What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-02-25 compared with 2024-02-29 · 75 added, 91 removed, 213 unchanged (44% of the section changed)

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Our product portfolio seeks to address many of the cyber protection challenges and solution requirements.

The portfolio consists of six secure application solutions;

Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”), and two intelligent management and automation tools;

Harmony Controller and aGalaxy TPS.

The portfolio consists of network infrastructure and security products.

The infrastructure portfolio powers the delivery of internet services and applications while the security products protect applications, APIs, infrastructure and enterprises from cyber-attacks.

Our security suite is known as A10 Defend.

In addition, we have an intelligent management and automation tool known as A10 Control (formally Harmony Controller), which provides intelligent management, automation and analytics for secure application delivery in multi-cloud environments to help simplify operations.

Our secure infrastructure solutions include;

Thunder Application Delivery Controller (“ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”).

Our security products include;

A10 Defend Threat Control, A10 Defend Orchestrator, A10 Defend Detector, A10 Defend Mitigator and A10 Defend ThreatX Protect.

Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software.

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We derive revenue from two sources:

(i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements and software-as-a-service;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training.

(i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service offerings.

Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and over time once the subscription term has commenced.

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A substantial portion of our revenue is from sales of our products and services through distribution channel partners, such as resellers and distributors.

Our customers predominantly purchase PCS services in conjunction with purchases of our products.

Our customers predominantly purchase PCS services in conjunction with purchases of our products other than our software-as-a-service offerings.

We sell our products globally to service providers and enterprises that depend on data center applications and networks to generate revenue and manage operations efficiently.

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service providers, which accounted for 57% and 58% of our total revenue during 2024 and 2023, respectively, and enterprise, which accounted for 43% and 42% of our total revenue during 2024 and 2023, respectively.

During 2023, we experienced an increase in demand from our enterprise customers and a decrease in demand from our service provider customers related to lower service provider capital spending and longer sales cycles.

While we expect total demand to remain strong as the need for cybersecurity solutions continues to increase, we expect the demand shift trend from service provider to enterprise to continue in the near term.

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the Americas, APJ and EMEA regions.

The Americas region comprises the United States and all other countries in the Americas (excluding the United States).

The APJ region comprises Japan and all other countries in APAC (excluding Japan).

The Americas region comprises the U.S.

and all other countries in the Americas (excluding the U.S.).

The APJ region comprises Asia Pacific region including Japan.

The EMEA region comprises Europe, Middle East and Africa.

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We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers.

We outsource the manufacturing of our hardware

products to original design manufacturers.

We outsource the manufacturing of our hardware products to original design manufacturers.

We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.

As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large customers and service providers.

As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large end-customers and service providers.

Purchases from our ten largest end-customers accounted for 38%, 33% and 41% of our total revenue for 2024, 2023 and 2022, respectively.

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The timing of these purchases and the delivery of the purchased products are difficult to predict and rely upon customer growth and network enhancements.

Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest customers could materially impact our revenue and operating results in any quarterly period.

This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict, as was the case in 2023.

Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest end-customers could materially impact our revenue and operating results in any quarterly period.

This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.

In February 2025, we acquired the assets and key personnel of ThreatX Protect, which expanded our cybersecurity portfolio with WAAP protection (web application and application programming interfaces).

We intend to continue to invest for long-term growth.

We have invested and expect to continue to invest in our product development efforts to deliver new products and additional features in our current products to address customer needs.

In addition, we may expand our global sales and marketing organizations, expand our distribution channel partner programs and increase awareness of our solutions on a global basis.

In addition, we may expand our global sales and marketing organizations, expand our distribution channel programs and increase awareness of our solutions on a global basis.

Our investments in growth in these areas may affect our short-term profitability.

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We derive revenue from two sources:

(i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements and software-as-a-service;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training.

(i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service offerings.

Our products revenue primarily consists of revenue from sales of our hardware appliances upon which our software is installed.

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APJ 87,175 33 % 77,606 31 % 9,569 12 %

APAC 29,748 12 % 32,986 12 % (3,238) (10) %

Japan 47,858 19 % 56,716 20 % (8,858) (16) %

EMEA 40,165 16 % 41,349 16 % (1,184) (3) %

Total revenue $ 261,696 100 % $ 251,700 100 % $ 9,996 4 %

Total revenue decreased by $28.6 million, or 10%, in 2023 compared to 2022.

