Delaware
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000-54200
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37-1644635
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(State of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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Item 9.01 Financial Statements and Exhibits. |
Exhibit No.
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Description
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99.1
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Press Release, dated May 16, 2013
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DECISIONPOINT SYSTEMS, INC.
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Dated: May 16, 2013
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By:
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/s/ Dave Goodman
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Name: Dave Goodman
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Title: Chief Financial Officer
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·
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Launched new sales, marketing initiative and dedicated team to accelerate move into enterprise mobile software, software subscriptions and professional services.
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·
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Selected by Mission Linen to create a comprehensive, paperless mobile customer interface program for all operations including delivering, invoicing, ordering, real-time communications and customer support.
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·
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Created partnership with Worldlink Integration Group to provide broader range of services and technologies to support retail and enterprise clients.
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·
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Appointed as an Apple Authorized Reseller.
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·
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Added Apple iOS® mobile operating support for the Company’s proprietary APEXWare™ Field Service software product.
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·
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ContentCentral™ released on Android and certified on six different Android tablets.
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March 31,
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December 31,
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2013
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2012
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ASSETS
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Current assets
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Cash
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$ | 335 | $ | 1,103 | ||||
Accounts receivable, net
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10,571 | 12,287 | ||||||
Due from related party
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198 | 202 | ||||||
Inventory, net
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1,458 | 811 | ||||||
Deferred costs
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4,028 | 3,955 | ||||||
Deferred tax assets
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48 | 48 | ||||||
Prepaid expenses and other current assets
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650 | 302 | ||||||
Total current assets
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17,288 | 18,708 | ||||||
Property and equipment, net
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163 | 179 | ||||||
Other assets, net
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171 | 205 | ||||||
Deferred costs, net of current portion
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1,981 | 2,124 | ||||||
Goodwill
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8,518 | 8,571 | ||||||
Intangible assets, net
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5,463 | 6,023 | ||||||
Total assets
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$ | 33,584 | $ | 35,810 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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||||||||
Accounts payable
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$ | 10,023 | $ | 11,080 | ||||
Accrued expenses and other current liabilities
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3,793 | 2,895 | ||||||
Lines of credit
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3,107 | 3,430 | ||||||
Current portion of debt
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1,863 | 1,800 | ||||||
Due to related parties
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- | 1 | ||||||
Accrued earn out consideration
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1,164 | 1,186 | ||||||
Unearned revenue
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7,664 | 7,409 | ||||||
Total current liabilities
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27,614 | 27,801 | ||||||
Long term liabilities
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||||||||
Unearned revenue, net of current portion
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2,700 | 2,883 | ||||||
Debt, net of current portion and discount
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3,294 | 2,922 | ||||||
Accrued earn out consideration, net of current portion
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156 | 159 | ||||||
Deferred tax liabilities
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1,055 | 1,078 | ||||||
Other long term liabilities
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83 | 80 | ||||||
Total liabilities
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34,902 | 34,923 | ||||||
Commitments and contingencies
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- | - | ||||||
- | - | |||||||
STOCKHOLDERS' EQUITY
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Cumulative Convertible Preferred stock, $0.001 par value, 10,000,000 shares
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authorized, 1,105,155 and 1,105,155 shares issued and outstanding, including
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cumulative and imputed preferred dividends of $427 and $347, and
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with a liquidation preference of $8,824 and $8,758 at March 31, 2013
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and December 31, 2012, respectively
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7,450 | 7,370 | ||||||
Common stock, $0.001 par value, 100,000,000 shares authorized,
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9,300,439 issued and 9,146,556 outstanding as of March 31, 2013,
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and as of December 31, 2012
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9 | 9 | ||||||
Additional paid-in capital
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16,138 | 16,132 | ||||||
Treasury stock, 153,883 shares of common stock
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(205 | ) | (205 | ) | ||||
Accumulated deficit
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(23,997 | ) | (21,674 | ) | ||||
Unearned ESOP shares
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(732 | ) | (767 | ) | ||||
Accumulated other comprehensive income
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19 | 22 | ||||||
Total stockholders’ equity
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(1,318 | ) | 887 | |||||
Total liabilities and stockholders' equity
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$ | 33,584 | $ | 35,810 | ||||
Three Months Ended March 31,
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2013
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2012
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Net sales
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$ | 13,772 | $ | 17,810 | ||||
