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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2005
Commission File Number 0001-22563
CDSI HOLDINGS INC.
(Exact name of small business issuer as specified in its charter)
Delaware 95-4463937
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
100 S.E. Second Street, 32nd Floor
Miami, FL 33131
(Address of principal executive offices) (Zip Code)
(305) 579-8000
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes [X]
No [ ]
As of May 11, 2005, there were outstanding 3,120,000 shares of the issuer's
Common Stock, $.01 par value.
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CDSI HOLDINGS INC.
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Page
----
Item 1. Condensed Consolidated Financial Statements (Unaudited):
Condensed Consolidated Balance Sheets as of March 31,
2005 and December 31, 2004.................................. 3
Condensed Consolidated Statements of Operations for
the three months ended March 31, 2005 and 2004.............. 4
Condensed Consolidated Statements of Cash Flows for
the three months ended March 31, 2005 and 2004.............. 5
Notes to Condensed Consolidated Quarterly Financial
Statements.................................................. 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 10
Item 3. Controls and Procedures......................................... 14
PART II. OTHER INFORMATION
Item 6. Exhibits........................................................ 15
SIGNATURE............................................................... 16
2
CDSI HOLDINGS INC.
CONDENSED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2005 2004
----------- -----------
Assets:
Current assets:
Cash and cash equivalents ............................ $ 115,396 $ 122,946
Investment securities available for sale ............. 3,920 10,500
----------- -----------
Total assets .................................... $ 119,316 $ 133,446
=========== ===========
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable and accrued expenses ................ $ 7,225 $ 7,350
----------- -----------
Total current liabilities ....................... 7,225 7,350
----------- -----------
Commitments and contingencies ............................ -- --
Stockholders' equity:
Preferred stock, $.01 par value. Authorized 5,000,000
shares; no shares issued and outstanding .......... -- --
Common stock, $.01 par value. Authorized 25,000,000
shares; 3,120,000 shares issued and outstanding ... 31,200 31,200
Additional paid-in capital ........................... 8,209,944 8,209,944
Accumulated deficit .................................. (8,132,973) (8,125,548)
Accumulated other comprehensive income ............... 3,920 10,500
----------- -----------
Total stockholders' equity ...................... 112,091 126,096
----------- -----------
Total liabilities and stockholders' equity ...... $ 119,316 $ 133,446
=========== ===========
See accompanying Notes to Condensed Consolidated Financial Statements
3
CDSI HOLDINGS INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
-------------------------------
2005 2004
----------- -----------
Revenues .................................. $ -- $ --
Expenses:
General and administrative ........... 8,108 12,280
----------- -----------
8,108 12,280
----------- -----------
Operating loss ............................ (8,108) (12,280)
----------- -----------
Interest income ...................... 683 394
----------- -----------
Net loss .................................. $ (7,425) $ (11,886)
=========== ===========
Net loss per share (basic and diluted) .... $ (0.00) $ (0.00)
=========== ===========
Shares used in computing net loss per share 3,120,000 3,120,000
=========== ===========
See accompanying Notes to Condensed Consolidated Financial Statements
4
CDSI HOLDINGS INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
----------------------------
2005 2004
--------- ---------
Cash flows from operating activities:
Net loss ................................................... $ (7,425) $ (11,886)
Increase (decrease) in accounts payable and accrued expenses (125) (6,907)
--------- ---------
Net cash used in operating activities ......................... (7,550) (18,793)
--------- ---------
Net cash from investing activities ............................ -- --
--------- ---------
Net cash from financing activities ............................ -- --
--------- ---------
Net decrease in cash and cash equivalents ..................... (7,550) (18,793)
Cash and cash equivalents at beginning of period .............. 122,946 164,334
--------- ---------
Cash and cash equivalents at end of period .................... $ 115,396 $ 145,541
========= =========
See accompanying Notes to Condensed Consolidated Financial Statements
5
CDSI HOLDINGS INC.
Notes to CONDENSED CONSOLIDATED Financial Statements
(Unaudited)
(1) Business and Organization
CDSI Holdings Inc. (the "Company" or "CDSI") was incorporated in Delaware
on December 29, 1993. On January 12, 1999, the Company's stockholders
voted to change the corporate name of the Company from PC411, Inc. to
CDSI Holdings Inc. Prior to May 8, 1998, the Company's principal business
was an on-line electronic delivery information service that transmits
name, address, telephone number and other related information digitally
to users of personal computers (the "PC411 Service"). On May 8, 1998, the
Company acquired Controlled Distribution Systems, Inc. ("CDS"), a company
engaged in the marketing and leasing of an inventory control system for
tobacco products. In February 2000, CDSI announced CDS will no longer
actively engage in the business of marketing and leasing the inventory
control system. Effective November 12, 2003, the Company and its
wholly-owned subsidiary CDS merged with the Company as the surviving
corporation.
