What changed in this filing

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Item 1. Financial Statements

2025-08-11 compared with 2025-05-12 · 170 added, 69 removed, 526 unchanged (31% of the section changed)

51 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

General and administrative expenses

Gain on asset dispositions and impairments, net

Gain (loss) on asset dispositions and impairments, net

Income from operations

9 unchanged sentences

Net income from continuing operations attributable to Consolidated Water Co.

Net loss from discontinued operations

Net income (loss) from discontinued operations

Net income attributable to Consolidated Water Co.

28 unchanged sentences

Balance as of March 31, 2025

Issue of share capital

Buyback of preferred stock

Exercise of options

Dividends declared

( 2,234,434 )

Stock-based compensation

Balance as of June 30, 2025

preferred stock

8 unchanged sentences

Balance as of March 31, 2024

Issue of share capital

Conversion of preferred stock

Buyback of preferred stock

Exercise of options

Dividends declared

( 1,507,710 )

Stock-based compensation

Balance as of June 30, 2024

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities

2 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Gain on sale of land and project documentation

( 12,134,766 )

Foreign currency transaction adjustment - discontinued operations

5 unchanged sentences

Compensation expense relating to stock and stock option grants

Gain on asset dispositions and impairments, net

Loss (gain) on asset dispositions and impairments, net

Equity in earnings of affiliates

2 unchanged sentences

( 2,752,672 )

Contract assets

( 1,672,589 )

Contract assets

( 1,288,787 )

1 unchanged sentence

Accounts payable, accrued expenses and other current liabilities

( 3,503,626 )

Accrued compensation

Contract liabilities

7 unchanged sentences

( 4,215,997 )

( 1,725,153 )

Proceeds from asset dispositions

Net cash used in investing activities

Proceeds from Mexico settlement agreement

Net cash provided by (used in) investing activities - continuing operations

( 4,177,011 )

Net cash provided by investing activities - discontinued operations

Net cash provided by (used in) investing activities

( 4,177,011 )

Cash flows from financing activities

13 unchanged sentences

cash and cash equivalents at end of period - discontinued operations

( 1,355,104 )

Cash and cash equivalents at end of period

Non-cash transactions:

Conversion (on a one-to-one basis) of 2,486 and 0 , respectively, shares of redeemable preferred stock to common stock

Dividends declared but not paid

1 unchanged sentence

Transfers from construction in progress to property, plant and equipment

Right-of-use assets obtained in exchange for new operating lease liabilities

Transfers from prepaid expenses to property, plant and equipment

Expenditures for construction in progress not yet paid

The accompanying notes are an integral part of these condensed consolidated financial statements.

21 unchanged sentences

All significant intercompany balances and transactions have been eliminated in consolidation.

In September 2021, Kalaeloa Desalco was formed to pursue a project in Oahu, Hawaii.

On June 2, 2023, Kalaeloa Desalco signed a definitive agreement with the Honolulu Board of Water Supply to design, construct, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.

Effective October 1, 2023, the Company purchased, through its wholly-owned subsidiary PERC, a 100 % ownership interest in REC, a Colorado company that operates and maintains water and wastewater treatment facilities and provides technical services to clients throughout the Rocky Mountain and Eastern Plains regions of Colorado.

PERC acquired REC for approximately $ 4.1 million and recorded goodwill and intangible assets from this acquisition of $ 2,436,391 and $ 1,108,390 , respectively.

The accompanying interim condensed consolidated financial statements are unaudited.

6 unchanged sentences

The Company’s reporting currency is the United States dollar (“US$”).

The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each

respective country.

The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each respective country.

The functional currency for NSC, AdR, and CW-Cooperatief is the US$.

2 unchanged sentences

The exchange rates for conversion of Mexican pesos and euros into US$ vary based upon market conditions.

Net foreign currency gains arising from transactions and re-measurements were $ 29,642 and $ 24,197 for the three months ended March 31, 2025 and 2024, respectively, and are included in “Other income (expense) - Other” in the accompanying condensed consolidated statements of income.

