Table ofContents

 

 

FORM 10-Q

 

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

                                                               

                                                               

                                                              (Mark One)

 [                                                              x ] QUARTERLY                                                              REPORT PURSUANT TO                                                              SECTION 13 OR                                                              15(d)

 OF                                                              THE SECURITIES                                                              EXCHANGE ACT OF                                                              1934. 

 

 

For thequarterly period ended: September 30, 2004

 

OR

                                                                   

                                                                   [ ]                                                                  TRANSITION                                                                  REPORT                                                                  PURSUANT TO                                                                  SECTION 13 OR                                                                  15(d)

 OF                                                                  THE SECURITIES                                                                  EXCHANGE ACT                                                                  OF 1934

                                                                   for the                                                                  transition                                                                  period from                                                                  __________ to                                                                  __________ 

                                                                   

                                                                  Commission                                                                  File Number:                                                                  0-25790 

 

PC Mall,Inc.

(Exact name of registrant as specified in its charter)

                                         

|  
 
 
**Delaware**
 
**95-4518700**
(State or other jurisdiction of      incorporation or organization)
 
(I.R.S. Employer       Identification Number)
 

 

 

2555 West 190thStreet, Suite 201

Torrance, CA 90504

(address of principalexecutive offices)

(310) 354-5600

(Registrant'stelephone number, including area code) 

 

 

 

 

Indicate by check markwhether the Registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the Registrant wasrequired to file such reports) and (2) has been subject to such filingrequirements for the past 90 days.  Yes [X]    No[  ] 

 

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes [ ]    No[X] 

 

There were 11,532,584outstanding shares of common stock at November 12, 2004.

 

 

 

 

 

 

 

 
PC MALL, INC.
 
TABLE OFCONTENTS
 

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
Condensed Consolidated Statement of Operations
Condensed Consolidated Statement of Stockholders' Equity
Condensed Consolidated Statement of      Cash Flows 
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and      Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II - OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 4. Submission of Matters to a Vote of      Security Holders
Item 5. Other MattersItem 6. Exhibits Signatures PART I -FINANCIAL INFORMATION
 
ITEM1.   FINANCIAL STATEMENTS
 

**Table ofContents**
PC MALL, INC.CONDENSED CONSOLIDATEDBALANCE SHEETS(inthousands, except share data) 
 
**September****30,        2004**

**(unaudited)**          **December 31, 2003****Assets**
Current assets:

Cash and cash equivalents

$
26,618             $7,819
Accounts receivable, net of allowance for doubtful accounts

85,088                        71,401
Inventories

60,581                        80,542
Prepaid expenses and other current assets

5,914                        3,909
Deferred income taxes3,578                        3,578
Total current          assets 181,779    167,249                                       Property and equipment, net 10,031        10,438Goodwill1,355        861Deferred income taxes 10,567        9,269Other assets1,147        1,353
Total          assets
$
204,879  $189,170 **Liabilities and Stockholders' Equity**Current liabilities:
Accounts payable
$
57,427   $83,856  
Accrued expenses and other current liabilities17,477    16,621  
Deferred revenue14,437    11,348  
Line of credit40,375    26,202  
Notes payable - current500        1,000  
Total current liabilities130,216    139,027  
Notes payable2,875    250  
Total liabilities133,091              139,277       Minority interest 4,356    -                   Stockholders' equity:     
Preferred stock, $.001 par value, 5,000,000 shares          authorized; none issued and outstanding
-     -   
          Common stock, $.001 par value; 30,000,000 shares authorized;          11,510,426 and 11,165,399 shares issued; and 11,216,226 and 10,871,199          shares outstanding, respectively
12    11  
Additional paid-in capital95,972    78,032  
Deferred stock-based compensation(1,458)  -   
Treasury stock, at        cost: 294,200 shares(1,015)  (1,015)
Translation        adjustment4    1  
Retained earnings (accumulated deficit)(26,083)  (27,136)
Total stockholders' equity67,432    49,893  
        Total liabilities, minority interest and
 stockholders'        equity
$
204,879   $189,170  
 

See  notes tocondensed consolidated financial statements.

 

**Table ofContents**
PC MALL, INC.CONDENSED CONSOLIDATEDSTATEMENT OF OPERATIONS(unaudited,in thousands, except per share data)           
**Three        months ended**

**September        30, 2004**            
**Nine          months ended**

**September          30, 2004**
**2004****2003****2004****2003**
Net sales$283,288 $231,996 $831,903 $685,654
Cost of goods sold 248,342  199,770  726,981  593,861
Gross profit34,94632,226104,92291,793
Selling,          general and administrative expenses27,78723,83282,26670,952
Non-cash stock compensation expense relating to          selling, general and administrative expenses1,3771811,471181
Advertising expense, net (see Note 2) 5,242 6,785 18,363 16,751
Income from operations540 1,428 2,822 3,909
Interest expense, net 447 313 1,358 831
Income  before income taxes93 1,115 1,464 3,078
Income tax provision 55  412  583  1,140
Income before minority        interest         38          703                    881          1,938
Minority interest, net of tax         172          -                    172          -
Net income$210 $703           $1,053 $1,938    Earnings per share:            Basic$0.02 $0.07           $0.10 $0.18            Diluted$0.02 $0.06           $0.09 $0.17Weighted average shares outstanding:                                               
      Basic 
11,18110,64011,03310,591
      Diluted 
 12,183  11,700            12,148  11,401
 

See  notes tocondensed consolidated financial statements.

 

**Table ofContents**
PC MALL, INC.CONDENSEDCONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY(unaudited, in thousands)
 

**Common**

** Stock**
**Additional**

**Paid-in**

**Capital**
**Deferred**

**Stock-Based      Compensation**

**Treasury**
** Stock****Translation Adjustment**
**Retained**

** Earnings**

** (Accumulated    Deficit**)**Total**  ** Common Shares** ** Issued****Outstanding**
Balance at December 31, 200311,165  10,871  $   11       $ 78,032  $            -   $ (1,015)$      1    $ (27,136)$    49,893  
Stock option exercises,      including related income tax benefit345  345   1  3,079  -      -      -      -      3,080  
Deferred stock-based compensation-      -       -   -      (1,458)-   -   -      (1,458)
Additional paid-in-capital related      to deferred stock-based compensation-      -       -   2,839  -   -   -   -      2,839  
Minority Interest-      -      -   (4,529)-   -   -   -      (4,529)
Capital contributed by minority      stockholders of subsidiary, net-      -      -   16,551     -   -   -   -      16,551  
Translation adjustment-      -      -   -      -   -   3  -      3  
Net Income-   -    -   -   -   -   -   1,053  1,053  
Balance at September 30, 200411,510  11,216  $   12  $ 95,972  $ (1,458)$ (1,015)$   4     $ (26,083)$ 67,432  
 

See  notes tocondensed consolidated financial statements.

 

**Table of contents**

 
PC MALL, INC.CONDENSEDCONSOLIDATED STATEMENT OF CASH FLOWS(unaudited,in thousands)          
**For the nine months ended**
**September****30,**
          **2004**         **2003**Cash flows from operating activities:
Net income
$1,053  
$1,938  
Adjustments to reconcile net          income to net cash provided by/(used in) operating activities:

Depreciation and amortization
3,064  3,105  
Provision for deferred          income taxes

584  

1,140  
Non-cash stock-based compensation
 
1,471  
 
181  
Gain on sale of fixed assets

(3)

(67)
Minority interest

(172)

-   
 
 
 
 
 
Changes in operating assets and liabilities:

 

 
Accounts receivable

(13,687)

(18,299)
Inventories

19,961  

(6,104)
Prepaid expenses and other current assets

(2,005)

1,396  
Other assets

63  

(15)
Accounts payable

(10,211)

3,198  
Accrued expenses and other current liabilities
 
(184)
 
190  
Deferred revenue

3,089  

1,410  
Total adjustments1,970  (13,865)  
Net cash        provided by/(used in) operating activities3,023  (11,927)   Cash flows from investing activities:  
Purchase of property and equipment(2,488)(3,277)
Proceeds from        sale of property and equipment3  -

Net cash used in        investing activities(2,485)(3,277)   
Cash flows from financing        activities:  
Payments for        deferred financing costs(25)(447)
Decrease in book        overdraft(16,218)(6,832)
Borrowings under notes payable2,625  2,000  
Payments under notes payable(500)(667)
Net borrowings        under line of credit14,173  15,186  
Net proceeds of        eCOST.com initial public offering 18,690   -   
Payments for        initial public offering        costs (1,684) -   
Principal payments of obligations under capital leases-   (124)
Repurchase of        common stock-   (459)
Proceeds from stock issued under stock option plans 1,198    959  
Net cash        provided by financing activities 18,259   9,616     
Effect on foreign        currency on cash flow2  (11)  
Net decrease in        cash and cash equivalents18,799  (5,599)
Cash and cash equivalents:  
Beginning of period 7,819    11,422  
End of period
$26,618  
$5,823  
 

See  notes tocondensed consolidated financial statements.

