|1||Working with multiple industry-leading partners on multi-million dollar deals|
|2||Scientifically proven advantages by San Diego State University in multiple categories|
|3||Aired on Shark Tank, Discovery Channel, FedEx commercials, FOX, and much more|
|4||Won two government grants for its farming wheel solution (~$1M). Farming test results show significant advantages|
|5||Just signed deal-Shark Wheels will be on US military deployment bags|
|6||Just signed pallet jack/forklift licensing deal with one of the industry leaders.|
|7||Just signed luggage deal-Shark Wheels will be on all NFL, NBA, MLB, NHL, PGA Tour, Olympics and 150 top University bags|
|8||Grossed over $1.1M in a 90-day span May 2020-July 2020 during COVID|
For the first time in human history,
Shark Wheel has reinvented the shape of the wheel. Not only is the design aesthetically polarizing, but is has been scientifically proven superior from a functional point of view. After seeing Shark Wheel sign deals for NFL, NBA, MLB, Olympics, US Army, Samsonite and Harley Davidson products, there is no doubt in my mind that their growth potential is similar to other high-growth Silicon Valley tech companies.
Why reinvent the wheel? For 5,000 years the wheel has been the go-to design for most types of transportation. In fact, no one considered there could be a better design. The circular wheel was always considered the final design with no room for improvement.
Enter Shark Wheel inventor, David Patrick, who refused to accept the status quo. Not only did David create a shape that was drastically different, but he envisioned the shape possessing inherent advantages built into it. His search to improving the wheel was an uphill battle against industries that were not used to change. He needed to prove his idea was revolutionary.
I met David through my tennis coach who thought I could help him build a business around his invention. As a former professional tennis player on the ATP Tour for 10 years, I was no stranger to hard work, long hours, and relentless determination. I immediately saw the vast opportunity in joining forces with David to help bring the sine wave wheel to life. I imagined a skateboard company introducing a new wheel where the skater is safer going over debris and other rough terrain. I imagined a farmer whose tractor creates unwanted trenches in the field and being able to help that farmer save money and not dig a trench with our wheels. I imagined a wheelchair user having the freedom to go more places without rough terrain standing in their way.
Shark Wheel is a company located in Lake Forest, California dedicated to making the most unique, innovative and technologically advanced wheels in the marketplace. The Shark Wheel is flat on six sides and displays many scientifically proven advantages compared to the traditional wheel. Having won multiple international competitions in the skateboarding industry, the Shark Wheel has proven to be a high-performance product.
The patented Shark Wheel is a perfect fit for transportation use including wheelchairs, strollers, wagons, farming equipment, military applications, ATV vehicles, shopping carts, tricycles, hand trucks, printers, toys, iv poles, casters, roller skates, luggage, forklifts, office chairs, wagons, vacuums, hospital beds, ambulance cots, other medical equipment and much more. Please see our Shark Wheel Industrial Products section below to learn more.
Shark Wheel Inc is the parent company that holds patents. There is currently one subsidiary that operates underneath called Shark Wheel Skate LLC. All investors will take ownership in the parent company and be a part of every wheel market Shark Wheel ever enters into. Investors will own Shark Wheel Skate and any other subsidiaries that may be created in the future.
In terms of investors getting paid, the two most likely scenarios are (1) selling the company and (2) investors receiving disbursements when the company feels it has enough extra funds to pay a dividend. For example, if Shark Wheel had $1 million in the bank at year end, it would just reinvest money back into the company, but if it had $10 million, it would pay a disbursement to all investors.
Shark Wheel converted to a Delaware C-Corp (from a California LLC). One of the biggest advantages of the conversion is that it allows Shark Wheel to take advantage of IRS Code 1202. The conversion started a 5 year clock (December 2023 completion) that allows Shark Wheel to sell the entire company and allows for profits to be tax free for all investors*.