Net foreign currency gains arising from transactions and re-measurements were $ 16,345 and $ 16,602 for the three months ended June 30, 2025 and 2024, respectively, and $ 45,987 and $ 40,799 for the six months ended June 30, 2025 and 2024 are included in “Other income (expense) - Other” in the accompanying condensed consolidated statements of income.

Cash and cash equivalents:

Cash and cash equivalents consist of demand deposits at banks and certificates of deposit at banks with original maturities of three months or less.

Cash and cash equivalents as of March 31, 2025 and December 31, 2024 include approximately $ 5.3 million and $ 5.2 million, respectively, of certificates of deposits with original maturities of three months or less.

Cash and cash equivalents as of June 30, 2025 and December 31, 2024 include approximately $ 16.9 million and $ 5.2 million, respectively, of certificates of deposits with original maturities of three months or less.

Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas.

The equivalent United States dollar cash balances held in The Bahamas as of March 31, 2025 and December 31, 2024 were approximately $ 14.0 million and $ 7.7 million, respectively.

The equivalent United States dollar cash balances held in The Bahamas as of June 30, 2025 and December 31, 2024 were approximately $ 14.2 million and $ 7.7 million, respectively.

Goodwill and intangible assets:

20 unchanged sentences

The following table presents the Company’s revenue disaggregated by revenue source.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Retail revenue

3 unchanged sentences

Services revenue consists of the following:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Construction revenue

23 unchanged sentences

Substantially all of Aerex’s customers are U.S.

Kalaeloa Desalco has signed and is presently executing a definitive agreement with the Honolulu Board of Water Supply to design, construct, operate and maintain a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.

Kalaeloa Desalco has signed a contract with the Honolulu Board of Water Supply pursuant to which it is presently designing and expects to construct and operate a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii.

The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo, generates construction revenue from Kalaeloa Desalco, and generates manufacturing revenue from Aerex.

12 unchanged sentences

The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance, design and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle.

For the three months ended March 31, 2025 and 2024, the Company recognized $ 2,180,261 and $ 9,397,093 , respectively, of its services revenue from the transfer of goods or services to customers over time.

For the three months ended June 30, 2025 and 2024, the Company recognized $ 3,104,731 and $ 3,988,174 , respectively, of its services revenue from the transfer of goods or services to customers over time.

The remaining services revenue of $ 8,343,472 and $ 7,934,295 , respectively, was recognized from the transfer of goods or services to customers when invoiced.

For the three months ended March 31, 2025 and 2024, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time.

For the six months ended June 30, 2025 and 2024, the Company recognized $ 5,284,992 and $ 13,385,268 , respectively, of its services revenue from the transfer of goods or services to customers over time.

The remaining services revenue of $ 16,241,478 and $ 15,954,812 , respectively, was recognized from the transfer of goods or services to customers when invoiced.

For the three and six months ended June 30, 2025 and 2024, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time.

Revenue recognized and amounts billed on contracts in progress are summarized as follows:

3 unchanged sentences

( 121,833,354 )

Net contract asset /(liability)

Net contract liability

( 7,139,636 )

5 unchanged sentences

( 9,126,654 )

Net contract asset /(liability)

Net contract liability

( 7,139,636 )

( 4,656,411 )

As of March 31, 2025, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $ 149.3 million in aggregate transaction price for contracts with an original expected length of greater than one year .

During the three and six months ended June 30, 2025, the Company adjusted prior period estimates of the total contract costs for a few of its contracts.

These changes in accounting estimates resulted in an increase in the services and manufacturing segment’s income from operations by $ 167,904 and $ 445,150 , respectively, for both the three and six months ended June 30, 2025.

The impact to the Company’s consolidated net income was $ 450,619 for both the three and six months ended June 30, 2025.

These adjustments increased basic and diluted earnings per share by $ 0.03 for both the three and six months ended June 30, 2025.

As of June 30, 2025, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $ 143.1 million in aggregate transaction price for contracts with an original expected length of greater than one year .

The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $ 12.1 million during the remainder of the year ending December 31, 2025 and approximately $ 131.0 million thereafter .

In addition, the Company recognized revenue of approximately $ 1.4 million for the three months ended March 31, 2025, that was included in the contract liability balance as of December 31, 2024.

