s ePort product portfolio to now accept EMV contact and contactless payments</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zfdac559df41b4cee83f0efbae9c4bcc5">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; color: #000000;">New Senior Hires include Chief Accounting Officer, Scott Stewart and the return of Denis Kouznetsov, now the Company&#8217;s Chief Architect</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zeaa04eff0cde4640a1ab894d05ec1353">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; color: #000000;">Worked to become a more customer-centric organization. Hired two new regional sales directors and built out customer service teams</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="za3f148753553454d9d5dccc035bbfd69">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Key customer wins including a large Operator in the Midwest, FreshBrew Vending, and Continental Vending, Inc.</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Fiscal Year 2021 Outlook:</div>
    <div><br>
    </div>
    <div style="text-align: justify; color: #000000;">For full fiscal year 2021, the Company expects the following:</div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z2abed967fd7f402f9f99b39d49c73bfd">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt; color: #000000;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;"><font style="color: #000000;">Revenue to be between&#160;</font>$170 million and $180 million</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z3be2f6dd83024855a6ff10cf7d8337cf">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Net loss applicable to common shares to be between $(14.1) million and $(11.1) million</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
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    </div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: Arial, Helvetica, sans-serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt; color: #000000;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;"><font style="color: #000000;">Adjusted EBITDA to be between&#160;</font>$2 million and $5 million<font style="color: #000000;">.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Webcast and Conference Call</div>
    <div style="text-align: justify;">USA Technologies will host a conference call and webcast at 4:30 p.m. Eastern Time today. To participate in the conference call, please dial (866) 393-1608 approximately 10 minutes prior to the call. International
      callers should dial (224) 357-2194. Please reference conference ID # 2696196.&#160; A live webcast of the conference call will be available at https://usatechnologiesinc.gcs-web.com/events-and-presentations. Please access the website 15 minutes prior to
      the start of the call to download and install any necessary audio software.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">A telephone replay of the conference call will be available from 7:30 p.m. Eastern Time on November 5, 2020 until 7:30 p.m. Eastern Time on November 8, 2020 and may be accessed by calling +1 (855) 859-2056 (domestic
      dial-in) or +1 (404) 537-3406 (international dial-in) and reference conference ID # 2696196.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">An archived replay of the conference call will also be available in the investor relations section of the company's website.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">About USA Technologies</div>
    <div style="text-align: justify;">USA Technologies, Inc. is a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market. USAT is transforming the unattended retail community by
      offering one integrated solution for payments processing, logistics, and back-office management. The Company&#8217;s enterprise-wide platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising and
      customer loyalty programs, while providing retailers with control and visibility over their operations and inventory. As a result, customers ranging from vending machine companies, to operators of micro-markets, gas and car charging stations,
      laundromats, metered parking terminals, kiosks, amusements and more, can run their businesses more proactively, predictably, and competitively.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Discussion of Non-GAAP Financial Measures:</div>
    <div style="text-align: justify;">This press release contains discussion of adjusted EBITDA, a non-GAAP financial measure which is not required or defined under GAAP (Generally Accepted Accounting Principles). Generally, a non-GAAP financial measure is
      a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with
      GAAP. Reconciliations between non-GAAP financial measures and the most comparable GAAP financial measures are set forth below in Financial Schedule D.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">We use these non-GAAP financial measures for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide useful
      information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision
      making. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including our net income or net loss or net cash used in
      operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with our net income or net loss as determined in accordance with GAAP, and are not a substitute for
      or a measure of our profitability or net earnings. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance. Additionally, we utilize Adjusted EBITDA as a metric in our executive
      officer and management incentive compensation plans.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">We define Adjusted EBITDA as net loss before (i) interest income, (ii) interest expense, (iii) income taxes, (iv) depreciation, (v) amortization, (vi) stock-based compensation expense, and (vii) non-recurring fees and
      charges that were incurred in connection with the 2019 Investigation and financial statement restatement activities as well as proxy solicitation costs.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">We have excluded stock-based compensation, as it does not reflect our cash-based operations. We have excluded the professional fees incurred in connection with the non-recurring costs and expenses related to the 2019
      Investigation, financial statement restatement activities, and proxy solicitation costs because we believe that they represent charges that are not related to our operations.</div>
    <div style="text-align: justify;"><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Forward-looking Statements:</div>
    <div>
      <div style="text-align: justify; color: #404040;">All statements other than statements of historical fact included in this release, including without limitation the business strategy and the plans and objectives of USAT's management for future
        operations, are forward-looking statements </div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div id="DSPFPageFooter">
          <div style="text-align: center;"><font id="DSPFPageNumber">2</font></div>
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        <div id="DSPFPageBreak" style="page-break-after: always;">
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      </div>
      <div style="text-align: justify; color: #404040;">within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as &#8220;may,&#8221; &#8220;could,&#8221; &#8220;expect,&#8221; &#8220;intend,&#8221; &#8220;plan,&#8221; &#8220;seek,&#8221; &#8220;anticipate,&#8221; &#8220;believe,&#8221;
        &#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential,&#8221; &#8220;continue,&#8221; &#8220;likely,&#8221; &#8220;will,&#8221; &#8220;would&#8221; and variations of these terms and similar expressions, or the negative of these terms or similar expressions, as they relate to USAT or its management, may identify
        forward-looking statements. Such forward-looking statements are based on the reasonable beliefs of USAT's management, as well as assumptions made by and information currently available to USAT's management. Actual results could differ materially
        from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to the incurrence by USAT of any unanticipated or unusual non-operational expenses which would require us to divert our cash
        resources from achieving our business plan; the uncertainties associated with COVID-19, including its possible effects on USAT&#8217;s operations and the demand for USAT&#8217;s products and services; the ability of USAT to retain key customers from whom a
        significant portion of its revenues is derived; the ability of USAT to compete with its competitors to obtain market share&#894; the ability of USAT to make available and successfully upgrade current customers to new standards and protocols; whether
