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Item 7. Management’s Discussion and Analysis

2026-03-09 compared with 2025-03-11 · 97 added, 85 removed, 224 unchanged (45% of the section changed)

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Business Overview

We are a technology company focused on leveraging the power of information technology to help solve our nation’s most pressing national security challenges.

We provide clients in the United States (“U.S.) government (“USG”), financial services, healthcare, and other users of large data applications with services which include intelligence analysis, software development, software engineering, program management, strategic and mission planning, information assurance, cybersecurity and policy support, data analytics, and model based systems engineering (“MBSE”).

In addition to constantly innovating and enhancing our organic capabilities, Castellum is executing strategic acquisitions of technology companies in the areas of cybersecurity, information technology (“IT”), electronic warfare, information warfare, and information operations with businesses in the defense, federal, civilian, and commercial markets that share our passionate commitment to U.S.

We are a technology services and solutions company focused on leveraging the power of information technology to help solve our nation’s most pressing national security challenges.

We provide clients in the United States (“U.S.) government (“USG”), financial services, legal, and other users of large data applications with services which include intelligence analysis, software development, software engineering, system modernization, program management, strategic and mission planning, information assurance, cybersecurity and policy support, data analytics, and model based systems engineering (“MBSE”).

that share our passionate commitment to U.S.

national security and have a history of bringing exceptional value to their clients.

Recent Developments

On October 17, 2022, the Company closed its public offering of 1,500,000 shares of common stock consisting of 1,350,000 shares sold by the Company and 150,000 shares sold by certain selling stockholders, at a public offering price of $2.00 per share.

The Company’s registration statement on Form S-1, as amended (File No.

333-267249) relating to the offering was declared effective by the U.S.

Securities and Exchange Commission (“SEC”) on October 12, 2022.

On December 1, 2023, the Company filed a universal shelf registration statement on Form S-3 (File No.

333-275840) which was declared effective by the SEC on December 12, 2023 pursuant to which the Company may offer and sell up to $10 million in the aggregate of equity securities.

333-275840) which was declared effective by the U.S.

Securities and Exchange Commission (“SEC”) on December 12, 2023 and remains effective.

Pursuant to this registration statement, the Company may offer and sell up to $10 million in the aggregate of equity securities.

Additionally, certain selling stockholders may offer and sell up to 1,425,000 shares in the aggregate of the Company’s common stock.

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In connection therewith, the Company has agreed to (i) pay Maxim a cash fee equal to 7.0% of the aggregate gross proceeds of the Second Registered Offering and the Public Offering, and (ii) reimburse Maxim for all reasonable and documented out-of-pocket expenses, including the reasonable fees, costs, and disbursements of its legal counsel in the aggregate of $120,000.

On September 17, 2025, the Company filed a registration statement on Form S-8 (File No.

333-290331) to register an aggregate of 3,000,000 shares of the Company’s common stock to be issued pursuant to the Castellum, Inc.

2025 Employee Stock Purchase Plan (the “ESPP”).

The ESPP was adopted by the Company’s Board of Directors on March 11, 2025 and approved by the Company’s stockholders at the annual meeting held on May 28, 2025.

The ESPP is a voluntary employee benefit program that permits eligible employees to contribute up to 5% of their eligible compensation through payroll deductions each pay period.

Payroll deductions and purchases of Company common stock under the ESPP did not commence until 2026.

Shares are purchased on behalf of participating employees on a quarterly basis at a price equal to 85% of the fair market value on the applicable purchase date.

The ESPP is intended to provide employees with an opportunity to acquire an ownership interest in the Company and is not a component of executive compensation.

On September 17, 2025, the Company filed a registration statement on Form S-8 (File No.

333-290332) to register an aggregate of 9,000,000 shares of the Company's common stock to be issued pursuant to the Castellum, Inc.

Second Amended 2021 Stock Incentive Plan.

On March 19, 2025, the Company closed on the public offering (the "March 2025 Public Offering") of 4,500,000 units ("Unit(s)") at a public offering price of $1.00 per Unit.

Each Unit consisted of one share of common stock and one warrant to purchase one share of common stock (the "March 2025 Warrants").

The March 2025 Warrants were immediately exercisable at $1.08 per share and expired 60 days from the date of issuance.

The shares of common stock and 2025 Warrants were immediately separable and issued separately.

