What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-10-14 compared with 2021-04-14 · 63 added, 111 removed, 29 unchanged (86% of the section changed)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EXCEPT FOR HISTORICAL INFORMATION CONTAINED HEREIN, THE STATEMENTS IN THIS QUARTERLY REPORT ON FORM 10-Q MAY BE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 27A OF THE SECURITIES ACT OF 1933.

FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES WHICH MAY CAUSE BIOMERICA'S RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM FORECASTED RESULTS.

Like other businesses, THE COMPANY IS susceptible to macroeconomic downturns in the United States or abroad, as were experienced recently AND AS CURRENTLY CONTINUE, that may affect the general economic climate and OUR performance or OUR customers.

Aside from general macroeconomic downturns, the additional material factors, RISKS AND UNCERTAINTIES that could affect future financial results include, but are not limited to:

THE CONTINUED DEMAND FOR THE COMPANY'S PRODUCTS;

AVAILABILITY OF RAW MATERIALS;

RESULTS OF RESEARCH AND DEVELOPMENT ACTIVITIES;

THE ABILITY TO RETAIN KEY EMPLOYEES AND CUSTOMERS;

THE ABILITY TO COLLECT RECEIVABLES FROM CUSTOMERS;

THE CONTINUED ABILITY OF THE COMPANY TO ATTAIN AND MAINTAIN THE LICENSES AND APPROVALS REQUIRED, INCLUDING EUA CLEARANCE FROM THE FDA FOR THE COMPANYS COVID-19 PRODUCTS;

Regional or global pandemics, GOVERNMENT RESPONSES TO SUCH PANDEMICS, and the economic and social disruptions these cause ESPECIALLY IN THE HEALTHCARE INDUSTRY IN WHICH WE OPERATE;

SHUTDOWNS OR DISRUPTIONS IN OUR MANUFACTURING DUE TO WIDESPREAD ILLNESS, OR OTHER ISSUES;

terrorist attacks and the impact of such events;

existing and potential increase in trade tariffs, especially with China;

diminished or no access to raw materials that directly enter into our manufacturing process;

shipping labor disruption or other major degradation of the ability to ship out products to CUSTOMERS;

inability to successfully control our margins which are affected by many factors including RAW MATERIALS, competition and product mix;

protracted shutdown of the U.S.

border due to an escalation of terrorist or counter terrorist activity;

any changes in our business relationships with international distributors or the economic climate they operate in;

any event that has a material adverse impact on our foreign manufacturing operations may adversely affect our operations as a whole;

failure to manage the future expansion of our business could have a material adverse effect on our revenues and profitability;

possible costs in complying with government regulations and the delays in receiving required regulatory approvals or the enactment of new adverse regulations or regulatory requirements;

numerous competitors, some of which have substantially greater financial and other resources than we do;

potential claims and litigation brought by patients or medical professionals alleging harm caused by the use of or exposure to our products;

recalls of products;

inability to obtain FDA clearance on products or excessive costs incurred in order to obtain such approvals;

regulatory actions taken by government agencies such as the FDA, SEC, USDA and other regulators;

quarterly variations in operating results caused by a number of factors, including business and industry conditions;

and other factors beyond our control.

All these factors make it difficult to predict operating results for any particular period.

EXCEPT AS MAY BE REQUIRED BY APPLICABLE LAW, WE MAY NOT UPDATE OR REVISE OUR FORWARD-LOOKING STATEMENTS AND THE LACK OF SUCH UPDATE DOES NOT IMPLY THAT ACTUAL EVENTS ARE AS ORIGINALLY EXPRESSED BY SUCH FORWARD-LOOKING STATEMENTS.

YOU SHOULD READ THE DISCLOSURES IN THIS REPORT AND OTHER REPORTS, WHICH WE FILE WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE RISK FACTORS CONTAINED THEREIN.

You should read the following discussion and analysis in conjunction with our consolidated financial statements and the accompanying notes thereto included in Part II, Item 8 of this Report.