This decrease was due to a $32.1 million decrease in products revenue, partially offset by an increase of $3.5 million in services revenue.

Products revenue decreased $32.1 million, or 19%, in 2023 compared to 2022 primarily driven by lower demand from our service provider customers in the Americas, APAC and EMEA regions, partially offset by higher demand from enterprise customers in Japan.

Total revenue increased by $10.0 million, or 4%, in 2024 compared to 2023.

This increase was due to a $11.3 million increase in services revenue, partially offset by a decrease of $1.3 million in products revenue.

Products revenue decreased $1.3 million, or 1%, in 2024 compared to 2023 primarily driven by lower demand from our service provider and enterprise customers in the Americas, and EMEA regions, partially offset by higher demand from service provider customers in APJ.

Services revenue increased $11.3 million, or 10%, in 2024 compared to 2023.

The increase was primarily attributable to the increase in PCS sales in connection with our increased installed customer base in the Japan, Americas and EMEA regions.

During 2023, $132.7 million, or 53% of total revenue, was generated from the Americas region, which represents an 11% decrease compared to 2022.

The decrease was primarily due to lower products revenue driven by a decrease in demand from our service provider customers.

During 2023, $77.6 million, or 31% of total revenue, was generated from APJ, which represents a 13% decrease compared to 2022.

The decrease was mainly due to decreased revenue from both our enterprise and service provider customers.

The increase was primarily attributable to the increase in PCS sales in connection with our increased installed customer base in the APJ region, and to a lesser extent in the Americas and EMEA regions.

During 2024, $134.4 million, or 51% of total revenue, was generated from the Americas region, which represents a 1% increase compared to 2023.

The increase was primarily due to higher services revenue driven by an increase in demand from our enterprise customers.

During 2024, $87.2 million, or 33% of total revenue, was generated from APJ, which represents a 12% increase compared to 2023.

The increase was primarily due to higher products and services revenue driven by an increase in demand from our service provider customers.

During 2024, $40.2 million, or 16% of total revenue, was generated from EMEA, which represented a 3% decrease compared to 2023.

The decrease was primarily due to lower products revenue driven by a decrease in demand from our service provider customers driven by decreased demand.

The decrease was primarily due to lower products revenue driven by a decrease in demand from our service provider customers.

Cost of Revenue, Gross Profit and Gross Margin

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Total gross profit $ 210,277 80.4 % $ 203,738 80.9 % $ 6,539 (0.5) %

Products gross margin percentage decreased by 0.9% in 2023 compared to 2022 primarily driven by changes in product and geographic mix.

Services gross margin percentage increased by 0.7% in 2023 compared to 2022 primarily due to a decrease in personnel-related support costs.

Products gross margin percentage remained flat in 2024 compared to 2023.

Services gross margin percentage decreased by 1.7% in 2024 compared to 2023 primarily due to an increase in personnel-related support costs, especially variable compensation.

Operating Expenses

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Sales and marketing expenses also include the cost of marketing programs, trade shows, consulting services, promotional materials, demonstration equipment, depreciation and certain allocated facilities and information technology infrastructure costs.

The $2.5 million decrease in sales and marketing expenses in 2023 compared to 2022 was primarily due to decreases of $3.5 million in personnel costs as a result of a decrease in headcount and $0.4 million in marketing expenses, partially offset by increases of $0.9 million in credit loss expense and $0.5 million in travel-related expense.

In 2024, we expect sales and marketing expenses to increase from 2023 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

The $2.7 million decrease in sales and marketing expenses in 2024 compared to 2023 was primarily due to decreases of $3.2 million in personnel costs as a result of a decrease in headcount, partially offset by an increase in marketing events of $0.6 million.

For 2025, we expect sales and marketing expenses to increase modestly from 2024 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

Research and Development

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We expense research and development costs as incurred.

The $3.2 million decrease in research and development expenses in 2023 compared to 2022 was primarily due to a decrease of $8.5 million increase in personnel costs as a result of a decrease in headcount.

This decrease was partially offset by increases of $3.4 million in depreciation expense and $1.9 million in consulting expense as the Company transitions to using non-employee consultants for certain research and development activities.

In 2024, we expect research and development expenses to increase from 2023 levels reflecting strategic investments in our growth priorities, including cybersecurity technology.