Gross proceeds from the March 2025 Public Offering were approximately $4.5 million before deducting placement agent fees and offering expenses.

Castellum intends to use the net proceeds of the offering for working capital and general corporate purposes.

Of the 4,500,000 March 2025 Warrants issued during the March Public Offering, 1,755,543 warrants were exercised at $1.08 per share prior to June 30, 2025 for gross proceeds of $1.90 million before deducting placement agent fees.

The remaining 2,744,457 warrants expired on May 19, 2025.

On June 13, 2025, the Company closed on the public offering (the "June 2025 Public Offering") of 4,166,667 units ("Unit(s)") at a public offering price of $1.20 per Unit.

Each Unit consisted of one share of common stock and one warrant to purchase one share of common stock (the "June 2025 Warrants").

The June 2025 Warrants were immediately exercisable at $1.22 per share and expired 60 days from the date of issuance.

The shares of common stock and June 2025 Warrants were immediately separable and issued separately.

Gross proceeds from the June 2025 Public Offering were approximately $5.0 million before deducting placement agent fees and offering expenses.

Castellum intends to use the net proceeds of the June 2025 Public Offering for working capital and general corporate purposes.

Of the 4,166,667 June 2025 Warrants issued during the June Public Offering, 3,673,666 warrants were exercised at $1.22 per share prior to September 30, 2025 for gross proceeds of $4.48 million before deducting placement agent fees.

The remaining 493,001 warrants expired on August 12, 2025.

Key Components of Our Results of Operations

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Revenue from FFP contracts is generally recognized ratably over the contract term, using a time-based measure of progress, even if billing is based on other metrics or milestones, including specific deliverables.

For T&M contracts, we use input progress measures to estimate revenue earned based on hours worked on contract performance at negotiated billing rates, plus direct costs and indirect cost burdens associated with materials and the direct expenses incurred in performance of the contract.

For T&M contracts, we use input progress measures to estimate revenue earned based on hours worked on contract performance at negotiated

billing rates, plus direct costs and indirect cost burdens associated with materials and the direct expenses incurred in performance of the contract.

Cost of Revenues

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• General and administrative expenses consist primarily of corporate and administrative labor expenses, administrative bonuses, legal expenses, IT expenses, and insurance expenses.

Interest Expense, Net of Interest Income

Interest expense consists of interest paid to servi ce our convertible promissory notes which include the amended trust note with the Buckhout Charitable Remainder Trust (the “Amended BCR Trust Note”), the term loan promissory note payable and revolving line of credit to the Live Oak Banking Company ("Live Oak Bank") (the “Term Loan Promissory Note Payable” and “Revolving Line of Credit,” respectively), two promissory notes payable to Robert Eisiminger, the note payable to Emil Kaunitz, and the note payable to Crom Cortana Fund LLC (“Crom”) net of interest earned from investments.

During 2024, the Amended BCR Trust Note was extinguished resulting in a new note, the note payable to Crom and the Term Loan Promissory Note Payable were paid off, and the two promissory notes payable to Robert Eisiminger were combined into one note payable.

Interest Income (Expense)

Interest income consists of interest earned from savings accounts, net of interest paid on the note payable between the Company and the Buckhout Charitable Remainder Trust, two promissory notes payable to Robert Eisiminger, and the related party note payable to Emil Kaunitz.

During 2025, the note payable with the Buckhout Charitable Remainder Trust and the two promissory notes payable to Robert Eisiminger were paid off.

Income Tax (Provision) Benefit

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General and administrative expenses 10,695,746 14,328,672 (3,632,926) (25.4) %

Goodwill impairment loss — 6,919,094 (6,919,094) (100.0) %

(Gain) Loss from change in fair value of contingent earnout — (92,000) 92,000 (100.0) %

Total operating expenses 22,183,419 25,511,042 (3,327,623) (13.0) %

Loss from operations (2,814,562) (7,244,627) 4,430,065 (61.1) %

Other expense (2,667,648) (2,388,470) (279,178) 11.7 %

Other income (expense) 624,250 (2,667,648) 3,291,898 123.4 %

Loss before income taxes and preferred stock dividends (2,190,312) (9,912,275) 7,721,963 (77.9) %

Income tax (expense) benefit (68,032) 1,257,117 (1,325,149) (105.4) %

Income tax expense (207,980) (68,032) (139,948) 205.7 %

Net loss (2,398,292) (9,980,307) 7,582,015 (76.0) %

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Net loss to common shareholders $ (2,505,734) $ (10,099,584) $ 7,593,850 (75.2) %

Total revenues decreased by $(478,960) or (1.1)% to $44,764,852 for the year ended December 31, 2024 from $45,243,812 for the year ended December 31, 2023.

