What changed in this filing

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Item 1. Financial Statements

2024-05-17 compared with 2023-11-08 · 109 added, 164 removed, 287 unchanged (49% of the section changed)

3 unchanged sentences

(Dollars in thousands, except par value)

September 30, 2023

March 31, 2024

December 31, 2023

2 unchanged sentences

Current marketable securities

Legal settlement receivable

Patent cross license receivable

Receivables, net of allowance of $ 326

11 unchanged sentences

Accounts payable

Dividends payable

Accrued liabilities

Deferred product revenue

Short-term debt

Total current liabilities

3 unchanged sentences

Shareholders' equity:

Common stock, par value $ 0.001 , 50,000,000 shares authorized, 23,960,684 and 23,955,767 shares issued and outstanding , respectively

Common stock, par value $ 0.001 , 50,000,000 shares authorized, 23,969,148 shares issued and outstanding

Additional paid-in capital

8 unchanged sentences

(Dollars in thousands, except per share amounts)

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Cost of goods sold

6 unchanged sentences

Interest expense

Other income (loss), net

Other income, net

Loss before income taxes

Provision for income taxes

Provision (benefit) for income taxes

Basic weighted average shares outstanding

3 unchanged sentences

Comprehensive loss:

Unrealized loss on available-for-sale securities, net of tax

Unrealized gain on available-for-sale securities, net of tax

Change in foreign currency translation adjustment

4 unchanged sentences

(Dollars in thousands, except per share amounts)

Nine Months Ended September 30,

Three months ended March 31,

Cash flows from operating activities:

4 unchanged sentences

Change of inventory to net realizable value

Gain recognized on Paycheck Protection Plan Loan forgiveness

Gain (loss) on disposal of assets and sale of marketable securities

Gain on disposal of assets and sale of marketable securities

Changes in operating assets and liabilities:

6 unchanged sentences

Operating lease liabilities

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

1 unchanged sentence

Purchase of intangibles

Capitalized patent defense costs

Proceeds from maturities and sales of marketable securities

2 unchanged sentences

Cash flows from financing activities:

Dividend payment

Net proceeds from equity-based compensation programs

Paycheck Protection Program loan refund upon full forgiveness net of loan payments

Principal payments of debt

9 unchanged sentences

The following is a summary of supplemental cash flow activities:

Nine Months Ended September 30,

Cash paid for income taxes

Three months ended March 31,

Cash (refund)/paid for income taxes

Cash paid for interest

Supplemental disclosure of non-cash financing and investing activities:

Three months ended March 31,

Dividends payable

See accompanying notes

12 unchanged sentences

Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations.

The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of September 30, 2023 and December 31, 2022 , the results of operations for the three and nine months ended September 30, 2023 and 2022 , and the cash flows for the nine months ended September 30, 2023 and 2022 .

The results of operations for the three and nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results for a full-year period.

The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of March 31, 2024 and December 31, 2023 , the results of operations for the three months ended March 31, 2024 and 2023 , and the cash flows for the three months ended March 31, 2024 and 2023 .

The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results for a full-year period.

These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC.

1 unchanged sentence

The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2023 .

There have been no changes to these policies during the quarter ended September 30, 2023 that are of significance or potential significance to the Company.

There have been no changes to these policies during the quarter ended March 31, 2024 that are of significance or potential significance to the Company.

Recent accounting pronouncements:

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016 - 13 , Financial Instruments - Credit Losses (Topic 326 ).

The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities.

In February 2020, the FASB issued ASU 2020 - 02 , Financial Instruments-Credit Losses (Topic 326 ) and Leases (Topic 842 ) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No.

2016 - 02 , Leases (Topic 842 ), which amends the effective date of the original pronouncement for smaller reporting companies.

ASU 2016 - 13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2022.

CECL estimates of expected credit losses on trade receivables over their life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts.

The Company adopted the standard in its first quarter of 2023 .

There was no material impact on the results of operations.

In December 2023, the FASB issued ASU 2023 - 09 “Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures” on the topic of income taxes.

The standard requires additional disclosure for income taxes.

These requirements include:

(i) requiring a public entity to disclose specific categories in the rate reconciliation;

(ii) disclosure of additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 % of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate);

(iii) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes;

(iv) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 % of total income taxes paid (net of refunds received);

(v) annual disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign;

and (vi) annual disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.

For public entities, the guidance is effective for annual periods beginning after December 15, 2024.

