UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
FORM
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JANUARY 31,
Commission file number:000
OBITX, INC. (Exact name of registrant as specified in its charter)
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DELAWARE | 81-1091922 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code |
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Securities registered under Section 12(b) of the Act: | |
None | |
Securities registered under Section 12(g) of the Act: | |
Common Stock, par value $0.0001 per share | |
(Title of class) | |
Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes oNo x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes oNo x
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K Yes oNo x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer oAccelerated Filer oNon-accelerated Filer oSmaller Reporting Company x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes oNo x
The aggregate market value of the voting and non-voting common equity held by non-affiliates as of the last business day of the registrant's most recently completed second fiscal quarter was approximately $412,500. For purposes of the above statement only, all directors, executive officers and 10% shareholders are assumed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
Common Shares Outstanding | |
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended January 31,
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For the year ended January 31, | |||||
2019 | 2018 | ||||
Revenue | $ | 103,787 |
| $ | 1,342,056 |
Cost of Sales |
| 655,287 |
| 484,042 | |
Gross Profit (Loss) |
| (551,500) |
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| 858,014 |
Expenses |
| 301,715 |
| 169,279 | |
Net Income (Loss) from operations | $ | (867,215) |
| $ | 688,735 |
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OBITX, Inc. | |||||
and SUBSIDIARIES | |||||
Consolidated Balance Sheets | |||||
ASSETS | |||||
January 31, | January 31, | ||||
2019 | 2018 | ||||
Current Assets | |||||
| Cash and cash equivalents | $ - |
| $ 16,350 | |
Accounts receivable, net | 4,500 | 1,469,986 | |||
| Assets held for Sale | 408,166 |
| - | |
| Prepaid expenses | 149 |
| - | |
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| Total current assets | 412,815 |
| 1,486,336 |
Property, plant and equipment, net | 2,445,322 |
| 3,227,767 | ||
Intangible assets, net | 5,576 |
| 4,091 | ||
Total assets | $ 2,863,713 |
| $ 4,718,194 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
| Accounts payable and accrued expenses | $ 143,702 |
| $ 62,200 | |
| Due to Related Party | 707,680 |
| 523,878 | |
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| Total current liabilities | 851,382 |
| 586,078 |
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| Total Liabilities | 851,382 |
| 586,078 |
Stockholders' equity | |||||
| Series A Preferred stock, $0.0001 par value; 1,000,000 shares authorized; | 10 |
| 10 | |
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| 100,000 shares issued and outstanding, as | |||
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| of January 31, 2019 and January 31, 2018, respectively. |
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| Common stock, $0.0001 par value, voting; 200,000,000 shares authorized; | 546 |
| 546 | |
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| 5,460,000 shares issued and outstanding, as |
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| of January 31, 2019 and January 31, 2018, respectively. | |||
| Additional paid in capital | 3,442,825 |
| 3,442,825 | |
| Accumulated deficit | (1,431,050) |
| 688,735 | |
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| Total stockholders' equity | 2,012,331 |
| 4,132,116 |
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| Total liabilities and stockholders' equity | 2,863,713 |
| $ 4,718,194 |
See accompanying notes to audited consolidated financial statements. |
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OBITX, Inc. | ||||||||||||||
and SUBSIDIARIES | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
For the Year ended | ||||||||||||||
January 31, | ||||||||||||||
2019 | 2018 | |||||||||||||
Sales |
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| $ 103,787 |
| $ 1,342,056 | ||||||||
Computer lease | 11,488 | 11,238 | ||||||||||||
| Cost of services |
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| 75,302 |
| 221,612 | |||||||
Depreciation expense | 484,634 | 199,455 | ||||||||||||
| Software maintenance |
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| 83,862 |
| 51,536 | |||||||