This decrease in revenue was mainly due to the sale of the Mainnerve Federal Services, Inc.

dba MFSI Government Group, a Delaware corporation, entity on September 11, 2024.

Total revenues increased by $8,101,149 or 18.1% to $52,866,001 for the year ended December 31, 2025 from $44,764,852 for the year ended December 31, 2024.

This increase in revenue was driven primarily by the award in March 2024, to the Company's subsidiary, Global Technologies Management Resources, Inc.

(“GTMR”) of a $103.3 million, five and one-half year contract for Special Missions Management of On-Site Services in support of the Naval Air Systems Command (“NAVAIR”) Program Office 290 (“PMA-290”) Special Missions which ramped up during 2025 and additional direct labor growth on existing contracts.

Cost of revenues

Total cost of revenues decreased by $(70,048) or (0.3)% to $26,498,437 for the year ended December 31, 2024 from $26,568,485 for the year ended December 31, 2023.

This decrease was driven primarily by the sale of the Mainnerve Federal Services, Inc.

dba MFSI Government Group, a Delaware corporation, entity on September 11, 2024.

Total gross profit decreased by $(408,912) or (2.2)% to $18,266,415 for the year ended December 31, 2024 from $18,675,327 for the year ended December 31, 2023.

This decrease was driven by changes in revenue noted above.

Total cost of revenues increased by $6,998,707 or 26.4% to $33,497,144 for the year ended December 31, 2025 from $26,498,437 for the year ended December 31, 2024.

This increase generally followed the growth in revenue;

however, the percentage increase exceeded revenue growth primarily due to higher subcontractor and labor costs associated with the PMA-290 contract.

Total gross profit increased by $1,102,442 or 6.0% to $19,368,857 for the year ended December 31, 2025 from $18,266,415 for the year ended December 31, 2024.

This increase was driven by the changes in revenue and cost of revenues noted above;

however, higher subcontractor and labor costs resulted in margin compression during the period.

Operating expenses

Total operating expenses decreased by $(3,327,623) or (13.0)% to $22,183,419 for the year ended December 31, 2025 from $25,511,042 for the year ended December 31, 2024.

The increase in indirect cost of $340,575 was driven primarily by the increase in accrued paid leave resulting from the Company's implementation of a new paid time off policy that initially increased the accrued leave balance.

The decrease in general and administrative (“G&A”) costs of $(3,369,214) was primarily driven by a reduction in salaries, achieved through the implementation of strategic cost-saving initiatives and the enhancement of operational efficiencies across all G&A support departments, and a decrease in noncash stock based compensation granted to certain employees of $2,068,783.

In 2024, it was determined that no goodwill impairment expense

was required, the expense was $6,919,094 in 2023, and the contingent earnout was agreed to and noted as a liability in Due to Seller in the Consolidated Balance Sheets, under Part II, Item 8, of this Form 10-K.

The increase in indirect cost of $148,643 was driven primarily by the increase costs of medical insurance year over year, offset by a decrease in bonus expense.

The increase in overhead of $156,660 was primarily driven by an expected increase in office costs due to the additional labor force and the standard compensation adjustments for overhead labor.

The decrease in general and administrative (“G&A”) costs of $(3,632,926) was primarily driven by a decrease in noncash stock based compensation granted to certain employees of $3,079,501 and a decrease in depreciation as fixed assets become fully depreciated.

Other income (expense)

Other income (expense) increased by $279,178 or 11.7% to $(2,667,648) for the year ended December 31, 2024 from $(2,388,470) for the year ended December 31, 2023.

This increase was primarily driven by the fair value of the derivative liability offset by the decrease in amortization of debt discounts, due to the restructuring of the Company’s debt as detailed in Note 7 , under Part II, Item 8, of this Form 10-K.

With the exception of $807,173 of interest expense paid in 2024, the remainder of other income (expense) is related to noncash items, such as the amortization of debt discount of $359,567, and the change in the fair value of the derivative of $725,600 as noted in Note 12, under Part II, Item 8, of this Form 10-K.

