| Segment Information |
NOTE 10 – SEGMENT INFORMATION
The Company classifies its remaining businesses into three segments as follows:
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Transition Networks designs, develops and sells Intelligent Edge solutions that provide connectivity and power through PoE products and actionable intelligence to end devices in an IoT ecosystem through embedded and cloud-based management software. Transition Networks continues to generate revenue from its traditional products consisting of, media converters, NICs, and Ethernet switches that offer the ability to affordably integrate the benefits of fiber optics into any data network;
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·
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JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment; and
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·
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Net2Edge designs, develops, and sells edge network access products, TDM over IP and other circuit emulation solutions, along with specialized cloud-based software solutions, primarily within the telecommunications market.
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Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. “Other” includes non-allocated corporate overhead costs. As a result of our treatment of Suttle as discontinued operations, “Other” includes amounts previously allocated to Suttle that do not meet the criteria to be included in income from discontinued operations.
Information concerning the Company’s continuing operations in the various segments for the three month periods ended March 31, 2020 and 2019 are as follows:
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Transition
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JDL
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Intersegment
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Networks
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Technologies
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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended March 31, 2020
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Sales
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$
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8,164,000
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$
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827,000
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$
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424,000
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$
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-
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$
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(252,000)
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$
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9,163,000
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Cost of sales
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4,604,000
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620,000
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214,000
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-
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(12,000)
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5,426,000
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Gross profit
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3,560,000
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207,000
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210,000
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-
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(240,000)
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3,737,000
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Selling, general and
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administrative expenses
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3,344,000
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328,000
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593,000
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936,000
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(240,000)
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4,961,000
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Operating income (loss)
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216,000
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(121,000)
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(383,000)
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(936,000)
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-
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(1,224,000)
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Other income
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-
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-
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14,000
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397,000
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-
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411,000
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Income (loss) before income tax
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$
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216,000
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$
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(121,000)
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$
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(369,000)
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$
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(539,000)
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$
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-
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$
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(813,000)
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Depreciation and amortization
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$
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54,000
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$
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13,000
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$
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17,000
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$
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127,000
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$
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-
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$
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211,000
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Capital expenditures
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$
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41,000
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$
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-
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$
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2,000
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$
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14,000
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$
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-
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$
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57,000
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Assets
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$
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13,087,000
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$
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1,394,000
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$
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2,578,000
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$
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39,807,000
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$
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(27,000)
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$
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56,839,000
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Transition
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JDL
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Intersegment
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Networks
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Technologies
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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended March 31, 2019
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Sales
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$
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8,890,000
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$
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2,208,000
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$
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448,000
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$
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-
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$
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(330,000)
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$
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11,216,000
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Cost of sales
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5,136,000
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1,341,000
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227,000
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-
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(114,000)
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6,590,000
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Gross profit
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3,754,000
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867,000
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221,000
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-
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(216,000)
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4,626,000
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Selling, general and
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administrative expenses
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3,695,000
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376,000
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748,000
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844,000
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(216,000)
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5,447,000
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Operating (loss) income
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59,000
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491,000
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(527,000)
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(844,000)
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-
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(821,000)
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Other income (expense)
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-
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(10,000)
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(1,000)
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36,000
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-
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25,000
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Income (loss) before income tax
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$
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59,000
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$
|
481,000
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$
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(528,000)
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$
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(808,000)
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$
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-
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$
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(796,000)
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Depreciation and amortization
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$
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79,000
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$
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28,000
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$
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20,000
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$
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152,000
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$
|
-
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$
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279,000
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Capital expenditures
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$
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-
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$
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36,000
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$
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7,000
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$
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167,000
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$
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-
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$
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210,000
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Assets
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$
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17,668,000
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$
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3,814,000
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$
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2,863,000
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$
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27,873,000
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$
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(27,000)
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$
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52,191,000
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