At March 31, 2005, the Company had an accumulated deficit of
approximately $8,132,973. The Company has reported an operating loss in
each of its fiscal quarters since inception and it expects to continue to
incur operating losses in the immediate future. The Company has reduced
operating expenses and is seeking acquisition and investment
opportunities. There is a risk the Company will continue to incur
operating losses.
CDSI intends to explore investments in other business opportunities. As
CDSI has only limited cash resources, CDSI's ability to complete any
acquisition or investment opportunities it may identify will depend on
its ability to raise additional financing, as to which there can be no
assurance. There can be no assurance that the Company will successfully
identify, complete or integrate any future acquisition or investment, or
that acquisitions or investments, if completed, will contribute favorably
to its operations and future financial condition.
(2) Principles of Reporting
The financial statements of the Company as of March 31, 2005 presented
herein have been prepared by the Company and are unaudited. In the
opinion of management, all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the financial position
as of March 31, 2005 and the results of operations and cash flows for all
periods presented have been made. Results for the interim periods are not
necessarily indicative of the results for the entire year.
These financial statements should be read in conjunction with the audited
financial statements and notes thereto for the year ended December 31,
2004 included in the Company's Form 10-KSB filed with the Securities and
Exchange Commission (Commission File No. 0001-22563).
6
CDSI HOLDINGS INC.
Notes to CONDENSED CONSOLIDATED Financial Statements - (Continued)
(Unaudited)
Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles 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 revenue and expenses
during the reporting period. Actual results could differ from those
estimates.
(3) ThinkDirectMarketing Transaction
On November 5, 1998, the Company contributed the non-cash assets and
certain liabilities of the PC411 Service to ThinkDirectMarketing, Inc.
("TDMI") (formerly known as Digital Asset Management, Inc.). The Company
received preferred stock representing an initial 42.5% interest in TDMI
in exchange for the contribution of the PC411 Service's net assets. The
Company's carrying value in the net assets contributed to TDMI totaled
$73,438. The Company recorded $462,360 as a capital contribution in
connection with the transaction, which represented the Company's 42.5%
interest in the capital raised by TDMI in excess of the carrying value of
the Company's net assets contributed to TDMI. The Company agreed, under
certain conditions, to fund up to $200,000 of an $800,000 working capital
line. The Company funded $100,000 of the working capital line in the
second quarter of 1999. In July 1999, the Company agreed to extend the
maturity of its working capital line and was released from any further
obligation to fund additional amounts under the working capital line.
In October 2000, TDMI and Cater Barnard plc (formerly known as
VoyagerIT.com) entered into an agreement whereby Cater Barnard purchased
for $5,000,000 shares of TDMI's convertible preferred stock and
convertible notes on various dates between November 10, 2000 and June 8,
2001. On October 16, 2001, Cater Barnard agreed to use its best efforts
to fund an additional $1,250,000 to TDMI by January 31, 2002 and on the
same date, the TDMI stockholders granted Cater Barnard an option to
purchase by January 31, 2002 all of TDMI's common stock not held by Cater
Barnard for an aggregate purchase price of 78,750 shares of Convertible
Preferred Stock of Dialog Group Inc. ("Dialog", formerly known as IMX
Pharmaceuticals, Inc.). Dialog was then a majority-owned subsidiary of
Cater Barnard to which Cater Barnard had transferred its interest in
TDMI. The preferred stock was initially convertible into 1,575,000 shares
of Dialog Common Stock.
On January 31, 2002, Dialog acquired all the shares of TDMI it did not
already own by exercising the option previously granted to Cater Barnard.
CDSI received 8,250 shares of Dialog Class B Convertible Preferred Stock
in exchange for its interest in TDMI. Each share of Dialog Class B
Preferred Stock was entitled to receive an annual dividend of $4.00 on
December 31 of each year. The dividend was payable at the option of
Dialog in shares of its Common Stock. The shares of Dialog Class B
Preferred Stock to be received by the Company were initially convertible
into 165,000 shares of Dialog Common Stock.
