<SEC-DOCUMENT>0001171520-22-000187.txt : 20220307
<SEC-HEADER>0001171520-22-000187.hdr.sgml : 20220307
<ACCEPTANCE-DATETIME>20220307155705
ACCESSION NUMBER:		0001171520-22-000187
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220307
DATE AS OF CHANGE:		20220307

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CATALYST BIOSCIENCES, INC.
		CENTRAL INDEX KEY:			0001124105
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				562020050
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51173
		FILM NUMBER:		22717956

	BUSINESS ADDRESS:	
		STREET 1:		611 GATEWAY BLVD., SUITE 710
		CITY:			SOUTH SAN FRANCISCO
		STATE:			CA
		ZIP:			94080
		BUSINESS PHONE:		650-871-0761

	MAIL ADDRESS:	
		STREET 1:		611 GATEWAY BLVD., SUITE 710
		CITY:			SOUTH SAN FRANCISCO
		STATE:			CA
		ZIP:			94080

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TARGACEPT INC
		DATE OF NAME CHANGE:	20000919

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SINGER JULIAN D.
		CENTRAL INDEX KEY:			0001628706

	FILING VALUES:
		FORM TYPE:		DFAN14A

	MAIL ADDRESS:	
		STREET 1:		2200 FLETCHER AVENUE
		STREET 2:		SUITE 501
		CITY:			FORT LEE
		STATE:			NJ
		ZIP:			07024
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>eps10122.htm
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<P STYLE="font: 13.5pt Times New Roman,serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 13.5pt Times New Roman,serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>Washington, DC 20549</B></P>

<P STYLE="font: 8pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 16pt Times New Roman,serif; margin: 0; text-align: center"><B>SCHEDULE 14A </B></P>

<P STYLE="font: 6pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>Proxy Statement Pursuant to Section 14(a) of the </B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>(Amendment No. )</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">Filed by the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">Filed by a Party other than the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&#9745;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">Check the appropriate box:</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preliminary Proxy Statement</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential, For Use of the
Commission Only (as permitted by Rule 14a-6(e)(2))</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Proxy Statement</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Additional Materials</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 2pt">&#9745;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting Material Pursuant
to &sect;240.14a-12</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>CATALYST BIOSCIENCES, INC.</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>(Name of Registrant as Specified in Its Charter)</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>JDS1, LLC<BR>
CCUR HOLDINGS, INC.<BR>
CIDM II, LLC<BR>
JULIAN D. SINGER<BR>
DAVID S. OROS<BR>
SHELLY C. LOMBARD<BR>
MATTHEW STECKER<BR>
IGOR VOLSHTEYN<BR>
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)</B></P>


<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0">Payment of Filing Fee (Check the appropriate box):</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Gothic; font-size: 11pt">&#9745;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-family: Times New Roman,serif; text-align: justify"><FONT STYLE="font-size: 11pt">No fee required.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Gothic; font-size: 11pt">&#9744;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(1)</FONT></TD>
    <TD STYLE="width: 92%; font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Title of each class of securities to which transaction applies: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(2)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Aggregate number of securities to which transaction applies: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(4)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Proposed maximum aggregate value of transaction: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(5)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Total fee paid: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Gothic; font-size: 11pt">&#9744;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Fee paid previously with preliminary materials: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-family: MS Gothic; font-size: 11pt">&#9744;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(1)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Amount previously paid: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(2)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Form, Schedule or Registration Statement No.: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(3)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Filing Party: </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">(4)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif"><FONT STYLE="font-size: 11pt">Date Filed: </FONT></TD></TR>
  </TABLE>