 
Table ofContentsPC MALL, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(unaudited)1.      Basis of Presentation 
 

The consolidated interimfinancial statements include the accounts of PC Mall, Inc., a Delawarecorporation (formerly IdeaMall, Inc. and Creative Computers, Inc.) and itswholly-owned subsidiaries (collectively, the “Company”) and have beenprepared without audit pursuant to the rules and regulations of the Securitiesand Exchange Commission (“SEC”). Certain information and footnotedisclosures normally included in financial statements prepared in accordancewith generally accepted accounting principles have been condensed or omittedpursuant to such regulations.  These financial statements should be read inconjunction with the audited financial statements and the notes thereto includedin the Company’s Annual Report on Form 10-K for the year ended December 31,2003 and with the Company’s Quarterly Reports on Form 10-Q for the periodsended March 31, 2004 and June 30, 2004. 

 

In the opinion ofmanagement, the accompanying unaudited condensed consolidated financialstatements contain all adjustments consisting solely of normal recurring itemsnecessary for a fair statement of the financial position of the Company atSeptember 30, 2004 and December 31, 2003 and the results of operations for thethree and nine months ended September 30, 2004 and 2003, and cash flows for thenine months ended September 30, 2004 and 2003.  The results of operationsfor the interim periods are not necessarily indicative of the results ofoperations for the full year. 
 Stock BasedCompensation
 

The Company accounts for its stock option plans using the intrinsic value-basedmethod of accounting prescribed by Accounting Principles Board Opinion No. 25,"Accounting for Stock Issued to Employees," ("APB 25") and relatedinterpretations.  Under this method, compensation expense is recorded onthe date of grant only if the current market price of the underlying commonstock exceeded the exercise price.  Statement of Financial AccountingStandards No. 123, "Accounting for Stock-Based Compensation," ("SFAS 123")established accounting and disclosure requirements using a fair value-basedmethod for stock option plans.  As allowed by SFAS 123, the Companycontinues to apply the intrinsic value-based method of accounting, and hasadopted the disclosure requirements of SFAS 123.  Accordingly, the Companydoes not record compensation expense on issuance of stock options to employees,as all options issued to employees to date were granted at the then-currentmarket value at the date of grant, except for the option grant in March 2004 bythe Company's subsidiary eCOST.com, Inc. ("eCOST.com") as discussed in Note 6. 

 

Had compensation cost onall grants been determined consistent with SFAS 123, the Company’s netincome and earnings per share would have been reduced to the pro forma amountsshown below (in thousands, except per share amounts).  

 

**Three months ended**
**September 30,**

**Nine months ended**
**September****30,**

**2004**
**2003**
**2004**
**2003**    Net income (as reported)$210  $703  $1,053  $1,938  
Less:    compensation expense as determined under SFAS 123, net of related taxes (888)  (201) (1,761)  (709)
Add:    stock-based compensation expense included in reported net income,    net of related taxes649  -   752  -       Pro forma net income (loss)$(29)$502  $44  $1,229Earnings per share - Basic
      As reported
    $0.02      $0.07      $0.10      $0.18  Pro forma    $0.00      $0.05      $0.00      $0.12   Earnings per share - Diluted
      As reported
    $0.02      $0.06      $0.09      $0.17  Pro forma    $0.00      $0.04      $0.00      $0.11                                   
 

In June 2003, the Company issued a warrant to purchase 30,000 shares of theCompany's common stock to a consulting firm for investor and public relationsservices.  The warrant was issued at an exercise price of $3.99 with afive-year term, and vested monthly over a one year period until it became fullyvested in June 2004.  The Company valued the warrant at fair value (inaccordance with SFAS 123) based on a Black-Scholes fair value calculation. The warrant was valued at the date of grant and was re-measured at fair value ateach subsequent reporting period through the end of the one-year vesting period. Through September 30, 2004, the Company recorded a cumulative expense ofapproximately $0.4 million for the one-year vesting period ended June 15, 2004,which includes $0.1 million for the nine months ended September 30, 2004. 
 Reclassifications
 

Certain reclassificationshave been made to the 2003 financial statement amounts to conform to the 2004presentation. 

 
2.        Recent Accounting Pronouncements
 

In November 2002, the FASB issued EITF No. 02-16, "Accounting by a Customer(Including a Reseller) for Certain Consideration Received from a Vendor" ("EITF02-16"). EITF 02-16 requires that consideration received by a customer from avendor be considered (a) an adjustment of the prices of the vendor's products orservices and therefore, characterized as a reduction of cost of sales whenrecognized in the reseller's statement of operations, (b) an adjustment to acost incurred by the reseller and, therefore characterized as a reduction ofthat cost when recognized in the reseller's statement of operations, or (c) apayment for assets or services delivered to the vendor, and therefore,characterized as revenue when recognized in the reseller's statement ofoperations.  Adoption of EITF 02-16 was required for the Company for newagreements, including modifications of existing agreements, entered into afterDecember 31, 2002.  For the quarter and nine months ended September 30,2004, and for the quarter ended September 30, 2003, nearly all vendorconsideration was recorded as an offset to cost of goods sold.  For thenine months ended September 30, 2003, approximately $3.1 million of vendorconsideration was recorded as an offset to advertising expense**.**

 

**3.        Net Income Per Share**

 

Basic Earnings Per Share(“EPS”) excludes dilution and is computed by dividing net income bythe weighted average number of common shares outstanding during the reportedperiods.  Diluted EPS reflects the potential dilution that could occurunder the treasury stock method if stock options and other commitments to issuecommon stock were exercised. The computation of Basic and Diluted EPS is asfollows (in thousands, except per share data): 

 
              
**Three months ended**
** September          30,**
 
 
**Nine months ended**
** September          30,**  **2004**  **2003**  **2004**  **2003**
 

Net income 210  703  1,053  1,938Weighted average shares -          Basic        11,181  10,64011,033 10,591 
Effect of          dilutive stock options and warrants (a) 1,002  1,060 1,115 810
Weighted          average shares - Diluted 12,183    11,700 12,148 11,401Earnings per share - Basic$0.02$  0.07
$0.10$         0.18  Earnings per share - Diluted$0.02$   0.06
$0.09$  0.17 
 

(a)  Potential common shares of 140 and 190 for the three months ended September30, 2004 and 2003, respectively, and 30 and 352 for the nine months endedSeptember 30, 2004 and 2003, respectively, have been excluded from the earningsper share computations because the effect of their inclusion would beanti-dilutive. 

 
4.         Segment Information
 

The Company operates inthree reportable segments: (1) a rapid response supplier of technology solutionsfor business, government and educational institutions as well as consumers,comprised of corporate, public sector, inbound catalog and other sales,collectively referred to as the “Core Business,” (2) a multi-categoryonline discount retailer of new, refurbished and close-out products under theeCOST.com brand, and (3) an online marketplace/auction business under theOnSale.com brand.  The OnSale.com segment, which was previously reported aspart of the Core Business, was established as a new segment beginning in thethird quarter of 2003, and prior period amounts have been adjusted to reflectthe new presentation.  The Company allocates resources to and evaluates theperformance of its segments based on operating income.  Corporate expensesare included in the Company’s measure of segment operating income formanagement reporting purposes.

 

Summarized segmentinformation for continuing operations for the three months and nine months endedSeptember 30, 2004 and 2003 is as follows (in thousands): 

 

**Three months ended**
** September 30, 2004** **Core Business**  **eCOST.com**  **OnSale**  **Consolidated**Net sales$239,826  $43,459   $3   $283,288  Gross profit30,091  4,852   3   34,946  Income from operations2,293  (1,453) (300) 540        
**Three months ended**
** September 30, 2003**
 **Core Business**  **eCOST.com**  **OnSale**  **Consolidated**Net sales$206,437  $25,551   $8   $231,996  Gross profit29,260  2,958   8   32,226  Income from operations1,435  315   (322) 1,428        
**Nine months ended**
** September 30, 2004** **Core Business**  **eCOST.com**  **OnSale**  **Consolidated**Net sales$711,217  $120,667   $19   $831,903  Gross profit91,695  13,208   19   104,922  Income from operations5,520  (1,759) (939) 2,823        
**Nine****months ended**
** September 30, 2003** **Core Business**  **eCOST.com**  **OnSale**  **Consolidated**Net sales$612,219  $73,427   $8   $685,654  Gross profit83,256  8,529   8   91,793  Income from operations3,960  680   (731) 3,909  
 
5.          eCOST.com, Inc.Initial Public Offering
 

On September 1, 2004, the Company's eCOST.com subsidiary completed an initialpublic offering of its common stock.  Following the initial publicoffering, the Company owned 80.2% of the outstanding common stock of eCOST.com.The Company has announced that it intends to distribute the remaining shares ofeCOST.com to the Company's stockholders approximately six months followingcompletion of the eCOST.com IPO. Completion of the distribution is contingentupon the satisfaction or waiver of a variety of conditions, including, amongother things, the receipt of a favorable opinion of the Company's tax counsel asto the tax-free nature of the distribution for U.S. federal income tax purposes.As a result, the distribution may not occur at the contemplated time or may notoccur at all. 

