What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-09 compared with 2025-03-07 · 99 added, 81 removed, 220 unchanged (45% of the section changed)

6 unchanged sentences

We are dedicated to our mission of working together to provide unique products that improve the quality of patient care.

Our commercial portfolio includes six branded products approved for marketing by the FDA.

Our commercial portfolio includes seven branded products approved for marketing by the FDA.

In addition to these commercial brands, we have Phase II clinical programs underway evaluating our ifetroban product candidate for patients with 1) Systemic Sclerosis or scleroderma, a debilitating autoimmune disorder characterized by fibrosis of the skin and internal organs and 2) Idiopathic Pulmonary Fibrosis, the most common form of progressive fibrosing interstitial lung disease.

Additionally, we recently completed a Phase II study in patients with cardiomyopathy associated with Duchenne muscular dystrophy, a rare, fatal, genetic neuromuscular disease results in deterioration of the skeletal, heart and lung muscles.

Next steps include further data analysis and completion of a full study report in preparation for an end-of-Phase-II meeting with the FDA to determine next steps associated with the product’s development and commercialization.

Additionally, we recently completed a Phase II study in patients with cardiomyopathy associated with Duchenne muscular dystrophy, a rare, fatal, genetic neuromuscular disease that results in deterioration of the skeletal, heart and lung muscles.

Next steps include meeting with the FDA to determine next steps associated with the product’s development and commercialization.

Our primary target markets are hospital acute care, gastroenterology and oncology.

9 unchanged sentences

2025 Highlights

Below is a list of our Company’s highlights from 2024.

For more information, please see Part I, Item I, Business of this Form 10-K.

• Announced the publication of new real-world outcomes research involving 150,000 patients, which compared our Caldolor ® (ibuprofen) injection to its key competitor – ketorolac.

The results provided compelling evidence that Caldolor is associated with a significantly reduced incidence of adverse drug reactions and also improved healthcare utilization.

• Shared a Caldolor ® Special Report, which was published in Anesthesiology News , General Surgery News and Pharmacy Practice News that presented the growing amount of data supporting the use of Caldolor as a standard of care for the treatment of pain and fever.

The results demonstrated that the product is a safe and effective treatment for pain and fever in adults, children and infants as young as 3 months of age.

• Announced the FDA approval of a supplemental New Drug Application for Acetadote ® , our IV treatment for preventing or lessening liver injury after ingestion of potentially toxic quantities of acetaminophen.

The new, streamlined approach reduces the frequency of medication errors and potentially serious non-allergic anaphylactoid reactions without compromising the effectiveness of Acetadote.

By simplifying the dosing regimen, health care providers can administer the life-saving treatment more efficiently, potentially improving patient outcomes.

• Introduced our newly Cumberland-packaged Sancuso ® , supported by our expanded oncology sales division, after successfully transferring its supply to a new facility that previously received FDA approval for manufacturing the product there.

• Helped advance the submissions for the approval of Vibativ ® in China and Saudi Arabia.

• Progressed our clinical trials evaluating ifetroban for patients with Systemic Sclerosis, Duchenne muscular dystrophy and Idiopathic Pulmonary Fibrosis.

• Received both Orphan Drug Designation and Rare Pediatric Disease Designation from the FDA for the use of ifetroban for the treatment of Duchenne muscular dystrophy heart disease, reflecting its potential significance in treating this devastating condition.

• Continued our corporate share repurchase initiative, with a group of our board members also purchasing shares through trading plans in order to add to their holdings in the Company.

Listed below are our Company’s 2025 highlights.

For more information, please see Part I, Item 1, Business of this Form 10-K.

• Progressed our clinical development programs for ifetroban announcing breakthrough top-line study results from our Duchenne muscular dystrophy (DMD) study and presented them at two national DMD conferences.

• Expanded our commercial portfolio adding Talicia ® , an FDA-approved therapy for the treatment of Helicobacter pylori infection, strengthening our gastroenterology franchise and further diversifying our base of marketed products.

