What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2020-08-13 compared with 2020-06-18 · 111 added, 63 removed, 132 unchanged (57% of the section changed)

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We have incurred losses in each year since our inception.

Our net losses were $10.5 million and $7.9 million for the three months ended March 31, 2020 and 2019 , respectively.

As of March 31, 2020 , we had an accumulated deficit of $113.1 million .

Our net losses were $8.1 million and $7.7 million for the three months ended June 30, 2020 and 2019, respectively, and $18.6 million and $15.5 million for the six months ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, we had an accumulated deficit of $121.2 million.

We expect to continue to incur significant expenses and operating losses as we:

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COVID-19 Overview

In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, and the U.S.

government imposed restrictions on travel between the United States, Europe and certain other countries.

Further, the President of the United States declared the COVID-19 pandemic a national emergency, invoking powers under the Stafford Act, the legislation that directs federal emergency disaster response.

Similarly, the State of California declared a state of emergency related to the spread of COVID 19, on March 19, 2020, the Governor of California issued an executive order that directed all individuals living in the State of California to stay at home or their place of residence for an indefinite period of time (subject to certain exceptions to facilitate authorized necessary activities) to mitigate the impact of the COVID-19 pandemic.

Accordingly, to comply with applicable regulations and to safeguard the health and safety of our employees and customers, we have temporarily reduced our on-site business operations.

During the three months ended March 31, 2020, we operated our business in the ordinary course.

However, we experienced a $0.7 million decrease in revenue, as compared to the same period of the prior year, which is largely due to the COVID-19 pandemic.

While the COVID-19 pandemic did not have a significant impact on the results of other segments of our business during the three months ended March 31, 2020, we have taken steps to contain the impact of the COVID-19 pandemic on our business.

On April 15, 2020, our Board of Directors approved the implementation of salary reductions for certain of our executive officers and other employees, including 50% salary reductions for Erik Holmlin, President and Chief Executive Officer, Mark Oldakowski, Chief Operating Officer, and Warren Robinson, Chief Commercial Officer.

The reductions were effective April 16, 2020, and we expect to maintain this reduction for at least two months from such date, subject to extension or adjustment based on developments relating to the COVID-19 pandemic.

Also in April 2020, we elected to institute a salary reductions for most of our salaried employees and reduce the number of working hours of most of our hourly employees by 25%.

This partial disruption, although expected to be temporary, may impact our operations and overall business.

The impact of COVID-19 is evolving rapidly and its future effects are uncertain.

The COVID-19 pandemic, and the measures imposed to contain this pandemic in areas where we operate our business and elsewhere have disrupted and are expected to continue to impact our business.

For example, to comply with applicable regulations and to safeguard the health and safety of our employees and customers, we temporarily reduced our on-site business operations, implemented work-from-home practices, and modified other business practices, including those related to employee travel and physical participation in meetings, events, and conferences.

In addition, the quarantine of our personnel and the inability to access our facilities or customer sites adversely affected, and is expected to continue to adversely affect, our operations.

During the six months ended June 30, 2020, we experienced a $1.7 million decrease in revenue, as compared to the same period of the prior year, which is largely due to the COVID-19 pandemic.

While the COVID-19 pandemic did not prevent us from operating our business during the six months ended June 30, 2020, we have taken steps to reduce our cash used in operations to offset the decrease in cash generated from sales.

For example, on April 15, 2020, our Board of Directors approved the implementation of temporary salary reductions for certain of our executive officers and other employees, including 50% salary reductions for Erik Holmlin, President and Chief Executive Officer, Mark Oldakowski, Chief Operating Officer, and Warren Robinson, Chief Commercial Officer.

These reductions were effective for two months beginning on April 16, 2020 and ended on June 15, 2020.

Also in April 2020, we implemented salary reductions for most of our salaried employees and reduced the number of working hours of most of our hourly employees by 25% , with such measures also ending on June 15, 2020.

These disruptions resulting from the COVID-19 pandemic, may continue to impact our operations and overall business.

The impact of COVID-19 is evolving rapidly and its future effects remain uncertain.

As a result of such uncertainties, the duration of the disruption and the related impact on our business, operating results and financial condition cannot be reasonably estimated at this time.

Our highest priority remains the safety, health and well-being of our employees, their families and our communities and we remain committed to serving the needs of our customers.

We will continue to evaluate the impact of the COVID-19 pandemic on our business.

We are continuing to closely monitor the impact of the COVID-19 pandemic on our business and are taking proactive efforts designed to protect the health and safety of our workforce, continue our business operations and advance our corporate objectives.