This discussion and analysis contains forward-looking statements that are based on our management’s current beliefs and assumptions, which statements are subject to substantial risks and uncertainties.

Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of many factors, including those discussed in “Risk Factors” included in Part I, Item 1A of this Report.

Biomerica, Inc.

and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH), (the Company, we, our) is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (physicians' offices and over-the-counter through drugstores and online) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases .

Our diagnostic test kits are used to analyze blood, urine, saliva, nasal fluids or fecal material from patients in the diagnosis of various diseases, food intolerances and other medical complications, or to measure the level of specific hormones, antibodies, antigens or other substances, which may exist in the human body in extremely small concentrations.

and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH), is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases .

The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs.

Our primary focus is the research and development of disruptive, patented diagnostic-guided therapy (DGT) products to treat gastrointestinal diseases, such as irritable bowel syndrome (IBS), and other inflammatory diseases.

Our primary focus is the research and development of revolutionary, patented, diagnostic-guided therapy, or DGT, products to treat gastrointestinal diseases, such as irritable bowel syndrome, and other inflammatory diseases.

These products are directed at chronic inflammatory illnesses that are widespread and common, and as such address very large markets.

If these DGT products prove effective in their clinical trials, and are ultimately cleared for sale by the U.S.

FDA, management believes the revenue potential to the Company is significant.

Due to the global 2019 SARS-CoV-2 novel coronavirus (COVID-19) pandemic, in March 2020 we began redirecting and focusing a majority of our resources to develop, test, validate, seek regulatory approval for, and sell antigen (viral) and antibody (serology) diagnostic products.

The Companys first COVID-19 diagnostic product, which was launched in March 2020, was a disposable rapid finger-prick blood antibody test that was designed to detect within ten minutes if the patient has certain IgG/IgM antibodies that were created as part of their bodys immune response to a COVID-19 infection, even if the infection was asymptomatic.

Given the lack of COVID-19 viral antigen tests early in the pandemic, COVID-19 antibody tests were an alternative option to identify patients that had been infected with the virus.

As viral antigen tests became more available, the sales of our disposable rapid finger-prick blood antibody tests slowed in the fourth quarter of 2020 as distributors stated that government health agencies remain focused on viral antigen testing that is now more readily available.

Concurrently, the Company also focused on COVID-19 antigen tests to detect if the COVID-19 antigen is present in a persons nasal fluids, indicating that the patient may still be actively infected and infectious to others.

In January 2021, the Company received a CE Mark which enables us to sell our nasal swab antigen test throughout the EU.

Sales of our antigen tests in the EU accounted for substantially all of our COVID-19 related product revenues during the three months ended February 28, 2021.

As the spread of COVID-19 continues, we are working to develop other markets beyond the EU to expand sales of our nasal swab and antigen tests.

In June 2020, we submitted an initial emergency use authorization (EUA) application to the FDA for a lab-scale, high throughput ELISA COVID-19 antibody test kit that could be sold to U.S.

labs and hospitals.

The Company also anticipates selling this ELISA antibody test kit outside of the U.S.

under a CE Mark.

This ELISA lab test kit can be run using blood drawn by a medical professional or by a patient using our proprietary at-home blood collection kit, that the patient sends directly to an ELISA lab for processing.

In November 2020, we amended our EUA application for this ELISA test to include the use of the at-home blood collection kit.

The FDA has now assigned an examiner to review this submission and the Company is actively working with the FDA to attain EUA clearance.

The Company manufactures the COVID-19 ELISA antibody test at its California facility on its automated equipment which is also used to produce serology antibody tests for other diseases.

COVID-19 vaccines that are designed to create antibodies in individuals that will enable them to avoid serious illness when exposed to the COVID-19 virus are now becoming available in the market.

Our ELISA antibody test detects the spike protein antibody that is the same antibody produced in individuals following vaccination using the RNA based vaccine made by Pfizer, Moderna and others.

Aside from the current focus on COVID-19 products in research, development and clinical trials, the products we continue to sell are primarily focused on gastrointestinal diseases, food intolerances, diabetes and certain esoteric tests.