• Announced the publication of a peer-reviewed manuscript evaluating Caldolor ® (ibuprofen) injection in older adult patients, demonstrating that Caldolor provided effective pain control with a favorable safety profile and was associated with reduced opioid use in the post-operative setting.

The findings further support Caldolor’s role as a non-opioid option for pain management.

• Achieved an important reimbursement milestone for Caldolor ® , with a CMS issued J-code associated with an established reimbursement price, strengthening its billing pathway and supporting broader hospital adoption.

• Continued to advance and expand Vibativ ® internationally, receiving regulatory approval in China and launching the product in Saudi Arabia, extending access to this important antibiotic in global markets.

• Received regulatory approval for our ibuprofen product in Mexico, further expanding the product’s international footprint and supporting access to treatment for patients in Latin America.

• Expanded U.S.

market access for Vibativ ® through new national group purchasing agreements, including contracts with Premier, Inc.

and Vizient, improving availability across hospital systems and strengthening the product’s commercial positioning in acute care settings.

CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT JUDGMENTS AND ESTIMATES

Accounting Estimates and Judgments

The preparation of condensed consolidated financial statements in conformity with U.S.

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period.

13 unchanged sentences

Significant judgments must be made in determining the transaction price for our sales of products related to these adjustments.

Other revenue, which is a component of net revenues, includes non-refundable upfront payments and milestone payments under licensing agreements along with grant and rental income.

Other revenue, which is a component of net revenues, includes non-refundable upfront payments and milestone payments under licensing agreements, contract services, grant funding programs and rental income.

Other revenue was approximately 9.3% of net revenues in 2025 and 3.5% in 2024.

18 unchanged sentences

Of the accounts receivable allowances and our sales related accruals, our accrual for product returns and rebates represents the majority of the balance.

Sales related accrued liabilities for rebates, product returns, service fees, and administrative fees totaled $7.8 million and $7.6 million as of December 31, 2024 and 2023, respectively.

Sales related accrued liabilities for rebates, product returns, service fees, and administrative fees totaled $7.8 million each as of December 31, 2025 and 2024.

Of these amounts, our estimated liability for fee for services represented $1.8 million and $1.5 million, respectively, while our accrual for product returns totaled $3.0 million and $2.7 million, respectively.

9 unchanged sentences

Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss and tax credit carry-forwards and differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Our principal differences are related to the timing of deductibility of certain items such as depreciation, amortization and expense for options issued to nonemployees.

Our principal differences are related to the timing of deductibility of certain items such as depreciation, amortization and expense for options issued to non-employees.

Deferred tax assets and liabilities are measured using management’s estimate of tax rates expected to apply to taxable income in the years in which management believes those temporary differences are expected to be recovered or settled.

38 unchanged sentences

Interest income 476,748 334,444 142,304

Other income — 2,828,871 (2,828,871)

Other income - settlement — 475,000 (475,000)

Other income - gain on insurance proceeds — 237,089 (237,089)

1 unchanged sentence

Loss before income taxes (2,811,235) (6,466,384) 3,655,149

Income tax benefit (expense) 22,669 (45,769) 68,438

Income tax (expense) benefit (40,256) 22,669 (62,925)

Equity in loss of investee (13,220) — (13,220)

Net loss $ (2,864,711) $ (6,443,715) $ 3,579,004

2 unchanged sentences

2025 2024 Change

Kristalose $ 15,315,259 $ 15,981,850 $ (666,591)

Sancuso $ 11,907,141 $ 9,005,129 $ 2,902,012

Kristalose 10,542,793 15,315,259 (4,772,466)

Vibativ 9,484,874 7,160,125 2,324,749

Caldolor 4,659,457 4,959,385 (299,928)

Talicia 3,311,235 — 3,311,235

Acetadote 508,169 185,182 322,987

Omeclamox (3,075) 20,030 (23,105)

Vaprisol (18,346) (174,538) 156,192

RediTrex 11,391 90,237 (78,846)

Omeclamox (10,436) (3,075) (7,361)

Other 4,125,153 1,330,241 2,794,912

2 unchanged sentences

Net revenues for the year ended December 31, 2025, were approximately $44.5 million compared to $37.9 million for the year ended December 31, 2024.