Financial Overview

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The following table presents our revenue for the periods presented:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

Product revenue $ 940,000 $ 2,021,000 $ 1,923,000 $ 3,708,000

Service and other revenue 242,000 154,000 395,000 319,000

Total $ 1,182,000 $ 2,175,000 $ 2,318,000 $ 4,027,000

The following table reflects total revenue by geography and as a percentage of total revenue, based on the billing address of our customers.

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Asia Pacific includes China, Japan, South Korea, Singapore and Australia.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

$ % $ % $ % $ %

North America $ 788,000 66 % $ 1,379,000 64 % $ 1,514,000 66 % $ 2,218,000 55 %

EMEIA 315,000 27 % 507,000 23 % 705,000 30 % 1,425,000 35 %

Asia Pacific 79,000 7 % 289,000 13 % 99,000 4 % 384,000 10 %

Total $ 1,182,000 100 % $ 2,175,000 100 % $ 2,318,000 100 % $ 4,027,000 100 %

Cost of Revenue

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Results of Operations

Comparison of the Three Months Ended March 31, 2020 and 2019

The following table sets forth our results of operations for the three months ended March 31, 2020 and 2019 :

Three Months Ended March 31,

Period-to-Period Change

Comparison of the Three Months Ended June 30, 2020 and 2019

The following table sets forth our results of operations for the three months ended June 30, 2020 and 2019:

Three Months Ended June 30, Period-to-Period Change

2020 2019 $ %

Product revenue $ 940,000 $ 2,021,000 $ (1,081,000) (53.5) %

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Interest expense (561,000) (645,000) 84,000 (13.0) %

Loss on debt extinguishment

Other income (expenses) (73,000) (171,000) 98,000 (57.3) %

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Provision for income taxes (5,000) (5,000) — — %

Total revenue decreased by $0.7 million , or 38.7% , to $1.1 million for the three months ended March 31, 2020 compared to $1.9 million for the same period in 2019 .

Net loss $ (8,074,000) $ (7,665,000) $ (409,000) 5.3 %

Total revenue decreased by $1.0 million, or 45.7%, to $1.2 million for the three months ended June 30, 2020 compared to $2.2 million for the same period in 2019.

The decrease impacted all regions, largely driven by customers temporarily shutting down their lab operations in response to COVID-19 shelter-at-home orders.

Below is a summary of changes for the three months ended March 31, 2020 as compared to the same period in 2019:

Below is a summary of changes for the three months ended June 30, 2020 as compared to the same period in 2019:

• North America revenue decreased by $0.6 million, or 43%;

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Cost of Revenue

Total cost of revenue decreased by $0.3 million , or 25.4% , to $0.9 million for the three months ended March 31, 2020 compared to $1.1 million for the same period in 2019 .

Total cost of revenue decreased for the three months ended March 31, 2020 as compared to 2019 primarily due to a decrease in the number of instruments units sold during the quarter (from 6 to 3).

Total cost of revenue decreased by $1.0 million, or 61.2%, to $0.6 million for the three months ended June 30, 2020 compared to $1.6 million for the same period in 2019.

Total cost of revenue decreased for the three months ended June 30, 2020 as compared to 2019 primarily due to a decrease in the number of instruments units sold during the quarter from 8 to 1.

This was partially offset by an increase in consumable units sold of 189%.

Research and Development Expenses

Research and development expenses increased $0.6 million , or 27.3% , to $2.7 million for the three months ended March 31, 2020 compared to $2.1 million for the same period in 2019 .

The increase is primarily due to headcount additions to our Assays and Reagents, Genome Informatics, and Engineering teams in an effort to expand our product offerings and innovation.

There was no significant change to research and development expenses during the three months ended June 30, 2020 compared to the same period in 2019.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $2.6 million , or 53.8% , to $7.4 million for the three months ended March 31, 2020 compared to $4.8 million for the same period in 2019 .

Selling, general and administrative expenses increased by $0.5 million, or 11.0%, to $5.6 million for the three months ended June 30, 2020 compared to $5.1 million for the same period in 2019.

This is primarily due to headcount additions to our global sales and marketing teams as well as back-office support teams to assist with the growth of our world-wide product distribution.

In addition, we incurred increased professional fees to support ongoing business operations and to comply with obligations associated with being a publicly-traded company.

Lastly, for a portion of the Company's accounts, the Company determined that its collection efforts had been exhausted and deemed the accounts receivables balance as uncollectible.