Income tax benefit (expense)

Income tax benefit (expense) increased by $1,325,149 or (105.4)% to $(68,032) for the year ended December 31, 2024 from $1,257,117 for the year ended December 31, 2023.

This increase was primarily driven by the increase in deferred tax liabilities from the acquisition of Global Technology Management Resources, Inc.

(“GTMR”) and subsequent release of valuation allowance.

Other income (expense) increased by $3,291,898 or 123.4%, to other income of $624,250 for the year ended December 31, 2025 from other expense of $(2,667,648) for the year ended December 31, 2024.

This improvement was primarily driven by the payoff of the Company’s debt as detailed in Note 7 , under Part II, Item 8, of this Form 10-K, which reduced interest expense and the increase in interest income due to interest earned on the Company’s higher cash balances.

In addition, other income (expense) includes a noncash gain, of $621,000 related to the change in the fair value of a derivative, as noted in Note 12 , under Part II, Item 8, of this Form 10-K.

Income tax expense

Income tax expense increased by $139,948 or 205.7% to $(207,980) for the year ended December 31, 2025 from $(68,032) for the year ended December 31, 2024.

This increase was primarily driven by the increase in state taxes and the increase in valuation allowance.

The Company continues to pay current tax while maintaining a valuation allowance on its net deferred tax assets.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

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Net loss to common shareholders $ (10,099,584) $ (17,918,330) $ 7,818,746 (43.6) %

Total revenues increased by $3,053,169 or 7.2% to $45,243,812 for the year ended December 31, 2023 from $42,190,643 for the year ended December 31, 2022.

This increase in revenue was due to the acquisition of GTMR (“GTMR Acquisition”), partially offset by a reduction in revenue from lost positions on ongoing contracts principally at SSI and Corvus.

Total revenues decreased by $(478,960) or (1.1)% to $44,764,852 for the year ended December 31, 2024 from $45,243,812 for the year ended December 31, 2023.

This decrease in revenue was mainly due to the sale of the Company’s subsidiary, Mainnerve Federal Services, Inc.

(MFSI”) dba MFSI Government Group on September 11, 2024.

Cost of revenues

Total cost of revenues increased by $1,975,159 or 8.0% to $26,568,485 for the year ended December 31, 2023 from $24,593,326 for the year ended December 31, 2022.

This increase was driven primarily by the net increased level of effort on contracts proportionate to the changes in revenue noted above.

Total gross profit increased by $1,078,010 or 6.1% to $18,675,327 for the year ended December 31, 2023 from $17,597,317 for the year ended December 31, 2022.

This increase was driven by changes in revenue noted above.

Total cost of revenues decreased by $(70,048) or (0.3)% to $26,498,437 for the year ended December 31, 2024 from $26,568,485 for the year ended December 31, 2023.

This decrease was driven primarily by the sale of MFSI on September 11, 2024.

Total gross profit decreased by $(408,912) or (2.2)% to $18,266,415 for the year ended December 31, 2024 from $18,675,327 for the year ended December 31, 2023.

This decrease was driven by changes in revenue noted above.

Operating expenses

Total operating expenses increased by $7,782,899 or 28.2% to $35,344,152 for the year ended December 31, 2023 from $27,561,253 for the year ended December 31, 2022.

The decrease in indirect cost of $(2,924,288) was driven primarily by a reduction in acquisition based bonuses to certain executives from 2022, as well as cost savings implemented in 2023.

The increase in overhead costs of $323,807 is related to increases in lease expense due to the GTMR Acquisition.

The increase in general and administrative costs of $4,111,286 consist of increases in noncash stock based compensation granted to certain employees, as well as increases in general and administrative salary expense as we in-sourced certain functions such as accounting and business development.

The recognition of goodwill impairment resulted from a loss recorded during the third quarter of 2023.

The decrease in the loss from change in fair value of contingent earnout is due to adjustments as we finalized the amount after the earnout period ended in late 2023.

Other income (expense)

Other income (expense) decreased by $1,736,036 or (42.1)% to $(2,388,470) for the year ended December 31, 2023 from $(4,124,506) for the year ended December 31, 2022.

This decrease was primarily driven by decreases in the fair value of the derivative liability offset by an increase in interest expense due to rate increases during 2023 on our variable rate debt under our agreements with Live Oak Bank.

Total operating expenses decreased by $(9,833,110) or (27.8)% to $25,511,042 for the year ended December 31, 2024 from $35,344,152 for the year ended December 31, 2023.