*To understand IRS Code 1202 in more detail, please click here.*
Shark Wheel has grown from*:
Shark Wheel Aligned with Industry Leaders, Sports Leagues/Teams, the US Military and the Biggest Media Outlets
(Season 6, Season Finale - First Look Abbreviated Edit)
America's Next Investment TV Show
(The show has yet to air, but we have permission to show the episode)
FedEx Commercial #1
FedEx Commercial #2
Shark Wheel's David Patrick Wins Innovator of the Year 2018
Line of pallet jack load wheels launched in Q4, 2020
SIGNED Deal. This is a recent update after nearly 4 years of R&D, scientific testing, and customer acceptance testing landed Shark Wheel a deal with one of the largest players in the industry. Per NDA, Shark Wheel must not divulge who the deal is with.
*2 Patents Issued
Shark Wheel will sell into Classes 1-5 of the material handling industry:
Signed licensing deals.
*✅Samsonite Golf Luggage
*✅Harley Davidson Luggage
*✅SkyValet Smart Luggage
*✅US Military Deployment Luggage (New deal, just signed in Q3 2020)
*✅NFL, NBA, MLB, NHL, PGA Tour, Olympics, 150 Top University Luggage
(Newest deal, just signed in Q4, 2020)
SkyValet luggage launched in 2019 with tens of thousands of units already purchased. The campaign reached nearly $1M. The campaign was stuck at $150k until a new marketing company was brought on and they completely changed the marketing to feature Shark Wheels as the main feature on every picture and advertisement. See below link:
A new product launch is Samsonite golf luggage with Shark Wheels. Shark Wheel always looks to establish itself with industry leaders. To be associated with the Samsonite brand name that is #1 in the industry is the start of many things to come.
Also, our Harley Davidson luggage is selling now at Harley Davidson dealers across the United States, as well as Amazon. See the Harley Davidson-Shark Wheel promo video below:
Shark Wheel won a government grant through the National Science Foundation in January 2018 . The grant was for $225,000 to develop a state-of-the-art wheel for the central pivot irrigation industry. After performing extensive customer discovery interviews and graduating through the government's I-Corps program, Shark Wheel learned what the market desires in a wheel:
Shark Wheel built a wheel according to what the customer desires. The test was a success in 2018 and Shark Wheel applied for the Phase II portion of the grant. In Q2, 2019, Shark Wheel won Phase II of the grant for $724,313 to optimize the wheel and bring it to commercialization.
Shark Wheel already has a signed licensing deal with one company in the industry and two LOIs with industry leaders.
Retail prices are over $1,000 per wheel. Early estimated annual revenue $10+ million per year. This is a very rough assumption based on current data of selling over 16,000 wheels annually comparable to the leading technologies in the market. Agriculture may be Shark Wheel's largest industry moving forward. Test results show significant advantages, detailed below. More testing is needed to optimize load capacity, traction and price but commercialization is expected in 2021.
The Shark Wheel is named after the shape of shark jaws and through many iterations, Shark Wheel created another biomimetic design for its tire based on the shape of seagull wings. The flexing non-pneumatic, modular lugs of the tire design approximated the flotation of a pneumatic tire. The sine wave shape of the Shark Wheel was placed in the standard tandem configuration on central pivot irrigation machines and the result was a wheel that did not go over the same track as the wheel in front of it. The front wheel moved left-right-left, while the rear wheel moved right-left-right effectively creating a helix shape in the soil. In contrast to a traditional wheel that continues to move along the same track over and over again digging a rut, the Shark Wheel disrupted the soil in a snake-like shape, while the rear wheel pushed the soil back to where it began. This greatly minimized the industry-wide issue of rutting. Shark Wheel estimates an average farmer can save over $27,000 by switching to a sine wave wheel geometry because of less down time due to flat tires, less rutting and greater crop yield.