Cost of sales
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10,948 | 14,057 | ||||||
Gross profit
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2,824 | 3,753 | ||||||
Selling, general and administrative expense
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5,033 | 3,835 | ||||||
Operating loss
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(2,209 | ) | (82 | ) | ||||
Other expense:
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Interest expense
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226 | 142 | ||||||
Other income, net
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(6 | ) | (29 | ) | ||||
Total other expense
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220 | 113 | ||||||
Net loss before income taxes
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(2,429 | ) | (195 | ) | ||||
Provision (benefit) for income taxes
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(327 | ) | 42 | |||||
Net loss
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(2,102 | ) | (237 | ) | ||||
Cumulative and imputed preferred stock dividends
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(220 | ) | (222 | ) | ||||
Net loss attributable to common shareholders
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$ | (2,322 | ) | $ | (459 | ) | ||
Net loss per share -
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Basic and diluted
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$ | (0.27 | ) | $ | (0.06 | ) | ||
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Weighted average shares outstanding -
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Basic and diluted
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8,620,807 | 7,392,441 | ||||||
Comprehensive loss
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$ | (2,105 | ) | $ | - | |||
Three Months ended March 31,
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2013
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2012
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Cash flows from operating activities:
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Net loss
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$ | (2,102 | ) | $ | (237 | ) | ||
Adjustments to reconcile net loss to net cash
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(used in) provided by operating activities:
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Depreciation and amortization
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502 | 160 | ||||||
Amortization of deferred financing costs and note discount
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54 | 38 | ||||||
Employee stock-based compensation
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5 | 21 | ||||||
Non cash interest income
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- | (17 | ) | |||||
ESOP compensation expense
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35 | 33 | ||||||
Deferred taxes, net
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- | 4 | ||||||
Allowance for doubtful accounts
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21 | - | ||||||
Loss on disposal of property and equipment
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4 | - | ||||||
Changes in operating assets and liabilities:
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Accounts receivable
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1,686 | 3,414 | ||||||
Due from related party
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- | - | ||||||
Inventory, net
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(647 | ) | (258 | ) | ||||
Deferred costs
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70 | (12 | ) | |||||
Prepaid expenses and other current assets
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(259 | ) | 82 | |||||
Other assets, net
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- | 4 | ||||||
Accounts payable
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(1,056 | ) | 1,254 | |||||
Accrued expenses and other current liabilities
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763 | (585 | ) | |||||
Due to related parties
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- | 38 | ||||||
Unearned revenue
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87 | (945 | ) | |||||
Net cash (used in) provided by operating activities
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(837 | ) | 2,994 | |||||
Cash flows from investing activities
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Purchases of property and equipment
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(9 | ) | (11 | ) | ||||
Net cash used in investing activities
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(9 | ) | (11 | ) | ||||
Cash flows from financing activities
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Repayments from lines of credit, net
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(320 | ) | (2,424 | ) | ||||
Proceeds from bank term loan
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1,000 | - | ||||||
Repayment of debt
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(483 | ) | (250 | ) | ||||
Paid financing costs
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(118 | ) | (100 | ) | ||||
Dividends paid
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- | (82 | ) | |||||
Net cash provided by (used in) financing activities
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79 | (2,856 | ) | |||||
Effect on cash of foreign currency translation
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(1 | ) | - | |||||
Net increase (decrease) in cash
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(768 | ) | 127 | |||||
Cash at beginning of period
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1,103 | 366 | ||||||
Cash at end of period
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$ | 335 | $ | 493 | ||||
Supplemental disclosures of cash flow information:
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Interest paid
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$ | 293 | $ | 180 | ||||
Income taxes paid
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16 | 43 | ||||||
Supplemental disclosure of non-cash financing activities:
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Accrued and imputed dividends on preferred stock
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$ | 220 | $ | 222 |
Three months ended March 31,
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EBITDA Calculation -
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2013
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2012
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Net loss
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$ | (2,102 | ) | $ | (237 | ) | ||
Depreciation and amortization
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502 | 160 | ||||||
Interest expense
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226 | 142 | ||||||
Taxes
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(327 | ) | 42 | |||||
EBITDA
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$ | (1,701 | ) | $ | 107 | |||
Adjusted EBITDA Calculation -
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EBITDA
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$ | (1,701 | ) | $ | 107 | |||
Adjustments:
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Employee stock-based compensation
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5 | 21 | ||||||
ESOP compensation expense
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35 | 33 | ||||||
Deferred taxes, net
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4 | |||||||
Other
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(31 | ) | ||||||
Financing/acquisition costs
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642 | 360 | ||||||
Adjusted EBITDA
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$ | (1,019 | ) | $ | 494 |
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