Food and Drug Administration, we believe the revenues potential to the Company is significant.

We are currently finalizing an endpoint determination clinical trial on our InFoods ® IBS product.

This trial is and has been conducted at Mayo Clinics in Florida and Arizona, Beth Israel Deaconess Medical Center Inc., a Harvard Medical School Teaching Hospital, University of Texas Health Science Center at Houston, Houston Methodist, the University of Michigan and other institutions .

This trial monitors IBS patients over an 8-week period to determine the efficacy of our InFoods® IBS product to improve the patients’ IBS symptoms.

We expect our final enrolled patients to complete the trial, and for top-line trial results to be reported at or around the end of December 2021 .

During the next six months, we also expect to be entertaining partnership/licensing discussions with pharmaceutical and technology companies that could help us commercialize the product, including obtaining final FDA clearance.

Our medical diagnostic products are sold worldwide primarily in two markets:

1) clinical laboratories and 2) point-of-care (physicians' offices and over-the-counter drugstores like Walmart and Walgreens).

The diagnostic test kits are used to analyze blood, urine, nasal or fecal specimens from patients in the diagnosis of various diseases, food intolerances and other medical complications, by measuring or detecting the existence and/or level of specific bacteria, hormones, antibodies, antigens or other substances, which may exist in a patient’s body, stools, or blood, often in extremely small concentrations.

Due to the global 2019 SARS-CoV-2 novel coronavirus pandemic, in March 2020 we began redirecting and focusing much of our resources to develop, test, validate, seek regulatory approval for COVID-19 tests.

During fiscal 2021, we sold 2 primary types of COVID-19 tests:

1) antibody diagnostic tests that use a patient’s blood sample to detect if the patient has certain antibodies to COVID-19 that were created as part of their body’s immune response to a COVID-19 infection, even if the infection was asymptomatic, and 2) antigen tests that use a patient’s nasal fluid sample to detect if a patient is currently infected with the virus.

During the fiscal year, we sold these products outside of the U.S.

under a CE Mark (European Conformity).

Because individual orders for these tests have been large in size, this has created volatility and material fluctuations in our monthly and quarterly revenues.

Although sales in these products have slowed, we continue to receive and fill orders for our COVID-19 test products.

During our fiscal first quarter of 2022, we recorded approximately $226,000 in sales of our COVID-19 antigen test.

Aside from the COVID-19 products we offer, the other products we sell are primarily focused on gastrointestinal diseases, food intolerances, cancer screening and awareness and certain esoteric tests.

These diagnostic test products utilize immunoassay technology.

Our products are CE marked and/or sold for diagnostic use where they are registered by each countrys regulatory agency.

Most of our products are CE marked and/or sold for diagnostic use where they are registered by each country’s regulatory agency.

In addition, some products are cleared for sale in the U.S.

Finally, the Company continues to see progress in completing the testing required to attain FDA clearance for our patented InFoods® IBS DGT product that is designed to diagnose and treat sufferers of IBS.

Mayo Clinic, Beth Israel Deaconess Medical Center Inc., a Harvard Medical School teaching hospital, University of Texas Health Science Center at Houston, Houston Methodist and the University of Michigan are participating in our clinical trials for this product.

InFoods® IBS is a unique, patented product that can allow physicians to identify specific foods (e.g., pork, milk, onions, sugar, chickpeas, etc.) for each IBS patient, that when removed from that patients diet, may alleviate or improve their IBS symptoms and suffering.

Upon demonstrating efficacy and obtaining FDA clearance, we believe the long-term revenue opportunities for the patented InFoods IBS product could be comparable to any of the major drugs currently used to treat IBS.

Further, the United States Patent and Trademark Office (USPTO) has issued the Company two patents with broad claims that protect the InFoods® IBS product.

Five patents have also been issued internationally with many other patents still pending globally.

Additional patents have also been filed for other diseases that utilize the InFoods® DGT technology platform which include:

functional dyspepsia, Crohns Disease, ulcerative colitis, gastroesophageal reflux disease (GERD), migraine headaches, and osteoarthritis.

