What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-03 compared with 2022-05-04 · 132 added, 60 removed, 203 unchanged (49% of the section changed)

11 unchanged sentences

Our assets consist primarily of producing oil and natural gas properties and are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas / North Louisiana and the Eagle Ford.

Most of our oil and natural gas properties are located in large, mature oil and natural gas reservoirs.

Our properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells.

2 unchanged sentences

As vaccines have become widely available, social distancing guidelines, travel restrictions and stay-at-home orders have eased, activity in the global economy has increased and demand for oil, natural gas and NGLs and related commodity pricing, has improved.

Additionally, oil, natural gas and NGLs prices increased in the first quarter of 2022 when compared to the same period of 2021 and, as a result, we experienced a significant increase in revenues.

As we continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and gas and the uncertainty associated with recovering oil demand, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy, we expect prices for some or all of the commodities we produce to remain volatile.

Additionally, oil, natural gas and NGLs prices increased in the first half of 2022 when compared to the same period of 2021 and, as a result, we experienced a significant increase in revenues.

We continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and gas and the uncertainty associated with recovering oil demand, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy.

We expect prices for some or all of the commodities to remain volatile.

Other factors such as the duration of the COVID-19 pandemic and the speed and effectiveness of vaccine distributions or other medical advances to combat the virus may impact the recovery of world economic growth and the demand for oil, natural gas and NGLs.

Recent Developments

Borrowing Base Redetermination and Sixth Amendment

On June 21, 2022, OLLC entered into the Sixth Amendment.

The Sixth Amendment amends the Revolving Credit Facility to, among other things:

● terminate the automatic monthly reductions of the borrowing base;

● reaffirm the borrowing base under the Revolving Credit Facility at $225.0 million;

● modify the affirmative hedging covenant.

Special Case Royalty Relief

On June 8, 2022, the Special Case Royalty Relief for our interest in the Beta Unit was terminated.

Appointment of Certain Directors

30 unchanged sentences

Results of Operations

The results of operations for the three months ended March 31, 2022 and 2021 have been derived from our consolidated financial statements.

The results of operations for the three and six months ended June 30, 2022 and 2021 have been derived from our unaudited condensed consolidated financial statements.

The comparability of the results of operations among the periods presented below is impacted by the Incident and suspension of operations at our Beta properties.

1 unchanged sentence

For the Three Months Ended

For the Six Months Ended

($ In thousands except per unit amounts)

Oil and natural gas sales

5 unchanged sentences

General and administrative expense

Accretion of asset retirement obligations

Loss on commodity derivative instruments

Loss (gain) on commodity derivative instruments

Pipeline incident loss

Interest expense, net

Gain on extinguishment of debt

Net income (loss)

Oil and natural gas revenues:

15 unchanged sentences

Depletion, depreciation and amortization

For the Three Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021

Net losses of $48.6 million and $19.3 million were recorded for the three months ended March 31, 2022 and 2021, respectively.

Oil, natural gas and NGL revenues were $93.9 million and $72.3 million for the three months ended March 31, 2022 and 2021, respectively.

Average net production volumes were approximately 20.4 MBoe/d and 24.7 MBoe/d for the three months ended March 31, 2022 and 2021, respectively.

For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

Net income of $29.2 million and a net loss of $35.0 million were recorded for the three months ended June 30, 2022 and 2021, respectively.

Oil, natural gas and NGL revenues were $112.9 million and $80.3 million for the three months ended June 30, 2022 and 2021, respectively.

Average net production volumes were approximately 20.4 MBoe/d and 25.3 MBoe/d for the three months ended June 30, 2022 and 2021, respectively.

The change in production volumes was primarily due to the suspension of operations at our Beta properties and natural declines.

During the first quarter of 2021, production from our Beta properties was 3.6 MBoe/d.

The average realized sales price was $51.10 per Boe and $32.56 per Boe for the three months ended March 31, 2022 and 2021, respectively.

For the three months ended June 30, 2021, production from our Beta properties was 3.6 MBoe/d.