The Company will adopt this guidance in fiscal 2025 and is in the process of evaluating the new requirements.

As a result, the Company has not yet determined the impact this new ASU will have on its disclosures.

The Company has determined that recently issued accounting standards, other than the above discussed, will not have a material impact on its consolidated financial position, results of operations or cash flows.

1 unchanged sentence

(Dollars in thousands, except per share amounts)

As of September 30, 2023 , our cash and cash equivalents were approximately $ 13,694 compared to $ 984 as of December 31, 2022 .

Our working capital was $ 36,746 as of September 30, 2023 .

Net cash provided by operating activities was $ 51,143 for the nine months ended September 30, 2023 , an increase of $ 53,203 compared to $ 2,060 of cash used in operating activities for the nine months ended September 30, 2022 .

The Company believes, although there can be no assurance, that the current cash position and effective management of working capital, will provide the liquidity needed to meet our operating needs through at least November 8, 2024 .

As of March 31, 2024 , our cash and cash equivalents were approximately $ 18,544 compared to $ 17,835 as of December 31, 2023 .

Our working capital was $ 21,395 as of March 31, 2024 .

Net cash provided by operating activities was $ 433 for the three months ended March 31, 2024 , a decrease of $ 59,888 compared to $ 60,321 of cash was provided by operating activities for the three months ended March 31, 2023.

The Company also believes that its strong portfolio of intellectual property and its solid brand equity in the market will enable it to raise additional capital if and when needed to meet its short and long-term financing needs;

3 unchanged sentences

The following table disaggregates the Company’s revenue into primary product groups:

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Audio conferencing

1 unchanged sentence

The following table disaggregates the Company’s revenue into major regions:

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

North and South America

10 unchanged sentences

The following table sets forth the computation of basic and diluted earnings (loss) per common share:

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Basic weighted average shares outstanding

12 unchanged sentences

Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of securities as of September 30, 2023 were as follows:

Amortized cost

2 unchanged sentences

Estimated fair value

September 30, 2023

March 31, 2024

Available-for-sale securities:

1 unchanged sentence

Certificates of deposit

Corporate bonds and notes

Corporate debt securities

Total available-for-sale securities

There were no available-for sale securities as of December 31, 2022.

Amortized cost

Gross unrealized holding gains

Gross unrealized holding losses

Estimated fair value

December 31, 2023

Available-for-sale securities:

US Treasury securities

Certificates of deposit

Corporate debt securities

Total available-for-sale securities

Amortized cost

Estimated fair value

Due within one year

4 unchanged sentences

(Dollars in thousands, except per share amounts)

Debt securities in an unrealized loss position as of September 30, 2023 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality.

Debt securities in an unrealized loss position as of March 31, 2024 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality.

Management believes that it is more likely than not that the securities will receive a full recovery of par value, although there can be no assurance that such recovery will occur.

8 unchanged sentences

Gross unrealized holding losses

As of September 30, 2023

As of March 31, 2024

US Treasury securities

Corporate bonds and notes

Certificates of Deposit

Corporate debt securities

Less than 12 months

More than 12 months

Estimated fair value

Gross unrealized holding losses

Estimated fair value

Gross unrealized holding losses

Estimated fair value

Gross unrealized holding losses

As of December 31, 2023

US Treasury securities

Certificates of Deposit

Corporate debt securities

Intangible Assets

Intangible assets as of September 30, 2023 and December 31, 2022 consisted of the following:

Intangible assets as of March 31, 2024 and December 31, 2023 consisted of the following:

Estimated useful lives (years)

September 30, 2023

March 31, 2024

December 31, 2023

4 unchanged sentences

Total intangible assets, net

The amortization of intangible assets for the three and nine months ended September 30, 2023 and 2022 was as follows:

Three months ended September 30,

Nine months ended September 30,

The amortization of intangible assets for the three months ended March 31, 2024 and 2023 was as follows:

Three months ended March 31,

Amortization of intangible assets

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

The estimated future amortization expense of intangible assets is as follows:

1 unchanged sentence

2024 (Remainder)

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

Inventories, net of reserves, as of September 30, 2023 and December 31, 2022 consisted of the following:

September 30, 2023

Inventories, net of reserves, as of March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024

December 31, 2023

5 unchanged sentences

We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale, although there can be no assurance of the timing or amount of any sales.

Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for three and nine months ended September 30, 2023 and 2022 was as follows:

Three months ended September 30,

Nine months ended September 30,

Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for three months ended March 31, 2024 and 2023 was as follows:

Three months ended March 31,

Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods.