The most recent update came from a test farm in New Mexico where the following two successes were documented:
Shark Wheel's new innovation. When Shark Wheel started the company, a list of industries was made. It was a long list ranging from small luggage wheels to large farming wheels and many in between. Wheels for the printing industry made it onto that original list. Shark Wheel was recently presented with information that flexo printers, wide web printers and narrow web printers would be a perfect entry point for the technology. In researching these machines, it was clear these printing machines often sell for hundreds of thousands of dollars. Clearly companies would not buy these machies with high frequency. That would mean Shark Wheel would not see high volume purchases. The idea seemed to come from the ether, but the decision was made to create tape. Yes, tape. Shark Wheel never imagined manufacturing tape.
The idea was to outfit all existing retraction rollers (wheels on the machines) with Shark Wheel Tape. Tape would be inexpensive for businesses with these printers to buy. Tape would eventually fail and buyers would need to replace it with more tape. And the hypothesis that Shark Wheel Tape would solve one of the industry’s largest issues was the driver for us to move it to the top of our priority list and begin testing.
Problem and Solution
In the printing world, a spool of material (could be a newspaper, labels printed on everyday food products, etc) moves over retraction rollers, where the material is printed on. After the printing is completed, the material moves over more rollers before feeding into a final printed spool. All of this occurs in one machine with 20-30 rollers on average.
The issue: the faster the material goes through the machine, the more the material moves off-center. (To envision this, think of a printer at your home or work where the scanner or the printer starts printing paper at an angle and gets jammed) This is a huge problem and the only way to mitigate this is to tension the material. This means that tension rods stretch the material tightly on the long ends so the material is forced toward center. The stretching of the material creates a whole host of other problems where the printing has to be reconfigured and many other things are compromised. Overall, the issue of centering makes printers have to be tensioned.
Enter Shark Wheel Tape. The hypothesis was that the left-right-left-right oscillations of the sinusoidal design would naturally push the material toward center. The same way a human walks with an alternating gait averages to walking perfectly straight. The same way the left-right-left-right shape of the Shark Wheel averages to perfectly center and the wheel moves effectively in a straight line. If we could outfit all existing rollers with tape that has a raised Shark Wheel pattern on top, the material would only touch the Shark Wheel portion.
Tension was put on the lowest setting and the machine speed was turned up high. The result? Shark Wheel Tape produced a 20% improvement over every other solution that exists in the industry today. The tape was launched as a test product in September 2019 at the Labelexpo in Brussels, Belgium.
Shark Advantage (SharkAdvantage.com) is now the name of the printing division. The website, Facebook page, and LinkedIn page are all launching and we will start taking orders. The product solves many issues in web converting, flexography, digital, offset and screen printing. There are many other applications the technology will apply to, but this is the initial focus.
Shark Advantage Animation
Multiple Shark Advantage Rollers
Printing Machine with Shark Advantage Sheets
Zoomed in Shark Advantage in Action
New. Perhaps the most important wheel for Shark Wheel moving forward is the 4'' caster. It is used on wheelchairs, strollers, medical carts, grocery carts, industrial products and is one of the most common-used sizes in the world. Here is one of the three versions being tested for medical carts with an anticipated launch in 2021. Alternative, more radical designs are being tested in 2020 to compare performance characteristics.
Developing wheel with one of the industry leaders. Licensing deal proposed. Prototype version 1.0 complete, currently going through testing.
Current ambulance cots have issues going over sand at the beach and traversing other unfavorable terrain. The Shark Wheel is considered an off-road wheel and performs best in challenging environments.
In the medical industry, Shark Wheel has opted to seek licensing deals. Shark Wheel is not interested in manufacturing in this industry and dealing with strict regulations and testing procedures.
Developing wheel with one of the industry leaders. Licensing deal proposed.
As mentioned above, in the medical industry, Shark Wheel has opted to seek a licensing opportunity. Shark Wheel is not interested in manufacturing in this industry and dealing with strict regulations and testing procedures.