The average realized sales price was $60.74 per Boe and $34.93 per Boe for the three months ended June 30, 2022 and 2021, respectively.

The increase in average realized sales price was primarily due to the increase in commodity prices.

Other revenues were $17.6 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively.

During the first quarter of 2022, we recognized $17.5 million in loss of production insurance income (“LOPI”) proceeds related to the suspension of operations at our Beta properties resulting from the Incident which includes four months of LOPI.

Lease operating expense was $32.9 million and $28.9 million for the three months ended March 31, 2022 and 2021, respectively.

The change in lease operating expense was primarily related to a $1.7 million increase in workover expense offset by the natural decline in production.

The increase was primarily attributable to increase expense workover projects in Oklahoma and the Rockies.

On a per Boe basis, lease operating expense was $17.92 and $13.01 for the three months ended March 31, 2022 and 2021, respectively.

The change in lease operating expense on a per Boe basis was due mainly to higher cost and lower production.

Gathering, processing and transportation was $8.0 million and $4.6 million for the three months ended March 31, 2022 and 2021, respectively.

The increase was primarily attributable to us marketing our own natural gas in Oklahoma, resulting in a reclassification of certain revenue deductions to gathering, processing and transportation expenses.

On a per Boe basis, gathering, processing and transportation was $4.36 and $2.06 for the three months ended March 31, 2022 and 2021, respectively.

Other revenues were $8.9 million and less than $0.1 million for the three months ended June 30, 2022 and 2021, respectively.

For the three months ended June 30, 2022, we recognized $8.8 million of LOPI proceeds related to the suspension of operations at our Beta properties resulting from the Incident which includes two months of LOPI.

Lease operating expense was $33.3 million and $28.7 million for the three months ended June 30, 2022 and 2021, respectively.

The change in lease operating expense was primarily related to a $2.8 million increase in workover expense and an increase of $2.1 million in lease operating expenses, offset by the natural decline in production.

The increase was primarily attributable to increased expense workover projects in Oklahoma and the Rockies.

On a per Boe basis, lease operating expense was $17.91 and $12.46 for the three months ended June 30, 2022 and 2021, respectively.

The change in lease operating expense on a per Boe basis was due mainly to higher costs and lower production.

Gathering, processing and transportation was $7.3 million and $5.1 million for the three months ended June 30, 2022 and 2021, respectively.

The increase was primarily attributable to marketing our own natural gas in Oklahoma, resulting in a reclassification of certain revenue deductions to gathering, processing and transportation expenses.

On a per Boe basis, gathering, processing and transportation was $3.92 and $2.20 for the three months ended June 30, 2022 and 2021, respectively.

The change on a per BOE basis primarily related to higher commodity prices and the accounting reclassification discussed above.

Taxes other than income were $7.6 million and $4.6 million for the three months ended March 31, 2022 and 2021, respectively.

Taxes other than income were $8.6 million and $5.1 million for the three months ended June 30, 2022 and 2021, respectively.

The increase in taxes other than income is due to an increase in production taxes as a result of the increase in commodity prices.

On a per Boe basis, taxes other than income were $4.11 and $2.08 for the three months ended March 31, 2022 and 2021, respectively.

On a per Boe basis, taxes other than income were $4.64 and $2.20 for the three months ended June 30, 2022 and 2021, respectively.

The change in taxes other than income on a per Boe basis was primarily due to the increase in commodity prices.

DD&A expense was $5.6 million and $7.3 million for the three months ended March 31, 2022 and 2021, respectively.

The change in DD&A expense was primarily due to a decrease in production of 4.3 MBoe/d, which equates to a decrease of approximately $1.2 million.

General and administrative expense was $7.8 million and $6.9 million for the three months ended March 31, 2022 and 2021, respectively.

The change in general and administrative expense was primarily related to (1) an increase of $0.5 million in stock compensation expense, (2) an increase of $0.4 million in salaries and other payroll benefits, and (3) an increase of $0.1 million in legal expenses.