The decrease in G&A costs of $(3,369,214) was primarily driven by a reduction in salaries, achieved through the implementation of strategic cost-saving initiatives and the enhancement of operational efficiencies across all G&A support departments, and a decrease in noncash stock based compensation granted to certain employees of $2,068,783.

In 2024, it was determined that no goodwill impairment expense was required, the expense was $6,919,094 in 2023, and the contingent earnout was agreed to and noted as a liability in Due to Seller in the Consolidated Balance Sheets, under Part II, Item 8, of this Form 10-K.

Other expense

Other income (expense) increased by $279,178 or 11.7% to $(2,667,648) for the year ended December 31, 2024 from $(2,388,470) for the year ended December 31, 2023.

Income tax (expense) benefit

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Political, Budgetary, and Regulatory Environment.” Our backlog includes orders under contracts that in some cases extend for several years.

Congress generally appropriates funds for our clients on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete.

As a result, contracts typically are only partially funded at any point during their term and all or some of the work to be performed under the contracts may remain unfunded unless and until the U.S.

Congress (“Congress”) makes subsequent appropriations and the procuring agency allocates funding to the contract.

Congress (“Congress”) generally appropriates funds for our clients on a yearly basis, even though their contracts with us may call for performance that is expected to take a number of years to complete.

As a result, contracts typically are only partially funded at any point during their term and all or some of the work to be performed under the contracts may remain unfunded unless and until the Congress makes subsequent appropriations and the procuring agency allocates funding to the contract.

Liquidity and Capital Resources

We have historically sourced our liquidity requirements with cash flows from operations, borrowings under our current credit facilities, and in October 2022, with an equity issuance through the listing of our common stock on the NYSE American.

As of December 31, 2024, we had $12,005,048 of cash and cash equivalents on hand and unused borrowing capacity of $0 from our revolving line of credit.

As of December 31, 2025, we had $14,884,778 of cash on hand.

During the fiscal year 2025, we undertook the following significant equity and debt transactions that enhanced our liquidity and sources of funds:

• In January 2024, after filing a universal shelf registration statement on Form S-3 with the SEC in December of 2023 allowing us to issue additional equity (“Security Offering”), we raised net proceeds of approximately $2,200,000.

• In February 2024, we used cash on hand to pay the outstanding principal and accrued interest owed on a note payable to Crom in the amount of $847,000.

• In February 2024, we agreed with Emil Kaunitz to extend the maturity date of a $400,000 note payable from December 31, 2024, to August 1, 2025, after which we will make monthly principal payments of $50,000 per month for eight months.

• In February 2024, we entered into a new $4,000,000 revolving credit facility with Live Oak Bank which matures on February 22, 2025 (the “New Live Oak Revolver”).

The New Live Oak Revolver replaces the $2,000,000 Revolving Line of Credit , and we rolled over the $625,000 outstanding principal balance on the Revolving Line

of Credit and was advanced an additional amount of $904,793.

We also made payments of $1,209,617 to the holders of two notes payable noted below.

• In February 2024, we agreed with Robert Eisiminger to extend the maturity dates of two notes payable totaling $6,000,000 from September 30, 2024, to August 31, 2026.

The change in the terms of the two notes resulted in the debt extinguishment of both the old notes and resulted in the establishment of one note totaling $6,000,000.

We also accessed the New Live Oak Revolver to pay off a third note totaling $400,000.

• In February 2024, we agreed with the Buckhout Charitable Remainder Trust to pay down and amend a convertible promissory note payable.

We accessed the New Live Oak Revolver to pay down principal of $809,617.

We simultaneously agreed to enter into a new note payable in the principal amount of $2,400,000 which matures on August 31, 2026, and may not be converted into common stock.

Commencing in September 2024, we began making monthly principal payments of $100,000 for 24 months.

• In May 2024, the Company entered in to a program to self-insure some of its healthcare risk up to a certain limit, with the use of a stop loss policy.

In June 2024, the Company made an equity investment of $54,533 in a captive insurance company.

To mitigate risks, the Company created a reserve as of December 31, 2024, of $79,217 based on six months of claims data.

Additionally, the Company has engaged with a third-party actuarial firm to assist in providing reports related to claims incurred but not reported.

Losses will be accrued based on the Company's historical claims experience and reports provided by the actuaries.