As a result, the Company recognized bad debt expense of $958,000 during the three months ended March 31, 2020 .

In addition, we incurred increased professional fees to support business operations and our international presence.

Salary reductions implemented in April 2020 partially offset cost increases driven by our headcount additions.

Comparison of the Six Months Ended June 30, 2020 and 2019

The following table sets forth our results of operations for the six months ended June 30, 2020 and 2019:

Six Months Ended June 30, Period-to-Period Change

2020 2019 $ %

Product revenue $ 1,923,000 $ 3,708,000 $ (1,785,000) (48.1) %

Service and other revenue 395,000 319,000 76,000 23.8 %

Total revenue 2,318,000 4,027,000 (1,709,000) (42.4) %

Cost of revenue:

Cost of product revenue 1,289,000 2,645,000 (1,356,000) (51.3) %

Cost of other revenue 170,000 57,000 113,000 198.2 %

Total cost of revenue 1,459,000 2,702,000 (1,243,000) (46.0) %

Operating expenses:

Research and development 5,075,000 4,508,000 567,000 12.6 %

Selling, general and administrative 12,981,000 9,846,000 3,135,000 31.8 %

Total operating expenses 18,056,000 14,354,000 3,702,000 25.8 %

Loss from operations (17,197,000) (13,029,000) (4,168,000) 32.0 %

Other income (expenses):

Interest expense (1,322,000) (959,000) (363,000) 37.9 %

Interest expense increased $0.5 million , or 178.8% , to $0.8 million for the three months ended March 31, 2020 compared to $0.3 million for the same period in 2019 , driven by changes in our term-loan debt.

During that time, the principal balance of our debt increased from $10 million under the Credit and Security Agreement with MidCap Financial (the “CSA”) to approximately $20 million under our Loan and Security Agreement with Innovatus Life Sciences Lending Fund I, LP, as further discussed below.

Loss on debt extinguishment — (1,333,000) 1,333,000 — %

A loss on debt extinguishment was recognized during the three months ended March 31, 2019 .

No such loss was recognized for the same period in 2020.

The loss resulted from the decision to pay-off the CSA prior to maturity.

Other income (expenses) (55,000) (186,000) 131,000 (70.4) %

Total other income (expenses) (1,377,000) (2,478,000) 1,101,000 (44.4) %

Loss before income taxes (18,574,000) (15,507,000) (3,067,000) 19.8 %

Provision for income taxes (10,000) (9,000) (1,000) 11.1 %

Net loss $ (18,584,000) $ (15,516,000) $ (3,068,000) 19.8 %

Total revenue decreased by $1.7 million, or 42.4%, to $2.3 million for the six months ended June 30, 2020 compared to $4.0 million for the same period in 2019.

The decrease impacted all regions, largely driven by customers temporarily shutting down their lab operations in response to COVID-19 shelter-at-home orders and related restrictions to address the pandemic.

Below is a summary of changes for the six months ended June 30, 2020 as compared to the same period in 2019:

• North America revenue decreased by $0.7 million, or 32%;

• EMEIA revenue decreased by $0.7 million, or 51%;

• Asia Pacific revenue decreased by $0.3 million, or 74%.

Cost of Revenue

Total cost of revenue decreased by $1.2 million, or 46.0%, to $1.5 million for the six months ended June 30, 2020 compared to $2.7 million for the same period in 2019.

Total cost of revenue decreased for the six months ended June 30, 2020 as compared to 2019 primarily due to a decrease in the number of instruments units sold from 14 to 4.

This was partially offset by an increase in consumable units sold of 120%.

Research and Development Expenses

Research and development expenses increased $0.6 million, or 12.6%, to $5.1 million for the six months ended June 30, 2020 compared to $4.5 million for the same period in 2019.

This is due to headcount additions to our development teams, but slightly offset by the salary reductions implemented in April 2020.

In addition, our materials and supply expense increased during the six months ended June 30, 2020 due to continued efforts to innovate our product.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $3.2 million, or 31.8%, to $13.0 million for the six months ended June 30, 2020 compared to $9.8 million for the same period in 2019.

This is primarily due to headcount additions to our global sales and marketing teams as well as back-office support teams to assist with the growth of our world-wide product distribution.

In addition, we incurred increased professional fees to support ongoing business operations and international presence.

Lastly, the Company determined that its collection efforts had been exhausted for a portion of its accounts and deemed the accounts receivables balance as not collectible.

As a result, the Company recognized bad debt expense of $1.3 million during the six months ended June 30, 2020.