 

On September 1, 2004,eCOST.com completed the sale of 3,465,000 shares of its common stock foraggregate consideration of $20.1 million, less underwriting discounts andcommissions of $1.4 million. eCOST.com incurred approximately $2.1 million ofoffering expenses in connection with the offering. No offering expenses werepaid directly or indirectly to any of its directors or officers (or theirassociates) or persons owning ten percent or more of any class of ourequity securities or to any other affiliates. eCOST.com’s net proceeds ofthe offering after deducting its offering expenses was $16.6 million. Inconnection with the IPO, eCOST.com paid a dividend of $2.5 million to PC Mall,Inc. through a non-cash settlement of the capital contribution due from PC Mall,Inc. outstanding at the completion of the IPO. 

 

The Company recorded aminority interest liability of $4.5 million representing the 19.8% interest ineCOST.com's stockholders' equity immediately following the IPO. The liability was offset by a correspondingreduction of additional paid-in-capital. Further, this liability was reduced bythe 19.8% portion of eCOST.com’s net loss between the completion of the IPOdate and the end of the third quarter of 2004, totaling $0.2 million. 

 
6.        Non-cash stock-based compensation
 

In March 2004, eCOST.comgranted an option under its 1999 Stock Incentive Plan (the "1999 Plan") to purchase 560,000 shares of its common stock (after givingeffect to a 1.4-for-1 stock split in connection with eCOST.com’s IPO) toits Chief Executive Officer at an exercise price of $6.43 per share. This grantresulted in the recognition of deferred stock-based compensation based on theestimated deemed fair value of the common stock on the date of grant of $10.00.An aggregate of 25% of the shares of common stock subject to this option vestedupon the completion of eCOST.com’s IPO on September 1, 2004. The remainderof the shares of common stock subject to this option will vest in equalquarterly installments over a three-year period following the IPO. The Companyrecorded a non-cash compensation charge of $0.4 million to reflect compensationexpense related to the accelerated vesting of shares under this option as aresult of the IPO.  In addition, the Company recognized compensationexpense of $0.1 million in the three months ended June 30, 2004 for a total of$0.5 million, in connection with this option. The Company will also recognizeadditional compensation expense of $1.5 million relating to this option, whichwill be amortized over the remaining three-year vesting period. 

 

Further, additional options to purchase anaggregate of 358,400 shares of eCOST.com common stock were outstanding under the1999 Plan at a weighted average exercise price of $0.34 at September 30, 2004.  The options have terms that (i) restrict exerciseability basedon the earlier of a corporate transaction involving eCOST.com (e.g. a merger orconsolidation or disposition of all or substantially all of the assets ofeCOST.com) as defined, an initial public offering (“IPO”) by eCOST.comor the lapse of a five or seven year period from date of grant, and (ii) forcertain awards, provide repurchase rights to eCOST.com at the original exerciseprice in the event of employee termination, which rights terminate in the eventof a corporate transaction or IPO. No options were exercisable prior to the IPOof eCOST.com which was completed on September 1, 2004, and the time-basedvesting terms were not deemed substantive as the awards were effectivelycontingent upon a corporate transaction or IPO of eCOST.com.  Due tosuch contingency, the Company had deemed the awards to be variable awards underAPB 25 as the probability of these contingent events could not be reasonablydetermined. As a result of the closing of the IPO on September 1, 2004, at anoffering price of $5.80 per share the Company recognized a compensation chargeof $0.8 million based on the intrinsic value of these awards. 

 
7.          Other Contingency
 

On July 12, 2004, theCompany’s eCOST.com subsidiary received correspondence from MercExchangeLLC alleging infringement of MercExchange’s U.S. patents relating toe-commerce and offering to license its patent portfolio to the subsidiary. OnJuly 15, 2004, eCOST.com received a follow-up letter from MercExchangespecifying which of eCOST.com’s technologies MercExchange believes infringecertain of its patents, alone or in combination with technologies provided bythird parties. Some of those patents are currently being litigated by thirdparties, and eCOST.com is not involved in those proceedings. In addition, threeof the four patents identified by MercExchange are under reexamination at theU.S. Patent and Trademark Office, which makes the scope of the claims of thosepatents uncertain.  In the July 15 letter, MercExchange also advisedeCOST.com that it has a number of applications pending for additional patents.Each of the patents identified by MercExchange contains numerous claims,eCOST.com has not yet had the opportunity to fully assess the merits of theidentified patents or complete its evaluation of the possible impact on itsbusiness. MercExchange has filed lawsuits alleging infringement of some or allof its patents against third parties, resulting in settlements or verdicts infavor of MercExchange. At least one such verdict has been appealed to the UnitedStates Court of Appeals for the Federal Circuit.  Based on eCOST.com’sinvestigation of this matter to date, eCOST.com believes that its currentoperations do not infringe any valid claims of the patents identified byMercExchange in these letters. There can be no assurance, however, that suchclaims will not be material or adversely affect the Company’s oreCOST.com’s business, financial position, results of operations or cashflows. 

 
Table ofContents
 
ITEM2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS
 
Overview andRecent Developments
 

PC Mall, Inc. through its subsidiaries (the "Company"), is a leading rapidresponse direct marketer of computer hardware, software, peripheral,electronics, and other consumer products.  The Company's headquarters arein Torrance, California.  The Company offers products to business,government and educational institutions as well as individual consumers throughdedicated outbound and inbound telemarketing sales executives, the Internet,direct marketing techniques, direct response catalogs, a direct sales force, andthree retail showrooms.  The Company offers a broad selection of productsthrough its distinctive full-color catalogs under the PC Mall, MacMall, ClubMac,PC Mall Gov and eCOST.com brands; its worldwide web sites on the Internet:pcmall.com, macmall.com, clubmac.com, pcmallgov.com, and ecost.com; and otherpromotional materials.  The Company also operates OnSale.com, an onlinemarketplace includingauctions, which was formally launched in October 2003.

 

The Company operates inthree reportable segments: 1) a rapid response supplier of technology solutionsfor business, government and educational institutions as well as consumers,comprised of corporate, public sector, inbound catalog and other sales,collectively referred to as the “Core Business,” 2) a multi-categoryonline discount retailer of new, refurbished, and close-out products under theeCOST.com brand; and 3) the OnSale.com brand, an online marketplace including auctions.  The OnSale.com segment, which was previously reported aspart of the Core Business, was established as a new segment beginning in thethird quarter of 2003, and prior period amounts have been adjusted to reflectthe new presentation.  The Company allocates resources to and evaluates theperformance of its segments based on operating income.  Corporate expensesare included in the Company’s measure of segment operating income formanagement reporting purposes.

 

Company managementregularly reviews its performance using a variety of financial and non-financialmetrics including, but not limited to, sales, shipments, average order size,gross margin, co-op advertising revenues, advertising expense, personnel costs,sales account executive productivity, accounts receivables aging, inventoryturnover, liquidity, and cash resources.  Company management compares thevarious metrics against goals and budgets, and takes appropriate action toenhance Company performance. 

 

The Company plans to continue to focus efforts on increasing market share byinvesting in the growth, training, and retention of its outbound sales force. This strategy is expected to result in increased expenses associated with theinfrastructure and training necessary to achieve those goals, which could havean impact on profitability in the near term.  However, the rate of growthin the Corporate and public sector account manager headcount may decrease in thefuture as the Company strives to balance sales growth objectives andprofitability.

 

In September 2003, theCompany established a Canadian call center serving the U.S. market.  TheCanadian call center operations resulted in a net profit of $0.2 million for thequarter ended September 30, 2004, and net cost to the Company of $0.6 millionfor the nine months ended September 30, 2004.  The costs incurred for thecomparable period in the prior year are minimal due to its establishment late inthe third quarter of the prior year.  The Company believes that theCanadian call center allows it to access an abundant, highly educated labor pooland provides cost advantages from a government labor credit that extends throughapproximately the end of 2007.  During the period through 2007, the Companyexpects to annually claim labor credits of up to 35% of eligible compensationfor qualifying employees under the program.  The Company has submitted aclaim for the year ended December 31, 2003 in the amount of $0.3 million and hasaccrued an additional $1.4 million of these credits as of September 30, 2004. 

 

In September 2002, the Company formed Onsale, Inc. as a wholly-owned subsidiary. The Company acquired the URL and software that operated the original OnSale.comwebsite for approximately $0.4 million through bankruptcy proceedings of Eggheadin December 2002.  In October 2003, the Company formally launchedOnSale.com, an online marketplace including auctions.  As of September 30,2004, the Company has invested approximately $0.9 million in capitalexpenditures and software development costs in connection with its OnSale.combusiness.  

 

Net sales of the Companyare derived primarily from the sale of computer hardware, software, peripherals,electronics, and other consumer products to business, government and educationalinstitutions as well as individual consumers through dedicated outbound andinbound telemarketing sales executives, the Internet, relationship-basedtelemarketing techniques, direct response catalogs, a direct sales force, andthree retail showrooms located in Southern California and Tennessee. Grossprofit consists of net sales less product costs, inbound and outbound shippingcosts and offset by certain marketing development funds. Such funds are receivedfrom manufacturers of products included in the Company’s catalogs and websites, as well as co-operative advertising funds (“co-op”) on productspurchased from manufacturers and vendors. 