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<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">JDS1, LLC, CCUR Holdings, Inc., CIDM II, LLC, Julian
D. Singer, David S. Oros, Shelly C. Lombard, Matthew Stecker, and Igor Volshteyn (collectively, &ldquo;<U>JDS1</U>&rdquo;), are filing
this Schedule 14A with the U.S. Securities and Exchange Commission (&ldquo;<U>SEC</U>&rdquo;) in connection with JDS1&rsquo;s plans to
solicit proxies from the stockholders of Catalyst Biosciences, Inc., a Delaware Corporation (the &ldquo;<U>Company</U>&rdquo;), in connection
with the Company&rsquo;s 2022 Annual Meeting of Stockholders, any special meeting held in lieu thereof, and at any and all adjournments
or postponements thereof (the &ldquo;<U>2022 Annual Meeting</U>&rdquo;).</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><B>Schedule 13D Amendment No. 8 Filed on March 7, 2022</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">On March 7, 2022, JDS1 filed Amendment No. 8 to its
Schedule 13D with respect to the Company (the &ldquo;<U>Schedule 13D/A</U>&rdquo;). The following disclosure was included in Item 4 of
the Schedule 13D/A and is being included in this Schedule 14A because such disclosure may be deemed&nbsp;to be solicitation material in
connection with JDS1&rsquo;s plans to solicit proxies from the Company&rsquo;s stockholders for use at the 2022 Annual Meeting:</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><I>&ldquo;Item 4 is hereby amended to add the following:</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><I>The Reporting Persons purchased the securities of
the Issuer based on the Reporting Persons&rsquo; belief that such securities, when purchased, were undervalued and represented an attractive
investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and
the availability of securities of the Issuer at prices that would make the purchase or sale of such securities desirable, the Reporting
Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of securities
of the Issuer on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may
deem advisable.</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><I>On March 4, 2022, JDS1 delivered a notice (the &ldquo;<U>Notice</U>&rdquo;)
to the Issuer nominating Shelly C. Lombard, Matthew Stecker, and Igor Volshteyn (the &ldquo;<U>Nominees</U>&rdquo;) for election to the
Board as Class I directors at the 2022 annual meeting of stockholders and any adjournments, postponements, reschedulings, or continuations
thereof (the &ldquo;<U>2022 Annual Meeting</U>&rdquo;). The Notice also notified the Company of JDS1&rsquo;s intent to present a non-binding
stockholder proposal at the Annual Meeting requesting that the Board take the necessary steps to declassify the Board&nbsp;(in a manner
that does not affect the unexpired terms of the previously elected directors) so that all directors are elected on an annual basis commencing
at the next annual meeting of stockholders after the Annual Meeting (the &ldquo;<U>Declassification Proposal</U>&rdquo;).</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><I>JDS1 believes that, given the precipitous decline
in the per share price of the Common Stock over the past year, the Board is in urgent need of fresh stockholder representation and that
the Nominees can help the Board to explore opportunities to unlock stockholder value. As of the close of business on March 4, 2022, the
Common Stock closed at a price of $0.67 per share, which represented an approximately 88% decline from the Common Stock&rsquo;s closing
price of $5.69 per share on March 5, 2021. In addition, the Common Stock has spent more than 30 consecutive trading days below $1.00,
the latter condition subjecting the Issuer to the risk of being delisted by Nasdaq. JDS1 further believes that the Declassification Proposal
will provide stockholders with greater means to hold the Board and management accountable.</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><I>The Reporting Persons believe that the Nominees
have the qualifications, experience, and competencies necessary to serve as directors of the Issuer, as evidenced by their biographies
below. </I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><B><I>Shelly C. Lombard</I></B><I>, Age 62, is currently
self-employed as an independent consultant at Shelly Lombard, LLC. Ms. Lombard&rsquo;s consulting practice focuses on corporate finance,
financial analysis, and the financial markets. Ms. Lombard has served on three public company boards. Since May 2020, Ms. Lombard has
served on the board of directors of INNOVATE Corp. (NYSE: VATE), formerly known as HC2 Holdings, Inc., which owns control stakes in biotech,
communications, and infrastructure companies. She is the chair of INNOVATE&rsquo;s audit committee and also serves on its nominating and
compensation committees. Ms. Lombard also served as a director at Alaska Communications Systems Group, Inc. (formerly NASDAQ: ALSK) from
June 2020 until its sale was completed in July 2021, where she was a member of the Board of Directors&rsquo; audit and compensation committees.
From September 2020 to October 2021, Ms. Lombard also served as a member of the Board of Directors and chair of the Board&rsquo;s audit