On November 4, 2002, the holders of Dialog Class B Preferred Stock and
Dialog agreed to (i) increase the number of common shares into which the
Dialog Class B Preferred Stock is convertible from 1,575,000 to 3,150,000
and (ii) eliminate the annual dividend on the Class B Preferred Stock. As
a result, the Class B Preferred Stock held by CDSI became convertible
into
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CDSI HOLDINGS INC.
Notes to CONDENSED CONSOLIDATED Financial Statements - (Continued)
(Unaudited)
330,000 shares of Dialog Common Stock and, on February 7, 2003, CDSI
converted its preferred shares into 330,000 shares of Dialog Common
Stock. The Company sold 50,000 shares of Dialog stock for $4,888 in the
third quarter of 2004. See Note 4. Based on public filings by Dialog,
management currently estimates that CDSI's interest in Dialog is
approximately 0.2% on a fully-diluted basis.
(4) Investment Securities Available for Sale
The Company's 280,000 shares of Dialog Common Stock may be sold by the
Company pursuant to Rule 144(k) of the Securities Act of 1933. See Note
3. In accordance with Statement of Financial Accounting Standards No.
115, "Accounting for Certain Investments in Debt and Equity Securities",
the Company has classified these shares as "Investment Securities
Available for Sale" as of March 31, 2005. The Dialog Common Stock is
carried at fair value, based on the last trade prior to March 31, 2005,
and net unrealized gains are included as a component of stockholders'
equity. However, no assurance can be given that the Company will
ultimately realize fair value for its Dialog shares as there is only a
limited trading market for the shares and the Company may not be able to
sell any material portion of its shares at prevailing market prices.
(5) Related Party Transactions
Certain accounting and related finance functions are performed on behalf
of the Company by employees of New Valley Corporation, the principal
stockholder of the Company. Expenses incurred relating to these functions
are allocated to the Company and paid as incurred to New Valley based on
management's best estimate of the cost involved. The amounts allocated
were immaterial for all periods presented herein.
(6) Net Loss Per Share
Basic loss per share of common stock is computed by dividing net loss
applicable to common stockholders by the weighted average shares of
common stock outstanding during the period (3,120,000 shares). Diluted
per share results reflect the potential dilution from the exercise or
conversion of securities into common stock.
Stock options and warrants (both vested and non-vested) totaling 653,333
shares at March 31, 2005 and 2004, respectively, were excluded from the
calculation of diluted per share results presented because their effect
was anti-dilutive. Accordingly, diluted net loss per common share is the
same as basic net loss per common share.
8
CDSI HOLDINGS INC.
Notes to CONDENSED CONSOLIDATED Financial Statements - (Continued)
(Unaudited)
(7) Comprehensive Loss
Comprehensive loss of the Company includes net loss and changes in the
value of investment securities available for sale that have not been
included in net loss. Comprehensive loss applicable to Common Shares for
the three months ended March 31, 2005 and 2004 is as follows:
Three Months Ended Three Months Ended
March 31, 2005 March 31, 2004
-------------- --------------
Net loss................................................. $ (7,425) $ (11,886)
Change in unrealized gain on investment securities....... (6,580) (3,300)
-------- ---------
Total comprehensive loss................................. $(14,005) $ (15,186)
======== =========
9
CDSI HOLDINGS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
Based on public filings by Dialog Group Inc. (formerly known as IMX
Pharmaceuticals Inc.), management estimates that the Company owns an approximate
0.2% interest in Dialog on a fully diluted basis. Dialog is registered under the
Securities Exchange Act of 1934 and is required to file periodic and other
information with the Securities and Exchange Commission (symbol "DLGG").
However, Dialog was delinquent in filing its Form 10-QSB for the quarter ended
September 30, 2003 which was not filed until January 26, 2004. As a result, its
Common Stock was delisted, effective December 31, 2003, from trading on the NASD
OTC Bulletin Board. Dialog was also delinquent in filing its Form 10-KSB for the
year ended December 31, 2003, which was not filed until April 29, 2004.
Effective February 8, 2005, Dialog's Common Stock resumed trading on the NASD
OTC Bulletin Board.
The Company intends to seek new investments in other business
opportunities. As the Company has only limited cash resources, the Company's
ability to complete any acquisition or investment opportunities it may identify
will depend on its ability to raise additional financing, as to which there can
be no assurance. There can be no assurance that the Company will successfully
identify, complete or integrate any future acquisition or investment, or that
acquisitions or investments, if completed, will contribute favorably to its
operations and future financial condition.
