<SEC-DOCUMENT>0001171520-22-000372.txt : 20220617
<SEC-HEADER>0001171520-22-000372.hdr.sgml : 20220617
<ACCEPTANCE-DATETIME>20220617163121
ACCESSION NUMBER:		0001171520-22-000372
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220617
DATE AS OF CHANGE:		20220617

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:		221024347

	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
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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: 12pt Times New Roman,serif; margin: 0 0 2pt">Filed by the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: MS Mincho">&#9744;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt">Filed by a Party other than the Registrant &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: MS Mincho">&#9745;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt">Check the appropriate box:</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preliminary Proxy
Statement</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential, For
Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Proxy Statement</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Additional
Materials</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: MS Mincho">&#9745;</FONT>&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"><FONT STYLE="font-size: 14pt"><B>CATALYST BIOSCIENCES, INC</B></FONT><B>.</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: 14pt Times New Roman,serif; margin: 0; text-align: center"><B>JDS1, LLC</B></P>

<P STYLE="font: 14pt Times New Roman,serif; margin: 0; text-align: center"><B>CCUR HOLDINGS, INC.</B></P>

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

<P STYLE="font: 14pt Times New Roman,serif; margin: 0; text-align: center"><B>JULIAN D. SINGER</B></P>

<P STYLE="font: 14pt Times New Roman,serif; margin: 0; text-align: center"><B>DAVID S. OROS</B></P>

<P STYLE="font: 14pt Times New Roman,serif; margin: 0; text-align: center"><B>SHELLY C. LOMBARD</B></P>

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

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

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>(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: 12pt Times New Roman,serif; margin: 0">Payment of Filing Fee (Check the appropriate box):</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Mincho">&#9745;</FONT></TD>
    <TD COLSPAN="2">
    <P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: justify">No fee required</P>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: justify">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD>
    <TD>
    <P STYLE="font: 12pt Times New Roman,serif; margin: 0">Fee paid previously with preliminary materials</P>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD>
    <TD>
    <P STYLE="font: 12pt Times New Roman,serif; margin: 0">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules
    14a6(i)(1) and 0-11</P>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P></TD></TR>
  <TR>
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<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">On May 9, 2022, JDS1, LLC, a Delaware limited liability
company (&ldquo;<U>JDS1</U>&rdquo;), CCUR Holdings, Inc., a Delaware corporation (&ldquo;<U>CCUR</U>&rdquo;), CIDM II, LLC, a Delaware
limited liability company (&ldquo;<U>CIDM II</U>&rdquo;), Julian D. Singer, David S. Oros, Shelly C. Lombard, Matthew Stecker, and Igor
Volshteyn (collectively, the &ldquo;<U>JDS1 Group</U>&rdquo;), filed a revised preliminary proxy statement and an accompanying revised
preliminary GOLD proxy card with the U.S. Securities and Exchange Commission (&ldquo;<U>SEC</U>&rdquo;) to be used solicit proxies from
the stockholders of Catalyst Biosciences, Inc., a Delaware Corporation (the &ldquo;<U>Company</U>&rdquo; or the &ldquo;<U>Issuer</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. 14 Filed on June 17,
2022</B></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">On June 17, 2022, the JDS1 Group filed Amendment No.
14 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 the JDS1 Group&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;</I>Item 4 is hereby amended to add the following:</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">On May 23, 2022, the Company publicly disclosed that,
on May 19, 2022, it had entered into and closed on an Asset Purchase Agreement (the &ldquo;<U>Purchase Agreement</U>&rdquo;) with Vertex
Pharmaceuticals Incorporated (the &ldquo;<U>Purchaser</U>&rdquo;), pursuant to which the Purchaser acquired the Company&rsquo;s complement
portfolio, including CB 2782-PEG and CB 4332, as well as its complement-related intellectual property for $60 million in cash (the &ldquo;<U>Transaction</U>&rdquo;),
with $5 million retained by the Purchaser as a hold-back until one year after the closing to satisfy certain post-closing indemnification
obligations. In the Company&rsquo;s Current Report on Form 8-K disclosing the Transaction, filed with the SEC on May 23, 2022, the Company
stated that its description of the Purchase Agreement was qualified in its entirety by reference to the full text of the Purchase Agreement.
However, the Company did not file the Purchase Agreement as an exhibit to the Form 8-K. Instead, the Company noted that a copy of the
Purchase Agreement will be filed as an exhibit to the Company&rsquo;s Quarterly Report on Form 10-Q for the quarter ending June 30, 2022,
which is not due until August 15, 2022, the same date as the Company&rsquo;s recently scheduled 2022 Annual Meeting of Stockholders (the
&ldquo;<U>2022 Annual Meeting</U>&rdquo;), thus making clear that most stockholders will likely not have access to the Purchase Agreement
prior to the time they vote their proxies for the 2022 Annual Meeting.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">On June 15, 2022, JDS1, LLC (&ldquo;<U>JDS1</U>&rdquo;)
filed a complaint, together with a motion for expedited proceedings, in the Delaware Court of Chancery against the Company and all of
the incumbent members of the Company&rsquo;s Board of Directors (collectively, the &ldquo;<U>Director Defendants</U>&rdquo;) seeking declaratory,
injunctive, and equitable relief and damages under Section 271 of the Delaware General Corporation Law (the &ldquo;<U>DGCL</U>&rdquo;)
and Delaware fiduciary duty law. JDS1&rsquo;s complaint alleges, among other things, that the Company violated Section 271 of the DGCL
when on May 19, 2022, the Company, without seeking any vote of the Company&rsquo;s stockholders, entered into and closed on the Purchase
Agreement. JDS1&rsquo;s complaint also alleges that the Director Defendants breached their fiduciary duties by, among other ways, (i)
knowingly failing to obtain a stockholder vote, as required by Section 271 of the DGCL, for the Transaction which JDS1 contends constituted
a sale of substantially all of the assets of the Company; (ii) inequitably delaying until after the 2022 Annual Meeting, or shortly prior
thereto, the disclosure to stockholders of the Purchase Agreement and the various, possibly material, terms of the Transaction contained
therein, and the Company&rsquo;s plans for the resulting funds, such that most, if not all, stockholders, other than the Company&rsquo;s
insiders, would not have access to such information prior to deciding how to vote their proxies at or before the 2022 Annual Meeting,
thus preventing stockholders from being able to make informed voting decisions on critical matters brought before them and preventing
JDS1 from using such information in its proxy solicitation materials and other communications to stockholders; and (iii) deliberately
employing various legal strategies either to frustrate or completely disenfranchise a fair stockholder vote by preventing stockholders
from having access to the Purchase Agreement sufficiently in advance of the 2022 Annual Meeting, such that most, if not all, stockholders,
other than the Company&rsquo;s insiders, would be denied access to such information prior to deciding how to vote their proxies at the
2022 Annual Meeting, thus impeding stockholders from being able to make informed voting decisions on critical matters being bought before
them at the 2022 Annual Meeting, including whether to vote for JDS1&rsquo;s three nominees standing for election at the 2022 Annual Meeting
to replace three of the Director Defendants.</P>