Interest Expense

Interest expense increased $0.4 million, or 37.9%, to $1.3 million for the six months ended June 30, 2020 compared to $0.9 million for the same period in 2019, driven by changes in our term-loan debt.

In March 2019, the Company retired its $10 million Credit and Security Agreement with MidCap Financial (the “CSA”) and replaced it with a $20 million facility under our Loan and Security Agreement with Innovatus Life Sciences Lending Fund I, LP, as further discussed below.

Loss on Debt Extinguishment

A loss on debt extinguishment of $1.3 million was recognized during the six months ended June 30, 2019 in association with retiring the MidCap Financial CSA prior to maturity.

Liquidity and Capital Resources

Since our inception, we have incurred net losses and negative cash flows from operations.

We incurred net losses of $10.5 million and $7.9 million for the three months ended March 31, 2020 and 2019 , respectively.

As of March 31, 2020 , we had an accumulated deficit of $113.1 million and cash and cash equivalents of $8.1 million .

We incurred net losses of $8.1 million and $7.7 million for the three months ended June 30, 2020 and 2019, respectively, and $18.6 million and $15.5 million for the six months ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, we had an accumulated deficit of $121.2 million and cash and cash equivalents of $17.2 million.

Sources of Liquidity

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We anticipate that future sources of liquidity will principally come from sales of common stock and other equity instruments, borrowings from credit facilities and revenue from our commercial operations.

See Note 6 to our consolidated financial statements for a discussion of our recent equity activity and Note 5 to our condensed consolidated financial statements for a discussion of terms and provisions of our debt included elsewhere in this Quarterly Report on Form 10-Q for more information.

See Note 6 to our condensed consolidated financial statements for a discussion of our recent equity activity and Note 5 to our condensed consolidated financial statements for a discussion of terms and provisions of our debt included elsewhere in this Quarterly Report on Form 10-Q for more information.

Follow-On Offering

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The gross proceeds to us were approximately $18.0 million, before deducting underwriting discounts and commissions and other offering expenses.

Warrant Exercise Update

From July 1, 2020 through August 12, 2020, we have received gross proceeds of approximately $13.9 million pursuant to the exercise of outstanding common and pre-funded warrants to purchase an aggregate of 46,505,000 shares of our common stock.

The following table sets forth the cash flow from operating, investing and financing activities for the periods presented:

Net cash provided by (used in):

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities $ (15,250,000) $ (12,868,000)

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We have historically experienced negative cash flows from operating activities as we have developed our technology, expanded our business and built our infrastructure and this may continue in the future.

Net cash used in operating activities was $8.0 million during the three months ended March 31, 2020 as compared to $6.6 million during the same period in 2019 .

The increase in cash used in operating activities of $1.4 million is attributed to increased headcount across all business segments, increased professional fees to support ongoing business operations and to comply with obligations associated with being a publicly-traded company, and increased investments in marketing and promotions.

Net cash used in operating activities was $15.3 million during the six months ended June 30, 2020 as compared to $12.9 million during the same period in 2019.

The increase in cash used in operating activities of $2.4 million is attributed to increased headcount across the business, increased professional fees to support ongoing business operations and increase our international presence, and increased investments in marketing and promotions.

Investing Activities

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We expect to continue to incur additional costs for capital expenditures related to these efforts in future periods.

There was no significant cash used in investing activities during the three months ended March 31, 2020 as well as for the same period in 2019 .

There was no significant cash used in investing activities during the six months ended June 30, 2020 as well as for the same period in 2019.

Financing Activities

Net cash used by financing activities was $1.1 million during the three months ended March 31, 2020 as compared to the same period in 2019 where we had net proceeds from financing activities of $10.9 million , a decrease of $12.0 million .

During the three months ended March 31, 2020 , we raised $2.4 million from warrant exercises, offset by payments of $1.4 million on our revolving line of credit and $2.1 million in term-loan principal prepayments in accordance with the Second LSA Amendment.

During the three months ended March 31, 2019 , we had net proceeds from the issuance of the Innovatus LSA of $8.4 million as well as proceeds from Innovatus and Aspire Purchase Agreements of $2.4 million .

In April 2020, we made an additional partial prepayment of principal in the amount of $2.9 million upon the completion of our follow-on offering, bringing the total term-loan principal prepayments made between March and April of 2020 to $5.0 million.

As described above, our follow-on offering completed in April 2020 generated gross proceeds to us of $18.0 million, before deducting underwriting discounts and commissions and other offering expenses.

