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## nuMber oF StockHoLderS 

As of March 6, 2015, there were 77 holders of record of the Company’s common stock. 

Due to the fact that many of the shares are held by brokers and other institutions on behalf of stockholders, the Company is unable to estimate the total number of individual stockholders represented by these holders of record. 

## dividendS 

the Company did not pay any dividends in 2013 or 2014. the Company presently intends to retain all of its earnings to provide funds for the operation of its business and strategic acquisitions, although it would consider paying cash dividends in the future. Any decision to pay dividends will be at the discretion of the Company’s board of directors and will depend upon the Company’s operating results, strategic plans, capital requirements, financial condition, provisions of the Company’s borrowing arrangements, applicable law and other factors the Company’s board of directors considers relevant. 

## MANAgEMENT’S dISCUSSIoN ANd ANAlySIS oF FINANCIAl CoNdITIoN ANd RESUlTS oF oPERATIoNS 

## overview 

UFp technologies is an innovative designer and custom converter of foams, plastics, composites and natural fiber materials, providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial and aerospace and defense markets. 

During the third quarter of 2014, in conjunction with the consolidation of operations in Michigan and the consolidation of the Company’s sales force, the Company determined that the existing segment aggregation of Component products and packaging was no longer consistent with how the business is structured and reviewed by the Chief Operating Decision Maker (the “CODM”). this is primarily because the Company has numerous manufacturing processes that are duplicated through its plants allowing it to move workload based on available capacity and proximity to customers. the CODM evaluates consolidated financial information to manage the business. As a result, the Company has determined that it consists of a single operating and reportable segment. 

In 2014, the Company undertook several initiatives to streamline operations that had a material impact on operating results. It consolidated plants in the Midwest and in California and relocated its operations in el paso, texas to a newly acquired building. In addition to one-time costs to physically relocate equipment, pay severance to employees choosing not to relocate and restore vacated buildings to their original condition, the Company had manufacturing inefficiencies associated with requalifying parts for customers and training new employees. the company estimates these costs collectively to be slightly in excess of $2.6 million. 

In January 2015, the Company acquired a 137,000 square foot commercial building on 27 acres in newburyport, Massachusetts for approximately $6.8 million. the Company anticipates that it will further expand the property and consolidate portions of its northeast operations into its new property in multiple phases between 2015 and 2017. It expects to incur further costs with the consolidation but also expects the efficiency savings to be significant. It has not yet estimated either the one-time costs or efficiency gains in a potential consolidation of operations. 

the Company’s strategy includes further organic growth and growth through strategic acquisitions. 

## reSuLtS oF oPerationS 

the following table sets forth, for the years indicated, the percentage of revenues represented by the items as shown in the Company’s consolidated statements of operations: 

<img src='content_image/228547.jpg'>