Rent expense for three and nine months ended September 30, 2023 and 2022 was as follows:

Three months ended September 30,

Nine months ended September 30,

Rent expense for three months ended March 31, 2024 and 2023 was as follows:

Three months ended March 31,

The Company occup ies a 1,350 square-foot facility in Gainesville, Florida under the terms of an operating lease expiring in F ebruary 2028 .

9 unchanged sentences

Supplemental cash flow information related to leases was as follows:

Nine months ended September 30,

Three months ended March 31,

Cash paid for amounts included in the measurement of lease liabilities

3 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

September 30, 2023

March 31, 2024

December 31, 2023

5 unchanged sentences

Weighted average discount rate for operating leases

The following represents maturities of operating lease liabilities as of September 30, 2023 :

The following represents maturities of operating lease liabilities as of March 31, 2024 :

Years ending December 31,

5 unchanged sentences

Shareholders' Equity

Three months ended September 30,

Nine Months Ended September 30,

Three months ended March 31,

Common stock and additional paid-in capital

Balance, beginning of period

Dividends paid

Dividends declared

Issuance of common stock and warrants, net

17 unchanged sentences

On January 4, 2022, the Company entered into a Securities Purchase Agreement with Edward D.

Bagley, an affiliate of the Company, pursuant to which the Company agreed to issue and sell, in a private placement 1,538,461 shares (the “Shares”) of the Company’s common stock, par value $ 0.001 per share, at a purchase price of $ 1.30 per share of Common Stock.

Bagley, an affiliate of the Company, pursuant to which the Company agreed to issue and sell, in a private placement 1,538,461 shares (the “Shares”) of the Compan y’s common stock, par value $ 0.001 per share, at a purchase price of $ 1.30 per share of Common Stock.

The consideration for the Shares is the cancellation and termination of Mr.

1 unchanged sentence

Bagley is an affiliate of the Company and the Company’s single largest stockholder.

Cash Dividend Distribution

On May 8, 2023 , the Company announced that the Company’s Board of Directors had declared a special one -time cash dividend of $ 1.00 per share of the Company’s common stock or eligible warrants and paid $ 28,978 of cash dividends on May 31, 2023 to shareholders of record on May 22, 2023 .

Nasdaq Delisting Notification

On August 1, 2023, the Company received a letter (the “Notice”) from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) informing management that because the closing bid price for the Company’s common stock listed on Nasdaq was below $ 1.00 for 30 consecutive trading days, the Company is not in compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Marketplace Rule 5550 (a)( 2 ) (the “Minimum Bid Price Requirement”).

In accordance with Nasdaq Marketplace Rule 5810 (c)( 3 )(A), the Company was granted a period of 180 calendar days from August 1, 2023, or until January 29, 2024, to regain compliance with the Minimum Bid Price Requirement.

The Company’s common stock has continued to trade below $ 1.00 per share.

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

Senior Convertible Notes and Warrants

On December 17, 2019, the Company completed the issuance and sale of $ 3,000 aggregate principal amount of secured convertible notes of the Company (the “Notes”) and warrants (the “Warrants”) to purchase 340,909 shares of common stock, par value $ 0.001 per share of the Company (the “Common Stock”), in a private placement transaction.

The Notes and Warrants were issued and sold to Edward D.

Bagley, an affiliate of the Company, on the terms and conditions of a Note Purchase Agreement dated December 8, 2019 between the Company, certain subsidiary guarantors of the Company, and Mr.

Bagley was the beneficial owner of approximately 46.6 % of the Company’s issued and outstanding shares of Common Stock at the time that the Notes and Warrants were issued to him.

The Notes will mature on December 17, 2023 (the “Maturity Date”) and will accrue interest at a variable rate adjusted on a quarterly basis and equal to two and one -half percent ( 2.5 %) over the greater of (x) five and one -quarter percent ( 5.25 %) and (y) the Prime Rate as published in the Wall Street Journal (New York edition) as of the beginning of such calendar quarter.

The Notes may be converted into shares of the Company’s Common Stock at any time at the election of Mr.

Bagley at an initial conversion price of $ 2.11 per share (the “Conversion Price”), or 120 % of the closing price of the Common Stock on December 6, 2019 as reported on the Nasdaq Capital Market.

Also, the Company can cause a mandatory conversion of the Notes if the volume weighted average closing price of the Common Stock over 90 consecutive trading days exceeds 200 % of the Conversion Price.