The increases in general and administrative expense were offset by a decrease of $0.3 million in professional services.

Net loss on commodity derivative instruments of $93.4 million were recognized for the three months ended March 31, 2022, consisting of a $62.5 million decrease in the fair value of open positions and $30.9 million of cash settlements paid on expired positions.

Net loss on commodity derivative instruments of $34.6 million was recognized for the three months ended March 31, 2021, consisting of a $24.0 million decrease in the fair value of open positions and $10.6 million of cash settlements paid on expired positions.

Interest expense, net was $2.4 million and $3.1 million for the three months ended March 31, 2022 and 2021, respectively.

Interest expense included a gain position on our interest rate swaps of $0.5 million for the three months ended March 31, 2022, compared to a gain position on interest rate swaps of less than $0.1 million for the three months ended March 31, 2021.

In addition, we had a decrease of $0.2 million in interest expense due to lower borrowings on our Revolving Credit Facility.

Average outstanding borrowings under our Revolving Credit Facility were $228.1 million and $253.3 million for the three months ended March 31, 2022 and 2021, respectively.

DD&A expense was $5.9 million and $7.4 million for the three months ended June 30, 2022 and 2021, respectively.

The change in DD&A expense was primarily due to a decrease in production of 442 MBoe, which equates to a decrease of approximately $1.4 million.

General and administrative expense was $8.6 million and $6.0 million for the three months ended June 30, 2022 and 2021, respectively.

The change in general and administrative expense was primarily related to (1) an increase of $1.4 million in salaries and other payroll benefits;

(2) an increase of $0.6 million in legal expenses, and (3) an increase of $0.7 million in professional services.

Net loss on commodity derivative instruments of $18.6 million were recognized for the three months ended June 30, 2022, consisting of a $30.0 million increase in the fair value of open positions and $48.6 million of cash settlements paid on expired positions.

Net loss on commodity derivative instruments of $63.9 million was recognized for the three months ended June 30, 2021, consisting of a $47.0 million decrease in the fair value of open positions and $16.9 million of cash settlements paid on expired positions.

Pipeline incident loss was $5.1 million for the three months ended June 30, 2022.

The $5.1 million reflects legal expenses that the Company has determined will not be reimbursed through the insurance claims process.

No expense was recorded for the three months ended June 30, 2021.

See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1.

Financial Statements” of this quarterly report for additional information.

Interest expense, net was $3.1 million and $3.1 million for the three months ended June 30, 2022 and 2021, respectively.

Interest expense included a gain position on our interest rate swaps of $0.3 million for the three months ended June 30, 2022, compared to a loss position on interest rate swaps of less than $0.1 million for the three months ended June 30, 2021.

In addition, we had an increase of $0.3 million in interest expense due to higher rates on our Revolving Credit Facility.

Average outstanding borrowings under our Revolving Credit Facility were $219.4 million and $242.8 million for the three months ended June 30, 2022 and 2021, respectively.

For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

Net losses of $19.4 million and $54.4 million were recorded for the six months ended June 30, 2022 and 2021, respectively.

Oil, natural gas and NGL revenues were $206.8 million and $152.7 million for the six months ended June 30, 2022 and 2021, respectively.

Average net production volumes were approximately 20.4 MBoe/d and 25.0 MBoe/d for the six months ended June 30, 2022 and 2021, respectively.

The change in production volumes was primarily due to the suspension of operations at our Beta properties and natural declines.

During the first half of 2021, production from our Beta properties was 3.6 MBoe/d.

The average realized sales price was $55.95 per Boe and $33.76 per Boe for the six months ended June 30, 2022 and 2021, respectively.

The increase in average realized sales price was primarily due to the increase in commodity prices.

Other revenues were $26.5 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively.

During the first half of 2022, we recognized $26.2 million of LOPI proceeds related to the suspension of operations at our Beta properties resulting from the Incident which includes six months of LOPI.

Lease operating expense was $66.2 million and $57.6 million for the six months ended June 30, 2022 and 2021, respectively.