The $2.5 million increase in research and development expenses in 2024 compared to 2023 was primarily due to an increase of $1.5 million in personnel costs and a $1.3 million increase in equipment and software expense, partially offset by a decrease of $0.6 million in professional services.

For 2025, we expect research and development expenses to increase from 2024 levels reflecting strategic investments in our growth priorities, including cybersecurity technology and AI technologies.

General and Administrative

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Professional services primarily consist of fees for outside accounting, tax, legal, recruiting and other administrative services.

The $0.4 million increase in general and administrative expenses in 2023 compared to 2022 was primarily due to an increase of $1.3 million in professional services expense as a result of increases in accounting and tax fees.

Additionally, facility expense increased $0.7 million primarily related to rent expense, equipment expense increased $0.4 million and depreciation expense increased $0.3 million.

Partially offsetting these increases was a decrease of $1.6 million in office expenses as the Company paid catch-up tax fee in 2022 related to a property tax audit.

Additionally, consulting expense decreased $0.7 million.

In 2024, we expect general and administrative expenses to increase from 2023 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

The $1.4 million increase in general and administrative expenses in 2024 compared to 2023 was primarily due to an increase of $1.3 million in personnel costs as a result of an increase in variable compensation.

For 2025, we expect general and administrative expenses to increase modestly from 2024 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

Non-Operating Income (Expense) - Interest Income

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Non-Operating Income (Expense) - Interest and Other Income (Expense), Net

In the years ended December 31, 2023 and 2022, interest and other income (expense), net consisted primarily of foreign currency exchange gains and losses, which had a favorable change of $0.6 million in the year ended December 31, 2023 compared to 2022.

Additionally, we recorded impairment expense of $1.0 million in the year ended December 31, 2022 related to an equity investment in a private company held by the Company.

Provision for (Benefit from) Income Taxes

We recorded income tax provisions of $3.8 million for the year ended December 31, 2023 and $5.8 million for the year ended December 31, 2022.

In the years ended December 31, 2024 and 2023, interest and other income (expense), net consisted primarily of gains on equity investments and foreign currency exchange gains and losses.

The Company recorded $5.3 million of investment gains in the year ended December 31, 2024, compared to an immaterial loss in the year ended December 31, 2023.

Foreign currency exchange gains and losses had a favorable change of $2.1 million in the year ended December 31, 2024 compared to a favorable change of $0.1 million in 2023.

Provision for Income Taxes

We recorded a provision for income tax of $8.0 million for the year ended December 31, 2024 and $3.8 million for the year ended December 31, 2023.

Our deferred tax assets primarily consist of research and development credits, capitalized research and development expenses and accruals and reserves.

The Company’s income tax provision for the years ended December 31, 2023 and 2022 primarily consisted of state and foreign income taxes.

The Company’s income tax provision for the year ended December 31, 2024 primarily consisted of U.S.

federal and state taxes.

The Company’s income tax provision for the year ended December 31, 2023 primarily consisted of U.S.

federal, state and foreign income taxes.

See Note 10 Income Taxes , of the notes to consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for further details regarding the Company’s taxes.

Liquidity and Capital Resources

As of December 31, 2023, we had cash and cash equivalents of $97.2 million, including $3.4 million held outside the United States in our foreign subsidiaries, and $62.1 million of marketable securities.

As of December 31, 2024, we had cash and cash equivalents of $95.1 million, including $3.9 million held outside the U.S.

in our foreign subsidiaries, and $100.4 million of marketable securities.

We currently do not have any plans to repatriate our earnings from our foreign operations.

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If we are unable to raise additional capital when desired, our business, operating results and financial condition could be adversely affected.

On September 8, 2022, we entered into a Common Stock Repurchase Agreement (the “Repurchase Agreement”) with Summit Partners Growth Equity Fund VIII-A, L.P., Summit Partners Growth Equity Fund VIII-B L.P., Summit Investors I, LLC and Summit Investors I (UK), L.P.

We may also elect to raise additional financing to help us pursue our business and strategic objectives.

Any additional financing could be dilutive to our existing stockholders.

In September 2022, we entered into a Common Stock Repurchase Agreement (the “Repurchase Agreement”) with Summit Partners Growth Equity Fund VIII-A, L.P., Summit Partners Growth Equity Fund VIII-B L.P., Summit Investors I, LLC and Summit Investors I (UK), L.P.

(collectively, “Summit”).

Pursuant to the Repurchase Agreement, we repurchased 3.5 million shares of common stock from Summit for approximately $44.6 million.