 

A substantial portion ofthe Company’s business is dependent on sales of HP products, Apple andApple-related products, and products of other vendors including Adobe, IBM,Ingram Micro, Microsoft, Sony, and Tech Data. Products manufactured by HPrepresented 20% of the Company’s net sales in the three months endedSeptember 30, 2004.  Products manufactured by Apple represented 23% of theCompany’s net sales in the three months ended September 30, 2004. 

 

On September 1, 2004, theCompany’s eCOST.com subsidiary completed an initial public offering of itscommon stock.  Following the initial public offering, the Company owned80.2% of the outstanding common stock of eCOST.com. The Company has announcedthat it intends to distribute the remaining shares of eCOST.com to theCompany’s stockholders approximately six months following completion of theeCOST.com IPO. Completion of the distribution is contingent upon thesatisfaction or waiver of a variety of conditions, including, among otherthings, the receipt of a favorable opinion of the Company’s tax counsel asto the tax-free nature of the distribution for U.S. federal income tax purposes.As a result, the distribution may not occur at the contemplated time or may notoccur at all. 

 

On September 1, 2004,eCOST.com completed the sale of 3,465,000 shares of its common stock foraggregate consideration of $20.1 million, less underwriting discounts andcommissions of $1.4 million. eCOST.com incurred approximately $2.1 million ofoffering expenses in connection with the offering. No offering expenses werepaid directly or indirectly to any of its directors or officers (or theirassociates) or persons owning ten percent (10%) or more of any class of ourequity securities or to any other affiliates. eCOST.com’s net proceeds ofthe offering after deducting its offering expenses was $16.6 million. Inconnection with the IPO, eCOST.com paid a dividend of $2.5 million to PC Mall,Inc. through a non-cash settlement of the capital contribution due from PC Mall,Inc. outstanding at the completion of the IPO. 

 

The Company recorded theinitialminority interest liability of $4.5 million representing the 19.8% interest ineCOST.com's stockholders' equity immediately following the IPO. The liability was offset by a correspondingreduction of additional paid-in-capital. Further, this liability was reduced bythe 19.8% portion of eCOST.com’s net loss between the completion of the IPOdate and the end of the third quarter of 2004, totaling $0.2 million. 

 

In March 2004, eCOST.comgranted an option under its 1999 Stock Incentive Plan (the "1999 Plan") to purchase 560,000 shares of its common stock (after givingeffect to a 1.4-for-1 stock split in connection with eCOST.com’s IPO) toits Chief Executive Officer at an exercise price of $6.43 per share. This grantresulted in the recognition of deferred stock-based compensation based on theestimated deemed fair value of the common stock on the date of grant of $10.00.An aggregate of 25% of the shares of common stock subject to this option vestedupon the completion of eCOST.com’s IPO on September 1, 2004. The remainderof the shares of common stock subject to this option will vest in equalquarterly installments over a three-year period following the IPO. The Companyrecorded a non-cash compensation charge of $0.4 million to reflect compensationexpense related to the accelerated vesting of shares under this option as aresult of the IPO.  In addition, the Company recognized compensationexpense of $0.1 million in the three months ended June 30, 2004 for a total of$0.5 million, in connection with this option. The Company will also recognizeadditional compensation expense of $1.5 million relating to this option, whichwill be amortized over the remaining three-year vesting period. 

 

Further, additional options to purchase anaggregate of 358,400 shares of eCOST.com common stock were outstanding under the1999 Plan at a weighted average exercise price of $0.34 at September 30, 2004.  The options have terms that (i) restrict exerciseability basedon the earlier of a corporate transaction involving eCOST.com (e.g. a merger orconsolidation or disposition of all or substantially all of the assets ofeCOST.com) as defined, an initial public offering (“IPO”) by eCOST.comor the lapse of a five or seven year period from date of grant, and (ii) forcertain awards, provide repurchase rights to eCOST.com at the original exerciseprice in the event of employee termination, which rights terminate in the eventof a corporate transaction or IPO. No options were exercisable prior to the IPOof eCOST.com which was completed on September 1, 2004, and the time-basedvesting terms were not deemed substantive as the awards were effectivelycontingent upon a corporate transaction or IPO of eCOST.com.  Due tosuch contingency, the Company had deemed the awards to be variable awards underAPB 25 as the probability of these contingent events could not be reasonablydetermined. As a result of the closing of the IPO on September 1, 2004, at anoffering price of $5.80 per share the Company recognized a compensation chargeof $0.8 million based on the intrinsic value of these awards. 

 

On July 12, 2004, theCompany’s eCOST.com subsidiary received correspondence from MercExchangeLLC alleging infringement of MercExchange’s U.S. patents relating toe-commerce and offering to license its patent portfolio to the subsidiary. OnJuly 15, 2004, eCOST.com received a follow-up letter from MercExchangespecifying which of eCOST.com’s technologies MercExchange believes infringecertain of its patents, alone or in combination with technologies provided bythird parties. Some of those patents are currently being litigated by thirdparties, and eCOST.com is not involved in those proceedings. In addition, threeof the four patents identified by MercExchange are under reexamination at theU.S. Patent and Trademark Office, which makes the scope of the claims of thosepatents uncertain.  In the July 15 letter, MercExchange also advisedeCOST.com that it has a number of applications pending for additional patents.Each of the patents identified by MercExchange contains numerous claimseCOST.com has not yet had the opportunity to fully assess the merits of theidentified patents or complete its evaluation of the possible impact on itsbusiness. MercExchange has filed lawsuits alleging infringement of some or allof its patents against third parties, resulting in settlements or verdicts infavor of MercExchange. At least one such verdict has been appealed to the UnitedStates Court of Appeals for the Federal Circuit.  Based on eCOST.com’sinvestigation of this matter to date, eCOST.com believes that its currentoperations do not infringe any valid claims of the patents identified byMercExchange in these letters. There can be no assurance, however, that suchclaims will not be material or adversely affect the Company’s oreCOST.com’s business, financial position, results of operations or cashflows. 

 
CriticalAccounting Policies and Estimates
 

The Company’sconsolidated financial statements have been prepared in accordance withaccounting principles generally accepted in the United States of America. The preparation of the Company’s consolidated financial statements requiresthe Company to make estimates and assumptions that affect the reported amountsof assets, liabilities, net sales and expenses, as well as the disclosure ofcontingent assets and liabilities. The Company bases its estimates on historicalexperience and on various other assumptions that are believed to be reasonableunder the circumstances, the results of which form the basis for makingjudgments about carrying values of assets and liabilities that are not readilyapparent from other sources.  Actual results could differ from thoseestimates, and revisions to estimates are included in the Company’s resultsfor the period in which the actual amounts become known. 

 

Management considers anaccounting estimate to be critical if: 

 

        -- it requires assumptionsto be made that were uncertain at the time the estimate was made; and 

 

        --changes in the estimate or different estimates that could have been selectedcould have a material impact on the Company’s results of operations orfinancial condition. 

 

Management has discussedthe development and selection of these critical accounting policies andestimates with the audit committee of the Company’s board ofdirectors.  The Company believes the critical accounting policies describedbelow affect the more significant judgments and estimates used in thepreparation of the Company’s financial statements: 

 

*RevenueRecognition. *The Company adheres to the revised guidelines andprinciples of sales recognition described in Staff Accounting Bulletin No. 104,“Revenue Recognition” (“SAB 104”), issued by the staff ofthe SEC as a revision to Staff Accounting Bulletin No. 101, “RevenueRecognition” (“SAB 101”).  While the wording of SAB 104 hasrevised the original SAB 101, “Revenue Recognition”, the revenuerecognition principles of SAB 101 remain largely unchanged by the issuance ofSAB 104.  Under SAB 104, sales are recognized when the title and risk ofloss are passed to the customer, there is persuasive evidence of an arrangementfor sale, delivery has occurred and/or services have been rendered, the salesprice is fixed or determinable and collectibility is reasonably assured. Under these guidelines, the majority of the Company’s sales, includingrevenue from product sales and gross outbound shipping and handling charges, arerecognized upon receipt of the product by the customer.  For all productsales shipped directly from suppliers to customers, the Company takes title tothe products sold upon shipment, bears credit risk, and bears inventory risk forreturned products that are not successfully returned to suppliers; therefore,these revenues are recognized at gross sales amounts.   

 

Certain software products and extended warranties that the Company sells (forwhich the Company is not the primary obligor) are recognized on a net basis inaccordance with SAB 101 and EITF 99-19, "Reporting Revenue Gross as a Principalversus Net as an Agent." Accordingly, such revenues are recognized in net saleseither at the time of sale or over the contract period, based on the nature ofthe contract, at the net amount retained by the Company, with no cost of goodssold.

  

Sales are reported net of estimated returns and allowances, coupon redemptionsand credit card chargebacks.  If actual sales returns, allowances,discounts, coupon redemptions and credit card chargebacks are greater thanestimated by management, additional expense may be incurred.

