INNOTRAC CORPORATION
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(Exact Name of Registrant as Specified in Charter)
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Georgia
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(State or Other Jurisdiction of Incorporation)
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000-23741
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58-1592285
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(Commission File Number)
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(IRS Employer Identification No.)
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6465 East Johns Crossing
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Johns Creek, GA
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30097
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(Address of Principal Executive Offices)
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(Zip Code)
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(678) 584-4000
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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ITEM 9.01
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FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit No.
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Description
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99.1
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Innotrac Corporation press release dated August 13, 2013, announcing Innotrac’s financial results for the second quarter ended June 30, 2013 (furnished pursuant to Item 2.02 of this Form 8-K).
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INNOTRAC CORPORATION
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/s/ Scott D. Dorfman
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Date: August 13, 2013
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Scott D. Dorfman
President, Chairman and Chief Executive Officer
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June 30, 2013
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December 31, 2012
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(unaudited)
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ASSETS
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Current assets:
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||||||||
Cash and cash equivalents
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$ | 4,382 | $ | 4,005 | ||||
Accounts receivable (net of allowance for doubtful accounts of $134 at June 30, 2013 and $136 at December 31, 2012)
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21,084 | 23,216 | ||||||
Inventories, net
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820 | 740 | ||||||
Prepaid expenses and other
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1,493 | 1,107 | ||||||
Total current assets
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27,779 | 29,068 | ||||||
Property and equipment:
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Computers, machinery and equipment
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45,953 | 42,877 | ||||||
Furniture, fixtures and leasehold improvements
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10,319 | 10,055 | ||||||
56,272 | 52,932 | |||||||
Less accumulated depreciation and amortization
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(40,994 | ) | (39,089 | ) | ||||
15,278 | 13,843 | |||||||
Other assets, net
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1,408 | 1,281 | ||||||
Total assets
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$ | 44,465 | $ | 44,192 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 10,261 | $ | 10,409 | ||||
Line of credit
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- | - | ||||||
Accrued salaries
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2,532 | 2,854 | ||||||
Equipment lease payable
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446 | 421 | ||||||
Accrued expenses and other
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3,594 | 3,088 | ||||||
Equipment loan
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- | 1,620 | ||||||
Total current liabilities
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16,833 | 18,392 | ||||||
Noncurrent liabilities:
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Deferred compensation
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908 | 837 | ||||||
Equipment lease payable
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389 | 544 | ||||||
Other noncurrent liabilities
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786 | 963 | ||||||
Total noncurrent liabilities
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2,083 | 2,344 | ||||||
Shareholders’ equity:
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Preferred stock: 10,000,000 shares authorized, $0.10 par value, no shares issued or outstanding
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- | - | ||||||
Common stock: 50,000,000 shares authorized, $0.10 par value, 13,245,440 shares issued and outstanding at June 30, 2013 13,155,440 shares issued and outstanding at December 31, 2012
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1,325 | 1,316 | ||||||
Additional paid-in capital
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66,876 | 66,784 | ||||||
Accumulated other comprehensive loss
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(2 | ) | (2 | ) | ||||
Accumulated deficit
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(42,664 | ) | (44,656 | ) | ||||
Total Innotrac shareholders’ equity
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25,535 | 23,442 | ||||||
Noncontrolling interest
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14 | 14 | ||||||
Total shareholders’ equity
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25,549 | 23,456 | ||||||
Total liabilities and shareholders’ equity
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$ | 44,465 | $ | 44,192 |
Three Months Ended June 30, | ||||||||
2013
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2012
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(unaudited)
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(unaudited)
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Service revenues
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$ | 25,997 | $ | 20,449 | ||||
Freight revenues
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3,275 | 2,497 | ||||||
Total revenues
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29,272 | 22,946 | ||||||
Cost of service revenues
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12,831 | 9,624 | ||||||
Freight expense
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3,193 | 2,411 | ||||||
Selling, general and administrative expenses
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11,209 | 9,508 | ||||||
Depreciation and amortization
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955 | 891 | ||||||
Total operating expenses
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28,188 | 22,434 | ||||||
Operating income
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1,084 | 512 | ||||||
Other expense (income):
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Interest expense
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77 | 69 | ||||||
Other (income) expense