        USAT's existing or anticipated customers purchase, rent or utilize ePort or Seed devices or our other products or services in the future at levels currently anticipated by USAT; or other risks discussed in USAT&#8217;s filings with the&#160;U.S. Securities
        and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, USAT does
        not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. If USAT updates one or more forward-looking statements, no inference
        should be drawn that USAT will make additional updates with respect to those or other forward-looking statements.</div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div>--F&#8212;USAT</div>
    <div><br>
    </div>
    <div style="color: #404040; font-weight: bold;">Media and Investor Relations Contact:</div>
    <div style="color: #404040;">Alicia V. Nieva-Woodgate</div>
    <div style="color: #404040;">USA Technologies</div>
    <div style="color: #404040;">+1 720.808.0086</div>
    <div style="color: #6464F4;"><u>anievawoodgate@usatech.com</u></div>
    <div><img src="image0.jpg"></div>
    <div style="color: #404040; font-weight: bold;"> <br>
    </div>
    <div style="color: #404040; font-weight: bold;">Investor Relations:</div>
    <div style="color: #404040;">ICR, Inc.</div>
    <div style="font-family: Arial,Helvetica,'sans-serif'; background-color: rgb(255, 255, 255); font-weight: normal; color: rgb(100, 100, 244); font-style: normal; font-variant: normal; text-transform: none;"><u>USATechIR@icrinc.com</u></div>
    <div><br>
    </div>
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        <div><br>
        </div>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">USA Technologies, Inc.</div>
    <div style="text-align: center; font-weight: bold;">Condensed Consolidated Balance Sheets</div>
    <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
    <table cellspacing="0" cellpadding="0" border="0" style="font-family: Arial,Helvetica,sans-serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: rgb(0, 0, 0);" id="z965edf07d4194a4289924e0b12359a31">

        <tr>
          <td style="width: 75.01%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt; font-weight: bold;">($ in thousands, except share data)</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-weight: bold;"><font style="font-size: 8pt;">September 30,</font><br>
              <font style="font-size: 8pt;">2020</font></div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-weight: bold;"><font style="font-size: 8pt;">June 30,</font><br>
              <font style="font-size: 8pt;">2020</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="color: #000000;">Current assets:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Cash and cash equivalents</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">34,690&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">31,713&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt;">Accounts receivable, less allowance of $7,313 and $7,676, respectively</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">19,175&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">17,273&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Finance receivables, net</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">7,356&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">7,468&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt; color: #000000;">Inventory, net</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">7,005&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">9,128&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Prepaid expenses and other current assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,545&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,782&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="color: #000000;">Total current assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">69,771&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">67,364&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="color: #000000;">Non-current assets:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Finance receivables due after one year</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">10,385&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">11,213&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt; color: #000000;">Other assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">2,156&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">1,993&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Property and equipment, net</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">7,526&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">7,872&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt; color: #000000;">Operating lease right-of-use assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">5,417&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">5,603&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Intangibles, net</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">22,249&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">23,033&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Goodwill</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">63,945&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">63,945&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total non-current assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">111,678&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">113,659&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 4px;">
            <div style="color: #000000;">Total assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="background-color: rgb(204, 238, 255); vertical-align: middle; width: 9.18%; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">181,449&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">181,023&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Liabilities, convertible preferred stock and shareholders&#8217; equity</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="color: #000000;">Current liabilities:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Accounts payable</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">31,791&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">27,058&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt; color: #000000;">Accrued expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">28,880&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">30,265&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Finance lease obligations and current obligations under long-term debt</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">3,871&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">3,328&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Deferred revenue</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,639&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,698&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Total current liabilities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">66,181&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">62,349&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Long-term liabilities:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt; color: #000000;">Deferred income taxes</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">143&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">137&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Finance lease obligations and long-term debt, less current portion</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">14,066&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">12,435&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Operating lease liabilities, non-current</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">4,469&#160;</div>
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          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">4,749&#160;</div>
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          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
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        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total long-term liabilities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">18,678&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">17,321&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total liabilities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">84,859&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">79,670&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div>Commitments and contingencies (Note 13)</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Convertible preferred stock:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt;">Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preferences of $21,113 and $20,779 at September 30, 2020 and June 30, 2020, respectively</div>