  

*Allowance for DoubtfulAccounts Receivable. * The Company maintains an allowance for doubtfulaccounts receivable based upon estimates of future collection.  The Companyextends credit to its customers based upon an evaluation of each customer’sfinancial condition and credit history, and generally does not requirecollateral.  The Company regularly evaluates its customers’ financialcondition and credit and payment history in determining the adequacy of itsallowance for doubtful accounts.  The Company also maintains an allowancefor uncollectible vendor receivables which arise from vendor rebate programs,price protections and other promotions.  The Company determines thesufficiency of the vendor receivable allowance based upon various factors,including payment history.  Amounts received from vendors may vary fromamounts recorded because of potential non-compliance with certain elements ofvendor programs.  If estimated allowances for uncollectible accounts orvendor receivables subsequently prove insufficient, additional allowance may berequired. 

 

*Reserve for InventoryObsolescence. * The Company maintains allowances for the valuation ofits inventory by estimating the obsolete or unmarketable inventory based on thedifference between inventory cost and market value determined by general marketconditions, and nature, age and type of each product.  The Companyregularly evaluates the adequacy of its inventory reserve.  If theinventory reserve subsequently proves insufficient, additional inventorywrite-downs may be required. 

 

*Coupon Redemption RateEstimates. *The Company accrues monthly expense relatedto promotional coupon rebates based upon the quantity of eligibleorders transacted during the period and the estimated redemption rate. The estimated expense is accrued and presented as a reduction ofnet sales.  The estimated redemption rates used to calculate theaccrued coupon expense and related coupon liability are basedupon historical redemption experience rates for similarproducts or coupon amounts.  Estimated redemption rates andthe related coupon expense and liability are regularly adjustedas actual coupon redemptions for the program are processed.  If actualredemption rates are greater than anticipated, additional expense may beincurred. 

 

*Deferred AdvertisingRevenue and Costs.*  The Company produces and circulates catalogs atvarious dates throughout the year and receives market development funds andco-op advertising funds from vendors included in each catalog.  These fundsare recognized based on sales generated over the life of the catalog,approximately eight weeks, as an offset to cost of sales in accordance with EITFNo. 02-16, “Accounting by a Customer (Including a Reseller) for CertainConsideration Received from a Vendor” (“EITF 02-16”).  Thecosts of developing, producing and circulating each catalog are deferred andcharged to advertising expense at the same rate as the co-op revenue based onthe life of the catalog.  Deferred advertising revenue is included inaccrued expenses and other current liabilities, offset by deferred advertisingcosts, which are included in prepaid expenses and other current assets. 

 
Results ofOperations
 
Three MonthsEnded September 30, 2004 Compared to the Three Months Ended September 30, 2003
 

Consolidated net sales forthe quarter ended September 30, 2004 were $283.3 million, an increase of $51.3million, or 22%, over last year’s third quarter sales of $232.0million.  Core Business sales for the third quarter of 2004 were $239.8million, an increase of $33.4 million over the prior year’s third quarter,with corporate sales for the quarter growing 26% and public sector sales growing40% compared to the prior year’s third quarter, partially due to a****25% increase in combined account manager headcount in those units. Thisgrowth was offset by a decline in the Core Business catalog sales of 12% for thethird quarter of 2004 compared to the prior year’s third quarter. eCOST.com sales for the quarter were $43.5 million, an increase of $17.9million, or 70% over the prior year’s third quarter.  The salesincrease for eCOST.com was primarily the result of a 74% increase in advertisingexpenditures and increased sales to business customers assigned to arelationship manager. Active customers of eCOST.com at the end of the quarterincreased by 84% from same quarter last year due to increased awareness of itswebsite derived from additional advertising spending during the second and thirdquarters of 2004.  For eCOST.com, sales to business customers assigned torelationship managers increased 99% over the comparable prior year periodprimarily due to an increase in the number of accounts managed.  For thequarter ended September 30, 2004, consolidated sales of HP and Apple productsrepresented 20% and 23% of consolidated net sales, compared to 23% and 19%,respectively, in the prior year’s comparable period.  OnSale.com salesfor the third quarter of 2004 were insignificant, and therefore have nomeaningful comparison to the prior year’s quarter. 

 

Consolidated gross profitwas $34.9 million for the three months ended September 30, 2004, an increase of$2.7 million, or 8%, over the prior year’s comparable quarter.  Forthe Core Business, gross profit was $30.1 million, an increase of $0.8 million,or 3% over the prior year’s third quarter gross profit.  ForeCOST.com, gross profit for the third quarter of 2004 was $4.9 million, anincrease of $1.9 million, or 64% from the prior year’s thirdquarter.   As a percentage of sales, consolidated gross profit for thethree months ended September 30, 2004 was 12.3% versus 13.9% in the prioryear’s third quarter.  For the Core Business, gross profit as apercentage of sales was 12.6% for third quarter of the current year and 14.2% inthe prior year’s third quarter.  The decline is primarily the resultof decreased vendor consideration received by the Company as a percentage ofsales, as well as aggressive pricing used to accelerate customeracquisition.  eCOST.com gross profit as a percentage of sales for the threemonths ended September 30, 2004 and 2003 was 11.2% and 11.6%,respectively.  The decline is primarily due to reduced vendor considerationand promotional pricing and special offers to accelerate customer acquisition.  The Company’s gross profitpercentage may vary from quarter to quarter, depending on the continuation ofkey vendor support programs, including price protections, rebates and returnpolicies, and based on product mix, pricing strategies, acquisitions,competition and other factors. 

 

Consolidated selling,general, and administrative (“SG&A”) expenses were $29.2 millionfor the three months ended September 30, 2004, which includes a $1.4 millioncharge for non-cash stock-based compensation, representing an increase of $5.2million, or 21% from the comparable period in the prior year.  As a percentof sales, consolidated SG&A expenses decreased to 10.3% in the third quarter of2004 from 10.4% in comparable quarter in the prior year.  For the CoreBusiness, SG&A expenses in the third quarter of 2004 were $23.9 million, anincrease of $2.1 million, or 9%, compared to the third quarter of the prioryear.  As a percent of sales, SG&A expenses for the Core Business decreasedto 10.0% compared with 10.6% in the third quarter last year.   SG&Afor the Core Business increased primarily due to higher personnel costs of $1.4million; however, such costs were 41 basis points lower as a percentage ofsales, contributing to the decrease in the SG&A percentage of sales.  

 

For eCOST.com, SG&A expenses in the third quarter of 2004 were $4.9 million, anincrease of $3.1 million, or 167%, compared with the third quarter of the prioryear.  As a percent of sales, SG&Aexpenses for eCOST.com increased to 11.3% in the third quarter of 2004 comparedwith 7.2% in the third quarter last year.  SG&A expenses for eCOST.comin the third quarter of 2004 include $0.2 million****in audit fees****associated in obtaining audited financial statements for the IPO and $1.3million of stock-based compensation expense, offset by operating leverage basedon the 70% increase in sales compared to prior year’s comparablequarter.  For OnSale.com, SG&A expenses in the third quarter of 2004were $0.3 million, essentially unchanged compared with the third quarter of theprior year.  OnSale.com sales for the third quarters of 2003 and 2004 wereinsignificant, and therefore comparisons as a percent of net sales are notmeaningful. 

 

Consolidated netadvertising expense for the third quarter of 2004 was $5.2 million, a decreaseof $1.5 million over the prior year’s third quarter.  For the CoreBusiness, net advertising expense was $3.9 million compared to $6.0 million inthe prior year’s third quarter, primarily due to a $1.8 million decrease inadvertising supporting the Company’s inbound catalog business.  ForeCOST.com, advertising expense for the third quarter of 2004 was $1.4 millioncompared to $0.8 million in the comparable period in the prior year, as itexpanded its online advertising to drive new business. 

 

Consolidated net interest expense forthe three months ended September 30, 2004 increased to $0.4 million, from $0.3million in the prior year’s comparable quarter.  The increase ininterest expense resulted from increased daily average borrowings on theCompany’s Line of Credit. 

 

The Company recorded anincome tax provision for the quarter ended September 30, 2004 of $0.1 million,down from $0.4 million in the comparable quarter in 2003.  The Companyutilized an effective tax rate of 38.5% for the quarter ended September 30,2004 and 37.0% for the quarter ended September 30, 2003.  In the thirdquarter of 2004, the Company's effective tax rate was 59% for the Core Businessand 37.1% for eCOST.com.  The effect of the lower rate for eCOST.com had a$20 thousand impact on the net tax provision which is reflected in the overallrate.

 

The Company recorded aminority interest liability of $4.5 million representing the 19.8% interest ineCOST.com's stockholders' equity immediately following the IPO. The liability was offset by a correspondingreduction of additional paid-in-capital. Further, this liability was reduced bythe 19.8% portion of eCOST.com’s net loss between the completion of the IPOdate and the end of the third quarter of 2004, totaling $0.2 million. 