In addition, the Company recognized revenue of approximately $ 3.8 million for the six months ended June 30, 2025, that was included in the contract liability balance as of December 31, 2024.

Practical Expedients and Exemptions

1 unchanged sentence

Comparative amounts:

Certain amounts presented in the financial statements previously issued for 2024 have been reclassified to conform to the current period’s presentation.

Revenue of $ 679,462 and $ 853,262 for the three and six months ended June 30, 2024, respectively, presented in the services segment as design and consulting revenue in the financial statements previously issued for 2024 has been reclassified to construction revenue in the services segment information for 2024 provided herein to conform to the current period’s presentation.

Such reclassifications had no effect on consolidated or services segment revenue, gross profit, operating income or net income.

Segment information

10 unchanged sentences

The CODM considers actual versus budget and current period versus prior period variances on a monthly, quarterly, and annual basis for each of these financial measures.

The CODM also considers variances from budget and prior period for major corporate expenses (such as employee costs, insurance and professional fees) when making decisions regarding capital and resource allocation.

The CODM also considers variances from the budget and the prior period for major corporate expenses (such as employee costs, insurance and professional fees) when making decisions regarding capital and resource allocation.

The accounting policies of the segments are consistent with those described in Note 2.

5 unchanged sentences

The Company’s income statements by segment are presented below.

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Manufacturing

1 unchanged sentence

General and administrative expenses

Gain (loss) on asset dispositions and impairments, net

Gain on asset dispositions and impairments, net

Income (loss) from operations

3 unchanged sentences

Income (loss) from affiliates

Other income, net

Other income (loss), net

Income (loss) before income taxes

( 3,400,937 )

Provision (benefit) for income taxes

Provision for income taxes

Net income (loss) from continuing operations

5 unchanged sentences

Net income attributable to Consolidated Water Co.

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Manufacturing

1 unchanged sentence

General and administrative expenses

Gain (loss) on asset dispositions and impairments, net

Income (loss) from operations

6 unchanged sentences

( 3,548,362 )

Provision (benefit) for income taxes

Provision for income taxes

Net income (loss) from continuing operations

3 unchanged sentences

( 3,874,105 )

Net income from discontinued operations

Net income attributable to Consolidated Water Co.

The Company’s cost of revenue consists of:

Three Months Ended June 30, 2025

Manufacturing

Subcontractor and other project costs

Employee costs

Retail license royalties

Three Months Ended June 30, 2024

Manufacturing

Subcontractor and other project costs

Employee costs

Retail license royalties

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

Three Months Ended June 30, 2025

Manufacturing

Employee costs

Professional fees

Depreciation and amortization

Three Months Ended June 30, 2024

Manufacturing

Employee costs

Professional fees

Depreciation and amortization

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

Six Months Ended June 30, 2025

Manufacturing

Cost of revenue

General and administrative expenses

Gain on asset dispositions and impairments, net

Income (loss) from operations

( 7,405,927 )

Interest income

Interest expense

Income (loss) from affiliates

Other income (loss), net

Income (loss) before income taxes

( 6,829,804 )

Provision for income taxes

Net income (loss) from continuing operations

( 6,829,804 )

Income from continuing operations attributable to non-controlling interests

Net income (loss) from continuing operations attributable to Consolidated Water Co.

( 6,829,804 )

Net loss from discontinued operations

Net income attributable to Consolidated Water Co.

Six Months Ended June 30, 2024

Manufacturing

Cost of revenue

General and administrative expenses

Gain (loss) on asset dispositions and impairments, net

Income (loss) from operations

( 6,934,744 )

Interest income

Interest expense

Income from affiliate

Other income, net

Income (loss) before income taxes

( 6,807,247 )

Provision for income taxes

Net income (loss) from continuing operations

( 6,807,247 )

Income from continuing operations attributable to non-controlling interests

Net income (loss) from continuing operations attributable to Consolidated Water Co.

( 6,807,247 )

Net income from discontinued operations

Net income attributable to Consolidated Water Co.