Freight and shipping costs | - | 202 | ||||||||||||
Total cost of sales |
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| 655,287 |
| 484,042 | ||||||||
Gross (Loss) profit | (551,500) | 858,014 | ||||||||||||
Selling, general, and administrative |
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| 23,072 |
| 26,902 | ||||||||
Professional fees | 24,294 | 8,484 | ||||||||||||
Marketing & advertising |
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| 9,795 |
| 5,198 | ||||||||
Payroll | 36,900 | 55,195 | ||||||||||||
Consultant fees |
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| 205,477 |
| 73,500 | ||||||||
Amortization & depreciation expense | 2,177 | - | ||||||||||||
Total operating expenses |
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| 301,715 |
| 169,279 | ||||||||
Income (Loss) from operations | (853,215) | 688,735 | ||||||||||||
Extraordinary (Loss) | (1,250,000) | - | ||||||||||||
Net income (loss) from operations | (2,103,215) | 688,735 | ||||||||||||
(Loss) on discontinued operations | (16,571) | - | ||||||||||||
Net income (loss) | $ (2,119,785) | $ 688,735 | ||||||||||||
Basic and diluted (Loss) per share: | ||||||||||||||
Income(Loss) per share from continuing operations |
| (0.3813) |
| 0.6160 | ||||||||||
Income(Loss) per share | (0.3813) | 0.6160 | ||||||||||||
Weighted average shares outstanding - basic and diluted |
| 5,560,000 |
| 1,118,082 | ||||||||||
See accompanying notes to audited consolidated financial statements. | ||||||||||||||
33 |
OBITX, Inc. | |||||||||||||||
Statement of Changes in Stockholders’ Equity Year Ended January 31, 2019 | |||||||||||||||
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| Additional |
| Additional |
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| Total |
| Common Stock |
| Preferred Stock |
| Paid-in |
| Paid-in |
| Accumulated |
| Stockholders' | ||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Capital - Preferred |
| Profits |
| Equity |
Founders Stock | 960,000 | $ 96 | - |
| $ - |
| $ - |
| $ - | $ - | $ 96 | ||||
Stock issued for cash | 4,000,000 | 400 | - |
| - |
| 399,600 |
| - | - | 400,000 | ||||
Stock issued for acquisition | 500,000 | 50 | 100,000 |
| 10 |
| 276,600 |
| 2,766,625 | - | 3,043,285 | ||||
Net profit | - |
| - |
| - |
| - |
| - |
| - |
| 688,735 |
| 688,735 |
Balance – January 31, 2018 | 5,460,000 |
| 546 |
| 100,000 |
| 10 |
| 676,200 |
| 2,766,625 |
| 688,735 |
| 4,132,116 |
Net loss | - |
| - |
| - |
| - |
| - |
| - |
| (2,119,785) |
| (2,119,785) |
Balance – January 31, 2019 | 5,460,000 |
| $ 546 |
| 100,000 |
| $ 10 |
| $ 676,200 |
| $ 2,766,625 |
| $ 688,735 |
| $ 2,012,331 |
See accompanying notes to audited consolidated financial statements.
34 |
OBITX, Inc. | ||||||
and SUBSIDIARIES | ||||||
Statements of Cash Flows | ||||||
For the year ended January 31, | ||||||
2019 | 2018 | |||||
Cash flows from operating activities: | ||||||
Net (Loss) profit | $ (869,785) |
| $ 688,735 | |||
Adjustments to reconcile net loss to net | ||||||
Cash provided by (used in) operating activities: | ||||||
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| Depreciation and amortization | 486,812 |
| 199,455 | |
Decrease (Increase) in: | ||||||
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| Accounts receivable, net | 215,486 |
| (1,469,986) | |
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| Prepaid expenses and other current assets | (149) |
| - | |
Accounts payable, accrued expenses and taxes payable | 81,502 | 62,200 | ||||
| Total adjustment to reconcile net income to net cash | 783,651 |
| (1,208,331) | ||
Net cash provided In operating activities | (86,134) | (519,596) | ||||
Cash flows from investing activities: | ||||||
Increase (Decrease) in: | ||||||
Assets held for Sale | (108,196) | - | ||||
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| Acquisition of property, plant and equipment | (2,160) |
| (3,427,222) | |
Acquisition of intangible assets | (3,662) | (4,091) | ||||
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| Net cash received in investing activities | (114,018) |
| (3,431,313) |
Cash Flows From Financing Activities: | ||||||
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| Borrowing from related party | 183,802 |
| 523,878 | |
Proceeds from Issuance of Stock, Net | - | 3,443,381 | ||||
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| Net Cash Provided By Financing Activities | 183,802 |
| 3,967,259 |
Net Change in Cash | (16,350) | 16,350 | ||||
Cash at Beginning of Year | 16,350 |
| - | |||
Cash at End of Period | $ - |
| $ 16,350 | |||
See accompanying notes to audited consolidated financial statements.