The change in lease operating expense was primarily related to a $5.5 million increase in workover expense and $4.7 million increase in lease operating expense, offset by the natural decline in production.

The increase was primarily attributable to increased expense workover projects in Oklahoma and the Rockies.

On a per Boe basis, lease operating expense was $17.92 and $12.73 for the six months ended June 30, 2022 and 2021, respectively.

The change in lease operating expense on a per Boe basis was due mainly to higher costs and lower production.

Gathering, processing and transportation was $15.3 million and $9.6 million for the six months ended June 30, 2022 and 2021, respectively.

On a per Boe basis, gathering, processing and transportation was $4.14 and $2.13 for the six months ended June 30, 2022 and 2021, respectively.

The change on a per BOE basis primarily related to higher commodity prices and the accounting reclassification discussed above.

Taxes other than income were $16.2 million and $9.7 million for the six months ended June 30, 2022 and 2021, respectively.

The increase in taxes other than income is due to an increase in production taxes as a result of the increase in commodity prices.

On a per Boe basis, taxes other than income were $4.38 and $2.14 for the six months ended June 30, 2022 and 2021, respectively.

The change in taxes other than income on a per Boe basis was primarily due to the increase in commodity prices.

DD&A expense was $11.5 million and $14.7 million for the six months ended June 30, 2022 and 2021, respectively.

The change in DD&A expense was primarily due to a decrease in production of 826 MBoe, which equates to a decrease of approximately $2.7 million.

General and administrative expense was $16.4 million and $13.0 million for the six months ended June 30, 2022 and 2021, respectively.

The change in general and administrative expense was primarily related to (1) an increase of $1.6 million in salaries and other payroll benefits, (2) an increase of $0.7 million in stock compensation expense, (3) an increase of $0.7 million in legal expenses, and (4) an increase of $0.4 million in professional services.

Net loss on commodity derivative instruments of $112.0 million were recognized for the six months ended June 30, 2022, consisting of a $32.4 million decrease in the fair value of open positions and $79.5 million of cash settlements paid on expired positions.

Net losses on commodity derivative instruments of $98.5 million was recognized for the six months ended June 30, 2021, consisting of a $71.0 million decrease in the fair value of open positions and $27.5 million of cash settlements paid on expired positions.

Pipeline incident loss was $5.7 million for the six months ended June 30, 2022.

The $5.7 million reflects legal expenses that the Company has determined will not be reimbursed through the insurance claims process.

No expense was recorded for the six months ended June 30, 2021.

See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1.

Financial Statements” of this quarterly report for additional information.

Interest expense, net was $5.5 million and $6.2 million for the six months ended June 30, 2022 and 2021, respectively.

Interest expense included a gain position on our interest rate swaps of $0.8 million for the six months ended June 30, 2022, compared to a gain position on interest rate swaps of less than $0.1 million for the six months ended June 30, 2021.

In addition, we had an increase of $0.1 million in interest expense due to higher rates on our Revolving Credit Facility.

Average outstanding borrowings under our Revolving Credit Facility were $223.7 million and $248.0 million for the six months ended June 30, 2022 and 2021, respectively.

Adjusted EBITDA

We include in this report the non-GAAP financial measure of Adjusted EBITDA and provide our reconciliation of Adjusted EBITDA to net loss and net cash flows from operating activities, our most directly comparable financial measures calculated and presented in accordance with GAAP.

We include in this report the non-GAAP financial measure of Adjusted EBITDA and provide our reconciliation of Adjusted EBITDA to net income (loss) and net cash flows from operating activities, our most directly comparable financial measures calculated and presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss):

25 unchanged sentences

In addition, we use Adjusted EBITDA to evaluate actual cash flow available to develop existing reserves or acquire additional oil and natural gas properties.

The following tables present our reconciliation of the Company’s net loss and cash flows from operating activities to Adjusted EBITDA, our most directly comparable GAAP financial measures, for each of the periods indicated.