The Company’s cost of revenue consists of:

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Manufacturing

2 unchanged sentences

Retail license royalties

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Manufacturing

4 unchanged sentences

The Company’s general and administrative expenses consist of:

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Manufacturing

2 unchanged sentences

Depreciation and amortization

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Manufacturing

4 unchanged sentences

The Company’s segment assets are presented below.

As of March 31, 2025

As of June 30, 2025

Manufacturing

24 unchanged sentences

The following summarizes information related to the computation of basic and diluted EPS:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net income from continuing operations attributable to Consolidated Water Co.

1 unchanged sentence

Net income from continuing operations available to common shares in the determination of basic earnings per common share

Loss from discontinued operations

Income (loss) from discontinued operations

Net income available to common shares in the determination of basic earnings per common share

8 unchanged sentences

Through a series of transactions that began in 2012, NSC purchased 20.1 hectares of land for approximately $ 21.1 million on which the proposed Project’s plant was to be constructed.

In November 2015, the State of Baja California (the “State”) officially commenced the public tender for the Project, and in June 2016 a consortium comprised of NSC and two other parties was selected by the State as the winner of the tender process for the Project.

In November 2015, the State of Baja California (the “State”) officially commenced a public tender for the Project, and in June 2016 a consortium comprised of NSC and two other parties was selected by the State as the winner of the tender process for the Project.

NSC subsequently formed AdR to pursue the completion of the Project.

6 unchanged sentences

On June 29, 2020, AdR received a letter (the “Letter”) from CEA and CESPT terminating the APP Contract.

The Letter requested that AdR provide an inventory of the assets that comprised the “Project Works” (as defined in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract.

The Letter requested that AdR provide an inventory of the assets that comprised the “Project Works” (as defined in the APP Contract)

for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract.

On August 28, 2020, AdR submitted their list of non-recoverable expenses, including those of NSC, to CEA and CESPT which amounted to 51,144,525 United States dollars and an additional 137,333,114 Mexican pesos.

15 unchanged sentences

Total liabilities of discontinued operations

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Loss from discontinued operations

25 unchanged sentences

The components of lease costs were as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Operating lease costs

3 unchanged sentences

Supplemental cash flow information related to leases is as follows:

Three Months Ended March 31,

Six Months Ended June 30,

Cash paid for amounts included in measurement of liabilities:

Operating cash outflows for operating leases

Operating cash outflows for operating leases - discontinued operations

Future lease payments relating to the Company’s operating lease liabilities from continuing operations as of March 31, 2025 were as follows:

Future lease payments relating to the Company’s operating lease liabilities from continuing operations as of June 30, 2025 were as follows:

Years ending December 31,

4 unchanged sentences

Noncurrent lease obligations

As of March 31, 2025 and December 31, 2024, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments.

As of June 30, 2025 and December 31, 2024, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments.

Under US GAAP, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.

11 unchanged sentences

Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

As of March 31, 2025 and December 31, 2024, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy.

As of June 30, 2025 and December 31, 2024, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy.

Commitments and contingencies

2 unchanged sentences

Seven Mile Beach and West Bay.

For the three months ended March 31, 2025 and 2024, the Company generated approximately 28 % and 22 %, respectively, of its consolidated revenue and 46 % and 37 %, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license.

For the three months ended June 30, 2025 and 2024, the Company generated approximately 26 % and 25 %, respectively, of its consolidated revenue and 38 % and 39 %, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license.

For the six months ended June 30, 2025 and 2024, the Company generated approximately 27 % and 23 %, respectively, of its consolidated revenue and 42 % and 38 %, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license.

The 1990 license was originally scheduled to expire in July 2010 but was extended several times by the Cayman Islands government in order to provide the parties with additional time to negotiate the terms of a new license agreement.

The most recent express extension of the 1990 license expired on January 31, 2018.

From that date until February 18, 2025, the Company continued to operate under the terms of the 1990 license, providing water services to the level and quality specified in the 1990 license and in accordance with its understanding of its legal obligations, treating those obligations set forth in the 1990 license as operative notwithstanding the expiration of the express extension.

From that date until February 18, 2025, the Company continued to operate under the terms of the 1990 license, treating such terms as operative notwithstanding the expiration of the express extension.

