What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-11-04 compared with 2022-08-01 · 93 added, 86 removed, 224 unchanged (44% of the section changed)

19 unchanged sentences

All Medicare Administrative Contractors have retired automatic coverage denial policies for our Current Procedural Terminology codes, thereby allowing hospitals to be paid for the Barostim procedure.

Our reimbursement strategy involves continuing to broaden our current coverage and build our in-house market access team to assist patients and physicians in obtaining appropriate prior authorization approvals in advance of treatment on a case-by-case basis where positive coverage policies currently do not exist.

on a case-by-case basis where positive coverage policies currently do not exist.

Outside the U.S., reimbursement levels vary by country and within some countries by region.

10 unchanged sentences

Longer term, we plan to explore Barostim’s potential to expand its indications for use to other cardiovascular diseases.

On October 31, 2022, we entered into a loan and security agreement under which we may borrow, subject to our achievement of certain milestones, up to a total of $50.0 million in a series of term loans described in Note 13 to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q and we borrowed $7.5 million of such total on that date to fund our commercial and investment efforts.

As a result of these investments and our commercialization efforts, we expect to continue to incur net losses for the next several years, which may require additional funding and could include future equity and debt financings.

18 unchanged sentences

and Europe began to gradually perform elective procedures again during the fourth quarter of 2020.

We believe the recovery of our business in the fourth quarter of 2020 and through most of fiscal year 2021 is an encouraging sign for when remaining shelter-in-place and hospital limitations are lifted.

As the pandemic eased throughout 2021, we experienced the following positive trends:

3 unchanged sentences

However, procedure volumes were again negatively impacted by the Delta and Omicron variants of COVID-19 in the third and fourth quarters of 2021 and continuing into the first quarter of 2022.

By March 2022, and continuing into the second quarter of 2022, implant centers resumed procedures at more normal levels.

By March 2022, and continuing into the second and third quarters of 2022, implant centers resumed procedures at more normal levels.

We believe the challenges resulting from COVID-19 will likely continue for the duration of the pandemic.

34 unchanged sentences

Selling, general and administrative expenses

Selling, general and administrative (“SG&A”) expenses consist primarily of personnel costs, including base salaries, bonuses, employee benefits and stock-based compensation expense for our sales and marketing personnel, including sales commissions, and for administrative personnel that support our general operations such as executive management, financial accounting, information technology and human resources personnel.

such as executive management, financial accounting, information technology and human resources personnel.

SG&A expenses also include costs attributable to marketing, as well as travel, legal fees, financial audit fees, insurance, fees for other consulting services, depreciation and facilities.

2 unchanged sentences

In addition, we will continue to increase our international presence and to develop and assist our channel partners.

We also expect our administrative expenses will increase as we increase our headcount and information technology to support our operations as a public company.

Additionally, we anticipate increased expenses related to audit, legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums and investor relations costs associated with being a public company.

However, we expect our SG&A expenses to decrease as a percentage of revenue as our revenue grows.

1 unchanged sentence

Interest expense consists of interest on our debt and amortization of associated debt discount.

Other expense, net

Other expense, net consists primarily of the fair value adjustments related to our formerly outstanding convertible preferred stock warrants, which were accounted for as a liability and marked-to-market at each reporting period.

Other income (expense), net

Other income (expense), net consists primarily of the fair value adjustments related to our formerly outstanding convertible preferred stock warrants, which were accounted for as a liability and marked-to-market at each reporting period.

The final fair value adjustment of the warrant liability was recorded upon the closing of the IPO in connection with the conversion of the warrants to common stock warrants.

4 unchanged sentences

Results of operations

Consolidated results of operations for the three months ended June 30, 2022, compared to the three months ended June 30, 2021

Consolidated results of operations for the three months ended September 30, 2022, compared to the three months ended September 30, 2021

Three months ended

September 30,

(unaudited and in thousands)

6 unchanged sentences

Interest expense

Other expense, net

Other income, net

Loss before income taxes

1 unchanged sentence

NM – Not meaningful

Revenue by Geography

The following table provides revenue by geography:

Three months ended

September 30,

(unaudited and in thousands)

1 unchanged sentence

Total Revenue

Revenue was $5.0 million for the three months ended June 30, 2022, an increase of $1.9 million, or 61%, over the three months ended June 30, 2021.

