2023 Q1 Form 10-K Financial Statement

#000095017023007573 Filed on March 13, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2023 2022
Revenue $256.5M $990.9M $874.3M
YoY Change 9.91% 13.33% 13.44%
Cost Of Revenue $61.01M $252.6M $249.5M
YoY Change -5.67% 1.23% 11.01%
Gross Profit $195.5M $738.3M $624.8M
YoY Change 15.88% 18.16% 14.43%
Gross Profit Margin 76.21% 74.51% 71.47%
Selling, General & Admin $115.0M $457.9M $434.0M
YoY Change 4.82% 5.53% 13.48%
% of Gross Profit 58.85% 62.03% 69.45%
Research & Development $60.72M $243.5M $218.5M
YoY Change 2.74% 11.44% 8.58%
% of Gross Profit 31.07% 32.98% 34.97%
Depreciation & Amortization $12.59M $51.20M $63.90M
YoY Change -34.18% -19.87% -6.17%
% of Gross Profit 6.44% 6.93% 10.23%
Operating Expenses $175.8M $701.5M $652.5M
YoY Change 4.09% 7.51% 11.79%
Operating Profit $19.71M $36.84M -$27.63M
YoY Change -11973.49% -233.35% -26.61%
Interest Expense $3.802M -$2.433M -$9.838M
YoY Change -343.25% -75.27% 40.54%
% of Operating Profit 19.29% -6.6%
Other Income/Expense, Net -$2.433M -$9.838M
YoY Change -75.27% 114.62%
Pretax Income $23.51M $34.41M -$37.46M
YoY Change -1459.86% -191.84% -11.28%
Income Tax $2.983M $7.624M $3.995M
% Of Pretax Income 12.69% 22.16%
Net Earnings $15.12M $26.78M -$41.46M
YoY Change -449.53% -164.6% -4.54%
Net Earnings / Revenue 5.89% 2.7% -4.74%
Basic Earnings Per Share $0.06 -$0.35
Diluted Earnings Per Share $0.09 $0.06 -$266.4K
COMMON SHARES
Basic Shares Outstanding 144.3M 143.6K 155.6K
Diluted Shares Outstanding 150.2K 155.6K

Balance Sheet

Concept 2023 Q1 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $461.2M $461.2M $586.3M
YoY Change -21.33% -21.33% -1.48%
Cash & Equivalents $428.5M $428.5M $416.3M
Short-Term Investments $32.78M $32.78M $170.0M
Other Short-Term Assets $32.96M $81.00M $73.98M
YoY Change 17.91% 9.49% 32.34%
Inventory
Prepaid Expenses
Receivables $264.5M $264.5M $256.3M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $806.8M $806.8M $916.6M
YoY Change -11.98% -11.98% 4.24%
LONG-TERM ASSETS
Property, Plant & Equipment $69.97M $201.1M $278.6M
YoY Change -33.84% -27.79% -21.4%
Goodwill $73.90M
YoY Change -0.81%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $53.40M $113.3M $85.30M
YoY Change 7.8% 32.87% 14.65%
Total Long-Term Assets $400.4M $400.4M $475.4M
YoY Change -15.78% -15.78% 0.64%
TOTAL ASSETS
Total Short-Term Assets $806.8M $806.8M $916.6M
Total Long-Term Assets $400.4M $400.4M $475.4M
Total Assets $1.207B $1.207B $1.392B
YoY Change -13.28% -13.28% 2.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $50.49M $50.49M $58.94M
YoY Change -14.34% -14.34% 1209.82%
Accrued Expenses $91.84M $91.84M $99.31M
YoY Change -7.53% -7.53% -13.26%
Deferred Revenue $544.2M
YoY Change 4.75%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $29.32M $29.32M $41.24M
YoY Change -28.9% -28.9% -17.36%
Total Short-Term Liabilities $715.8M $715.8M $719.0M
YoY Change -0.44% -0.44% 17.33%
LONG-TERM LIABILITIES
Long-Term Debt $369.4M $369.4M $388.3M
YoY Change 0.51% -4.88% 8.46%
Other Long-Term Liabilities $37.85M $155.8M $191.9M
YoY Change 320.85% -18.8% -16.47%
Total Long-Term Liabilities $407.2M $525.2M $580.2M
YoY Change 8.17% -9.49% -1.29%
TOTAL LIABILITIES
Total Short-Term Liabilities $715.8M $715.8M $719.0M
Total Long-Term Liabilities $407.2M $525.2M $580.2M
Total Liabilities $1.241B $1.241B $1.299B
YoY Change -4.48% -4.48% 8.21%
SHAREHOLDERS EQUITY
Retained Earnings -$1.336B
YoY Change -1.97%
Common Stock $819.0M
YoY Change -15.74%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares $3.108M
Shareholders Equity -$523.9M -$33.86M $92.79M
YoY Change
Total Liabilities & Shareholders Equity $1.207B $1.207B $1.392B
YoY Change -13.28% -13.28% 2.98%