As detailed in the table above, net revenue increased during 2024 for two of our marketed products:

Sancuso and Caldolor.

These increases were mainly offset by decreases in net product sales of Kristalose and Vibativ.

Kristalose revenue decreased by $0.7 million, compared to December 31, 2023, primarily as a result of decreased shipments of the product.

As detailed in the table above, the increase in net revenues was due to the growth in sales during 2025 for four marketed products:

Sancuso, Vibativ, Talicia and Acetadote.

Sancuso revenue was $11.9 million compared to $9.0 million in the prior year, an increase of $2.9 million or 32.2% for the year ended December 31, 2025.

This increase in net revenue was impacted by an improvement in product returns in 2024.

Vibativ revenue decreased to $7.2 million for the year ended December 31, 2024, compared to $8.8 million in the same prior year period.

The decrease was the result of decreased shipments of the product and higher product returns.

This increase in net revenue was primarily impacted by increased shipments, as well as improvement in product returns in 2025.

Vibativ revenue increased to $9.5 million for the year ended December 31, 2025, compared to $7.2 million in the same prior year period.

The increase was the result of increased shipments of the product, including the product’s new 4-Pak presentation.

Talicia revenue was $3.3 million for the year ended December 31, 2025.

Talicia is a new product added in the fourth quarter of 2025 resulting from our co-commercialization agreement associated with the product.

Kristalose revenue was $10.5 million for the year ended December 31, 2025, compared to $15.3 million for the year ended December 31, 2024, primarily as a result of decreased shipments of the product associated with increased generic substitution.

In fourth quarter of 2025, we introduced our crystalline lactulose Authorized Generic product with initial distribution.

Caldolor revenue was $4.7 million during the year ended December 31, 2025, compared to $5.0 million in the same period last year.

This 14.4% increase in Caldolor revenue for the year ended December 31, 2024, w as impacted by an increase in international shipments.

This decrease in Caldolor revenue for the year ended December 31, 2025, w as impacted by a delay in fulfilling an international order.

There was no Vaprisol revenue for the year ended December 31, 2025, as Cumberland is currently out of commercial inventory of the product.

2 unchanged sentences

For the year ended December 31, 2025, the Acetadote net revenue was $0.5 million, as compared to $0.2 million from the prior year period.

This decrease results from lower sales for our Authorized Generic.

Omeclamox-Pak had no sales for the years ended December 31, 2024 and 2023 as Cumberland is currently out of commercial inventory of this product.

The packager for our Omeclamox-Pak product encountered financial difficulties and currently is under new management and is reorganizing.

We discontinued the product RediTrex in 2023.

This increase resulted primarily higher sales for our Authorized Generic.

We discontinued the product Omeclamox-Pak in 2025.

Net revenue was positively impacted by various sales deduction adjustments.

Other Revenue.

Other revenue decreased from 2023 when milestone payments of $1 million associated with our Vibativ product were recorded.

Other revenue was $4.1 million for the year ended December 31, 2025, an increase of $2.8 million compared to the year ended December 31, 2024, primarily due to milestone payments recorded of $3.1 million in payments from our international partners.

Cost of products sold .

Cost of products sold for the year ended December 31, 2024, were $6.6 million compared to $6.1 million in the prior year, an increase of $0.5 million.

Cost of products sold for the year ended December 31, 2025 and 2024, was $6.7 million and $6.6 million remaining consistent year over year.

The gross margin for the years ended December 31, 2025 and 2024, were 85.0% and 82.6%, respectively.

Selling and marketing .

Selling and marketing expense for the year ended December 31, 2024, were $17.0 million compared to $18.5 million in the prior year, which was a decrease of $1.4 million.

This decrease was primarily a result of a decrease in marketing expenses associated with royalty costs and promotional spending.

Selling and marketing expense for the year ended December 31, 2025, was $19.1 million compared to $17.0 million in the prior year, which was an increase of $2.1 million.