Revenue was $6.2 million for the three months ended September 30, 2022, an increase of $2.8 million, or 82%, over the three months ended September 30, 2021.

Revenue generated in the U.S.

was $3.9 million for the three months ended June 30, 2022, an increase of $1.8 million, or 87%, over the three months ended June 30, 2021.

was $5.0 million for the three months ended September 30, 2022, an increase of $2.5 million, or 96%, over the three months ended September 30, 2021.

Total HF revenue units in the U.S.

totaled 128 and 67 for the three months ended June 30, 2022 and 2021, respectively.

totaled 167 and 84 for the three months ended September 30, 2022 and 2021, respectively.

HF revenue in the U.S.

totaled $3.8 million for the three months ended June 30, 2022, an increase of $1.8 million, or 90%, over the three months ended June 30, 2021.

The increase was primarily driven by continued growth as a result of the expansion into new sales territories, new accounts and increased physician and patient awareness of Barostim.

As of June 30, 2022, we had a total of 71 active implanting centers as compared to 31 as of June 30, 2021.

totaled $4.9 million for the three months ended September 30, 2022, an increase of $2.4 million, or 99%, over the three months ended September 30, 2021.

The increase was primarily driven by continued growth as a result of the expansion into new sales territories and new accounts, as well as increased physician and patient awareness of Barostim.

As of September 30, 2022, we had a total of 91 active implanting centers as compared to 38 as of September 30, 2021.

Active implanting centers are customers that have completed at least one commercial HF implant in the last 12 months.

As of June 30, 2022, we had a total of 20 sales territories as compared to eight as of June 30, 2021.

Revenue generated in Europe was $1.1 million for the three months ended June 30, 2022, an increase of $0.1 million, or 7%, over the three months ended June 30, 2021.

Total revenue units in Europe were 52 for the three months ended June 30, 2022 as compared to 47 in the prior year period.

The slight revenue

increase was primarily due to the lessening impact of the COVID-19 pandemic in Germany, partially offset by an unfavorable currency impact on net sales .

As of June 30, 2022, we had a total of six sales territories in Europe.

As of September 30, 2022, the Company had a total of 23 sales territories as compared to 11 as of September 30, 2021.

Revenue generated in Europe was $1.1 million for the three months ended September 30, 2022, an increase of $0.3 million, or 39%, over the three months ended September 30, 2021.

Total revenue units in Europe were 61 for the three months ended September 30, 2022 as compared to 38 in the prior year period.

The revenue increase was primarily due to the lessening impact of the COVID-19 pandemic in Europe, partially

offset by an unfavorable currency impact on net sales .

As of September 30, 2022, we had a total of six sales territories in Europe.

Cost of goods sold and gross margin

Cost of goods sold increased $0.3 million, or 32%, to $1.2 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021.

Cost of goods sold increased $0.5 million, or 53%, to $1.3 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021.

This increase was primarily due to higher sales of Barostim.

Gross profit was $3.8 million for the three months ended June 30, 2022, an increase of $1.6 million, or 73%, over the three months ended June 30, 2021.

Gross margin increased to 76% for the three months ended June 30, 2022, compared to 71% for the three months ended June 30, 2021.

Gross margin for the three months ended June 30, 2022 was higher due to a decrease in the cost per unit and an increase in the average selling price.

This was partially offset by a larger percentage of our revenue units coming from full systems versus battery replacements.

Gross profit was $4.8 million for the three months ended September 30, 2022, an increase of $2.3 million, or 92%, over the three months ended September 30, 2021.

Gross margin increased to 78% for the three months ended September 30, 2022, compared to 74% for the three months ended September 30, 2021.

Gross margin for the three months ended September 30, 2022 was higher due to a decrease in the cost per unit.

This was partially offset by a decrease in the average selling price and a larger percentage of our revenue units coming from full systems versus battery replacements.

New patients receive a full system that includes an IPG and a stimulation lead, which has a lower gross margin than a stand-alone IPG used for a battery replacement.