Wheelchairs (Powered and Manual)
Shark Wheel believes it has reached the final design (not shown here so right to patent is not violated) and the wheel is currently being tested by an industry leader. Shark Wheel is in development on the front wheels for wheelchairs, which is the first point of contact for the wheelchair user.
Industry leader will begin testing soon for a 2020 launch. Initial tests show ability to traverse rough terrain and ability to swivel better than traditional circular wheels.
Recently, Shark Wheel has begun seriously prototyping office chairs. Based off of luggage caster wheel performance and other caster testing, Shark Wheel believes this is a project worthy of a high position on the prototyping list. In-house testing has shown clear performance advantages for office chairs and other wheeled-furniture applications.
The team is currently hard at work developing casters for use on:
Many of these designs are under strict NDA and cannot be shown publicly yet. Just below are the some of the designs being purchased for an industry-leaving company in the educational space. These wheels will be outfitted onto modular cabinets and furniture for use in high schools around the US.
The majority of revenue to date has come from skateboard sales.
1. Shark Wheel Skate
2. Fathom by Shark Wheel
Shark Wheel had its largest month in company history during COVID. May 2020-July 2020 produced over $1.1 million in gross sales. The electric skateboard launch was a big reason why.
Over 35,000 Followers
Over 26,000 Followers
Watch Shark Wheel riders go over rough terrain in the video above
Test I - San Diego State University
The Shark Wheel has been scientifically tested at the San Diego State University Mechanical Engineering Department.
In apples-to-apples testing, The Shark Wheel was found to have a 15% longevity and 15% speed advantage. Also, frictional tests were performed and some of the data is seen below showing a significant advantage compared to a traditional wheel.
Tests were performed and the testing rig (seen above) was designed and constructed by a team of engineering students at San Diego University, Mechanical Engineering Department. Testing has been completed as of December 2017.
The dynamic testing outlined in the following report was conducted at approximately 720rpms(17mph).
At a load of 30lbs the Shark Wheel demonstrated an average of 35.52% less rolling resistance at speeds ranging from 0-650rpms (approx. 15.5mph).
When loaded to 45lbs (per wheel) the Shark Wheel demonstrated 60.92% less rolling resistance.
Rolling resistance, also called rolling friction, is an important factor in many industries.
Test II - Conducted by Major Wheel Manufacturer
Another scientific test done by the largest skateboard wheel manufacturer in the world. They compared Shark Wheel to the leading wheels in the market in an apples-to-apples test. Same diameter, same durometer (hardness), same material.
The Shark Wheel showed a 15% rebound advantage. Rebound translates directly to speed. In the abrasion resistance test, Shark Wheel demonstrated a significant advantage as well. The lower the number in the abrasion resistance graph, the better it performed.
In separate testing at a Canadian test facility, the Shark Wheel exhibited a longevity/wear advantage.
Tests performed by the German tv show, Galileo (similar to the Discovery Channel), found advantages in rolling resistance and off-road performance. The episode aired in December 2016.
Most recently, our material handling industry partner (pallet jacks, forklifts), completed 3 years of scientific testing and customer acceptance testing with a Fortune 50 company. Scientific testing showed a maximum of 600% longevity advantage (3 years of testing) and a real world test of 200% advantage.
Shark Wheel has been successful obtaining grants to date. Shark Wheel has won 3 out of 4 grants it has applied for and believes it is a good business decision to seek more grant opportunities.
The following is a list of awarded grants:
Shark Wheel has primarily been a Research and Development company since 2014. Entering the skateboarding industry was the ‘low-hanging-fruit’. It was a market with a low barrier to entry, a market in which consumers purchased wheels as a standalone item, and a market to act as a proof of concept. Shark Wheel proved the interest in the market and that the wheel is truly high-performance by winning several international competitions. Entering the skateboarding industry was also a way for Shark Wheel to pay the bills early on. Initially, it was a necessity for Shark Wheel to prototype various wheel sizes in different industries. There was much to learn about how a sine wave shaped wheel works under load, while swiveling, with different amplitudes and frequencies, and in various sizes and iterations. Shark Wheel had to prove though scientific testing and real-world testing that the shape worked well and using certain factors, outperformed the circular wheel.