Reconciliation of Net Loss to Adjusted EBITDA

The following tables present our reconciliation of the Company’s net income (loss ) and cash flows from operating activities to Adjusted EBITDA, our most directly comparable GAAP financial measures, for each of the periods indicated.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

For the Three Months Ended

For the Six Months Ended

(In thousands)

Net income (loss)

Interest expense, net

Accretion of AROs

Losses on commodity derivative instruments

Cash settlements paid on expired commodity derivative instruments

Losses (gains) on commodity derivative instruments

Cash settlements (paid) received on expired commodity derivative instruments

Amortization of gain associated with terminated commodity derivatives

Pipeline incident loss

Acquisition and divestiture related expenses

Share-based compensation expense

Pipeline incident loss

Gain on extinguishment of debt

Exploration costs

5 unchanged sentences

For the Three Months Ended

For the Six Months Ended

(In thousands)

Net cash provided by operating activities

1 unchanged sentence

Interest expense, net

Gain on interest rate swaps

Cash settlements paid on interest rate swaps

Gain (loss) on interest rate swaps

Cash settlements paid (received) on interest rate swaps

Amortization of gain associated with terminated commodity derivatives

2 unchanged sentences

Acquisition and divestiture related expenses

Income tax expense - current portion

Exploration costs

27 unchanged sentences

Capital Expenditures.

Our total capital expenditures were approximately $6.9 million for the three months ended March 31, 2022, which were primarily related to capital workovers, maintenance and facilities located in Oklahoma and East Texas and non-operated completion activities in the Eagle Ford.

Our total capital expenditures were approximately $20.4 million for the six months ended June 30, 2022, which were primarily related to capital workovers, maintenance and facilities located in Oklahoma, East Texas, the Rockies and non-operated drilling and completion activities in East Texas and the Eagle Ford.

Working Capital.

6 unchanged sentences

We expect that our future working capital requirements will be impacted by these same factors.

As of March 31, 2022, we had a working capital deficit of $84.2 million primarily due to short-term derivatives of $103.9 million, accrued liabilities of $53.9 million, revenues payable of $21.9 million, and accounts payable of $26.6 million offset by accounts receivable of $91.9 million, cash on hand of $15.6 million and prepaid expenses of $14.3 million.

As of June 30, 2022, we had a working capital deficit of $78.1 million primarily due to short-term derivatives of $80.0 million, accrued liabilities of $48.9 million, revenues payable of $24.5 million, and accounts payable of $35.0 million offset by accounts receivable of $77.8 million, cash on hand of $16.7 million and prepaid expenses of $15.2 million.

Debt Agreement

Revolving Credit Facility.

On November 2, 2018, OLLC as borrower, we entered into our Revolving Credit Facility (as amended and supplemented to date).

On November 2, 2018, OLLC, as borrower, entered into the Revolving Credit Facility (as amended and supplemented to date).

KeyBank serves as the administrative agent.

Our borrowing base under our Revolving Credit Facility is subject to redetermination on at least a semi-annual basis primarily based on a reserve engineering report.

As of March 31, 2022, we had approximately $10.0 million of available borrowings under our Revolving Credit Facility.

As of March 31, 2022, we were in compliance with all the financial (current ratio and total leverage ratio) and non-financial covenants associated with our Revolving Credit Facility.

As of June 30, 2022, we had approximately $10.0 million of available borrowings under our Revolving Credit Facility.

As of June 30, 2022, we were in compliance with all the financial (current ratio and total leverage ratio) and non-financial covenants associated with our Revolving Credit Facility.

On June 20, 2022, OLLC entered into the Sixth Amendment.

The Sixth Amendment amends the Revolving Credit Facility to, among other things:

● terminate the automatic monthly reductions of the borrowing base;

● reaffirm the borrowing base under the Revolving Credit Facility at $225.0 million;

● modify the affirmative hedging covenant.

For additional information regarding our Revolving Credit Facility, see Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1.

9 unchanged sentences

Financial Statements” of this quarterly report for additional information.

Sinking fund payments .