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          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">3,138&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">3,138&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Shareholders&#8217; equity:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle;">
            <div style="margin-left: 6.75pt;">Preferred stock, no par value, 1,800,000 shares authorized, no shares issued</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle;">
            <div style="text-align: right; color: #000000;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt;">Common stock, no par value, 640,000,000 shares authorized, 65,252,965 and 65,196,882 shares issued and outstanding at September 30, 2020 and June&#160;30,&#160;2020, respectively</div>
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">402,742&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">401,240&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Accumulated deficit</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(309,290)</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(303,025)</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total shareholders&#8217; equity</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">93,452&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.79%; vertical-align: middle; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">98,215&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 75.01%; vertical-align: middle; padding-bottom: 4px;">
            <div style="color: #000000;">Total liabilities, convertible preferred stock and shareholders&#8217; equity</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">181,449&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 4px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: middle; border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.18%; vertical-align: middle; border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">181,023&#160;</div>
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          <td style="width: 0.98%; vertical-align: middle; padding-bottom: 4px;">&#160;</td>
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    <div style="margin-top: 10pt; font-style: italic;"><br>
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    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
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      <div style="page-break-after:always;" id="DSPFPageBreak">
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    <div style="text-align: center; font-weight: bold;">USA Technologies, Inc.</div>
    <div style="text-align: center; font-weight: bold;">Condensed Consolidated Statements of Operations</div>
    <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
    <table cellspacing="0" cellpadding="0" border="0" style="font-family: Arial,Helvetica,sans-serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: rgb(0, 0, 0);" id="z245bcf683a1345db9790eb9fc7df1535">

        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="7" style="width: 24.5%; vertical-align: bottom;">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">Three months ended</div>
          </td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="7" style="width: 24.5%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">September 30,</div>
          </td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt; font-weight: bold;">($&#160;in&#160;thousands,&#160;except&#160;per&#160;share&#160;data)</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2020</div>
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          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2019</div>
          </td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Revenue:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000;">License and transaction fees</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.83%; vertical-align: bottom;">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">33,108&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.78%; vertical-align: bottom;">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">34,609&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Equipment sales</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">3,769&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">8,750&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="color: #000000;">Total revenue</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">36,877&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">43,359&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="color: #000000;">Costs of sales:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Cost of services</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">19,336&#160;</div>
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          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">22,089&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Cost of equipment</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">3,301&#160;</div>
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          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">9,854&#160;</div>
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          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
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        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total costs of sales</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">22,637&#160;</div>
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          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">31,943&#160;</div>
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          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Gross profit</div>
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">14,240&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">11,416&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Operating expenses:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000;">Selling, general and administrative</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">16,780&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">17,196&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Investigation, proxy solicitation and restatement expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">4,476&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Depreciation and amortization</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,068&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,022&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Total operating expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">17,848&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">22,694&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Operating loss</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(3,608)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(11,278)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Other income (expense):</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000;">Interest income</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">350&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">294&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Interest expense</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(3,315)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(465)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="color: #000000;">Total other income (expense), net</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(2,965)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(171)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="color: #000000;">Loss before income taxes</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(6,573)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(11,449)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000;">Provision for income taxes</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(40)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(59)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Net loss</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(6,613)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(11,508)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="color: #000000;">Preferred dividends</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(334)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(334)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">