Net cash provided by financing activities was $15.1 million during the six months ended June 30, 2020 as compared to the same period in 2019 where we had net proceeds from financing activities of $11.7 million, a decrease of $3.4 million.

During the six months ended June 30, 2020, we raised approximately $16.4 million in net proceeds from a follow-on offering, and $3.5 million from warrant exercises.

In addition, we received approximately $1.8 million pursuant to the PPP Loan (as defined below).

Offsets included payments of $1.5 million on our revolving line of credit and $5.0 million in term-loan principal prepayments in accordance with the Second Amendment.

During the six months ended June 30, 2019, we had net proceeds from the issuance of the Innovatus LSA as well as aggregate proceeds from Innovatus and Aspire Purchase Agreements of approximately $11.0 million.

Paycheck Protection Program

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The PPP Loan is scheduled to mature in April 2022 (the “Maturity Date”), bears interest at a rate of 1.00% per annum, and is subject to the standard terms and conditions applicable to loans administered by the SBA under the CARES Act.

Commencing in November 2020, we are required to pay regular monthly payments in an amount equal to one month’s accrued interest.

All interest which accrues during the initial six months of the loan period will be deferred and payable on the Maturity Date.

The amounts outstanding under the PPP Loan may be prepaid by us at any time prior to maturity without penalty.

The PPP Loan is evidenced by a promissory note issued by East West Bank (the “Lender”).

The PPP note contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties.

Under the terms of the CARES Act, recipients of loans under the PPP can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, however, no assurance is provided that forgiveness for any portion of the PPP Loan will be obtained.

The PPP Loan is also described in Note 5 to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Under the terms of the CARES Act, recipients of loans under the PPP can apply for and be granted forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and certain other eligible costs (the “Eligible Costs”).

Pursuant to the Paycheck Protection Program

Flexibility Act (the “PPPFA”), enacted on June 5, 2020, we may continue to use loan proceeds on Eligible Costs through October 2, 2020, or the date that is 24 weeks from the PPP Loan origination date (the “Covered Period”).

However, no assurance is provided that forgiveness for any portion of the PPP Loan will be obtained.

Pursuant to the PPPFA, payments of principal and interest due under the PPP Loan are deferred until the date on which the SBA remits the forgiveness amount, if any, back to the PPP Lender, or if forgiveness isn't sought within 10 months after the last day of the Covered Period, until the date that is 10 months from the last day of the Covered Period.

The amounts outstanding under the PPP Loan may be prepaid by us at any time prior to maturity without penalty.

The PPP Loan is also described in Note 5 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Capital Resources

We performed an analysis of our ability to continue as a going concern.

We believe, based on our current business plan, that our existing cash and cash equivalents plus proceeds from our follow-on offering will be sufficient to fund our operations and obligations through the fourth quarter of 2020.

We believe, based on our current business plan, that our existing cash and cash equivalents as of June 30, 2020, plus proceeds from the recent warrant exercises described above, will be sufficient to fund our operations and obligations into the first quarter of 2021.

We plan to continue to fund our operations through cash and cash equivalents on hand, as well as through public or private equity or debt financings, strategic collaborations, licensing arrangements, asset sales, or other arrangements.

There can be no assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us.

Additional funds may not be available when needed from any source or, if available, may not be available on terms that are acceptable to us.

In addition, as a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced extreme volatility, including diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability.

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See Note 1 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

As discussed in Note 1, in April 2020, we received a Notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) advising us that for 30 consecutive trading days preceding the date of the Notice, the bid price of our common stock had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

As discussed in Note 1 to our condensed consolidated financial statements included in this Quarterly Report, in April 2020, we received a Notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) advising us that for 30 consecutive trading days preceding the date of the Notice, the bid price of our common stock had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

The Notice has no effect on the listing of our common stock at this time, and our common stock continues to trade on The Nasdaq Capital Market under the symbol “BNGO.” We intend to monitor the closing bid price of our common stock and may, if appropriate, consider implementing available options to regain compliance with the Minimum Bid Price Requirement.

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Our management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States.

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes.

The preparation of our consolidated financial statements requires us to make estimates and assumptions that materially affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes.

We evaluate these estimates and judgments on an ongoing basis.

We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates under different assumptions or conditions.

There were no material changes in our critical accounting policies and estimates during the three months ended March 31, 2020 .

We base our estimates on historical experience and on various other factors that we believe are reasonable under the

circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

Actual results may materially differ from these estimates under different assumptions or conditions.

There were no material changes in our critical accounting policies and estimates during the six months ended June 30, 2020.

Recent Accounting Pronouncements

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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