While sales continue to occur in our COVID-19 products, the majority of our research and development efforts are focused on development and commercialization of non-COVID related products such as our H.

Pylori product, and our InFoods® IBS product.

We also recently added several new employees in its sales and marketing department in order to increase sales of existing non-COVID products during fiscal 2022.

Through these efforts, our EZ Detect colon disease home screening test is seeing a significant increased interest from retailers such as Walmart, distributors, and ministries of health in many countries.

RESULTS OF OPERATIONS

Consolidated net sales for Biomerica were $3,628,638 for the three months ended February 28, 2021 as compared to $1,176,889 for the three months ended February 29, 2020.

This represents an increase of $2,451,749 or 208%.

Consolidated net sales for Biomerica were $6,144,970 for the nine months ended February 28, 2021 as compared to $3,967,712 for the nine months ended February 29, 2020.

This represents an increase of $2,177,258, or 55%.

The increase for the three and nine months ended February 28, 2021 as compared to the three and nine months ended February 29, 2020 was primarily due to the sale of approximately $2,300,000 in COVID-19 nasal swab antigen tests.

Consolidated cost of sales for Biomerica were $3,667,143 for the three months ended February 28, 2021 as compared to $964,910 for the three months ended February 29, 2020.

This represents an increase of $2,702,233 or 280%.

Consolidated cost of sales for Biomerica were $5,639,103 for the nine months ended February 28, 2021 as compared to $2,919,557 for the nine months ended February 29, 2020.

This represents an increase of $2,719,546, or 93%.

The percentage of cost of sales relative to sales for the three months ended February 28, 2021 increased from 82% in the prior year to 101%.

The percentage of cost of sales relative to sales for the nine months ended February 28, 2021 increased from 74% in the prior year to 92%.

The Companys cost of sales for the three and nine months ended February 28, 2021, included a reserve for slower moving COVID-19 disposable rapid finger-prick blood antibody tests and materials of approximately $1,405,000, not related to the Companys ELISA Antibody or Antigen tests.

Without the inventory reserve the Companys gross margin would have been 38% for the three months ended February 28, 2021 and 31% for the nine months ended February 28, 2021.

The Company continues its focus on producing and selling its COVID-19 nasal swab antigen test and preparing to launch its ELISA antibody test.

Consolidated selling, general and administrative expenses for Biomerica were $1,278,393 for the three months ended February 28, 2021 as compared to $653,585 for the three months ended February 29, 2020.

This represents an increase of $624,808 or 96%.

Consolidated selling, general and administrative expenses for Biomerica were $3,697,804 for the nine months ended February 28, 2021 as compared to $1,714,543 for the nine months ended February 29, 2020.

This represents an increase of $1,983,261, or 116%.

The increase in the three and nine month periods ended February 28, 2021 was primarily due to legal expenses related to responding to the SEC inquiry discussed in Part II, as well as an increase in the allowance for doubtful accounts, additional consulting fees, and increased personnel costs as the Company is expanding and strengthening its management team in sales, marketing, and administration.

Consolidated research and development expenses for Biomerica were $563,216 for the three months ended February 28, 2021 as compared to $473,279 for the three months ended February 29, 2020.

As disclosed in Note 8 to the unaudited condensed consolidated financial statements in Item 1, during the process of preparing our financial statements for the quarter ended August 31, 2021, we determined that our calculation of non-cash stock-based compensation expense related to issued stock options in previously issued financial statements was incorrect.

Our calculation applied forfeiture adjustments to both vested and unvested outstanding options, including those for which the employee had provided the requisite service, which resulted in an understatement of stock compensation expense.

Additionally, our calculation expensed the option at vesting dates versus pro rata over the period the requisite service was provided.

These errors resulted in an understatement of stock compensation expense during the three months ended August 31, 2020, and periods prior to May 31, 2020, resulting in a cumulative adjustment to equity accounts.

As a result, our previously issued financial statements for the three months ended August 31, 2020 have been restated.