In addition, the Notes may be redeemed by the Company for cash at any time after December 17, 2020 upon payment of the outstanding principal balance of the Notes and any unpaid and accrued interest.

The Company also is required to redeem the Notes upon the occurrence of a change in control of the Company.

The Warrants have an initial exercise price equal to $ 1.76 , the closing price of the Common Stock on December 6, 2019 as reported on the Nasdaq Capital Market, and are exercisable until December 17, 2026.

The Warrants must be exercised for cash, unless at the time of exercise there is not a then effective registration statement for the resale of the shares of Common Stock issuable upon exercise of the Warrants, in which case the Warrants may be exercised via a cashless exercise feature that provides for net settlement of the shares of Common Stock issuable upon exercise.

Concurrent with the issuance of the Notes and Warrants pursuant to the Note Purchase Agreement, the Company, the Guarantors and Mr.

Bagley entered into a Guaranty and Collateral Agreement (the “Collateral Agreement”) pursuant to which the Company and the Guarantors granted Mr.

Bagley a first priority lien interest in all of the Company’s assets as security for the Company’s performance of its obligations under the Notes and Warrants.

The net proceeds after original issue discount and issuance costs of $ 346 were approximately $ 2,654 .

The Company expected to use the proceeds from the sale of the Notes and Warrants for general corporate purposes and working capital.

In accounting for the issuance of the Notes, the Company separated Notes and Warrants into liability and equity components.

The carrying amount of Warrants, being an equity component, was first calculated using Black-Scholes method with the following assumptions:

Risk-free interest rate

Expected life of warrants (years)

Expected price volatility

Expected dividend yield

The carrying amount of the Notes was then determined by deducting the fair value of the Warrants from the principal amount of the Notes.

The carrying amount of the Notes was further separated into equity and liability components after separating the value of the conversion feature into an equity component and leaving the remaining value as liability.

The equity component is not remeasured while the Notes and Warrants continue to meet the conditions for equity classification for equity components.

The original issue discount and issuance costs are netted against the liability.

The following table represents the carrying value of Notes and Warrants:

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

September 30, 2023

December 31, 2022

Liability component:

debt discount and issuance costs, net of amortization

Net carrying amount

Equity component ( 1 ) :

Conversion feature

Net carrying amount

Current portion of liability component included under short-term debt

Liability component total

( 1 ) Recorded on the condensed consolidated balance sheets as additional paid-in capital.

Debt discount and issuance costs are amortized over the life of the note to interest expense using the effective interest method.

During the three and nine months ended September 30, 2023 amortization of debt discount and issuance costs was $ 49 and $ 147 , respectively and for the three and nine months ended September 30, 2022 amortization of debt discount and issuance costs was $ 49 and $ 147 , respectively.

The following table represents schedule of maturities of principal amount contained in the Notes as of September 30, 2023 :

Year ending December 31,

Principal Amount Maturing

2023 (Remainder)

Total principal amount

Short-term Bridge Loans

On July 2, 2021, the Company obtained a bridge loan in the principal amount of $ 2,000 from Edward D.

Bagley (the “ 2021 Bridge Loan”), an affiliate of the C ompany.

The Bridge Loan was evidenced by a promissory note dated July 2, 2021 (the “Note”) issued by the Company to Mr.

The Note bore interest at a rate of 8.0 % per annum.

On September 11, 2021, the Company amended and restated the terms of the Bridge Loan to extend the latest maturity date from October 1, 2021 to January 3, 2022 .

All other terms and conditions of the Bridge Loan remained the same.

On January 4, 2022, the Company entered into a Securities Purchase Agreement with Edward D.

Bagley, pursuant to which the Company issued and sold to Mr.

Bagley, in a private placement 1,538,461 shares (the “Shares”) of the Company’s common stock, par value $ 0.001 per share, at a purchase price of $ 1.30 per share of Common Stock.

The consideration for the Shares was the cancellation and termination of Mr.

Bagley’s outstanding bridge loan to the Company in the principal amount of $ 2,000 originally issued on July 2, 2021 and amended and restated on September 11, 2021 .

Bagley is an affiliate of the Company and the Company’s single largest stockholder.

On October 28, 2022 the Company obtained a bridge loan in the principal amount of $ 2,000 from Edward D.

Bagley (the “ 2022 Bridge Loan”), an affiliate of the Company.

The 2022 Bridge Loan was evidenced by a promissory note dated October 28, 2022 (the “ 2022 Note”) issued by the Company to Mr.