 

Net income was $0.2million, or $0.02 per diluted share, for the three months ended September 30,2004 compared to net income of $0.7 million, or $0.06 per diluted share, for thesame period last year.  

 
Nine MonthsEnded September 30, 2004 Compared to the Nine Months Ended September 30, 2003
 

Consolidated net sales forthe nine months ended September 30, 2004 were $831.9 million, an increaseof $146.2 million, or 21% over the nine months ended September 30,2003.  Core business net sales for the nine months ended September 30, 2004were $711.2 million, an increase of $99.0 million, or 16% over the ninemonths ended September 30, 2003.  The increase was primarily due to a 35%increase in corporate sales, and a 28% increase in public sector sales. The increase was partially offset by a 14% decrease in inbound catalogsales.  For the nine months ended September 30, 2004, net sales foreCOST.com were $120.7 million, an increase of $47.2 million or 64% over thecomparable period of the prior year.  eCOST.com’s sales increase wasprimarily the result of a 76% increase in advertising expenditures and increasedsales to business customers assigned to relationship managers.  Newcustomers during the nine month period ended September 30, 2004 increased by 93%compared to the same period last year due to increased awareness of theeCOST.com website derived from additional advertising spending during thecomparable period of 2004.  For eCOST.com, sales to business customersassigned to relationship managers increased 106% over the comparable prior yearperiod primarily due to an increase in the number of accounts managed.  Forthe nine months ended September 30, 2004, sales of HP and Apple productsrepresented 22% and 17%****of consolidated net sales, compared to 22% and20%, respectively, in the prior year’s comparable period. 

 

Consolidated gross profitfor the nine months ended September 30, 2004 was $104.9 million, an increase of$13.1 million, or 14%, over the prior year’s comparable period.** **For the Core Business, gross profit was $91.7 million, an increase of $8.4million, or 10%, over the comparable period in the prior year.  ForeCOST.com, gross profit for the first nine months of 2004 was $13.2 million, anincrease of $4.7 million, or 55% over the prior year’s comparableperiod.  As a percentage of sales, consolidated gross profit for the ninemonths ended September 30, 2004 was 12.6% versus 13.4% in the comparable periodof the prior year.  For the Core Business, gross profit as a percentage ofsales for the nine months ended September 30, 2004 was 12.9% versus 13.6% in thecomparable period of the prior year.  The gross profit increase in thefirst nine months of 2004 included the impact of EITF 02-16 in the prior yearwhich resulted in approximately $2.8 million of vendor consideration beingclassified in advertising in the first nine months of 2003.  Such amountswere offset by an overall decrease in vendor consideration received in theperiod, resulting in a decline in the Core Business gross profitpercentage.  For eCOST.com, gross profit as a percentage of sales for thenine months ended September 30, 2004 was 11.0% versus 11.6% in the same periodof the prior year, primarily due to reduced vendor consideration and increasedfreight promotions.  The Company’s gross profit percentage may varyfrom quarter to quarter, depending on the continuation of key vendor supportprograms, including price protections, rebates and return policies, and based onproduct mix, pricing strategies, acquisitions, competition and otherfactors.   See “Impact of Recently Issued AccountingStandards” below for a discussion of the Company’s adoption of EITF02-16. 

 

Consolidated selling,general and administrative expenses (“SG&A”) were $83.7 millionfor the nine months ended September 30, 2004, an increase of $12.6 million, or18%, from the comparable period in the prior year. As a percent of net sales,SG&A for the nine months ended September 30, 2004 decreased to 10.1% from10.4% from the comparable period in the prior year.  For the Core Business,SG&A for the nine months ended September 30, 2004 were $72.1 million, anincrease of $7.4 million, or 11%, compared to the same period in the prioryear.  As a percent of net sales, SG&A for the Core Business decreasedto 10.1% for the nine months ended September 30, 2004 compared with 10.6% forthe same period last year.  SG&A for the Core Business increasedprimarily due to higher personnel costs of $5.5 million; however, such costswere 22 basis points lower as a percentage of net sales, contributing to thedecrease in the SG&A percentage of sales.  For eCOST.com, SG&A forthe nine months ended September 30, 2004 were $10.7 million, an increase of $5.1million, or 89% compared with the same nine-month period in the prioryear.  As a percent of net sales, SG&A for eCOST.com increased by 115basis points to 8.9% for the nine months ended September 30, 2003 from 7.8% forthe comparable period last year.  The increase in SG&A expensesas a percentage of net sales was primarily due to the non-cash stock-basedcompensation charge, as well as audit fees and other related IPO expenditures. The increase in eCOST.com’s SG&A as a percentage of sales was drivenprimarily by a 149 basis point increase in overall personnel costs as apercentage of sales, primarily attributable to the $1.4 million of non-cashstock compensation charges in conjunction with the initial public offering, forthe nine months ended September 30, 2004.. 

 

Consolidated netadvertising expense for the first nine months of 2004 was $18.4 million comparedto $16.8 million in the prior year’s comparable period.   For theCore Business, net advertising expense was $14.1 million compared to $14.6million in the first nine months of the prior year, primarily due to a $2.6million decrease in advertising supporting the Company’s inbound catalogbusiness.  Core Business advertising expenses were reduced in the firstnine months of the prior year by $2.8 million of vendor consideration which wasclassified as an offset to advertising expenses, but are classified in cost ofgoods sold in the first nine months of 2004, as required by EITF 02-16. For eCOST.com, net advertising expense for the first nine months of 2004 was$4.2 million compared to $2.2 million for the comparable period in the prioryear, primarily due to increased internet advertising expenditures to acceleratecustomer acquisition. 

 

Consolidated net interest expense forthe nine months ended September 30, 2004 increased to $1.4 million, from $0.8million, compared to the same period in 2003.  The increase in interestexpense resulted from increased daily average borrowings on the Company’sLine of Credit. 

 

The Company recorded an income tax provision of $0.6 million for the nine monthsended September 30, 2004, compared to $1.1 million in the comparable period in 2003.  The Company utilized an effective tax rate of 38.5% for the ninemonths ended September 30, 2004 and 37.0% for the same period in the prior year.  

 

The Company recorded aminority interest liability of $4.5 million representing the 19.8% interest ineCOST.com's stockholders' equity immediately following the IPO. The liability was offset by a correspondingreduction of additional paid-in-capital. Further, this liability was reduced bythe 19.8% portion of eCOST.com’s net loss between the completion of the IPOdate and the end of the third quarter of 2004, totaling $0.2 million. 

 

Net income was $1.1million, or $0.09 per diluted share, for the nine months ended September 30,2004 compared to net income of $1.9 million, or $0.17 per diluted share, for thesame period last year.  

 
Liquidity andCapital Resources
 

*WorkingCapital.*** **The Company’s primary capital need hasbeen funding the working capital requirements created by its growth insales.  Historically, the Company’s primary sources of financing havecome from cash flow from operations, public and private issuances of its commonstock, and borrowings from financial institutions.  The Company believesthat current working capital, together with cash flows from operations andavailable lines of credit, will be adequate to support the Company’scurrent operating plans for at least the next twelve months.  If theCompany needs extra funds, such as for additional acquisitions or expansion orto fund unexpected losses, there are no assurances that adequate financing willbe available at acceptable terms, if at all. 

 

As of September 30, 2004,the Company had cash and cash equivalents of $26.6 million and working capitalof $51.6 million.  Inventory decreased $20.0 million to $60.6 million fromDecember 31, 2003 as the Company sold through product accumulated at year-endresulting from strategic buying opportunities.  Accounts receivableincreased $13.7 million to $85.1 million from December 31, 2003 resulting fromincreased business and governmental sales.  For the nine months endedSeptember 30, 2004, capital expenditures were $2.5 million versus $3.3 millionfor the comparable period last year.  Accounts payable and book overdraftdecreased by a total of $26.4 million or 32% during the nine month period,reflecting lower purchases made during the September 2004 period as comparedwith December 2003, as the Company aggressively pursued vendor early-paydiscounts and continued to sell through its strategic inventory purchases madein the fourth quarter of 2003. 

 

In April 2004, the Companyagreed to extend to its eCOST.com subsidiary a line of credit of up to $10million for necessary working capital requirements arising from expenses andliabilities incurred by eCOST.com in the ordinary course of business. TheCompany’s obligation under this line of credit terminated upon thecompletion of eCOST.com’s IPO. As of September 30, 2004, there were noborrowings outstanding under this Line of Credit.