Cashflow Statement

Concept 2023 Q1 2023 2022
OPERATING ACTIVITIES
Net Income $15.12M $26.78M -$41.46M
YoY Change -449.53% -164.6% -4.54%
Depreciation, Depletion And Amortization $12.59M $51.20M $63.90M
YoY Change -34.18% -19.87% -6.17%
Cash From Operating Activities $92.18M $298.0M $234.8M
YoY Change 87.47% 26.9% 19.3%
INVESTING ACTIVITIES
Capital Expenditures $6.997M $16.50M -$10.49M
YoY Change -299.4% -257.31% -36.44%
Acquisitions $59.40M
YoY Change
Other Investing Activities $12.20M $815.0K -$514.0K
YoY Change -140.91% -258.56% 380.37%
Cash From Investing Activities $5.200M $120.6M -$239.4M
YoY Change -115.61% -150.38% 1361.08%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $242.0M $536.2M
YoY Change -54.87% 1758.19%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -36.30M -396.5M -172.9M
YoY Change -78.32% 129.37% -179.05%
NET CHANGE
Cash From Operating Activities 92.18M 298.0M 234.8M
Cash From Investing Activities 5.200M 120.6M -239.4M
Cash From Financing Activities -36.30M -396.5M -172.9M
Net Change In Cash 61.09M 12.15M -178.6M
YoY Change -140.31% -106.8% -144.66%
FREE CASH FLOW
Cash From Operating Activities $92.18M $298.0M $234.8M
Capital Expenditures $6.997M $16.50M -$10.49M
Free Cash Flow $85.19M $281.5M $245.3M
YoY Change 61.7% 14.75% 14.99%

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CY2022 box Increase Decrease In Accounts Payable Accrued Expenses And Other Liabilities
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CY2022 box Increase Decrease In Operating Lease Liabilities
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CY2021 box Proceeds From Payments For Issuance Of Convertible Debt Net Of Issuance Costs Paid
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CY2021 box Proceeds From Payments For Borrowings Net Of Borrowing Costs
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CY2021 us-gaap Proceeds From Issuance Of Common Stock
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CY2022 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2021 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2022 us-gaap Proceeds From Payments For Other Financing Activities
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CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2023 us-gaap Interest Paid Net
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CY2022 us-gaap Income Taxes Paid Net
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CY2021 us-gaap Income Taxes Paid Net
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CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p style="margin-left:4.533%;text-indent:0.0%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:bold;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;font-style:italic;min-width:fit-content;">Use of Estimates</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the fair value of acquired intangible assets, useful lives of acquired intangible assets and property and equipment, the standalone selling price allocation included in contracts with multiple performance obligations, the expected benefit period for deferred commissions, the useful life of capitalized internal-use software costs, the incremental borrowing rate we use to determine our lease liabilities, the valuation allowance of deferred income tax assets, and unrecognized tax benefits, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</span></p>
CY2023 box Number Of Revenue Sources
NumberOfRevenueSources
3
CY2023 box Sales Commission Estimated Period Of Amortization On Straight Line Basis
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CY2023 box Deferred Sales Commissions Costs
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55000000.0
CY2022 box Deferred Sales Commissions Costs
DeferredSalesCommissionsCosts
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CY2021 box Deferred Sales Commissions Costs
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CY2023 us-gaap Amortization Of Deferred Sales Commissions
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CY2022 us-gaap Amortization Of Deferred Sales Commissions
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45900000
CY2021 us-gaap Amortization Of Deferred Sales Commissions
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CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin-left:4.533%;text-indent:0.0%;font-size:10.0pt;margin-top:18.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:bold;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;font-style:italic;min-width:fit-content;">Certain Risks and Concentrations</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed deposit insurance coverage limits.</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:12.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">We sell to a broad range of customers. Our revenue is derived primarily from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We believe collections of our accounts receivable are probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of January 31, 2023 and 2022</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">, </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">one</span></span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;"> reseller, which is also a customer, accounted for more than </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">10</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">% of total accounts receivable. </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">No</span></span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;"> single customer represented over </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">10</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">% of revenue in the years ended </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">January 31, 2023, 2022, and 2021.</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:12.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">We serve our customers and users from data center facilities and public cloud hosting operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current data center facilities and with our cloud providers. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services.</span></p><p style="margin-left:4.533%;text-indent:0.0%;font-size:10.0pt;margin-top:18.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:bold;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;font-style:italic;min-width:fit-content;">Geographic Locations</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">For the years ended January 31, 2023, 2022 and 2021</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">, revenue attributable to customers in the United States was </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">67</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">%, </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">68</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">% and </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">72</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">%, respectively. For the years ended </span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">January 31, 2023, 2022 and 2021</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;"> revenue attributable to customers in Japan was </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">19</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">%, </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">18</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">%, and </span><span style="font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">14</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">%, respectively.</span></p><p style="text-indent:4.533%;font-size:10.0pt;margin-top:12.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:left;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">As of January 31, 2023 and 2022</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Times New Roman&quot;, serif;min-width:fit-content;">, substantially all of our property and equipment was located in the United States.</span></p>
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