In November 2024, we entered into a Common Stock Repurchase Agreement (the “Repurchase Agreement”) with Summit.

Pursuant to the Repurchase Agreement, we repurchased 330 thousand shares of common stock from Summit for approximately $5.2 million.

The common shares repurchased are held in treasury and accounted for under the cost method.

On November 1, 2022, the Company announced its Board of Directors authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months, at which point it expired.

On November 7, 2023, the Company announced its Board of Directors had authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months.

On November 1, 2022, the Company announced its Board of Directors authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months.

On November 7, 2023, the Company announced its Board of Directors had authorized a stock repurchase program under which the Company may repurchase up to $50 million of its outstanding common stock over a period of twelve months.

On November 7, 2024, the Company announced its Board of Directors had authorized a new, non-expiring stock repurchase program under which the Company may repurchase up to $50 million of its outstanding common stock.

As of December 31, 2024, the Company had $44.2 million available to repurchase shares.

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Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

To date, all repurchases under these programs, other than the repurchase from Summit, have occurred in the open market.

During the year ended December 31, 2023, the Company repurchased 1.3 million shares for a total cost of $16.0 million.

To date, all repurchases under the Company’s stock repurchase programs have occurred in the open market, in negotiated transactions and from withholding shares in connection with vesting equity awards held by certain employees.

During the year

ended December 31, 2024, the Company repurchased 2.2 million shares for a total cost of $30.1 million.

During the year ended December 31, 2023, the Company repurchased 1.3 million shares for a total cost of $16.0 million.

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Our cash flows from operating activities will continue to be affected principally by the extent to which we increase spending on our business and our working capital requirements.

During the year ended December 31, 2024, cash provided by operating activities was $90.5 million, consisting of net income of $50.1 million, non-cash benefits totaling $28.0 million and a favorable net change in operating assets and liabilities of $12.4 million.

Our non-cash benefits primarily consisted of non-cash charges of $17.0 million for stock-based compensation and $11.3 million of depreciation and amortization expense.

The net change in our operating assets and liabilities primarily reflects cash inflows from changes in deferred revenue of $6.9 million, accrued and other liabilities of $6.6 million and accounts payable of $2.2 million, partially offset by cash outflows from changes in accounts receivable of $2.6 million, inventory of $0.8 million and prepaid expenses and other assets of $0.1 million.

The favorable change in deferred revenues was attributable to the timing of service contract bookings.

The favorable change in accrued liabilities was due to increases in accrued income taxes and variable compensation.

The favorable change in accounts payable is due to the timing of payments to our vendors.

The unfavorable change in accounts receivable was due to the timing of collections from our customers.

During the year ended December 31, 2023, cash provided by operating activities was $44.5 million, consisting of net income of $40.0 million and non-cash benefits totaling $22.8 million, partially offset by an unfavorable net change in operating assets and liabilities of $18.3 million.

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The favorable change in deferred revenues was attributable to the timing of service contract bookings.

During the year ended December 31, 2022, cash provided by operating activities was $66.1 million, consisting of net income of $46.9 million, partially offset by a non-cash benefit of $21.5 million and an unfavorable net change in operating assets and liabilities of $2.3 million.

Our non-cash benefit consisted primarily of non-cash charges of $13.3 million for stock-based compensation and $7.4 million of depreciation and amortization expense.

The net change in our operating assets and liabilities primarily reflects cash outflows from changes in accounts receivable of $10.1 million and accrued and other liabilities of $1.3 million, partially offset by cash inflows from changes in deferred revenue of $5.4 million, inventory of $2.0 million and prepaid expenses and other assets of $1.6 million.

The unfavorable change in accounts receivable was due to the timing of collections from our customers.

The favorable change in deferred revenues was attributable to the timing of service contract bookings.

Cash Flows from Investing Activities

During the year ended December 31, 2024, cash used by investing activities was $48.4 million, consisting of purchases of marketable securities of $142.8 million and capital expenditures of $12.3 million, partially offset by proceeds from maturities of marketable securities of $81.1 million and proceeds from the sales of marketable securities of $25.5 million.

During the year ended December 31, 2023, cash provided in investing activities was $13.6 million, consisting of proceeds from maturities of marketable securities of $64.5 million and proceeds from the sales of marketable securities of $45.4 million, partially offset by purchases of marketable securities of $85.4 million and capital expenditures of $10.9 million.