 

The Company maintains a $75million, asset-based revolving credit facility from a lending unit of a largecommercial bank (the “Line of Credit”) that commenced in March2001.  In March 2003, the Line of Credit was amended to extend the term byan additional three years to expire in March 2007, and obtain improved terms forthe Company.  The Line of Credit functions as a working capital line ofcredit with a borrowing base of inventory and accounts receivable, and bearsinterest at prime with a LIBOR option.  At September 30, 2004, the PrimeRate was 4.75%.  The Line of Credit is secured by substantially all of theCompany’s assets.  The Line of Credit has as its single financialcovenant a minimum tangible net worth requirement and also includes a commitmentfee of 0.25% annually on the unused portion of the line up to $60 million. In May 2004, the Line of Credit was amended to provide for a conditional releaseof eCOST.com as a co-borrower and release of eCOST.com’s assets ascollateral, effective upon completion of eCOST.com’s IPO.  InSeptember 2004, this release became effective. The Company also maintains a $40million flooring credit facility, which functions in lieu of a vendor tradepayable for inventory purchases and does not bear interest if paid within termsspecific to each vendor (the “Flooring Facility”).  The FlooringFacility is secured by substantially all of the Company’s assets and isalso supported by a letter of credit issued under the Line of Credit in theamount outstanding under the Flooring Facility from time to time.  Theamount outstanding under the Flooring Facility is applied against the creditlimit under the Line of Credit.  In April 2004, the Company extended theFlooring Facility through March 2005.  The Company did not draw anysubstantial amounts on the Flooring Facility during the three months endedSeptember 30, 2004.  At September 30, 2004 and December 31, 2003, theCompany had****$40.4 million and $26.2 million of net working capitaladvances outstanding under the Line of Credit, respectively, and had noborrowings under the Flooring Facility at the end of either period.  TheCompany had $21.8 million available to borrow for working capital advances underthe Line of Credit at September 30, 2004.  Loan availability under the Lineof Credit fluctuates daily and is affected by many factors, including eligibleassets on-hand, opportunistic purchases of inventory and early paydiscounts.  The Company was in compliance with its financial covenantsunder the Line of Credit at September 30, 2004.  

 

In connection with and as a part of the Line of Credit, the Company entered intoa term note (the "Term Note").  In May 2004, the Company amended the Term Note to increasethe borrowing base from $2.0 million to $3.5 million and extend the maturitydate from March 2005 to September 2011.  As of September 30, 2004 theCompany had borrowed $3.5 million under the Term Note, payable in equal monthlyprincipal payments plus interest at prime.  As of September 30, 2004, theCompany has reflected $0.5 million of the principal amount of the Term Note incurrent liabilities included as Notes payable - current, and $2.9 million of theprincipal amount is included in non-current liabilities as Notes payable, basedon the timing of scheduled payments. 

 

In connection with itsinitial public offering, eCOST.com secured an asset-based line of credit of upto $15 million with a financial institution, which is secured bysubstantially all of the assets of eCOST.com. The credit facility functions as aworking capital line of credit with borrowings under the facility limited to apercentage of inventory and accounts receivable. Outstanding amounts under thefacility bear interest initially at the prime rate plus 0.25%. Beginning in2006, outstanding amounts under the facility will bear interest at rates rangingfrom the prime rate to the prime rate plus 0.5%, depending on financial results.The prime rate was 4.75% as of September 30, 2004. In connection with the lineof credit, eCOST.com is required to enter into a cash management arrangementwhereby its operating accounts will be swept and used to repay outstandingamounts under the line of credit. The credit facility contains standard termsand conditions customarily found in similar facilities offered to similarlysituated borrowers. The credit facility limits eCOST.com’s ability to makeacquisitions above pre-defined dollar thresholds, requires it to use theproceeds from any future stock issuances to repay outstanding amounts under thefacility, and has as its sole financial covenant a minimum tangible net worthrequirement. eCOST.com was in compliance with this covenant at September 30,2004. Borrowing availability is subject to satisfaction of certain standardconditions, including receipt of a waiver from the landlord at eCOST.com’scorporate headquarters, permitting the lender to access the premises to takepossession of personal property collateral in the event of a default under theline of credit. Fees under the credit facility include an upfront cash fee, anannual unused line fee of 0.375% of the unused portion of the line and atermination fee ranging from 0.20% to 0.75% depending on the timing of anytermination of the facility. The eCOST.com credit facility matures in March2007. There were no outstanding amounts under the line of credit as of September30, 2004. 

 

As part of its growthstrategy, the Company may, in the future, acquire other companies in the same orcomplementary lines of business, and pursue other business ventures. Any launchof a new business venture or any acquisition and the ensuing integration of theoperations of the acquired company with those of the Company would placeadditional demands on the Company’s management, operating and financialresources.   

 

Third parties haveasserted, and may in the future assert that the Company’s eCOST.combusiness or the technologies it uses infringe their intellectual propertyrights. Although eCOST.com has not been subject to legal proceedings in thepast, it may be subject to intellectual property legal proceedings and claims inthe ordinary course of its business. For example, in July 2004 eCOST.comreceived letters from a third party alleging that it is infringing certain ofits patents. Based on an investigation of this matter to date, eCOST.com's currentoperations do not infringe any valid claims of the patents identified in theseletters.  If eCOST.com is forced to defend against this or any otherthird-party infringement claims, it could face expensive and time-consuminglitigation and be required to pay monetary damages, which could include trebledamages and attorneys’ fees for any infringement that is found to bewillful, and either be enjoined or required to pay ongoing royalties withrespect to any technologies found to infringe. Further, as a result ofinfringement claims either against eCOST.com or against those who licensetechnology to eCOST.com, it may be required, or deemed it advisable, to developnon-infringing technology, which could be costly and time-consuming, or enterinto costly royalty or licensing agreements. 

 

*CashFlows.** *** Net cash used in operating activities was $3.0 millionfor the nine months ended September 30, 2004.  The primary factors thataffected the Company's cash flow from operations were inventories, accountsreceivable and accounts payable.  Inventory at September 30, 2004 decreased$20.0 million to $60.6 million over December 31, 2003, and inventory turnsincreased to 18.7 from 16.5 in the same period.  Accounts receivable atSeptember 30, 2004 increased $13.7 million to $85.1 million from December 31,2003 due to an increase in sales on account to corporate and governmentcustomers.  Accounts payable and book overdraft decreased by a total of$26.4 million or 32% during the nine month period.  Net borrowings underthe Line of Credit increased by $14.2 million in the nine months ended September30, 2004. 

 
Inflation
 

Inflation has not had amaterial impact upon operating results, and the Company does not expect it tohave such an impact in the near future. There can be no assurances, however,that the Company’s business will not be so affected by inflation. 

 
Impact ofRecently Issued Accounting Standards
 

In November 2002, the FASBissued EITF No. 02-16, “Accounting by a Customer (Including a Reseller) forCertain Consideration Received from a Vendor” (“EITF 02-16”).EITF 02-16 requires that consideration received by a customer from a vendor isconsidered (a) an adjustment of the prices of the vendor’s products orservices and therefore, characterized as a reduction of cost of sales whenrecognized in the reseller’s statement of operations, (b) an adjustment toa cost incurred by the reseller and, therefore, characterized as a reduction ofthat cost when recognized in the reseller’s statement of operations, or (c)a payment for assets or services delivered to the vendor and therefore,characterized as revenue when recognized in the reseller’s statement ofoperations.  Adoption of EITF 02-16 was required for the Company for newagreements, including modifications of existing agreements, entered into afterDecember 31, 2002.  

 
ForwardLooking Statements
 

This Report, including the Management's Discussion and Analysis above, containsforward-looking statements within the meaning of Section 27A of the SecuritiesAct of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,as amended. These forward-looking statements are not historical facts but ratherare based on current expectations, estimates and projections about our industry,our beliefs and assumptions. We use words such as "anticipate," "expect,""intend," "plan," "believe," "seek," "estimate," and variations of these wordsand similar expressions to identify forward-looking statements. Such statementsinclude the statements regarding our expectations, hopes or intentions regardingthe future, including but not limited to statements regarding cash position;expense reductions; sales growth and market share; corporate and public sectorsales initiatives; the effect of our reinvestment in our sales force; the impactof our Canadian call center on operating results; the prospects for ourOnSale.com and eCOST.com subsidiaries; and the timing and completion of thedistribution of eCOST.com common stock to our stockholders. Forward-lookingstatements are not guarantees of future performance and are subject to certainrisks, uncertainties and other factors, some of which are beyond our control,are difficult to predict and could cause actual results to differ materiallyfrom those expressed or forecasted in the forward-looking statements.