            <div style="color: #000000;">Net loss applicable to common shares</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.83%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(6,947)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.78%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(11,842)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="color: #000000;">Net loss per common share</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 11.25pt; color: #000000;">Basic</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.83%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(0.11)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.78%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(0.20)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="margin-left: 11.25pt; color: #000000;">Diluted</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.83%; vertical-align: bottom;">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(0.11)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.78%; vertical-align: bottom;">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 9.12%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(0.20)</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Weighted average number of common shares outstanding</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.92%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.86%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom;">
            <div style="margin-left: 11.25pt; color: #000000;">Basic</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">64,859,002&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">60,096,852&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.77%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 11.25pt; color: #000000;">Diluted</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.95%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">64,859,002&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.89%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">60,096,852&#160;</div>
          </td>
          <td style="width: 0.97%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>

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    <div><br>
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    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">USA Technologies, Inc.</div>
    <div style="text-align: center; font-weight: bold;">Condensed Consolidated Statements of Cash Flows</div>
    <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
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          <td style="width: 74.8%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
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            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">Three months ended</div>
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        <tr>
          <td style="width: 74.8%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="7" style="width: 24.48%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">September 30,</div>
          </td>
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        <tr>
          <td style="width: 74.8%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt; font-weight: bold;">($ in thousands)</div>
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          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2020</div>
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          <td style="width: 1.09%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2019</div>
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        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">OPERATING ACTIVITIES:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
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        <tr>
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            <div style="color: #000000; font-size: 8pt;">Net loss</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(6,613)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(11,508)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">Adjustments to reconcile net loss to net cash (used in) provided by operating activities:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Non-cash stock based compensation</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">1,509&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">290&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Gain on disposal of property and equipment</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(3)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(15)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Non-cash interest and amortization of debt discount</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">3,125&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">338&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Bad debt expense</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">394&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(110)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Provision for inventory reserve</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">802&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">574&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Depreciation and amortization included in operating expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">1,068&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">1,022&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Depreciation included in cost of sales for rentals</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">539&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">634&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Non-cash lease expense</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">269&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">491&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Deferred income taxes</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">5&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">5&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">Changes in operating assets and liabilities:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Accounts receivable</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,540)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">3,286&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Finance receivables</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">531&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(454)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Inventory</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">1,324&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">1,232&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Prepaid expenses and other assets</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">100&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(412)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Accounts payable and accrued expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">3,985&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">5,288&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Operating lease liabilities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(259)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(399)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000; font-size: 8pt;">Deferred revenue</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(58)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(33)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000; font-size: 8pt;">Net cash provided by operating activities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">5,178&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">229&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">INVESTING ACTIVITIES:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">Purchase of property and equipment</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(483)</div>
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          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
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            <div style="text-align: right; color: #000000; font-size: 8pt;">(420)</div>
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          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">8&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">30&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="color: #000000; font-size: 8pt;">Net cash used in investing activities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(475)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(390)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