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Property, Plant, and Equipment | ||||
For the year ended January 31, | ||||
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| 2019 |
| 2018 |
Software (Capitalized) | $ | 3,137,164 | $ | 3,127,244 |
Intangibles |
| 7,753 |
| - |
Machinery & Equipment |
| - |
| 299,970.00 |
Total acquisition cost |
| 3,137,164 |
| 3,427,214 |
Accumulated depreciation |
| 686,265 |
| 199,455 |
Total property, plant, and equipment | $ | 2,450,899 | $ | 3,227,760 |
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Common Stock |
| Shares |
| Par Value |
| APIC |
Alex Mardikian |
| 50,000 |
| $ 5 |
| $ - |
Brandy Craig |
| 50,000 |
| 5 |
| - |
Carl G. Hawkins |
| 50,000 |
| 5 |
| - |
Andrus |
| 50,000 |
| 5 |
| - |
Epic Industry Corp |
| 250,000 |
| 25 |
| - |
Paul Rosenberg |
| 500,000 |
| 50 |
| - |
Paul Rosenberg |
| 2,500,000 |
| 250 |
| 249,750 |
APO Holdings, LLC |
| 1,500,000 |
| 150 |
| 149,850 |
MCIG |
| 510,000 |
| 51 |
| 276,600 |
Total |
| 5,460,000 |
| $ 546 |
| $ 676,200 |
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Series A Preferred |
| Shares |
| Par Value |
| APIC |
MCIG |
| 100,000 |
| 10 |
| 2,766,625 |
Total |
| 100,000 |
| 10 |
| 2,766,625 |
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Basic Income Per share | ||||
For the Year Ended January 31, | ||||
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| 2019 |
| 2018 |
Net (loss) income |
| (2,119,785) |
| 688,735 |
Basic (loss) income per share |
| (0.3813) |
| 0.6160 |
Basic weighted average number of shares outstanding |
| 5,460,000 |
| 5,460,000 |
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| Weighted |
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| Average |
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| Conversion |
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| Shares |
| Price |
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Warrants outstanding at January 31, 2018 |
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| 3,000,000 |
| $ | 1.00 |
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Exercised |
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| - | $ | - |
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Granted |
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| 3,000,000 |
| $ | 1.00 |
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Warrants outstanding at January 31, 2019 |
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| 3,000,000 |
| $ | 1.00 |
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Name | Director or Officer Since | Age | Positions | |||
Paul Rosenberg | 2017 | 50 | Director, Chairman of the Board | |||
Alex Mardikian | 2017 | 48 | Chief Executive Officer | |||
Brandy Craig | 2017 | 37 | Chief Financial Officer |
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Name and Principal |
| Year |
| Salary |
| Bonus |
| Stock |
| Option |
| Non- |
| Non- |
| All |
| Totals | ||||||||||||||
Paul Rosenberg, |
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| 2019 |
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| *42,000 | 0 | 0 | 0 | 0 | 0 | 0 | 42,000 | ||||||||||||||||||
Director |
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| 2018 |
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| 10,500 | 0 | 0 | 0 | 0 | 0 | 0 | 10,500 | ||||||||||||||||||
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Alex Mardikian |
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| 2019 |
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| *84,000 | 0 | 0 | 0 | 0 | 0 | 0 | 84,000 | ||||||||||||||||||
CEO |
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| 2018 |
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| 42,000 | 0 | 0 | 0 | 0 | 0 | 0 | 42,000 | ||||||||||||||||||
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Brandy Craig |
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| 2019 |
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| *42,000 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 42,000 |
CFO |
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| 2018 |
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| 12,000 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 0 |
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| 12,000 |
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The
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2017 | 2016 | ||||
Audit Fees |
| $ 8,000 |
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| $ 4,000 |
Tax Fees |
| *900 |
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| *900 |
Total |
| $ 8,900 |
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| $ 4,900 |
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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. |
| Exhibits | Description |
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14.1 |
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| 23.1 | Consent of |
| 31 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act* |
| 32 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act* |
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| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Calculation Linkbase Document |
| 101.LAB | XBRL Taxonomy Labels Linkbase Document |
| 101.PRE | XBRL Taxonomy Presentation Linkbase Document |
| 101.DEF | XBRL Definition Linkbase Document |
*Filed herein
3 |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
OBITX, INC. | |
| By: /s/ |
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Chief Executive Officer (Principal Executive Officer) |
June 8, 2020 | By: /s/ |
Chief Financial Officer (Principal Executive Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated. |
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| Date |
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/s/ |
| Chief Executive Officer |
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| (Principal Executive Officer) |
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/s/ |
| Chief Financial Officer |
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