Shark Wheel has completed products for skateboard wheels, longboard wheels, luggage wheels, pallet jack wheels and most recently printing tape. Shark Wheel plans to extrapolate its current designs to enter other similar industries. There will not be a need to continue prototyping any further for these congruent uses. For example, now that Shark Wheel completed its luggage wheel, it feels confident it can immediately license its technology to an office chair company without the need for further prototyping. The wheels in these industries are very similar and Shark Wheel plans to sign paperwork with all conceivable industries that would use an approximate 58mm wheel in a similar configuration. Even industries that scale up or down the size of the wheel in a similar configuration would work as well. Shark Wheel plans to sign licensing deals with scooter companies and other industries that use wheels similar to skateboard wheels. There would be no delay here either, as the design is considered final. No further prototyping is necessary.
The same can be said for pallet jack wheels. Any industrial application that uses a remotely similar wheel is ready for market with a Shark Wheel. The markets are vast in the industrial sector. Once Shark Wheel finishes prototyping its ambulance cot wheel, the market possibilities open up greatly. Dozens of industries use this particular configuration and Shark Wheel plans to exploit the completed design in as many industries as possible, as quickly as possible.
Shark Wheel will not have large capital requirements using this strategy. It will primarily be a licensing entity. The following list is a summary of Shark Wheel’s strategy moving forward.
Skateboarding and roller skating are the only markets that Shark Wheel plans to build a brand, manufacture and warehouse inventory.
Projects on Hold/Just Activated
The following are projects that Shark Wheel has signed terms sheets with/in talks with that have been put on hold until the above projects have been completed:
The following are markets that Shark Wheel has identified an advantage in, but currently has no traction.
The Shark Wheel was invented by David Patrick. The sine wave shape was a repeating pattern that David discovered all throughout nature and is nature's preferred choice of motion. The sine wave can be seen in how snakes slither, fish and sharks swim, how the planets rotate around the sun, and even how humans walk with an alternating gait. The Shark Wheel name came from the wheel's identical shape to a shark's jaw (picture seen near top of campaign).
Shark Wheel launched through a Kickstarter campaign in June of 2013. Shark Wheel’s fundraising goal of $10,000 was reached in 72hrs, finishing with $79,300 in a 30 day run. After the successful campaign, it took the company 7 months to solve the molding issues that prevented mass production. It was one thing to reinvent the wheel, then the company had to reinvent the mold, which is now patent pending.
Shark Wheel is able to pay the same price per wheel as any other wheel company. There is no price penalty or time penalty for any company choosing to use Shark Wheel products. For a company to violate Shark Wheel’s patents and produce Shark Wheels in mass production successfully would be a massive undertaking (not to mention lawsuits) that would prevent any copycat manufacturers.
Shark Wheel has multiple issued patents in the United States, the European Union and China. Shark Wheel is patent pending with multiple other applications in process as well. Investment funds will be used to continue to strengthen the patent portfolio.
Shark Wheel already has issued trademarks in the United States and one in China for skateboard and roller skate wheels, as well as luggage wheels and pallet jack wheels. Other trademarks are pending in many industries including, medical equipment, wheelchairs and others.
Skinny Footprint / Wide Profile
The Shark Wheel has the benefits of a thin wheel and a wide wheel in one shape. The infographic shown below explains how the Shark Wheel has the skinny footprint of a thin wheel combined with the wide profile of the large wheel.
Thin circular wheels:
Low friction, fast, maneuverable, easy to swivel.
Wide circular wheels:
Off-road ability, load-capacity, lateral grip, longevity.
