2020 Q1 Form 10-Q Financial Statement

#000169853020000034 Filed on May 14, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $9.183M $25.00K
YoY Change 36632.0% -30.56%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.570M $2.210M
YoY Change 16.29% 7.8%
% of Gross Profit
Research & Development $6.075M $3.395M
YoY Change 78.94% 3.66%
% of Gross Profit
Depreciation & Amortization $150.0K $90.00K
YoY Change 66.67% 0.0%
% of Gross Profit
Operating Expenses $8.649M $5.603M
YoY Change 54.36% 5.32%
Operating Profit $534.0K -$5.578M
YoY Change -109.57% 5.56%
Interest Expense $128.0K $183.0K
YoY Change -30.05% 13.66%
% of Operating Profit 23.97%
Other Income/Expense, Net $616.0K $292.0K
YoY Change 110.96% -229.78%
Pretax Income $1.150M -$5.290M
YoY Change -121.74% -3.99%
Income Tax $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings $1.150M -$5.286M
YoY Change -121.76% -4.05%
Net Earnings / Revenue 12.52% -21144.0%
Basic Earnings Per Share $0.01 -$0.12
Diluted Earnings Per Share $0.01 -$0.12
COMMON SHARES
Basic Shares Outstanding 87.08M shares 44.36M shares
Diluted Shares Outstanding 88.24M shares 44.36M shares

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $98.80M $22.20M
YoY Change 345.05% 5.21%
Cash & Equivalents $24.58M $22.20M
Short-Term Investments $74.20M
Other Short-Term Assets $2.500M $1.400M
YoY Change 78.57% -26.32%
Inventory
Prepaid Expenses $1.219M $559.0K
Receivables $27.00K $3.000K
Other Receivables $400.0K $0.00
Total Short-Term Assets $101.7M $23.62M
YoY Change 330.83% 2.47%
LONG-TERM ASSETS
Property, Plant & Equipment $2.298M $977.0K
YoY Change 135.21% -23.37%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.487M $645.0K
YoY Change 130.54% 1915.63%
Total Long-Term Assets $3.785M $1.568M
YoY Change 141.39% 19.97%
TOTAL ASSETS
Total Short-Term Assets $101.7M $23.62M
Total Long-Term Assets $3.785M $1.568M
Total Assets $105.5M $25.18M
YoY Change 319.03% 3.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.392M $848.0K
YoY Change 300.0% -12.94%
Accrued Expenses $1.268M $1.786M
YoY Change -29.0% 41.19%
Deferred Revenue $975.0K
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $4.807M
YoY Change -100.0% 519.46%
Total Short-Term Liabilities $20.37M $8.221M
YoY Change 147.82% 172.67%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $0.00 $381.0K
YoY Change -100.0% 37.55%
Total Long-Term Liabilities $0.00 $381.0K
YoY Change -100.0% -91.3%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.37M $8.221M
Total Long-Term Liabilities $0.00 $381.0K
Total Liabilities $20.42M $9.029M
YoY Change 126.1% 12.22%
SHAREHOLDERS EQUITY
Retained Earnings -$80.15M -$60.28M
YoY Change 32.96% 58.26%
Common Stock $9.000K $4.000K
YoY Change 125.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $85.11M $16.16M
YoY Change
Total Liabilities & Shareholders Equity $105.5M $25.18M
YoY Change 319.03% 3.41%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income $1.150M -$5.286M
YoY Change -121.76% -4.05%
Depreciation, Depletion And Amortization $150.0K $90.00K
YoY Change 66.67% 0.0%
Cash From Operating Activities -$7.847M -$4.012M
YoY Change 95.59% -13.66%
INVESTING ACTIVITIES
Capital Expenditures $577.0K $8.000K
YoY Change 7112.5%
Acquisitions
YoY Change
Other Investing Activities -$11.93M
YoY Change
Cash From Investing Activities -$12.50M -$8.000K
YoY Change 156187.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.973M $0.00
YoY Change
Debt Paid & Issued, Net $4.999M $0.00
YoY Change
Cash From Financing Activities -$2.333M -$52.00K
YoY Change 4386.54% -842.86%
NET CHANGE
Cash From Operating Activities -$7.847M -$4.012M
Cash From Investing Activities -$12.50M -$8.000K
Cash From Financing Activities -$2.333M -$52.00K
Net Change In Cash -$22.68M -$4.072M
YoY Change 457.05% -12.24%
FREE CASH FLOW
Cash From Operating Activities -$7.847M -$4.012M
Capital Expenditures $577.0K $8.000K
Free Cash Flow -$8.424M -$4.020M
YoY Change 109.55% -13.49%

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0 USD
CY2020Q1 us-gaap Payments To Acquire Available For Sale Securities Debt
PaymentsToAcquireAvailableForSaleSecuritiesDebt
21926000 USD
CY2019Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
8000 USD
CY2020Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
577000 USD
CY2019Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2020Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2019Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2020Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2019Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2020Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2019Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2020Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2019Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