This increase was primarily a result of an increase in royalty expenses and other costs associated with the increase in product sales.

Research and development .

Research and development costs for the year ended December 31, 2024, were $4.8 million, compared to $5.8 million in the prior year, representing a decrease of $1.0 million due primarily to reduced FDA fees, salaries and consulting expenses.

Research and development costs for the year ended December 31, 2025, were $5.6 million, compared to $4.8 million in the prior year, representing an increase of $0.8 million due primarily to increased FDA fees and manufacturing costs.

A portion of our research and development costs is variable based on the number of trials, study sites, number of patients and the cost per patient in each of our clinical programs.

We continue to fund our ongoing clinical initiatives associated with our pipeline products.

The following table shows the primary components of our research and development expenses for the years ended December 31:

External research and development expenses

Clinical development $ 1,782,600 $ 1,454,584

Regulatory expenses 1,523,868 1,092,691

Other external 62,419 53,037

Total external expenses 3,368,887 2,600,312

Internal research and development expenses

Personnel costs 1,997,309 2,014,389

Other internal 200,302 201,505

Total internal expenses 2,197,611 2,215,894

Total research and development expenses $ 5,566,498 $ 4,816,206

General and administrative .

General and administrative expenses for the year ended December 31, 2025, were $11.9 million compared to $11.1 million in the prior year.

The primary driver of the increase was higher salary costs.

The increase was due to higher compensation expenses.

Amortization.

Amortization expense represent the ratable use of our capitalized intangible assets including product and license rights, patents, trademarks and patent defense costs.

Amortization for 2025 totaled approximately $4.0 million which is a decrease of $0.7 million compared to the same prior year period primarily attributable to an additional amortization expense in 2024 related to the reduction in the valuation of the Acetadote assets.

Income taxes .

Income taxes expense was $40,256 for the year ended December 31, 2025, compared to a $22,669 tax benefit for the year ended December 31, 2024.

Other income (loss).

For the year ended December 31, 2025, we recorded a slight loss on the investment related to THI based on the operating results of that company and our 30% ownership position.

For the year ended December 31, 2024, we recognized a gain of $0.2 million for a payout earned on a company owned insurance policy.

The components of the statements of operations discussed above reflect the following impacts from Vibativ:

6 unchanged sentences

Vibativ contribution $ 7,583,531 $ 3,577,178

(1) 2023 net revenue includes a $1,000,000 payment to Cumberland related to a settlement agreement of milestone payments.

(1) 2025 net revenue includes a $2,975,000 milestone payment and $14,690 for other product related revenue.

(2) The Vibativ inventory included in the costs of product sold during the period was acquired and paid for by Cumberland as part of the acquisition of the brand during 2018.

6 unchanged sentences

Sancuso contribution $ 7,226,321 $ 4,371,364

(1) The Sancuso inventory included in the costs of product sold during the period was acquired and paid for by Cumberland as part of the acquisition of the brand during 2022.

Amortization.

Amortization expense represent the ratable use of our capitalized intangible assets including product and license rights, patents, trademarks and patent defense costs.

Amortization for 2024 totaled approximately $4.7 million which is a decrease of $3.4 million due to a $3.3 million write down of our Omeclamox intangible assets for the year ended December 31, 2023.

Income taxes .

Income taxes totaled $22,669 as a benefit for the year ended December 31, 2024, and $45,769 tax expense for the year ended December 31, 2023.

Other income.

For the year ended December 31, 2024, we recognized a gain of $0.2 million for a payout earned on a company owned insurance policy.

For the year ended December 31, 2023, we recognized a $2.8 million refund of FDA fees for the periods of 2023 and 2022 to further our product research efforts.

In addition, in 2023 we recognized a gain of $0.5 million to settle a manufacturing dispute and a gain of $0.3 million for a payout earned on a company owned insurance policy.