Research and development expenses

R&D expenses increased $0.1 million, or 4%, to $2.4 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021.

This change was primarily driven by a $0.4 million increase in compensation expenses, mainly as a result of increased headcount, partially offset by a $0.2 million decrease in consulting expenses and a $0.1 million decrease in non-cash stock-based compensation expense.

R&D expenses increased $0.6 million, or 35%, to $2.3 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021.

This change was primarily driven by a $0.5 million increase in compensation expenses, mainly as a result of increased headcount, and a $0.1 million increase in non-cash stock-based compensation expense, partially offset by a $0.1 million decrease in clinical study expenses.

Selling, general and administrative expenses

SG&A expenses increased $6.9 million, or 122%, to $12.5 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021.

This was primarily driven by a $3.4 million increase in compensation expenses, mainly as a result of increased headcount, a $0.7 million increase in travel expenses, a $0.6 million increase in public company costs, a $0.6 million increase in marketing and advertising expenses associated with the commercialization of Barostim in the U.S., and a $0.5 million increase in non-cash stock-based compensation expense.

SG&A expenses increased $4.6 million, or 56%, to $12.7 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021.

This was primarily driven by a $3.2 million increase in compensation expenses, mainly as a result of increased headcount, a $0.5 million increase in travel expenses, a $0.4 million increase in non-cash stock-based compensation expense, a $0.3 million increase in marketing and advertising expenses associated with the commercialization of Barostim in the U.S.

and a $0.2 million increase in professional fees.

Interest expense

Interest expense decreased $0.6 million for the three months ended June 30, 2022, compared to the three months ended June 30, 2021.

Interest expense decreased $0.6 million for the three months ended September 30, 2022, compared to the three months ended September 30, 2021.

This decrease was driven by the repayment of the outstanding debt under the loan agreement with Horizon Technology Finance Corporation (the “Horizon loan agreement”) in November 2021.

Other expense, net

Other expense, net was nominal for the three months ended June 30, 2022, compared to $11.4 million for the three months ended June 30, 2021.

The expense in the second quarter of 2021 was primarily driven by the increase in fair value of the convertible preferred stock warrant liability from March 31, 2021 to June 30, 2021.

As these preferred stock warrants converted to common stock warrants upon the IPO, there is no longer a change in fair value recorded in other expense, net.

Other income, net

Other income, net was $0.3 million for the three months ended September 30, 2022, compared to $1.8 million for the three months ended September 30, 2021.

The income in the third quarter of 2021 reflects $1.5 million of income related to the change in the fair value of our convertible preferred stock warrants from June 30, 2021 to July 2, 2021, which is the date the warrants converted to common stock warrants.

As these preferred stock warrants converted to common stock warrants upon the IPO, there is no longer a change in fair value recorded in other income, net.

Provision for income taxes

Provision for income taxes was nominal for each of the three months ended June 30, 2022 and June 30, 2021.

Consolidated results of operations for the six months ended June 30, 2022, compared to the six months ended June 30, 2021

Six months ended

Provision for income taxes was nominal for each of the three months ended September 30, 2022, and September 30, 2021.

Consolidated results of operations for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021

Nine months ended

September 30,

(unaudited and in thousands)

6 unchanged sentences

Interest expense

Other expense, net

Other income (expense), net

Loss before income taxes

1 unchanged sentence

NM – Not meaningful

Revenue by Geography

Six months ended

The following table provides revenue by geography:

Nine months ended

September 30,

(unaudited and in thousands)

1 unchanged sentence

Total Revenue

Revenue was $9.1 million for the six months ended June 30, 2022, an increase of $3.1 million, or 52%, over the six months ended June 30, 2021.

Revenue was $15.3 million for the nine months ended September 30, 2022, an increase of $5.9 million, or 63%, over the nine months ended September 30, 2021.

Revenue generated in the U.S.

was $7.0 million for the six months ended June 30, 2022, an increase of $3.3 million, or 88%, over the six months ended June 30, 2021.

was $12.0 million for the nine months ended September 30, 2022, an increase of $5.7 million, or 91%, over the nine months ended September 30, 2021.