ThinkDirectMarketing, Inc.
On November 5, 1998, the Company contributed substantially all the
non-cash assets and certain liabilities related to its on-line electronic
delivery information service to TDMI, and received preferred stock of TDMI. See
Note 3 to the unaudited condensed consolidated financial statements for
additional information concerning the Company's former investment in TDMI.
On January 31, 2002, Dialog acquired all the shares of TDMI it did not
already own by exercising an option previously granted by the remaining TDMI
stockholders. The Company received preferred stock of Dialog in exchange for its
interest in TDMI. The preferred stock was convertible into Dialog common stock
and, on February 7, 2003, CDSI converted its Class B Preferred Shares into
330,000 shares of Dialog Common Stock. The Company sold 50,000 shares of Dialog
stock for $4,888 in the third quarter of 2004. The Company's remaining 280,000
Dialog shares may be sold by the Company pursuant to Rule 144(k) of the
Securities Act of 1933. See Notes 3 and 4 to the unaudited condensed
consolidated financial statements.
10
CDSI HOLDINGS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
Results of Operations
Revenues
For the three months ended March 31, 2005 and 2004, the Company did not
generate revenues from operations.
Expenses
Expenses associated with corporate activities were $8,108 for the three
months ended March 31, 2005, as compared to $12,280 for the same period in the
prior year. The amounts were primarily due to the costs necessary to maintain a
public company. The decrease in expenses in the 2005 period primarily relates to
lower audit fees accrued for CDSI's 2005 annual audit as a result of CDSI
changing independent registered public accounting firms in the third quarter of
2004 and lower printing expenses in 2005 versus 2004.
Other Income
Interest income was $683 for the three months ended March 31, 2005,
compared to $394 for the three months ended March 31, 2004. The increase is due
primarily to higher prevailing interest rates offset by lower cash balances in
2005 versus 2004.
Liquidity and Capital Resources
At March 31, 2005, the Company had an accumulated deficit of
approximately $8,132,973. The Company has reported an operating loss in each of
its fiscal quarters since inception and it expects to continue to incur
operating losses in the immediate future. The Company has reduced operating
expenses and is seeking acquisition and investment opportunities. No assurance
can be given that the Company will not continue to incur operating losses.
The Company has limited available cash, limited cash flow, limited
liquid assets and no credit facilities. The Company has not been able to
generate sufficient cash from operations and, as a consequence, financing has
been required to fund ongoing operations. Since completion of the Company's
initial public offering of its common stock (the "IPO") in May 1997, the Company
has primarily financed its operations with the net proceeds of the IPO. The
funds were used to complete the introduction of the PC411 Service over the
Internet, to expand marketing, sales and advertising, to develop or acquire new
services or databases, to acquire CDS and for general corporate purposes.
In connection with the IPO, the Company issued 2,322,500 Redeemable
Class A Warrants (the "Warrants"), including 1,000,000 of which were held by New
Valley. The Warrants, which entitled the holder to purchase one share of Common
Stock at an initial exercise price of $6.10, expired unexercised on May 13,
2002.
Cash used for operations for the three months ended March 31, 2005 and
2004 was $7,550 and $18,793, respectively. The decrease is associated primarily
with a lower net loss and the timing of payments of accounts payable and accrued
liabilities. The Company evaluates its accruals on a quarterly basis and makes
adjustments when appropriate.
11
CDSI HOLDINGS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
The Company does not expect significant capital expenditures during the
year ended December 31, 2005.
At March 31, 2005, the Company had cash and cash equivalents of
$115,396. The Company does not currently have any commitments for any additional
financing, and there can be no assurance that any such commitments can be
obtained. Any additional equity financing may be dilutive to its existing
stockholders, and debt financing, if available, may involve pledging some or all
of its assets and may contain restrictive covenants with respect to raising
future capital and other financial and operational matters.
Inflation and changing prices had no material impact on revenues or the
results of operations for the periods ended March 31, 2005 and 2004.