(1) The Sancuso inventory included in the costs of product sold was acquired and paid for by Cumberland as part of the acquisition of the brand during 2022.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash flows provided by our operations, the amounts borrowed and available under our line of credit and the cash proceeds from our initial public offering of common stock that was completed in August 2009.

We believe that our internally generated cash flows, existing working capital and our line of credit will be adequate to finance internal growth, finance business development initiatives, and fund capital expenditures for the foreseeable future.

14 unchanged sentences

$ (6,519,491) $ (357,440)

The net $6.5 million decrease in cash and cash equivalents for the year ended December 31, 2025, was attributable to cash used in financing and investing activities offset by cash provided by operating activities.

Cash used in investing activities of $4.7 million is primarily due to the $2.0 million investment in Talicia and the $2.5 million payments related to the Kindos project.

Cash used in financing activities of $6.7 million was primarily due to $10.0 million payments on our line of credit, payments of $1.7 million of contingent consideration for Vibativ and Sancuso, $0.3 million in cash used to repurchase shares of our common stock, partially offset by $5.3 million proceeds from the ATM offering.

Cash provided by operating activities of $4.9 million was primarily driven by a $6.7 million increase in accounts payable and other current liabilities, a $0.5 million increase in other long‑term liabilities, and a $1.1 million non‑cash add‑back adjustment to net loss.

These major sources of cash inflow were partially offset by a $5.2 million increase in accounts receivable and a $0.2 million increase in other current assets and other assets.

As noted above, we continue to repurchase shares of our common stock, as discussed in Part II, Item 5, "Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities", of this Form 10-K.

With the ATM offering in February 2025, the repurchase of our common stock ceased in January 2025.

The net $0.4 million decrease in cash and cash equivalents for the year ended December 31, 2024, was attributable to cash used in operating activities offset by cash provided by financing and investing activities.

2 unchanged sentences

Cash provided by financing activities of $0.2 million was primarily due to a $2.5 million net borrowing, partially offset by payments of $1.7 million of contingent consideration for Vibativ and Sancuso, and $0.6 million in cash used to repurchase shares of our common stock.

The net $1.4 million decrease in cash and cash equivalents for the year ended December 31, 2023, was attributable to cash provided by operating activities offset by cash used in investing and financing activities.

Cash provided by operating activities of $6.1 million is primarily due to an increase in accounts payable and other accrued liabilities of $3.7 million, and a $3.4 million decrease in accounts receivable, partially offset by a decrease in non-cash contingent consideration of $1.3 million.

Cash used in investing activities of $0.1 million was the result of additions of intangibles and property and equipment offset by life insurance proceeds received.

Our financing activities included payments of $3.3 million of contingent consideration for Vibativ and Sancuso, a pay down on our line of credit of $3.4 and $0.7 million in cash used to repurchase shares of our common stock.

Shelf Registration

3 unchanged sentences

Wainwright”) on March 20, 2024, in order to allow the Company to sell shares at market prices.

The Company did not issue any shares under its ATM program during the year ended December 31, 2024.

On February 5, 2025, the Company utilized the Sales Agreement with H.

Wainwright and sold 1,000,000 shares of Cumberland’s common shares.

Wainwright and sold 1,000,000 shares of Cumberland’s common shares under the ATM program.

These shares sold at a volume weighted average price of $5.4688 per share for aggregate gross proceeds of $5,468,800.

On February 14, 2025, the Company increased the maximum aggregate offering amount of the shares of the Company’s common stock issuable under the Sales Agreement with H.C.

On February 14, 2025, the Company increased the maximum aggregate offering amount of the shares of the Company’s common stock issuable in the ATM program under the Sales Agreement with H.C.

Wainwright for to up to $10 million and filed a prospectus supplement under the Sales Agreement for that aggregate offering amount.

2 unchanged sentences

This facility provides for an aggregate principal funding amount of up to $25 million.

The initial revolving line of credit is up to $20 million, with the ability for Cumberland to increase the amount to $25 million, under certain conditions.

It has a three year term expiring on October 1, 2026.

The initial revolving line of credit was up to $20 million, with the ability for Cumberland to increase the amount to $25 million, under certain conditions.