Total HF revenue units in the U.S.

totaled 227 and 111 for the six months ended June 30, 2022 and 2021, respectively.

totaled 394 and 195 for the nine months ended September 30, 2022 and 2021, respectively.

HF revenue in the U.S.

totaled $6.7 million for the six months ended June 30, 2022, an increase of $3.5 million, or 106%, over the six months ended June 30, 2021.

totaled $11.6 million for the nine months ended September 30, 2022, an increase of $5.9 million, or 103%, over the nine months ended September 30, 2021.

The increase was primarily driven by continued growth as a result of the expansion into new sales territories, new accounts and increased physician and patient awareness of Barostim.

Revenue generated in Europe was $2.1 million for the six months ended June 30, 2022, a decrease of $0.2 million, or 7%, over the six months ended June 30, 2021.

Total revenue units in Europe were 102 for the six months ended June 30, 2022 as compared to 99 in the prior year period.

The decrease is due to an unfavorable currency impact on net sales.

As of June 30, 2022, the Company had a total of six sales territories in Europe.

Revenue generated in Europe was $3.3 million for the nine months ended September 30, 2022, an increase of $0.2 million, or 5%, over the nine months ended September 30, 2021.

Total revenue units in Europe were 163 for the nine months ended September 30, 2022, as compared to 137 in the prior year period.

The slight revenue increase was primarily due to the lessening impact of the COVID-19 pandemic in Europe, partially offset by an unfavorable currency impact on net sales .

As of September 30, 2022, the Company had a total of six sales territories in Europe.

Cost of goods sold and gross margin

Cost of goods sold increased $0.4 million, or 21%, to $2.2 million for the six months ended June 30, 2022, compared to the six months ended June 30, 2021.

Cost of goods sold increased $0.8 million, or 31%, to $3.5 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

This increase was primarily due to higher sales of Barostim.

Gross profit was $7.0 million for the six months ended June 30, 2022, an increase of $2.8 million, or 66%, over the six months ended June 30, 2021.

Gross margin increased to 76% for the six months ended June 30, 2022, compared to 70% for the six months ended June 30, 2021.

Gross margin for the six months ended June 30, 2022 was higher due to a decrease in the cost per unit and an increase in the average selling price.

Gross profit was $11.8 million for the nine months ended September 30, 2022, an increase of $5.1 million, or 76%, over the nine months ended September 30, 2021.

Gross margin increased to 77% for the nine months ended September 30, 2022, compared to 72% for the nine months ended September 30, 2021.

Gross margin for the nine months ended September 30, 2022 was higher due to a decrease in the cost per unit and an increase in the average selling price.

This was partially offset by a larger percentage of our revenue units coming from full systems versus battery replacements.

Research and development expenses

R&D expenses increased $0.6 million, or 15%, to $4.6 million for the six months ended June 30, 2022, compared to the six months ended June 30, 2021.

This change was primarily driven by an increase in compensation expenses, mainly as a result of increased headcount.

R&D expenses increased $1.2 million, or 21%, to $6.9 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

This change was primarily driven by a $1.3 million increase in compensation expenses, mainly as a result of increased headcount, partially offset by a $0.1 million decrease in clinical study expenses.

Selling, general and administrative expenses

SG&A expenses increased $13.2 million, or 131%, to $23.3 million for the six months ended June 30, 2022, compared to the six months ended June 30, 2021.

This was primarily driven by a $6.7 million increase in compensation expenses, mainly as a result of increased headcount, a $1.3 million increase in travel expenses, a $1.3 million increase in public company costs, a $1.2 million increase in marketing and advertising expenses associated with the commercialization of Barostim in the U.S., and a $1.1 million increase in non-cash stock-based compensation expense.

SG&A expenses increased $17.7 million, or 98%, to $35.9 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

This was primarily driven by a $9.9 million increase in compensation expenses, mainly as a result of increased headcount, a $1.8 million increase in travel expenses, a $1.6 million increase in non-cash stock-based compensation expense, a $1.5 million increase in marketing and advertising expenses associated with the commercialization of Barostim in the U.S., a $1.3 million increase in public company costs, and a $1.2 million increase in consulting fees.