The 2022 Note bore interest at a rate of 12.0 % per annum and had a maturity date of October 28, 2023 .

Bagley is an affiliate of the Company and the Company’s single largest stockholder.

This Bridge Loan of $ 2,000 is included under short-term debt as of December 31, 2022.

In January 2023, the 2022 Bridge loan of $ 2,000 along with applicable interest was repaid in full.

UNAUDITED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited - Dollars in thousands, except per share amounts)

Share-based Compensation

As of September 30, 2023 , the Company had 218,810 options with contractual lives of ten years and 393,229 options with contractual lives of six years offered under the Company’s 2007 Equity Incentive Plan (the “ 2007 Plan”), which was restated and approved by the shareholders on December 12, 2015.

As of September 30, 2023 , the 2007 Plan had 852,815 authorized unissued options.

A s of March 31, 2024 , the Company had 217,810 options with contractual lives of ten years and 370,000 options with contractual lives of six years offered under the Company’s 2007 Equity Incentive Plan (the “ 2007 Plan”), which was restated and approved by the shareholders on December 12, 2015.

As of March 31, 2024 , the 2007 Plan had 857,044 authorized unissued options.

The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables.

1 unchanged sentence

The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic 718 .

In applying the Black-Scholes methodology to 160,000 options granted in June 2023 , the Company used the following assumptions:

In applying the Black-Scholes methodology to 160,000 options gr anted in June 2023 , the Company used the following assumptions:

Risk free interest rate, average

2 unchanged sentences

Expected dividend yield

A summary of the stock option activity under the Company’s plans for the nine months ended September 30, 2023 , is as follows:

A summary of the stock option activity under the Company’s plans for the three months ended March 31, 2024 , is as follows:

Number of shares

3 unchanged sentences

Canceled or expired

Options outstanding at September 30, 2023

Options exercisable at end of September 30, 2023

As of September 30, 2023 , the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $ 186 , which will be recognized over a weighted average period of 2.42 year s .

Options outstanding at March 31, 2024

Options exercisable at end of March 31, 2024

As of March 31, 2024 , the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $ 120 , which will be recognized over a weighted average period of 2.24 year s .

Share-based compensation expense has been recorded as follows:

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Cost of goods sold

4 unchanged sentences

(Dollars in thousands, except per share amounts)

The current year loss did not result in income tax benefit due to recording a full valuation allowance against expected benefits.

The valuation allowance was recorded as we concluded that it was more likely than not that our deferred tax assets were not realizable primarily due to the Company's recent pre-tax losses.

Provision for income taxes for the nine months ended September 30, 2023 mostly represents income tax expense recorded for jurisdictions outside the United States.

The Company had approximately $ 962 of uncertain tax positions as of September 30, 2023 .

Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability for any particular year.

The Company recorded a full valuation allowance against U.S Federal and State deferred tax assets, which results in no income tax benefit for losses in these jurisdictions.

The full domestic valuation allowance was recorded as management concluded that it is more likely than not that these deferred tax assets are not realizable due to the Company's recent pre-tax losses and other sources of negative evidence.

Provision for income taxes for the three months ended March 31, 2024 mostly represents income tax expense (benefit) recorded for jurisdictions outside the United States.

The Company had approximately $ 968 of uncertain tax positions as of March 31, 2024 .

Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability for any particular year, therefore, it is reflected in other long-term liabilities.

Fair Value Measurements

11 unchanged sentences

The Company’s financial instruments are valued using observable inputs.

The following table sets forth the fair value of the financial instruments re-measured by the Company as of September 30, 2023:

September 30, 2023

The following table sets forth the fair value of the financial instruments re-measured by the Company as of March 31, 2024 :

March 31, 2024

US Treasury securities

Certificates of deposit

Corporate bonds and notes

There were no financial instruments that were re-measured by the Company as of December 31, 2022.

Corporate debt securities

December 31, 2023

US Treasury securities

Certificates of deposit

Corporate debt securities

Subsequent events

Declared Cash Dividends

On March 11 , 2024 , the Company announced that the Company’s Board of Directors had declared a special one -time cash dividend of $ 0.50 per share of the Company’s common stock and eligible warrants to holders of record as of April 2, 2024 and paid $ 11,984 of cash dividends to shareholders and $ 2,511 to warrant holders on April 10, 2024 .

This dividend of 14,496 has been accrued as of March 31, 2024.

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 1. Financial Statements