1955000 USD
CY2020Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
2906000 USD
CY2019Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
481000 USD
CY2020Q1 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
1219000 USD
CY2019Q4 us-gaap Prepaid Insurance
PrepaidInsurance
533000 USD
CY2020Q1 us-gaap Prepaid Insurance
PrepaidInsurance
369000 USD
CY2019Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
CY2020Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2973000 USD
CY2019Q1 us-gaap Proceeds From Sale And Maturity Of Other Investments
ProceedsFromSaleAndMaturityOfOtherInvestments
0 USD
CY2020Q1 us-gaap Proceeds From Sale And Maturity Of Other Investments
ProceedsFromSaleAndMaturityOfOtherInvestments
10000000 USD
CY2019Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3416000 USD
CY2020Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
3764000 USD
CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2099000 USD
CY2020Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2298000 USD
CY2019Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2020Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
4999000 USD
CY2019Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3395000 USD
CY2020Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
6075000 USD
CY2019Q4 us-gaap Restricted Cash
RestrictedCash
0 USD
CY2020Q1 us-gaap Restricted Cash
RestrictedCash
1200000 USD
CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-81297000 USD
CY2020Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-80147000 USD
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
25000 USD
CY2020Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
9183000 USD
CY2019Q1 us-gaap Revenues
Revenues
25000 USD
CY2020Q1 us-gaap Revenues
Revenues
9183000 USD
CY2019Q1 us-gaap Share Based Compensation
ShareBasedCompensation
489000 USD
CY2020Q1 us-gaap Share Based Compensation
ShareBasedCompensation
441000 USD
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
2.80
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.00
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.00
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0256
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0168
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
4164925 shares
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.06
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
1211704 shares
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.01
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
0.89
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5697714 shares
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
6909418 shares
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.34
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.15
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
1461000 USD
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
4625000 USD
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
1492000 USD
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
6693125 shares
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
2.15
CY2020Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
1.27
CY2019Q1 us-gaap Share Price
SharePrice
2.80
CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
1172000 USD
CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y7M
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y8M12D
CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y1M6D
CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P7Y
CY2019Q4 us-gaap Short Term Investments
ShortTermInvestments
62326000 USD
CY2020Q1 us-gaap Short Term Investments
ShortTermInvestments
74223000 USD
CY2019Q1 us-gaap Short Term Lease Cost
ShortTermLeaseCost
6000 USD
CY2020Q1 us-gaap Short Term Lease Cost
ShortTermLeaseCost
38000 USD
CY2020Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
2766000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
20952000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
16155000 USD
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
80747000 USD
CY2020Q1 us-gaap Stockholders Equity
StockholdersEquity
85114000 USD
CY2019Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
19000 USD
CY2020Q1 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
