PARAGON TECHNOLOGIES, INC.
Quarterly Report
For the Period Ended March 31, 2019
6
5) Issuer’s Business, Products and Services (Continued)
B. Describe subsidiaries, parents or affiliated companies
The Company has the following wholly owned subsidiaries: (1) SI Systems, LLC; (2) Ohana Home Services,
LLC; and (3) ARK Investments, LLC. The officers of all three are: Hesham Gad, President and CEO; and
Deborah Mertz, CFO. The business address of all three is 101 Larry Holmes Drive, STE 500, Easton, PA
18042.
ARK Investments, LLC owns 80% of SED International de Colombia, S.A.S. (SEDC). Ronell Rivera is
President of SEDC, which is located at Parque Industrial Gran Sabana Bodega 31, Vereda Tibitó –
Tocancipá.
C. Describe the issuers’ principal products or services and their markets
For information regarding our principal products or services and their markets, please see Section 5.A.
above.
6) Issuer’s Facilities
Paragon Technologies, Inc.
101 Larry Holmes Drive, Suite 500
Easton, PA 18042
SI Systems leases a facility located at 101 Larry Holmes Drive in Easton, Pennsylvania. The area
covered by the lease is 9,648 square feet. The leasing agreement requires fixed monthly payments of
$14,400 through April 30, 2020, when the lease expires.
SI Systems believes that its Easton, Pennsylvania facility is adequate for its current operations. SI
Systems’ operations experience fluctuations in workload due to the timing and receipt of new orders
and customer job completion requirements. Currently, SI Systems’ facility is adequate to handle these
fluctuations. In the event of an unusual demand in workload, SI Systems supplements its internal
operations with outside subcontractors that perform services for SI Systems in order to complete
contractual requirements for its customers. SI Systems will continue to utilize internal personnel
and its own facility and, when necessary and/or cost effective, outside subcontractors to complete
contracts in a timely fashion in order to address the needs of its customers.
SED Colombia leased a 32,000 square foot facility in Chia (Cundinamarca), Colombia. The center,
located near Bogotá, the capital city of Colombia, serves as a sales and administrative office and
distribution facility for SEDC. The lease expired in October 2018. The monthly payment was the
equivalent of approximately $9,951. On January 1, 2019, SED Colombia entered into a five year lease
agreement for a 44,530 square foot facility in Tocancipa (Cundinamarca) to serve as its new sales and
administrative office and distribution facility. The new monthly payment is the equivalent of
approximately $14,174. SEDC continued to rent the Chia facility on a month to month basis until all
departments were transferred to the new building. All departments vacated the Chia facility by April
30, 2019.
SEDC also leases office #210 at 14707 South Dixie Highway in Palmetto Bay, Florida. The lease
expired at the end of March 2019 and was renewed for an additional year for a monthly payment of
$1,378. In addition, SEDC rents two apartments in Chia for the use of its two members of its
management team based out of Miami, Florida for an aggregate monthly payment of the equivalent of
approximately $908. One lease expired at the end of March 2019 and was replaced with a lease on a
house in Chia for a monthly payment of approximately $970, expiring mid-March 2020. The other lease
expires in mid-July 2019 and will not be renewed.
PARAGON TECHNOLOGIES, INC.
Quarterly Report
For the Period Ended March 31, 2019
7
7) Officers, Directors, and Control Persons
Name, Other Positions or Offices With the Company
and Principal Occupation for Past Five Years
Director
Since Age
Hesham M. Gad ........................................................................................................ 2010 41
Hesham M. Gad has been Chief Executive Officer of the Company since June
2014, Chairman of the Company’s Board of Directors since March 2012 and a
director of the Company since October 2010. From 2013 to 2017 Mr. Gad served
as Chairman and CEO of SED International Holdings, a multinational distributor of
IT and computing products.
Mr. Gad is also the author of the internationally published book, “The Business of
Value Investing.” Mr. Gad holds a B.A. in finance and an MBA in finance from the
University of Georgia.
Name of
Officer/Director
and Control Person
Affiliation with
Company (e.g.
Officer/Director/Owner
of more than 5%)
Residential Address (City /
State Only)
Number