• On July 8, 2024, we repaid the balance owed on the Term Loan Promissory Note Payable of $252,678, that was due to mature on August 11, 2024.

This payment retired the Term Loan Promissory Note Payable with Live Oak bank.

• In December 2024, the Company entered into a securities purchase agreements with several institutional investors, pursuant to which the Company agreed to sell and issue, in a registered direct offering, 9,473,700 shares of the Company’s common stock, at a purchase price of $0.38 per share.

This resulted in aggregate gross proceeds to the Company of approximately $3.6 million, The offering closed on December 24, 2024

• In December 2024, the Company entered into a securities purchase agreement with several institutional investors, pursuant to which the Company agreed to sell and issue, in a public offering that included certain additional other purchasers, 4,355,000 shares of the Company’s common stock, at a purchase price of $0.85 per share.

This resulted in aggregate gross proceeds t o the Company of approximately $3.7 million.

The offering closed on December 30, 2024.

• As of December 31, 2024, 6,437,501 of the Regular Warrants have been exerc ised, resulting in $2.3 million net proceeds.

In addition, 700,000 warrants issued in 2023 were exercised which resulted in aggregate proceeds to the Company of approxima tely $966,000.

We believe our existing cash and cash equivalents provided by our ongoing operations, together with funds available through the transactions noted above, will be sufficient to meet our working capital, capital expenditures, and cash needs for the next 12 months and beyond.

• 2,000,000 warrants were exercised in February of 2025 to purchase 2,000,000 shares of the Company’s common stock, which resulted in aggregate proceeds to the Company of $700,000.

• Gross proceeds from the March 2025 Public Offering were approximately $4.5 million before deducting placement agent fees and offering expenses.

• Gross proceeds from the March 2025 Warrants were $1.90 million before deducing placement agent fees.

• Gross proceeds from the June 2025 Public Offering were approximately $5.0 million before deducting placement agent fees and offering expenses.

• Gross proceeds from the June 2025 Warrants were $4.48 million before deducing placement agent fees.

We believe our existing cash provided by our ongoing operations, together with funds available from the transactions noted above, will be sufficient to meet our working capital, capital expenditures, and cash needs for the next 12 months and beyond.

Our material cash requirements from known contractual and other obligations primarily relate to payments on our credit facilities.

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Operating activities

Net cash used in operating activities was $(1,948,377) for the year ended December 31, 2025, compared to $1,120,105 provided by operating activities for the year ended December 31, 2024.

The net cash used in operating activities was primarily driven by an increase in accounts receivables (due to timing of collections), as well as noncash adjustments related to changes in the fair value of derivative liabilities during the year ended December 31, 2025.

Investing activities

Net cash used in investing activities was $(159,773), for the year ended December 31, 2025, compared to $221,356, for the year ended December 31, 2024.

The net cash used in investing activities was primarily due to the purchase of fixed assets and the investment in joint ventures.

Financing activities

During the year ended December 31, 2025, $4,737,880 net cash was provided by financing activities, primarily due to the proceeds from the issuance of common stock, pre-funded warrants, and the exercise of regular warrants, offset by the full repayment of notes payable, the revolving line of credit with Live Oak Banking Company, and amounts due to seller, compared to net cash provided by financing activities of $9,082,746, for the year ended December 31, 2024.

Comparison of the Years Ended December 31, 2024 and 2023

Operating activities

Net cash provided by operating activities increased to $1,120,105 for the year ended December 31, 2024, compared to $(2,264,447) used in operating activities for the year ended December 31, 2023.

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During the third quarter of 2023, due to decline in stock price, management determined that a triggering event occurred representing an indicator of goodwill impairment, resulting in a noncash charge of $6,919,094.

During 2024, no triggering events were noted.

During 2024 and 2025, no triggering events were noted.

Income Taxes and Uncertain Tax Positions

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Recently Issued Accounting Standards

Refer to Note 1 of the notes to our audited consolidated financial statements included in Part II, Item 8., Financial Statements within this Form 10-K for our assessment of recently issued and adopted accounting standards.

The Company adopted ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which enhances the Company’s income tax disclosures, including disaggregation of the effective tax rate reconciliation and income taxes paid.

Refer to Note 1 of the notes to our audited consolidated financial statements included in Part II, Item 8., Financial Statements within this Form 10-K for our assessment of other recently issued and adopted accounting standards.

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