The Company's 280,000 shares of Dialog Common Stock may be sold
pursuant to Rule 144(k) of the Securities Act of 1933. In accordance with
Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities", the Company has classified these
shares as "Investment Securities Available for Sale" as of March 31, 2005. The
Dialog Common Stock is carried at fair value ($3,920), based on the last trade
prior to March 31, 2005, and net unrealized gains are included as a component of
stockholders' equity. However, no assurance can be given that the Company will
ultimately realize fair value for its Dialog shares as there is only a limited
trading market for the shares and the Company may not be able to sell any
material portion of its shares at prevailing market prices. No assurances can be
given that an orderly trading market will be maintained for Dialog's Common
Stock. Dialog was delinquent in filing a quarterly report with the Securities
and Exchange Commission and, as a result, its Common Stock was delisted,
effective December 31, 2003, from the NASD OTC Bulletin Board. Following the
delisting, the Dialog shares traded on the OTC Pink Sheets until the shares
resumed trading on the NASD OTC Bulletin Board on February 8, 2005. Dialog was
also delinquent in filing its Form 10-KSB for the year ended December 31, 2003,
which was not filed until April 29, 2004. The Company sold 50,000 shares of
Dialog stock for $4,888 in the third quarter of 2004.
Management is currently evaluating alternatives to supplement the
Company's present cash and cash equivalents to meet its liquidity requirements
over the next twelve months. Such alternatives include seeking additional
investors and/or lenders and disposing of the shares of Dialog Common Stock held
by the Company. Although there can be no assurance, the Company believes that it
will be able to continue as a going concern for the next twelve months.
The Company or its affiliates, including New Valley, may, from time to
time, based upon present market conditions, purchase shares of the Common Stock
in the open market or in privately negotiated transactions.
12
CDSI HOLDINGS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (continued)
Special Note Regarding Forward-Looking Statements
The Company and its representatives may from time to time make oral or
written "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Reform Act"), including any
statements that may be contained in the foregoing "Management's Discussion and
Analysis of Financial Condition and Results of Operations", in this report and
in other filings with the Securities and Exchange Commission and in its reports
to stockholders, which represent the Company's expectations or beliefs with
respect to future events and financial performance. These forward-looking
statements are subject to certain risks and uncertainties and, in connection
with the "safe-harbor" provisions of the Reform Act, the Company has identified
under "Risk Factors" in Item 1 of the Company's Form 10-KSB for the year ended
December 31, 2004 filed with the Securities and Exchange Commission and in this
section important factors that could cause actual results to differ materially
from those contained in any forward-looking statements made by or on behalf of
the Company.
The Company's plans and objectives are based, in part, on assumptions
involving judgments with respect to, among other things, future economic,
competitive and market conditions and future business decisions, all of which
are difficult or impossible to predict accurately and many of which are beyond
the control of the Company. Although the Company believes that its assumptions
underlying the forward-looking statements are reasonable, any of the assumptions
could prove inaccurate and, therefore, there can be no assurance that the
forward-looking statements included in this report will prove to be accurate. In
light of the significant uncertainties inherent in the forward-looking
statements included herein, particularly in view of the Company's limited
operations, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives and plans
of the Company will be achieved. Readers are cautioned not to place undue
reliance on such forward-looking statements, which speak only as of the date on
which such statements are made. The Company does not undertake to update any
forward-looking statement that may be made from time to time on its behalf.
13
Item 3. CONTROLS AND PROCEDURES
Under the supervision and with the participation of the Company's
management, including its principal executive officer and principal financial
officer, the Company has evaluated the effectiveness of its disclosure controls
and procedures as of the end of the period covered by this report, and, based on
that evaluation, its principal executive officer and principal financial officer
have concluded that these controls and procedures are effective. There were no
changes in the Company's internal control over financial reporting during the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the Company's internal control over financial
reporting.
Disclosure controls and procedures are the Company's controls and other
procedures that are designed to ensure that information required to be disclosed
by it in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the Securities and Exchange Commission's rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by it in the reports that it
files or submits under the Exchange Act is accumulated and communicated to its
management, including its principal executive officer and principal financial
officer, as appropriate to allow timely decisions regarding disclosure.
14
CDSI HOLDINGS INC.
PART II. OTHER INFORMATION
Item 6. Exhibits
31.1 Certification of Chief Executive Officer, Pursuant to Exchange
Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
31.2 Certification of Chief Financial Officer, Pursuant to Exchange
Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
32.1 Certification of Chief Executive Officer, Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
32.2 Certification of Chief Financial Officer, Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
15
SIGNATURE
Pursuant to the requirements 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.
CDSI HOLDINGS INC.
(Registrant)
Date: May 12, 2005 By: /s/ J. Bryant Kirkland III
-------------------------------------
J. Bryant Kirkland III
Vice President, Treasurer
and Chief Financial Officer
(Duly Authorized Officer and
Chief Accounting Officer)
16