Shark Wheels combine the benefits of both thin and wide wheels:
Low friction, fast, maneuverable, easy to swivel.
Off-road ability, load-capacity, lateral grip, longevity.
Heat - Failure Points
Wheels typically fail in industrial sectors due to heat. Whether its friction, load, or an embedded nail, the failure points become heat-related. Shark Wheels have built-in heat vents that allow heat to escape. A traditional wheel attempts to steamroll over objects - this allows for small objects to become embedded into the wheel and for additional friction and therefore heat to build up leading to failure. Shark Wheel's natural design allows for heat to escape, thereby increasing the life of the wheel.
Amphibious vehicles do not receive propulsion from their wheels. Shark Wheels aim to change that. Traditional wheels simply spin in water and do not provide any forward thrust. Shark Wheel's natural design digs into the water left and right, much like a freestyle swimmer. The alternating movements of the wheel would create the first amphibious vehicle capable of wheel propulsion. This is just one example of many for a Shark Wheel military application. This is a future application Shark Wheel would like to build with the aid of grant funding for the Department of Defense, DARPA, or another government agency.
Shark Wheel has financial statements ending December 31 2019. Our cash in hand is $405,000, as of October 2020. Over the three months prior, revenues averaged $300,000/month, cost of goods sold has averaged $100,000/month, and operational expenses have averaged $325,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Shark Wheel sells the only non-circular wheel in the world. Shark Wheel is currently entering many different industries from roller skates to forklifts to farming.
Shark Wheel hopes to be a household name selling wheels in no less than 20 different industries. It is not hard to imagine selling the company to Google, Goodyear or Michelin in 5 years.
Shark Wheel, Inc. was incorporated in the State of Delaware in December 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in December 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $60,000 in debt, $2,008,421 in equity, and $750,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Shark Wheel, Inc. cash in hand is $405,000, as of October 2020. Over the last three months, revenues have averaged $300,000/month, cost of goods sold has averaged $100,000/month, and operational expenses have averaged $325,000/month, for an average burn rate of $125,000 per month. Our intent is to be profitable in 2 months.
Since December 31, 2019, Shark Wheel has had its highest revenue in company history. Shark Wheel has also signed multiple deals including a pallet jack/forklift industry deal and several deals for luggage/travel bags and backpacks. Those deals include NBA, NFL, NHL, MLB, PGA Tour, Olympics, 150 Universities and US Army branding.
Shark Wheel has hired more talent to help run its skateboard division, including a marketing firm, an executive assistant and a customer service position.
In Q4 2020, we expect (although cannot guarantee) our revenues to be revenues $2M and expenses to be $1.5M.
In terms of other sources of capital, Shark Wheel has over $400,000 in the bank with the holiday sales season looming.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Our business projections are only projections
Any valuation at this stage is difficult to assess
Your investment could be illiquid for a long time
The transferability of the Securities you are buying is limited
Terms of subsequent financings may adversely impact your investment
Management Discretion as to Use of Proceeds
Projections: Forward Looking Information
Some of our products are still in prototype phase and might never be operational products
If the Company cannot raise sufficient funds it will not succeed
You are trusting that management will make the best decision for the company
We face significant market competition
We are competing against other recreational activities
We are an early stage company and have not yet generated any profits
We have existing patents that we might not be able to protect properly
We have pending patent approval’s that might be vulnerable
Minority Holder; Securities with No Voting Rights
Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective
The cost of enforcing our trademarks and copyrights could prevent us from enforcing them
The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business
We rely on third parties to provide services essential to the success of our business We rely on third parties to provide a variety of essential business functions for us, including manufacturing, shipping, accounting, legal work, public relations, advertising, retailing, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other suppliers’ operations could materially and adversely affect our business. As a result, your investment could be adversely impacted by our reliance on third parties and their performance.
This offering involves “rolling closings,” which may mean that earlier investors may not have the benefit of information that later investors have.
Gary Fleishman is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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