We have a funding requirement to fund a trust account to comply with supplemental regulatory bonding requirements related to our decommissioning obligations for our offshore Southern California production facilities.

As of June 30, 2022, our future commitment under this agreement were $2.7 million for the remaining of 2022.

See Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1.

Financial Statements” of this quarterly report for additional information.

Cash Flows from Operating, Investing and Financing Activities

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated.

The cash flows for the three months ended March 31, 2022 and 2021 have been derived from our Unaudited Condensed Consolidated Financial Statements.

The cash flows for the six months ended June 30, 2022 and 2021 have been derived from our Unaudited Condensed Consolidated Financial Statements.

For information regarding the individual components of our cash flow amounts, see our Unaudited Condensed Consolidated Statements of Cash Flows included under “Item 1.

Financial Statements” of this quarterly report.

For the Three Months Ended

For the Six Months Ended

(In thousands)

4 unchanged sentences

Key drivers of net operating cash flows are commodity prices, production volumes and operating costs.

Net cash provided by operating activities was $9.7 million and $15.6 million for the three months ended March 31, 2022 and 2021, respectively.

Production volumes were approximately 20.4 MBoe/d and 24.7 MBoe/d for the three months ended March 31, 2022 and 2021, respectively.

The average realized sales price was $51.10 per Boe and $32.56 per Boe for the three months ended March 31, 2022 and 2021, respectively.

Net cash provided by operating activities was $30.4 million and $36.4 million for the six months ended June 30, 2022 and 2021, respectively.

Production volumes were approximately 20.4 MBoe/d and 25.0 MBoe/d for the six months ended June 30, 2022 and 2021, respectively.

The average realized sales price was $55.95 per Boe and $33.76 per Boe for the six months ended June 30, 2022 and 2021, respectively.

The change in average realized sales price was primarily due to the increase in commodity prices.

Net cash provided by operating activities for the three months ended March 31, 2022 included $30.9 million of cash paid on expired commodity derivative instruments compared to $10.6 million of cash paid on expired commodity derivatives for the three months ended March 31, 2021.

For the three months ended March 31, 2022, we had net losses on commodity derivative instruments of $93.4 million compared to net losses of $34.6 million for the three months ended March 31, 2021.

Net cash provided by operating activities for the six months ended June 30, 2022 included $79.5 million of cash paid on expired commodity derivative instruments compared to $27.5 million of cash paid on expired commodity derivatives for the six months ended June 30, 2021.

For the six months ended June 30, 2022, we had net losses on commodity derivative instruments of $112.0 million compared to net losses of $98.5 million for the six months ended June 30, 2021.

Investing Activities.

Net cash used in investing activities for the three months ended March 31, 2022 was $7.8 million, of which $5.2 million was used for additions to oil and natural gas properties.

Net cash provided by investing activities for the three months ended March 31, 2021 was $4.1 million, of which $3.8 million was used for additions to oil and natural gas properties.

Net cash used in investing activities for the six months ended June 30, 2022 was $16.9 million, of which $12.9 million was used for additions to oil and natural gas properties.

Net cash provided by investing activities for the six months ended June 30, 2021 was $11.6 million, of which $11.5 million was used for additions to oil and natural gas properties.

Various restricted investment accounts fund certain long-term contractual and regulatory asset retirement obligations and collateralize certain regulatory bonds associated with our offshore Southern California properties.

Additions to restricted investments were $2.7 million during the three months ended March 31, 2022.

Additions to restricted investments were $4.0 million during the six months ended June 30, 2022.

Financing Activities .

We had net repayments of $5.0 million for the three months ended March 31, 2022 and 2021, respectively, related to our Revolving Credit Facility.

We had net repayments of $15.0 million and $20.0 million for the six months ended June 30, 2022 and 2021, respectively, related to our Revolving Credit Facility.

Off–Balance Sheet Arrangements

As of March 31, 2022, we had no off–balance sheet arrangements.

As of June 30, 2022, we had no off–balance sheet arrangements.

Recently Issued Accounting Pronouncements

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis