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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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Nevada
(State
of incorporation)
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20-3136572
(IRS
Employer ID Number)
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Page
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PART
I
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Item
1. Financial Statements
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3
|
Item
2. Management’s Discussion and Analysis or Plan of
Operation
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12
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Item
3 Controls and Procedures
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15
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PART
II
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16
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Item
1. Legal Proceedings
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16
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
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16
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Item
3. Defaults Upon Senior Securities
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16
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Item
4. Submission of Matters to a Vote of Security Holders
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16
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Item
5. Other Information
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16
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Item
6. Exhibits
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17
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Current
Assets:
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||||
Cash
and Cash Equivalents
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$
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27,920
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||
Accounts
Receivable, Net of Allowances of $1,972
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69,300
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|||
Inventories
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108,940
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|||
Prepaid
Expenses
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63,829
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|||
Total
Current Assets
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269,989
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|||
Property
and Equipment, Net
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493,370
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|||
Total
Assets
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$
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763,359
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||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||
Current
Liabilities:
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||||
Accounts
Payable
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$
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125,310
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||
Deferred
Income
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2,150
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Loans
Payable - Related Party
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419,196
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|||
Total
Current Liabilities
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546,656
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|||
Long-Term
Debt:
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||||
Note
Payable - Related Party
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80,385
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|||
Total
Liabilities
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627,041
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|||
Stockholders’
Equity:
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||||
Preferred
Stock, $.001 par value; 5,000,000 shares authorized,
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||||
5,000,000
shares issued and outstanding
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5,000
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|||
Common
Stock, $.001 par value; 100,000,000 shares authorized,
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||||
10,100,000
shares issued and outstanding
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10,100
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|||
Additional
Paid-In Capital
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535,596
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|||
Accumulated
Deficit
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(432,593
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)
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Accumulated
Other Comprehensive Income (Loss)
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18,215
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|||
Total
Stockholders’ Equity
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136,318
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|||
Total
Liabilities and Stockholders’ Equity
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$
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763,359
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Sales-Net
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$
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1,102,781
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||
Cost
of Sales
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1,087,374
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|||
Gross
Profit
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15,407
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|||
Operating
Expenses:
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||||
Selling
Expenses
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3,812
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|||
Salaries
and Related Costs
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59,525
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|||
Website
Development Costs
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13,598
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|||
Professional
Fees
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28,358
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|||
Other
General and Administrative Expense
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40,527
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|||
Total
Operating Expenses
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145,820
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|||
Loss
from Operations
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(130,413
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)
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Other
Income (Expense):
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||||
Interest
Expense - Related Party
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(3,594
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)
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Interest
Income
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78
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|||
Total
Other Income (Expense)
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(3,516
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)
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Loss
before Provision for Income Tax
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(133,929
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)
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Provision
for Income Tax
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900
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Net
Loss
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$
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(134,829
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)
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Basic
Loss Per Common Share
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$
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(0.01
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)
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Weighted
Average Basic Common Shares Outstanding
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10,100,000
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|||
Fully
Diluted Loss Per Share
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$
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(0.01
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)
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Weighted
Average Fully Diluted Shares Outstanding
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24,100,000
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Net
Loss
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$
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(134,829
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)
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Adjustments
to Reconcile Net Loss to
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||||
Net
Cash (Used) by Operating Activities
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Allowance
for Bad Debts
|
758
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|||
Depreciation
and Amortization:
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10,815
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|||
Changes
in Assets and Liabilities:
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||||
(Increase)
in Accounts Receivable
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(17,584
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)
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Decrease
in Inventories
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16,865
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|||
(Increase)
in Prepaid Expense
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(18,073
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)
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Increase
in Accounts Payable
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31,994
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Increase
in Deferred Income
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2,150
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Net
Cash (Used) by Operating Activities
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(107,904
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)
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Cash
Flows from Investing Activities:
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Capital
Expenditures
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(11,684
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)
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Net
Cash (Used) by Investing Activities
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(11,684
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)
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Cash
Flows from Financing Activities:
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Net
Proceeds from Loans Payable - Related Party
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131,375
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|||
Net
Cash Provided by Financing Activities
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131,375
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Effect
of Exchange Rate Changes on Cash
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(951
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)
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Net
Increase in Cash and Cash Equivalents
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10,836
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|||
Cash
and Cash Equivalents - Beginning of Period
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17,084
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|||
Cash
and Cash Equivalents - End of Period
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$
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27,920
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Supplemental
Disclosures of Cash Flow Information:
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||||
$
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-
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|||
Income
Taxes Paid
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$
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414
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Loans
payable to Company’s Chief Executive Officer,
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||||
bearing
interest at 5% per annum and payable on demand
|
$
|
125,626
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||
Loans
payable to the Company’s Chief Operating Officer,
|
||||
bearing
interest at 2% per annum and payable on demand
|
293,570
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|||
$
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419,196
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During
the Year Ending
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||||
December
31,
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|
|||
2007
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$
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-
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2008
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80,385
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|||
$
|
80,385
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Exhibit
No.
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Description
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31.1
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Rule
13a-14(a)/15d14(a) Certifications Attached Hereto
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32.1
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Section
1350 Certifications Attached Hereto
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PAY88,
INC.
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By: | /s/ Guo Fan | |
Name:
Guo
Fan
Title:
President,
Chief Executive
Officer,
and Director (Principal
Executive,
Financial, and Accounting
Officer)
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