It had a three year term expiring on October 1, 2026.

The interest rate is based on Benchmark (Term SOFR) plus a spread of 2.75%.

Cumberland is subject to one financial covenant, the maintenance of a Funded Debt Ratio, determined on a quarterly basis.

Cumberland was initially subject to one financial covenant, the maintenance of a Funded Debt Ratio, determined on a quarterly basis.

Borrowings under the line of credit are collateralized by substantially all of our assets.

On May 6, 2024, the Company entered into a First Amendment to the Loan Agreement which provides an alternative to the financial covenant by delivering to the lender a borrowing base certificate and complying with certain borrowing base requirements which set forth a maximum revolver amount equal to the lessor of (a) up to $20 million or (b) the sum of the Company's cash balances and eligible accounts receivable.

On May 6, 2024, the Company entered into the First Amendment to the Loan Agreement which provided an alternative to the financial covenant by delivering to the lender a borrowing base certificate and complying with certain borrowing base requirements which set forth a maximum revolver amount equal to the lessor of (a) up to $20 million or (b) the sum of the Company's cash balances and eligible accounts receivable.

On November 18, 2025, the Company entered into the First Amendment to the Revolving Credit Note and Second Amendment to the Credit Loan Agreement.

The Amendment provides for a principal available for borrowing of up to $15 million.

The Company has the right to request an increase of up to an additional $10 million.

The aggregate principal funding amount remains unchanged of up to $25 million.

The Company is subject to a financial covenant, maintenance of a Minimum Fixed Charge Coverage Ratio determined on a quarterly basis, along with Borrowing Base Requirements, as defined.

The Amendment extends the maturity date to October 1, 2027.

Minimum Product Purchase Requirements

13 unchanged sentences

1,273,000 413,181 336,415 206,788 189,214 127,402

Other investment liability (5)

2,000,000 2,000,000 — — — —

Talicia co-commercialization (6)

10,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Operating leases (7)

8 unchanged sentences

The contingent consideration liability represents the fair value of the royalty payments of up to 10% of future net sales as part of the Sancuso acquisition.

The other investment liability represents the remaining amount due to THI.

Talicia co-commercialization represents the obligation of up to $2 million for distributing, marketing and sales related costs.

The Broadwest contractual cash obligation began upon commencement in October 2022 and CET began May 2023.

3 unchanged sentences

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU No.

2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments.

For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses.

For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities.

Companies will have to disclose additional information, including information they use to track credit quality by year of origination for most financing receivables.

Companies will apply the ASU’s provisions as a cumulative-effect adjustment, if any, to accumulated deficit as of the beginning of the first reporting period in which the guidance is adopted.

Related to ASU No.

2016-13 discussed above, in May 2019, the FASB issued ASU 2019-05, "Financial Instruments-Credit Losses (Topic 326):

Targeted Transition Relief" which provides transition relief for ASU 2016-13 by providing entities with an alternative to irrevocably electing the fair value option for eligible financial assets measured at amortized cost upon adoption of the new credit losses standard.

Certain eligibility requirements must be met and the election must be applied on an instrument-by-instrument basis.

The election is not available for either available-for-sale or held-to-maturity debt securities.

We adopted both ASU 2016-13 and ASU 2019-05 on January 1, 2023.

The adoption of ASU 2016-13 and ASU 2019-05 did not have a material impact on the Company’s consolidated financial statements.

In November 2023, the Financial Accounting Standards Board ("FASB") issued final guidance in Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which is intended to improve transparency of segment disclosures, primarily through expanded disclosures for significant segment expenses.

The guidance is effective for annual periods beginning in 2024 and interim periods beginning in 2025.

With the Company having only one segment, the adoption, effective January 1, 2024, did not have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures ("Update 2023-09"), which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid.

The amendments in Update 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes.

Update 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

We adopted Update 2023-09 effective for this annual report for the year ended December 31, 2025 on a prospective basis.

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

What changed 10-K

Item 7. Management’s Discussion and Analysis