The Company continues to pay the royalty of 7.5 % of the revenue that Cayman Water collects as required under the 1990 license.

In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”).

OfReg is an independent and accountable regulatory body with a view of protecting the rights of consumers, encouraging affordable utility services and promoting competition.

OfReg, which began operations in January 2017, has the ability to supervise, monitor and regulate multiple utility undertakings and markets.

Supplemental legislation was passed by the Government of the Cayman Islands in April 2017, which transferred responsibility for the economic regulation of the water utility sector and the negotiations with the Company for a new retail license from the WAC to OfReg in May 2017.

The Company began license negotiations with OfReg in July 2017 and such negotiations are ongoing.

The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that they seek to restructure the terms of its license in a manner that could significantly reduce the operating income and cash flows the Company has historically generated from its retail license.

In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”) and in April 2017 passed supplemental legislation which transferred responsibility for the economic regulation of the water utility sector and the negotiations with the Company for a new retail license to OfReg.

Under the new regulatory legislation passed in October 2016, Cayman Water was required to first be granted a concession by the government before obtaining a new (or renewing the old) retail operating license.

On February 18, 2025, Cayman Water received a new concession from the government that authorizes and maintains the terms of the 1990 license until a new license is negotiated and enacted.

Negotiations between Cayman Water and OfReg on the new license recently recommenced.

The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its consolidated financial condition or results of operations but such resolution could result in a material reduction (or the loss) of the operating income and cash flows the Company has historically generated from Cayman Water’s retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets.

On February 18, 2025, Cayman Water received a new concession from the government that authorizes and maintains the terms of the 1990 license until a new license from OfReg is negotiated and enacted.

Negotiations between Cayman Water and OfReg for the new license remain on-going.

The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its consolidated financial condition, results of operations or cash flows but such resolution could result in a material reduction (or the loss) of the operating income and cash flows the Company has historically generated from Cayman Water’s retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets.

Such impairment losses could have a material adverse impact on the Company’s consolidated financial condition and results of operations.

CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $ 25.5 million and $ 28.4 million as of March 31, 2025 and December 31, 2024, respectively.

Approximately 78 % and 81 % of the accounts receivable balances were delinquent as of those dates, respectively.

CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $ 29.3 million and $ 28.4 million as of June 30, 2025 and December 31, 2024, respectively.

Approximately 81 % of the accounts receivable balances were delinquent as of those dates, respectively.

From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC.

When these delays occur, the Company holds discussions and meetings with representatives of the WSC and The Bahamas government.

When these delays occur, the Company holds discussions and meetings with representatives of the WSC and the government of The Bahamas.

All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full.

Based upon this payment history, CW-Bahamas has not provided a material allowance for credit losses for its accounts receivable from the WSC as of March 31, 2025.

Based upon this payment history, CW-Bahamas has not provided a material allowance for credit losses for its accounts receivable from the WSC as of June 30, 2025.

In a report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3.

6 unchanged sentences

Any of these events could have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows.

CW-Bahamas Performance Guarantees

CW-Bahamas Supply Guarantees

The contracts to supply water to the WSC from its Blue Hills and Windsor plants require CW-Bahamas to guarantee delivery of a minimum quantity of water per week.

2 unchanged sentences

The Windsor contract expires in 2033 and requires CW-Bahamas to deliver 16.8 million gallons of water each week.

CW-Bahamas has been in compliance with the performance guarantees under these contracts for all periods since the inception of the contracts.

CW-Bahamas has been in compliance with the supply guarantees under these contracts for all periods since the inception of the contracts.

Fiscal, Regulation and Other Federal Policies

13 unchanged sentences

The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid.

The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024.

The ASU became effective on a prospective basis for annual periods beginning after December 15, 2024.

Early adoption is permitted.

4 unchanged sentences

The ASU requires public companies to disclose, in the notes to financial statements, specific information about certain costs and expenses at each interim and annual reporting period.

The ASU is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

The ASU is effective on a prospective basis for annual periods beginning after

December 15, 2026, and interim reporting periods beginning after December 15, 2027.

The Company is currently evaluating the impact of this guidance.

7 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 1. Financial Statements