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(1 | ) | 3 | |||||
Total other expense
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76 | 72 | ||||||
Income before income taxes
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1,008 | 440 | ||||||
Income taxes
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30 | - | ||||||
Net income
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978 | 440 | ||||||
Net loss attributable to noncontrolling interest
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- | 1 | ||||||
Net income attributable to Innotrac
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$ | 978 | $ | 441 | ||||
Earnings per share:
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Basic
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$ | 0.07 | $ | 0.03 | ||||
Diluted
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$ | 0.07 | $ | 0.03 | ||||
Weighted average shares outstanding:
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Basic
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13,245 | 13,010 | ||||||
Diluted
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13,263 | 13,010 |
Six Months Ended June 30,
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2013
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2012
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(unaudited)
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(unaudited)
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Service revenues
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$ | 51,465 | $ | 41,769 | ||||
Freight revenues
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7,126 | 5,347 | ||||||
Total revenues
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58,591 | 47,116 | ||||||
Cost of service revenues
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25,448 | 19,958 | ||||||
Freight expense
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6,889 | 5,176 | ||||||
Selling, general and administrative expenses
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22,172 | 19,257 | ||||||
Depreciation and amortization
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1,905 | 1,716 | ||||||
Total operating expenses
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56,414 | 46,107 | ||||||
Operating income
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2,177 | 1,009 | ||||||
Other expense:
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Interest expense
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155 | 122 | ||||||
Other expense
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- | 2 | ||||||
Total other expense
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155 | 124 | ||||||
Income before income taxes
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2,022 | 885 | ||||||
Income taxes
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30 | - | ||||||
Net income
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1,992 | 885 | ||||||
Net loss attributable to noncontrolling interest
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- | 1 | ||||||
Net income attributable to Innotrac
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$ | 1,992 | $ | 886 | ||||
Earnings per share:
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Basic
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$ | 0.15 | $ | 0.07 | ||||
Diluted
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$ | 0.15 | $ | 0.07 | ||||
Weighted average shares outstanding:
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Basic
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13,175 | 13,020 | ||||||
Diluted
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13,188 | 13,020 |
Six Months Ended June 30,
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2013
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2012
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(unaudited)
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(unaudited)
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Cash flows from operating activities:
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Net income
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$ | 1,992 | $ | 885 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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1,905 | 1,716 | ||||||
Provision for bad debts
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(1 | ) | 5 | |||||
Stock compensation expense-restricted stock
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102 | 68 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable, gross
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2,133 | 1,243 | ||||||
Inventory
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(80 | ) | 138 | |||||
Prepaid expenses and other
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(342 | ) | (294 | ) | ||||
Long-term assets
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41 | (68 | ) | |||||
Accounts payable
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(1,503 | ) | (2,499 | ) | ||||
Accrued expenses, accrued salaries and other
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183 | 157 | ||||||
Long-term liabilities
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(178 | ) | (105 | ) | ||||
Net cash provided by operating activities
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4,252 | 1,246 | ||||||
Cash flows from investing activities:
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Capital expenditures
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(1,896 | ) | (3,753 | ) | ||||
Net change in noncurrent assets and liabilities
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(9 | ) | - | |||||
Net cash used in investing activities
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(1,905 | ) | (3,753 | ) | ||||
Cash
flows from financing activities:
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Borrowings on equipment loan
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- | 1,800 | ||||||
Payments on equipment loan
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(1,620 | ) | - | |||||
Capital lease payments
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(219 | ) | (216 | ) | ||||
Loan commitment fees
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(131 | ) | (37 | ) | ||||
Net cash (used in) provided by financing activities
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(1,970 | ) | 1,547 | |||||
Net increase (decrease) in cash and cash equivalents
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377 | (960 | ) | |||||
Cash and cash equivalents, beginning of period
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4,005 | 3,283 | ||||||
Cash and cash equivalents, end of period
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$ | 4,382 | $ | 2,323 | ||||
Supplemental cash flow disclosures:
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Cash paid for interest
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$ | 123 | $ | 83 | ||||
Non-cash investing and financing activities:
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Capital lease for warehouse and computer equipment
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$ | 89 | $ | 862 | ||||
Capital expenditures in accounts payable
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$ | 1,355 | $ | 216 |