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        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">FINANCING ACTIVITIES:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">Proceeds from long-term debt issuance by JPMorgan Chase Bank, N.A., net of debt issuance costs</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">14,550&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">Repayment of finance lease obligations and long-term debt</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(15,101)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,763)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">Proceeds from exercise of common stock options</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">25&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="color: #000000; font-size: 8pt;">Payment of Antara prepayment penalty and commitment termination fee</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,200)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">&#8212;&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="color: #000000; font-size: 8pt;">Net cash used in financing activities</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,726)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,763)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000; font-size: 8pt;">Net (decrease) increase in cash and cash equivalents</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">2,977&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">(1,924)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="color: #000000; font-size: 8pt;">Cash and cash equivalents at beginning of year</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">31,713&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 10.71%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">27,464&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">
            <div style="color: #000000; font-size: 8pt;">Cash and cash equivalents at end of period</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">34,690&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000; font-size: 8pt;">25,540&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="font-size: 8pt;"><font style="font-style: italic;">Supplemental disclosures of cash flow information</font>:</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="3" style="width: 11.69%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 74.8%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">Interest paid in cash</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">191&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.09%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.56%; vertical-align: bottom;">
            <div style="color: #000000; font-size: 8pt;">$</div>
          </td>
          <td style="width: 9.15%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000; font-size: 8pt;">205&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>

    </table>
    <div style="margin-top: 2pt; font-style: italic;"><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div id="DSPFPageFooter">
        <div style="text-align: center;"></div>
      </div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      <div id="DSPFPageHeader">
        <div><br>
        </div>
      </div>
    </div>
    <div style="color: #000000; font-weight: bold;">Reconciliation of Net Loss to Adjusted EBITDA</div>
    <div style="text-align: justify;"><br>
    </div>
    <table cellspacing="0" cellpadding="0" border="0" style="font-family: Arial,Helvetica,sans-serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: rgb(0, 0, 0);" id="zfe34f84bc050440bb4db800e55ea1f56">

        <tr>
          <td style="width: 73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="7" style="width: 26.28%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">Three months ended September 30,</div>
          </td>
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        <tr>
          <td style="width: 73%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="color: #000000; font-size: 8pt; font-weight: bold;">($&#160;in&#160;thousands)</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 12.78%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2020</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="3" style="width: 12.78%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; color: #000000; font-size: 8pt; font-weight: bold;">2019</div>
          </td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">Net loss</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 10.19%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(6,613)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 1.61%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">$</div>
          </td>
          <td style="width: 10.19%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">(11,508)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000;">Less: interest income</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(350)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">(294)</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Plus: interest expense</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">3,315&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">465&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom;">
            <div style="margin-left: 6.75pt; color: #000000;">Plus: income tax provision</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">40&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom;">
            <div style="text-align: right; color: #000000;">59&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="margin-left: 6.75pt; color: #000000;">Plus: depreciation expense included in cost of sales for rentals</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">539&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="text-align: right; color: #000000;">634&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
        </tr>
        <tr>
          <td style="width: 73%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="margin-left: 6.75pt; color: #000000;">Plus: depreciation and amortization expense in operating expenses</div>
          </td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,068&#160;</div>
          </td>
          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
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            <div style="text-align: right; color: #000000;">1,022&#160;</div>
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          <td style="width: 73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">
            <div style="color: #000000;">EBITDA</div>
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
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            <div style="text-align: right; color: #000000;">(2,001)</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
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            <div style="text-align: right; color: #000000;">(9,622)</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255);">&#160;</td>
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            <div style="text-align: right; color: #000000;">1,509&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom;">&#160;</td>
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            <div style="text-align: right; color: #000000;">290&#160;</div>
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
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            <div style="text-align: right; color: #000000;">&#8212;&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">
            <div style="text-align: right; color: #000000;">4,476&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 2px;">&#160;</td>
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          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">1,509&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td colspan="2" style="width: 11.8%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">4,766&#160;</div>
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          <td style="width: 0.98%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
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          <td style="width: 73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">
            <div style="color: #000000;">Adjusted EBITDA</div>
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          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
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          <td style="width: 10.19%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(492)</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 0.73%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
          <td style="width: 1.61%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="color: #000000;">$</div>
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          <td style="width: 10.19%; vertical-align: bottom; background-color: rgb(204, 238, 255); border-bottom: 4px double rgb(0, 0, 0);">
            <div style="text-align: right; color: #000000;">(4,856)</div>
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          <td style="width: 0.98%; vertical-align: bottom; background-color: rgb(204, 238, 255); padding-bottom: 4px;">&#160;</td>
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