committee at Spartacus Acquisition Corporation (formerly NASDAQ: TMTS, TMTSW, and TMTSU), a special purpose acquisition corporation focused
on the technology, media, and telecom (TMT) industry that completed a business combination transaction with NextNav Inc. (NASDAQ: NN)
in October 2021. From 2011 to 2014, Ms. Lombard was the Director of High Yield and Special Situation Research for Britton Hill Capital,
a broker dealer specializing in high yield bank debt and bonds and value equities. From 2003 to 2010, Ms. Lombard was a high yield bond
analyst covering the automotive and media industries at Gimme Credit, a subscription bond research firm. From 1992 to 2001, Ms. Lombard
analyzed, managed, and was involved in the restructurings of proprietary investments for ING Bank, Chase Manhattan Bank, Barclays Bank,
Credit Lyonnais, and large family offices. Ms. Lombard began her career at Citibank in the leveraged finance group. As an independent
financial analyst and financial trainer, she reviews investment ideas, provides training programs for new hires at Wall Street banks,
and has taught executive education courses in corporate finance, financial analysis, and the financial markets at Columbia University,
the Wharton School of Business, and Moody&rsquo;s. Ms. Lombard has an MBA in Finance from Columbia University&rsquo;s Graduate School
of Business and a Bachelor of Arts in Communications and Government from Simmons College.</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><B><I>Matthew Stecker</I></B><I>, Age 53, currently
serves as the Chairman of the Board, President, and Chief Executive Officer of Evolving Systems, Inc. (NASDAQ: EVOL), a technology strategy
and investment company, having served as a member of the board of directors since March 2016. Mr. Stecker was named Chairman in August
2016, Executive Chairman in April 2018, and President and Chief Executive Officer in July 2018. He served as a Senior Policy Advisor to
the United States Department of Commerce from 2014 to 2017. In that capacity, Mr. Stecker was part of the team that launched the First
Responder Network Authority (FirstNet). Since February 2021, Mr. Stecker has served on the Board of Directors of SeaChange International,
Inc. (NASDAQ: SEAC). Mr. Stecker has served on the Board of Directors of Live Microsystems, Inc. (OTC: LMSC) which sold its operating
assets in 2013. He previously served on the boards of directors of SITO Mobile, Ltd. (OTC: SITOQ) from June 2017 to September 2017, MRV
Communications (NASDAQ: MRVC) from April 2013 to June 2016, and HealthWarehouse.com Inc. (OTCMKTS: HEWA) from December 2010 to August
2013, where he also served on the compensation committee. From January to November 2014, Mr. Stecker served as the Vice President of Mobile
Entertainment for RealNetworks, Inc. (NASDAQ: RNWK). From November 2009 to December 2013, he served as CEO of Live MicroSystems, Inc.,
and from April 2005 to November 2009 he was a senior executive in both Telecom Operations and Strategy at Cartesian, Inc. (formerly OTCQB:
CRTN). He received his B.A. in Political Science and Computer Science from Duke University, and his J.D. from the University of North
Carolina at Chapel Hill School of Law.</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify"><B><I>Igor Volshteyn</I></B><I>, Age 45, currently
serves as the President and Chief Executive Officer of CCUR (formerly OTCQB: CCUR) and was appointed as CCUR&rsquo;s President and Chief
Executive Officer in July 2021. Mr. Volshteyn previously served as CCUR&rsquo;s Interim Chief Operating Officer and President from June
2020 until July 2021, and, prior to that, as CCUR&rsquo;s Senior Vice President of Business Development from January 2019 until June 2020.
Since January 2022, Mr. Volshteyn has served as a director of Evolving Systems (NASDAQ: EVOL), serving as Chair of the Investment Committee.
From August 2020 through November 2021, Mr. Volshteyn served as Chief Financial Officer and a director of Spartacus Acquisition Corporation
(formerly NASDAQ: TMTS, TMTSW, and TMTSU), a special purpose acquisition corporation focused on the technology, media, and telecom (TMT)
industry that completed a business combination transaction with NextNav Inc. (NASDAQ: NN) in October 2021. Mr. Volshteyn began his career
as a research analyst and investment banker at Tejas Securities Group, Inc. focusing primarily on technology and telecommunications and
has over twenty years of experience in the investment management industry. Mr. Volshteyn served as the Managing Partner and Chief Investment
Officer at Echelon Investment Partners LP from May 2016 to December 2018 and as an analyst and portfolio manager at Millennium Management
from July 2007 to March 2016. From August 2019 to February 2020, Mr. Volshteyn served on the board of directors for Goodman Networks,
Inc. Mr. Volshteyn holds a Bachelor of Business Administration in Finance, with highest honors, from the University of Texas at Austin.</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify; background-color: white"><I>As JDS1 continues to take
the necessary steps to prepare for a potential proxy contest in connection with the 2022 Annual Meeting, it intends to continue to engage
in discussions with the Board and/or management relating to not only its concerns with the Issuer&rsquo;s board composition, sub-standard