Net Sales and Cost of Sales

Consolidated net sales were $1,261,787 for the three months ended August 31, 2021, as compared to $1,143,806 for the three months ended August 31, 2020.

This represents an increase of $117,981 or 10%.

Consolidated research and development expenses for Biomerica were $1,824,312 for the nine months ended February 28, 2021 as compared to $1,248,599 for the nine months ended February 29, 2020.

The increase for the three months ended August 31, 2021, as compared to the three months ended August 31, 2020, was primarily due to the sale of our food intolerance products to a distributor in Asia.

Consolidated cost of sales was $1,350,757, or 107% of net sales, for the three months ended August 31, 2021, as compared to $1,025,717, or 90% of net sales, for the three months ended August 31, 2020.

This represents an increase of $325,040 or 32%.

The increase in the three and nine month periods ended February 28, 2021 was primarily a result of increases in costs related to the research, development and validation of COVID-19 tests, and the initiation costs at Mayo Clinic, University of Houston Texas, and Methodist Hospital in Texas for clinical trials for our InFoods® IBS product.

Interest and dividend income were $37,943 for the three months ended February 28, 2021 as compared to $53,964 for the three months ended February 29, 2020.

Our cost of sales for the three months ended August 31, 2021, were impacted by an adjustment to market or net realizable value for COVID-19 antigen tests of approximately $179,000.

Selling, General and Administrative Expenses

Consolidated selling, general and administrative expenses were $1,011,535 for the three months ended August 31, 2021, as compared to $1,305,944 for the three months ended August 31, 2020.

This represents a decrease of $294,409 or 23%.

Interest and dividend income were $54,017 for the nine months ended February 28, 2021 as compared to $62,515 for the nine months ended February 29, 2020.

The decrease in the three months ended August 31, 2021, was primarily due to a reduction of legal expenses.

Research and Development

Consolidated research and development expenses were $439,864 for the three months ended August 31, 2021, as compared to $711,505 for the three months ended August 31, 2020.

This represents a decrease of $271,641, or 38%.

The decrease in the three months ended August 31, 2021, was primarily a result of decreases in costs related to the research, development, and validation of COVID-19 tests.

Interest Expense

Interest and dividend income were $6,805 for the three months ended August 31, 2021, as compared to $8,091 for the three months ended August 31, 2020.

This represents a decrease of $1,286, or 16%.

LIQUIDITY AND CAPITAL RESOURCES

As of February 28, 2021 and May 31, 2020, the Company had cash and cash equivalents in the amount of $5,272,565 and $8,641,027 and working capital of $9,432,853 and $13,289,670, respectively.

During the nine months ended February 28, 2021, the Companys operations used cash of $4,244,064 compared to cash used in operations of $802,911 in the nine months ended February 29, 2020.

Cash used by operations increased year-to-date in fiscal 2021 compared to year-to-date fiscal 2020 primarily due to operating losses of $4,973,889, growth in accounts receivable of $690,691, growth in inventory of $1,446,766 driven by an increase in COVID-19 inventory of approximately $1,557,000 partially offset by a reduction in prepaids of $734,966, which was primarily driven by a repayment of an advance the Company had with one of our suppliers, a decrease in accounts payable and accrued expenses of $230,575 and non-cash adjustments related to increases in inventory and accounts receivable reserve of $1,437,547 and $578,438, respectively.

Approximately, $1,405,000 of the inventory reserve increase was related to a market downturn in our COVID-19 disposable rapid finger-prick blood antibody test and materials, as the market shifted to COVID-19 PCR viral and antigen tests.

Of the accounts receivable increase, $559,369 related to our sale to a South American distributor in fiscal 2020.

Cash used in investing activities year to date in fiscal 2021 was $106,760 for purchases of property and equipment and $116,881 for increased intangibles.

Cash provided by financing activities in fiscal year 2021 to date was $1,107,930 which was a result of stock option exercises of $96,455 and proceeds from the sale of common stock of $1,011,475.