 

These risks anduncertainties include, but are not limited to, the following: 

 

- our revenues are dependent on sales of products from a small number ofvendors, including Apple, HP, IBM, Ingram Micro, Microsoft and Tech Data, andloss of any key vendor, a decline in sales of products from these vendors,pricing pressures or a decrease in supply of or demand for these products couldmaterially impact our business; 

 

- we do not have long-term supply agreements or guaranteed price or deliveryarrangements with our vendors, and our agreements with our vendors are generallyterminable within 30 days; 

 

- our success is dependent in part upon the ability of our vendors to developand market products that meet the changing requirements of the marketplace; 

 

- we may not be able to maintain existing or build new vendor relationships,which may affect our ability to offer a broad selection of products atcompetitive prices and negatively impact our results of operations; 

 

- our narrow gross margins magnify the impact on operating results of variationsin operating costs and of adverse or unforeseen events; 

 

- the transition of our business strategy to increasingly corporate and publicsector sales and our increased infrastructure investments in our outboundtelemarketing sales models may not improve our profitability or result inexpanded market share; 

 

- the success of our Canadian call center is dependent on our receipt ofgovernment credits; 

 

- existing or future government and tax regulationscould expose us to liabilities or costly changes in our business operations;

 

- we may havedifficulties integrating acquired businesses into our operations in acost-effective manner, if at all;

 

- we may not be able to maintain profitability and ouroperating results may be difficult to predict; 

 

- if we fail to accurately predict our inventory risk, our margins may declineas a result of write downs of our inventory due to lower prices obtained fromolder or obsolete products; 

 

- we may need additional financing and may not be able to raise additionalfinancing on favorable terms or at all, which could increase our costs, limitour ability to grow and dilute the ownership interests of existing stockholders; 

 

- we may be subject to claims regarding our intellectual property, our businessprocesses or the products we sell, any of which could result in expensivelitigation, distract our management or force us to enter into costly royalty orlicensing agreements; 

 

- we may fail to expand our merchandise categories, product offerings, websiteand processing systems in a cost-effective and timely manner as may be requiredto efficiently operate our business; 

 

 - we may not be able to retain key personnel or attract andretain additional personnel;

 

- our ability to effectively manage our growth mayprevent us from successfully expanding our business; 

 

- our advertising and marketing efforts may be costlyand may not achieve desired results; 

 

- changes anduncertainties in the economic climate could affect the rate of informationtechnology spending by our customers, which would have an impact on ourbusiness; 

 

- increased product returns or a failure to accuratelypredict product returns could decrease our revenues and impact profitability;

 

- our business may be harmed by fraudulent activitieson our website, including fraudulent credit card transactions; 

 

- our facilities and systems are vulnerable to naturaldisasters or other catastrophic events; 

 

- we may not be able to compete successfully againstexisting or future competitors, which include some of our largest vendors;

 

- our success is tied to the continued use of theInternet and the adequacy and security of the Internet infrastructure. 

 

- we are in the process ofdocumenting and testing our internal control procedures to satisfy requirementsof Section 404 of the Sarbanes-Oxley Act and during the course of such testingwe may identify deficiencies which we may not be able to remediate in time tomeet the deadline imposed by the Sarbanes-Oxley Act for compliance with Section404; and

 

-  if we fail tomaintain the adequacy of our internal controls, as such standards areestablished, modified, supplemented or amended from time to time, we may not beable to ensure that we can conclude on an ongoing basis that we have effectiveinternal controls over financial reporting.

 

This list of factors aboveis not intended to be exhaustive. Reference should also be made to the factorsset forth from time to time in our SEC reports, including but not limited tothose set forth in the section entitled “Certain Factors Affecting FutureResults” in our Annual Report on Form 10-K for the year ended December 31,2003 and, with respect to our eCOST.com subsidiary, the section entitled“Risk Factors” in eCOST.com’s Registration Statement on Form S-1,which was declared effective by the SEC on August 27, 2004. All forward-lookingstatements in this report are made as of the date hereof, based on informationavailable to us as of the date hereof, and we assume no obligation to update orrevise any of these forward-looking statements even if experience or futurechanges show that the indicated results or events will not be realized. 

 
ITEM3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 

The Company’sfinancial instruments consist primarily of cash.  As of September 30, 2004,the carrying values of the Company’s financial instruments approximatedtheir fair values based on current market prices and rates. 

 

The Company has exposure tothe risks of fluctuating interest rates on its Line of Credit.  Thevariable interest rate on the Line of Credit is tied to the prime rate or theLondon interbank offered rate at the discretion of the Company.  If thevariable rate on the Line of Credit changes, the Company may be required to paymore interest.  However, the Company believes that the near-term effect ofany change in interest rates will not be material to the Company’sfinancial position, results of operations or cash flows. 

 

It is the Company’spolicy not to enter into derivative financial instruments, and the Company doesnot have any significant foreign currency exposure.  Therefore, the Companydoes not have significant overall currency exposure as of September 30, 2004. 

 
ITEM4.   CONTROLS AND PROCEDURES
 

As of the end of the periodcovered by this report, the Company carried out an evaluation, under thesupervision and with the participation of the Chief Executive Officer and ChiefFinancial Officer, of the effectiveness of the design and operation of theCompany’s disclosure controls and procedures.  Based on thisevaluation, the Chief Executive Officer and Chief Financial Officer concludedthat the Company’s disclosure controls and procedures are effective intimely alerting them to material information required to be included in thisreport.  

 

There has been no change inthe Company’s internal control over financial reporting that occurredduring the Company’s most recent fiscal quarter that has materiallyaffected or is reasonably likely to materially affect the Company’sinternal control over financial reporting. 

 

 
PART II -OTHER INFORMATION
 
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 

 InJuly 1996, the Company announced its plan to repurchase up to 1,000,000 sharesof its Common Stock. The shares will be repurchased from time to time atprevailing market prices through open market or negotiated transactions,depending upon market conditions. No limit was placed on the duration of therepurchase program. There is no guarantee as to the exact number of shares thatthe Company will repurchase. Subject to applicable securities laws, repurchasesmay be made at such times and in such amounts as the Company’s managementdeems appropriate. The program can also be discontinued at any time managementfeels additional purchases are not warranted. The Company did not purchase anyshares of its common stock during the three month period ended September 30,2004. As of September 30, 2004, the Company has repurchased a total of 294,200shares of its common stock at an average price of  $3.45 per share, of which254,200 shares were repurchased under the program, and 40,000 shares werepurchased in a private transaction. 

 
ITEM4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 

The Company held its 2004Annual Meeting of Stockholders on August 24, 2004.  At the Annual Meeting,the stockholders voted on the following matters: 

 

1.   Thereelection as directors of Frank F. Khulusi, Mark C. Layton, Thomas A. Maloof,and Ronald B. Reck, all of whom were reelected at the Annual Meeting.  Eachof the directors received the following votes:

   

 
FOR
WITHHELD
Frank F. Khulusi
8,878,660
2,172,772
Thomas A. Maloof
10,874,738
176,772
Ronald B. Reck
10,860,963
190,469
Mark C. Layton
10,912,828
138,604
 

2.  The ratification of the appointment of PricewaterhouseCoopers LLP as theCompany’s independent accountants for the fiscal year ending December 31,2004. 

 

 
FOR
AGAINST
ABSTENTIONS
Accountant's                             Proposal
11,005,012  
44,689
1,731
 
ITEM 5. OTHER MATTERS
 

On September 1, 2004, the Company’seCOST.com subsidiary completed an initial public offering. Following theeCOST.com initial public offering, the Company owned 80.2% of the common stockof eCOST.com. The Company has announced that it intends to distribute theremaining shares of eCOST.com to the Company’s stockholders approximatelysix months following completion of the initial public offering. Completion ofthe distribution is contingent upon the satisfaction or waiver of a variety ofconditions, including, among other things, the receipt of a favorable opinion ofthe Company’s tax counsel as to the tax-free nature of the distribution forU.S. federal income tax purposes. As a result, the distribution may not occur atthe contemplated time and may not occur at all. 

 
ITEM6.   EXHIBITS
 

**Exhibit Number**
**Description**
10.61Form of Executive Non-Qualified Stock Option Agreement      (Full Acceleration upon change in control)
10.62Form of Executive Non-Qualified Stock Option Agreement      (Partial Acceleration upon change in control)
31.1
Certification of the Chief Executive      Officer of the Registrant pursuant to Exchange Act Rule 13a-14(a)
31.2
Certification of the Chief Financial      Officer of the Registrant pursuant to Exchange Act Rule 13a-14(a)
32.1
Certification of the Chief Executive Officer of Registrant furnished      pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the      Sarbanes-Oxley Act of 2002
32.2
Certification of the Chief Financial      Officer of Registrant furnished pursuant to 18 U.S.C. 1350, as adopted by      Section 906 of the Sarbanes-Oxley Act of 2002
 

 

 

**Table of contents**

 
SIGNATURE
 

Pursuant to therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned thereunto dulyauthorized. 

 

**Date: November 15,      2004**
 
**PC MALL, INC.**
 
 
 
 
 
 
By:
/s/ Ted Sanders      Ted Sanders      Chief Financial Officer
 
 
 
 
 
 
 
(Duly Authorized      Officer of      the Registrant and Principal      Financial Officer)
 

 

 
PC MALL, INC.EXHIBIT INDEX
 

**Exhibit Number**
**Description**
10.61Form of Executive Non-Qualified Stock Option Agreement      (Full Acceleration upon change in control)
10.62Form of Executive Non-Qualified Stock Option Agreement      (Partial Acceleration upon change in control)
31.1
Certification of the Chief Executive      Officer of the Registrant pursuant to Exchange Act Rule 13a-14(a)
31.2
Certification of the Chief Financial      Officer of the Registrant pursuant to Exchange Act Rule 13a-14(a)
32.1
Certification of the Chief Executive Officer of Registrant furnished      pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the      Sarbanes-Oxley Act of 2002
32.2
Certification of the Chief Financial      Officer of Registrant furnished pursuant to 18 U.S.C. 1350, as adopted by      Section 906 of the Sarbanes-Oxley Act of 2002 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|