corporate governance, plans for maximizing stockholder value, and the need to make the Board more accountable to stockholders, but also
possible constructive paths for avoiding a costly proxy contest and working collaboratively to enhance stockholder value. </I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify; background-color: white"><I>Except as set forth in
this Schedule 13D or such as would occur upon or in connection with completion of, or following, any of the actions discussed in this
Schedule 13D, no Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in
subparagraphs (a) - (j) of Item 4 of Schedule 13D. The Reporting Persons intend to review their investment in the Issuer on a continuing
basis. Depending on various factors including, without limitation, the Issuer&rsquo;s financial position and strategic direction, actions
taken by the Board, the price levels of the Shares, other investment opportunities available to the Reporting Persons, conditions in the
securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect
to their investment in the Issuer as they deem appropriate including, without limitation, engaging in communications with management and/or
the Board, engaging in communications with one or more stockholders of the Issuer and others about the Issuer and the Reporting Persons&rsquo;
investment, making suggestions and/or proposals concerning the Issuer&rsquo;s capitalization, ownership structure, operations, prospects,
business and financial strategies, strategic transactions, assets and liabilities, business and financing alternatives, the structure
and composition of the Board, and such other matters as the Reporting Persons may deem relevant to their investment in the Issuer, selling
some or all of their Shares in the open market or otherwise, engaging in short selling of or any hedging or similar transaction with respect
to the Shares, acquiring additional Shares and/or other equity, debt, notes, other securities, or derivative or other instruments that
are based upon or relate to the value of securities of the Issuer, or changing their intention with respect to any and all matters referred
to in Item 4.&rdquo;</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 8pt"><B>Important Additional Information and Certain Information Concerning the
Participants</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">JDS1 intends to file a preliminary proxy statement
and accompanying proxy card with the SEC to be used to solicit proxies from the Company&rsquo;s stockholders in connection with the 2022
Annual Meeting to have stockholders elect three director nominees to the Company&rsquo;s Board of Directors (the &ldquo;<U>Board</U>&rdquo;)
and approve a non-binding proposal requesting that the Board take the necessary steps to declassify the Board (in a manner that does not
affect the unexpired terms of the previously elected directors) so that all directors are elected on an annual basis commencing at the
next annual meeting of stockholders after the 2022 Annual Meeting.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">JDS1 STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY
TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY
MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT&nbsp;<U>HTTPS://WWW.SEC.GOV</U>.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">The participants in the proxy solicitation are anticipated
to be JDS1, LLC, a Delaware limited liability company, CCUR Holdings, Inc., a Delaware corporation, CIDM II, LLC, a Delaware limited liability
company, Julian D. Singer, David S. Oros, Shelly C. Lombard, Matthew Stecker, and Igor Volshteyn.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">As of the date hereof, JDS1, LLC directly beneficially
owns 780,432 shares of Common Stock, par value $0.001 per share, of the Company (the &ldquo;<U>Common Stock</U>&rdquo;), including 500
shares of Common Stock held in record name. As of the date hereof, CCUR Holdings, Inc. directly beneficially owns 532,100 shares of Common
Stock. JDS1, LLC, as an affiliate of CCUR Holdings, Inc., may also be deemed to be the beneficial owner of the 532,100 shares of Common
Stock held by CCUR Holdings, Inc. As of the date hereof, CIDM II, LLC does not directly own any shares of Common Stock, but, as the asset
manager to CCUR Holdings, Inc., may be deemed the beneficial owner of the 532,100 shares of Common Stock beneficially owned by CCUR Holdings,
Inc. As of the date hereof, Mr. Singer does not directly own any shares of Common Stock, but may be deemed to have beneficial ownership
of the Common Stock as a result of being the managing member of each of JDS1 and CIDM II, LLC and an affiliate of CCUR Holdings, Inc.
Accordingly, Mr. Singer may be deemed to beneficially own (i) the 780,432 shares of Common Stock directly beneficially owned by JDS1,
LLC, and (ii) the 532,100 shares of Common Stock directly beneficially owned by CCUR Holdings, Inc. As of the date hereof, Mr. Oros directly
beneficially owns 338,600 shares of Common Stock. As of the date hereof, none of Ms. Lombard and Messrs. Stecker and Volshteyn beneficially
owned any shares of Common Stock.</P>

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