11000 USD
CY2019Q1 us-gaap Variable Lease Cost
VariableLeaseCost
84000 USD
CY2020Q1 us-gaap Variable Lease Cost
VariableLeaseCost
57000 USD
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
44358000 shares
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88244632 shares
CY2019Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
44358000 shares
CY2020Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
87079160 shares
CY2019Q4 xcur Accrued Clinical Contract Research And Manufacturing Costs Current
AccruedClinicalContractResearchAndManufacturingCostsCurrent
515000 USD
CY2020Q1 xcur Accrued Clinical Contract Research And Manufacturing Costs Current
AccruedClinicalContractResearchAndManufacturingCostsCurrent
152000 USD
CY2020Q1 xcur Common Stock Voting Rightsfor Each Share
CommonStockVotingRightsforEachShare
1 vote_per_share
CY2019Q4 xcur Common Stock Warrant Liability
CommonStockWarrantLiability
414000 USD
CY2020Q1 xcur Common Stock Warrant Liability
CommonStockWarrantLiability
42000 USD
CY2020Q1 xcur Debt Securities Available For Sale Current Percent
DebtSecuritiesAvailableForSaleCurrentPercent
0.64
CY2020Q1 xcur Debt Securities Available For Sale Noncurrent Percent
DebtSecuritiesAvailableForSaleNoncurrentPercent
0.36
CY2020Q1 xcur Debt Securities Availablefor Sale Percent
DebtSecuritiesAvailableforSalePercent
1.00
CY2020Q1 xcur Fair Value Assumptions Impact Of10 Percent Change In Expected Volatility Rate
FairValueAssumptionsImpactOf10PercentChangeInExpectedVolatilityRate
18000 USD
CY2020Q1 xcur Fair Value Assumptions Impact Of10 Percent Change In Fair Value Of Common Stock
FairValueAssumptionsImpactOf10PercentChangeInFairValueOfCommonStock
19000 USD
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Annual Base Rate Initial Twelve Months
LesseeOperatingLeaseLeaseNotYetCommencedAnnualBaseRateInitialTwelveMonths
37.00
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Annual Rent Payment Initial Twelve Months
LesseeOperatingLeaseLeaseNotYetCommencedAnnualRentPaymentInitialTwelveMonths
1113000 USD
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Base Rent Annual Percentage Increase
LesseeOperatingLeaseLeaseNotYetCommencedBaseRentAnnualPercentageIncrease
0.03
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Estimated Rental Payment Over Original Term
LesseeOperatingLeaseLeaseNotYetCommencedEstimatedRentalPaymentOverOriginalTerm
12761000 USD
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Landlord Contribution Towards Tenant Improvement
LesseeOperatingLeaseLeaseNotYetCommencedLandlordContributionTowardsTenantImprovement
3159000 USD
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Lease Area
LesseeOperatingLeaseLeaseNotYetCommencedLeaseArea
30000 sqft
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Numberof Extensions
LesseeOperatingLeaseLeaseNotYetCommencedNumberofExtensions
2 squarefeet
CY2020Q1 xcur Lessee Operating Lease Lease Not Yet Commenced Rental Payment Adjusted For Abatement
LesseeOperatingLeaseLeaseNotYetCommencedRentalPaymentAdjustedForAbatement
87000 USD
CY2019Q1 xcur Payments Of Common Stock Financing Costs
PaymentsOfCommonStockFinancingCosts
0 USD
CY2020Q1 xcur Payments Of Common Stock Financing Costs
PaymentsOfCommonStockFinancingCosts
207000 USD
CY2020Q1 xcur Paymentsfor License Agreements
PaymentsforLicenseAgreements
8198000 USD
CY2020Q1 xcur Percentageof Researchand Development Staff Onsiteat Any One Time
PercentageofResearchandDevelopmentStaffOnsiteatAnyOneTime
0.50
CY2020Q1 xcur Retained Earnings Accumulated Deficit Inceptionto Date
RetainedEarningsAccumulatedDeficitInceptiontoDate
-98984000 USD
CY2019Q1 xcur Sharebased Compensation Arrangementby Sharebased Payment Award Fair Value Assumptions Forfeiture Rate
SharebasedCompensationArrangementbySharebasedPaymentAwardFairValueAssumptionsForfeitureRate
0.05
CY2020Q1 xcur Sharebased Compensation Arrangementby Sharebased Payment Award Fair Value Assumptions Forfeiture Rate
SharebasedCompensationArrangementbySharebasedPaymentAwardFairValueAssumptionsForfeitureRate
0.05
CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;text-decoration:none;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on certain assumptions which it believes are reasonable in the circumstances and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company&#8217;s financial position, results of operations or cash flows. Actual results in future periods could differ from those estimates.</font></div></div>

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