Cash provided by financing activities in fiscal year 2020 to date was $2,563,672 which was a result of stock option exercises of $79,828, proceeds from the sale of common stock of $366,258, proceeds from the sale of convertible preferred stock of $1,917,586 and proceeds from equity financing from an officer of $200,000.

We have been working on new products that address large markets for the gastroenterology sector.

Patent applications for these new products have been filed and seven patents have been issued (two in the USA and five internationally).

The Company has been working on obtaining additional patents and U.S.

regulatory approvals for these products.

Due to the significant revenue opportunities these products represent, the Company has been spending substantial funds on research, development, patents and related costs, and expects this will continue in order to strengthen and expand our patent protection, and attain regulatory approvals of these products.

On July 21, 2020, the Company filed with the SEC a new Form S-3 Shelf registration statement to replace the registration statement that expired on July 20, 2020.

The new registration statement registers common shares that may be issued from time to time up to a maximum aggregate amount of $90,000,000.

Included in this registration statement was the registration of all of the common shares issued, or to be issued, to Palm Global Small Cap Master Fund LP upon conversion of their convertible Preferred stock into common shares.

This S-3 shelf registration statement became effective September 30, 2020.

The Company intends to use the net proceeds from any offerings that may be issued under this Shelf registration for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies and product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs.

For the nine months ended February 28, 2021, net proceeds of $1,011,475 were raised from this registration.

As of August 31, 2021 and May 31, 2021, we had cash and cash equivalents in the amount of approximately $4,997,000 and $4,199,000, respectively, and working capital of approximately $7,464,000 and $7,931,000, respectively.

As a result of cash and cash equivalents on hand at August 31, 2021, and our ability to raise additional funds through our ATM Agreement, management believes we have sufficient funds to operate through the next twelve months or more.

Operating Activities

Cash provided by operating activities of $75,836 during the three months ended August 31, 2021, reflects a net loss of $1,542,581 and non-cash adjustments of $502,094 primarily associated with depreciation, amortization, stock-based compensation, and inventory reserves.

In addition, we realized an increase in net working capital of $1,116,322 primarily driven by a decrease in accounts receivable and inventory.

For the three months ended August 31, 2020, cash used by operating activities of $1,597,146 reflects a net loss of $1,892,394 and non-cash adjustments of $542,994 primarily associated with depreciation, amortization, stock-based compensation, and inventory reserves.

This was partially offset by a decline in net working capital of $247,746 driven by increases in inventory, which was partially offset by a decrease in prepaid expenses.

Investing Activities

Cash used in investing activities for the three months ended August 31, 2021, was $5,141 for purchases of property and equipment and $72,375 for increased intangibles.

Cash used in investing activities for the three months ended August 31, 2020, was $39,588 for purchases of property and equipment and $53,158 for increased intangibles.

Financing Activities

Cash provided by financing activities for the three months ended August 31, 2021, was $804,605 which was a result of stock option exercises of $3,895 and net proceeds from the sale of common stock of $800,710.

Cash provided by financing activities for the three months ended August 31, 2020, was $14,900 which was a result of stock option exercises of $14,900.

OFF BALANCE SHEET ARRANGEMENTS

There were no off-balance sheet arrangements as of February 28, 2021.

There were no off-balance sheet arrangements as of August 31, 2021.

CRITICAL ACCOUNTING POLICIES

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We believe that the estimates and assumptions that are most important to the portrayal of our financial condition and results of operations, in that they require subjective or complex judgments, form the basis for the accounting policies deemed to be most critical to us.

These relate to revenue recognition, bad debts, inventory overhead application, inventory reserve, lease liabilities and right-of-use assets.

These relate to revenue recognition, accounts receivable reserves, inventory valuation, lease liabilities, right-of-use assets, and stock based compensation.

We believe estimates and assumptions related to these critical accounting policies are appropriate under the circumstances;

1 unchanged sentence

We suggest that our significant accounting policies be read in conjunction with this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Please refer to Note 2 for information on Significant Accounting Policies.

See Note 2 to the Financial Statements for information on Significant Accounting Policies.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

1 unchanged sentence

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