Interest expense

Interest expense decreased $1.2 million for the six months ended June 30, 2022, compared to the six months ended June 30, 2021.

Interest expense decreased $1.8 million for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021.

This decrease was driven by the repayment of the outstanding debt under the Horizon loan agreement in November 2021.

Other expense, net

Other expense, net was $0.1 million for the six months ended June 30, 2022, compared to $15.2 million for the six months ended June 30, 2021.

The expense for the six months ended June 30, 2021 was primarily driven by the increase in fair value of the convertible preferred stock warrant liability from December 31, 2020 to June 30, 2021.

As these preferred stock warrants converted to common stock warrants upon the IPO, there is no longer a change in fair value recorded in other expense, net.

Other income (expense), net

Other income, net was $0.2 million for the nine months ended September 30, 2022, compared to other expense, net of $13.4 million for the nine months ended September 30, 2021.

The expense for the nine months ended September 30, 2021 was primarily driven by the increase in fair value of the convertible preferred stock warrant liability from December 31, 2020 to July 2, 2021, which is the date the warrants converted to common stock warrants.

As these preferred stock warrants converted to common stock warrants upon the IPO, there is no longer a change in fair value recorded in other income (expense), net.

Provision for income taxes

Provision for income taxes was nominal for each of the six months ended June 30, 2022 and June 30, 2021.

Provision for income taxes was nominal for each of the nine months ended September 30, 2022 and September 30, 2021.

Liquidity, capital resources and plan of operations

We have incurred significant operating losses and negative cash flows from operations since our inception, and we anticipate that we will incur significant losses for at least the next several years.

As of June 30, 2022 and December 31, 2021, we had cash and cash equivalents of $121.3 million and $142.1 million, respectively.

For the three months ended June 30, 2022 and 2021, our net losses were $11.1 million and $17.7 million, respectively.

For the six months ended June 30, 2022 and 2021, our net losses were $21.1 million and $26.4 million, respectively.

Our net cash used in operating activities for the six months ended June 30, 2022 and 2021 were $20.7 million and $11.5 million, respectively.

As of September 30, 2022 and December 31, 2021, we had cash and cash equivalents of $110.0 million and $142.1 million, respectively.

For the three months ended September 30, 2022 and 2021, our net losses were $9.8 million and $6.1 million, respectively.

For the nine months ended September 30, 2022 and 2021, our net losses were $30.9 million and $32.5 million, respectively.

Our net cash used in operating activities for the nine months ended September 30, 2022 and 2021 was $31.8 million and $20.7 million, respectively.

Prior to the IPO, our operations were financed primarily by aggregate net proceeds from the sale of our convertible preferred stock of $383.1 million, as well as debt financings.

In September 2019, we entered into the Horizon loan agreement to borrow $20.0 million, which was fully repaid on November 3, 2021.

In September 2019, we entered into

the Horizon loan agreement to borrow $20.0 million, which was fully repaid on November 3, 2021.

In July 2020, we completed an equity financing pursuant to which we issued 62,500,000 shares of Series G convertible preferred stock at a price of $0.80 per share, for net proceeds of $49.8 million after deducting offering expenses.

On July 2, 2021, we closed our IPO for net proceeds from the offering, after deducting the underwriting discount and other offering expenses payable by us, of $133.2 million.

Our future liquidity and capital funding requirements will depend on numerous factors, including:

8 unchanged sentences

● the emergence of competing technologies or other adverse market developments.

We believe that our existing cash resources together with revenue will be sufficient to meet our forecasted requirements for operating liquidity, capital expenditures and debt services for at least the next three years.

If these sources are insufficient to satisfy our liquidity requirements, however, we may seek to sell additional equity or enter into a loan agreement.

We believe that our existing cash resources and term loan facility together with revenue will be sufficient to meet our forecasted requirements for operating liquidity, capital expenditures and debt services for at least the next three years.

If these sources are insufficient to satisfy our liquidity requirements, however, we may seek to sell additional equity or enter into an additional loan agreement.

If we raise additional funds by issuing equity securities, our stockholders would experience dilution.

Debt financing, if available, may involve covenants further restricting our operations or our ability to incur additional debt.