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<P STYLE="font: 11pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">In light of the Company&rsquo;s recent actions, as
described herein, JDS1 remains more determined than ever to move forward with its proxy contest at the 2022 Annual Meeting. On June 16,
2022, JDS1 delivered to the Company an update to the notice of nominations and other proposed business that it previously submitted on
March 4, 2022 nominating Shelly C. Lombard, Matthew Stecker, and Igor Volshteyn (the &ldquo;<U>JDS1 Nominees</U>&rdquo;) for election
to the Company&rsquo;s Board of Directors (the &ldquo;<U>Board</U>&rdquo;) as Class I directors at the 2022 Annual Meeting and notifying
the Company of JDS1&rsquo;s intent to present a non-binding stockholder proposal 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 (the &ldquo;<U>Declassification Proposal</U>&rdquo;). JDS1 believes the JDS1 Nominees will bring to the
Board a sense of urgency, together with fresh insights and perspectives, to restoring investor confidence and finding a path forward to
unlock stockholder value and, thereby, reverse the precipitous decline in the price of the Common Stock that has occurred over the past
year. As of the close of trading on Nasdaq on June 16, 2022, the $1.37 closing price per share of the Common Stock represents a decline
of approximately 69% from the $4.43 closing price per share of the Common Stock on June 17, 2021. JDS1 also believes that the Declassification
Proposal, if approved by stockholders at the 2022 Annual Meeting, would be a positive step forward in putting the Board on notice that
stockholders want the members of the Board to be held accountable for their actions as directors.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">JDS1 believes there is an urgent need to drive meaningful
change in the composition of the Board and that such urgency has only been heightened given the manner in which the Board approached and
executed the Transaction, including that the Board chose not to seek any stockholder vote to approve the Transaction, chose to delay sharing
the Purchase Agreement with stockholders until after most stockholders will have voted their proxies for the 2022 Annual Meeting, and
has been noticeably silent as to how the Company will use the net cash proceeds that it received from the Transaction. According to the
Form 8-K/A that the Company filed with the SEC on May 24, 2022, the Company&rsquo;s net proceeds from the Transaction are $52 million,
not including the $5 million retained by the Purchaser as a hold-back until one year after the closing to satisfy certain post-closing
indemnification obligations. JDS1 believes that stockholder value would be best enhanced if the Company distributed most of its cash,
including the net cash proceeds of the Transaction, to stockholders, save what needs to be retained to provide for contingent liabilities
and administrative expenses, and is concerned that that the Company may pursue another use for such cash proceeds that does not contemplate
them being distributed to stockholders. JDS1 believes the JDS1 Nominees are better positioned than the incumbent Board members they are
intended to replace to ensure that such cash proceeds are put to a use that best enhances stockholder value and serves the best interest
of all stockholders.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">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 Company on a continuing basis. Depending on various factors
including, without limitation, the Company&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 Company 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 Company and others about the Company and the Reporting Persons&rsquo; investment, making suggestions
and/or proposals concerning the Company&rsquo;s capitalization, uses of its cash, 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 Company, 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 Company, or changing their intention with respect to any and all matters referred to
in Item 4.<I>&rdquo;</I></P>


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<P STYLE="font: 11pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></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">On May 9, 2022, the JDS1 Group filed a revised preliminary
proxy statement and an accompanying revised preliminary GOLD 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, with such declassification of the Board done in the most expeditious manner available under the Delaware
General Corporation Law.</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0 0 12pt; text-align: justify">THE JDS1 GROUP 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;<FONT STYLE="color: Blue"><U>HTTPS://WWW.SEC.GOV</U></FONT>.
IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON
REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS&rsquo; PROXY SOLICITOR.</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 beneficially owns
directly 1,131,577 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. beneficially owns directly 883,255 shares of
Common Stock. JDS1, LLC, as an affiliate of CCUR Holdings, Inc., may also be deemed to be the beneficial owner of the 883,255 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 883,255 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 1,131,577 shares of Common Stock beneficially owned directly by
JDS1, LLC, and (ii) the 883,255 shares of Common Stock beneficially owned directly by CCUR Holdings, Inc. As of the date hereof, Mr. Oros
directly beneficially owns 388,600 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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