During the year ended December 31, 2022, cash used in investing activities was $11.1 million, consisting of purchases of marketable securities of $55.4 million and capital expenditures of $10.8 million, partially offset by proceeds from maturities of marketable securities of $71.0 million and sales of marketable securities of $6.3 million.

Cash Flows from Financing Activities

During the year ended December 31, 2024, cash used in financing activities was $44.3 million consisting primarily of $30.1 million of cash used to repurchase our common stock in the open market, from privately negotiated transactions and from withholding shares in connection with vesting equity awards held by certain employees.

Additionally, cash used for the payments of cash dividends was $17.8 million.

Partially offsetting these cash outflows was $3.6 million of cash proceeds from common stock issuances under our equity incentive plans.

During the year ended December 31, 2023, cash used in financing activities was $28.8 million consisting primarily of $17.8 million of cash used for the payments of cash dividends and $16.0 million of cash used to repurchase our common stock in the open market, partially offset by $4.9 million of cash proceeds from common stock issuances under our equity incentive plans.

During the year ended December 31, 2022, cash used in financing activities was $88.1 million consisting primarily of $79.3 million of cash used to repurchase our common stock in the open market and from Summit, and $15.9 million used for the payments of cash dividends, partially offset by $7.0 million of cash proceeds from common stock issuances under our equity incentive plans.

Critical Accounting Estimates

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the U.S.

The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures.

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We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our consolidated financial statements.

Inventory is stated at the lower of cost or net realizable value.

Inventory cost is determined using a first-in, first-out method.

We regularly evaluate inventory for excess and obsolete products.

Most of our inventory provisions relate to excess quantities of certain products, based on our inventory levels and future product purchase commitments compared to assumptions based on management’s assessment of future demand and market conditions.

Inventory write-downs, once established, are not reversed as they establish a new cost basis for the inventory.

Inventory write downs are included as a component of cost of products revenue in the consolidated statements of operations.

Revenue Recognition

We derive revenue from two sources:

(i) products revenue, which includes hardware, perpetual software license and subscription revenue;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, and training.

(i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements;

and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service offerings.

Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and the subscription term has commenced.

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Our customers predominantly purchase PCS services in conjunction with purchases of our products.

Revenue is recognized, net of applicable taxes, upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services.

We apply the following five-step revenue recognition model:

• Identification of the contract, or contracts, with a customer

• Identification of the performance obligations in the contract

• Determination of the transaction price

• Allocation of the transaction price to the performance obligations in the contract

• Recognition of revenue when, or as, performance obligations are satisfied.

PCS revenue includes arrangements for software support and technical support for our products.

PCS is offered under renewable, fee-based contracts, which includes technical support, hardware repair and replacement parts, bug fixes, patches, and unspecified upgrades on a when-and-if available basis.

Revenue for PCS services is recognized on a straight-line basis over the service contract term, which is typically one year, but can be up to five years as there is no discernible pattern of transfer related to these promises.

Billed but unearned PCS revenue is included in deferred revenue.

Professional service revenue primarily consists of the fees we earn related to installation and consulting services.

We recognize revenue from professional services upon delivery or completion of performance.

Professional service arrangements are typically short term in nature and are largely completed within 30 to 90 days from the start of service.

Revenue is recognized for training when the training course is delivered.

Contracts with Multiple Performance Obligations

Most of our contracts with customers, other than renewals of PCS, contain multiple performance obligations with a combination of products and PCS.

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We generally use a range of amounts to estimate SSP for individual products and services based on multiple factors including, but not limited to the sales channel (reseller, distributor or end-customer), the geographies in which our products and services are sold, and the size of the end-customer.

We account for multiple contracts with a single reseller as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single contract.

We may occasionally accept returns to address customer satisfaction issues even though there is generally no contractual provision for such returns.

We estimate returns for sales to customers based on historical return rates applied against current-period shipments.

Specific customer returns and allowances are considered when determining our sales return reserve estimate.

Consequently, we have chosen to apply the portfolio approach when possible, which we do not believe will happen frequently.

Additionally, we will evaluate a portfolio of data, when possible, in various situations, including accounting for commissions, rights of return and transactions with variable consideration.

We report revenue net of sales taxes.

We include shipping charges billed to customers in revenue and the related shipping costs are included in cost of product revenue.

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-K

Item 7. Management’s Discussion and Analysis