Any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders.

Additional debt financing, if available, may involve covenants further restricting our operations or our ability to incur additional debt.

Any such debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders.

Additional financing may not be available at all or may only be available in amounts or on terms that we do not deem to be favorable.

1 unchanged sentence

The following table sets forth the primary sources and uses of cash for each of the periods indicated below:

Six months ended

Nine months ended

(in thousands)

6 unchanged sentences

Cash used in operating activities

Net cash used in operating activities for the six months ended June 30, 2022 was $20.7 million and consisted primarily of a net loss of $21.1 million and a decrease in net operating assets of $1.7 million, partially offset by a non-cash charge of $1.9 million related to stock-based compensation expense.

Net operating assets consisted primarily of inventory, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses to support the growth of our operations.

Net cash used in operating activities for the six months ended June 30, 2021 was $11.5 million and consisted primarily of a net loss of $26.4 million and a decrease in net operating assets of $1.2 million, partially offset by non-cash charges of $15.1 million related to the fair value adjustment to our convertible preferred stock warrants and $0.7 million from non-cash stock-based compensation expense.

Net cash used in operating activities for the nine months ended September 30, 2022, was $31.8 million and consisted primarily of a net loss of $30.9 million and a decrease in net operating assets of $4.1 million, partially offset by a non-cash charge of $2.8 million related to stock-based compensation expense.

Net operating assets consisted primarily of inventory, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses to support the growth of our operations.

Net cash used in operating activities for the nine months ended September 30, 2021 was $20.7 million and consisted primarily of a net loss of $32.5 million and a decrease in net operating assets of $3.0 million, partially offset by non-cash charges of $13.3 million related to the fair value adjustment to our convertible preferred stock warrants and $1.2 million from non-cash stock-based compensation expense.

Net operating assets consisted primarily of inventory, accounts receivable and accrued expenses to support the growth of our operations.

Cash used in investing activities:

Cash used in investing activities was $0.3 million and $0.5 million for the six months ended June 30, 2022 and 2021, respectively, and consisted of purchases of property and equipment.

Cash used in investing activities was $0.6 million for each of the nine months ended September 30, 2022 and 2021, and consisted of purchases of property and equipment.

Cash provided by financing activities:

Net cash provided by financing activities for the six months ended June 30, 2022 was $0.4 million and consisted of $0.3 million related to proceeds from the ESPP and $0.1 million related to proceeds from the exercise of common stock options.

Net cash provided by financing activities for the six months ended June 30, 2021 was nominal.

Net cash provided by financing activities for the nine months ended September 30, 2022, was $0.4 million and consisted of $0.3 million related to proceeds from the ESPP and $0.1 million related to proceeds from the exercise of common stock options.

Net cash provided by financing activities for the nine months ended September 30, 2021 was $133.2 million and consisted primarily of proceeds from the issuance of common stock of $133.2 million.

Contractual obligations and commitments

There have been no material changes to our contractual obligations as of June 30, 2022, as compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

There have been no material changes to our contractual obligations as of September 30, 2022, as compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

Critical accounting policies and estimates

1 unchanged sentence

GAAP requires our management to make estimates and judgments that affect the amounts reported in our condensed consolidated financial statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q.

We base our estimates on historical experience and on various other assumptions that we believe to be reasonable and supportable under the circumstances.

The results of this evaluation then form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent

from other sources.

We base our estimates on historical experience and on various other assumptions that we

believe to be reasonable and supportable under the circumstances.

The results of this evaluation then form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates under different assumptions or conditions, and such differences may be material to our condensed consolidated financial statements.

12 unchanged sentences

For the valuation as of the date of pricing of the IPO, the fair value of our common stock was determined by our Board of Directors to be the public offering price of the shares of common stock issued in the IPO.

For valuations after the completion of the IPO, our Board of Directors will determine the fair value of each share of common stock based on the closing price of our common stock as reported on the date of grant.

For valuations after the completion of the IPO, our Board of Directors determines the fair value of each share of common stock based on the closing price of our common stock as reported on the date of grant.

Future expense amounts for any particular period could be affected by changes in our assumptions or market conditions.

15 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis