What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-04-01 compared with 2024-03-27 · 125 added, 70 removed, 459 unchanged (30% of the section changed)

40 unchanged sentences

(in thousands, except share data)

December 31, 2024

December 31, 2023

CURRENT ASSETS:

15 unchanged sentences

STOCKHOLDERS’ EQUITY

Preferred stock - Authorized, 5,000,000 shares, including 200,000 shares of Series A Junior Participating Issued and outstanding, none

Common stock, at stated value - Authorized, 30,000,000 shares Issued and outstanding, 9,020,819 shares as of December 31, 2023 and 8,816,381 shares as of December 31, 2022

Preferred stock -

Authorized, 5,000,000 shares, including 200,000 shares of Series A Junior Participating Issued and outstanding, none

Common stock, at stated value -

Authorized, 30,000,000 shares Issued and outstanding, 9,236,040 shares as of December 31, 2024 and 9,020,819 shares as of December 31, 2023

Accumulated earnings (deficit)

6 unchanged sentences

(in thousands, except per share amounts)

For the Years Ended

For the Years Ended December 31,

Cost of goods sold

6 unchanged sentences

Interest income

Gain on sale of assets

Foreign currency transaction gain (loss)

11 unchanged sentences

(in thousands)

For the Years Ended

For the Years Ended December 31,

Net Income (loss)

28 unchanged sentences

(in thousands)

For the Twelve Months Ended

For the Twelve Months Ended December 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

Adjustments to reconcile net income (loss)

to net cash provided by (used in) operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization

31 unchanged sentences

Principles of Consolidation

The consolidated financial statements include the accounts of Data I/O Corporation and our wholly-owned subsidiaries.

The consolidated financial statements include the accounts of Data I/O Corporation and wholly owned subsidiaries.

Intercompany accounts and transactions have been eliminated in consolidation.

6 unchanged sentences

Allowance for Credit Losses

Inventory Obsolescence Allowances

Warranty Accruals

12 unchanged sentences

We have not experienced any losses on our cash and cash equivalents.

Cash and cash equivalents held in foreign bank accounts, typically in local currency, in China and Germany, totaled (in millions) $ 6.6 and $ 4.0 at December 31, 2023 and 2022, respectively.

Cash and cash equivalents held in foreign bank accounts, typically in local currency, in China and Germany, totaled $ 4.3 and $ 6.6 million at December 31, 2024 and 2023, respectively.

This cash held in subsidiaries have restrictions and costs associated with repatriations, currency conversions, and complying with government policies, regulations and controls, especially in China.

3 unchanged sentences

Accounts Receivable

The majority of our accounts receivable are due from companies in the electronics manufacturing industries.

Majority of our accounts receivable are due from companies in the electronics manufacturing industries.

Credit is extended based on an evaluation of a customer’s financial condition and, generally, collateral is not required.

Accounts receivable are typically due within 30 to 60 days and are stated at amounts due from customers net of an allowance for credit losses.

Account receivables are typically due within 30 to 60 days and are stated at amounts due net of an allowance for credit losses.

Accounts receivable outstanding longer than the contractual payment terms are considered past due.

8 unchanged sentences

We depreciate leasehold improvements over the remaining portion of the lease or over the expected life of the asset if less than the remaining term of the lease.

We regularly review all of our property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

If the total of future undiscounted cash flows is less than the carrying amount of these assets, an impairment loss, if any, based on the excess of the carrying amount over the fair value of the assets, is recorded.

1 unchanged sentence

We expense external costs, such as filing fees and associated attorney fees, incurred to obtain initial patents, but capitalize patents obtained through acquisition as intangible assets.

We also expense costs associated with maintaining and defending patents subsequent to their issuance.

We also expense costs associated with maintaining and defending issued patents.

Income taxes are computed at current enacted tax rates, less tax credits, using the asset and liability method.

14 unchanged sentences

These systems are standard products with published product specifications and are configurable with standard options.

The evidence that these systems could be deemed as accepted was based upon having standardized factory production of the units, results from batteries of tests of product performance to our published specifications, quality inspections and installation standardization, as well as past product operation validation with the customer and the history provided by our installed base of products upon which the current versions were based.

The evidence that these systems could be deemed accepted was based upon having standardized factory production of the units, results from batteries of tests of product performance to our published specifications, quality inspections and installation standardization, as well as past product operation validation with the customer and the history provided by our installed base of products upon which the current versions were based.

The revenue related to products requiring installation, that is perfunctory, is recognized upon transfer of control of the product to customers, which generally is at the time of shipment.

29 unchanged sentences

Leases arise from contracts which convey the right to control the use of identified property or equipment for a period of time in exchange for consideration.

Our leasing arrangements are primarily for office facility space we use to conduct our operations.

Our leasing arrangements are primarily for office and manufacturing facility space we use to conduct our operations.

In addition, there are automobiles, and a small amount of office equipment leased.

4 unchanged sentences

We include cancellable lease periods in our future lease payments when we are reasonably certain to continue to utilize the asset for those periods.

We calculate the present value of future lease payments at commencement using a discount rate which we estimate as the collateralized borrowing rate we believe that would be incurred on our future lease payments over a similar term.

At commencement, we also record a corresponding right-of-use asset, which is calculated based on the amount of the lease liability, adjusted for any advance lease payments paid, initial direct costs incurred or lease incentives received prior to commencement.

We calculate the present value of future lease payments at commencement using a discount rate which we estimate as the collateralized borrowing rate we believe would be incurred on our future lease payments over a similar term.

At commencement, we record a corresponding right-of-use asset, which is calculated based on the amount of the lease liability, adjusted for any advance lease payments paid, initial direct costs incurred or lease incentives received prior to commencement.

Right-of-use assets are subject to evaluation for impairment or disposal on a basis consistent with other long-lived assets.

Leases are classified at commencement as either operating or finance leases.

As of December 31, 2023, all of our leases are classified as operating leases.

As of December 31, 2024, all leases are classified as operating leases.

Rent expense for operating leases is recognized on the straight-line method over the term of the agreement beginning on the lease commencement date.

In accounting for leases, we utilize certain practical expedients and policy elections available under the lease accounting standard.

In accounting for leases, we utilize certain practical expedients and policy selections available under the lease accounting standard.

For example, we do not record right-of-use assets or lease liabilities for leases with terms of 12 months or less.

11 unchanged sentences

Factors affecting our warranty liability include the number of units sold and historical and anticipated rates of claims and costs per claim.

We normally provide a warranty for our products against defects for periods ranging from ninety days to one year.

We normally provide a warranty for our products for defects for periods ranging from ninety days to one year.

We provide for the estimated cost that may be incurred under our product warranties and periodically assess the adequacy of our warranty liability based on changes in the above factors.

6 unchanged sentences

The common stock equivalent shares from equity awards used in calculating diluted earnings per share were 74,000 and 133,000 for the years ended December 31, 2024 and 2023, respectively.

Options to purchase 12,500 shares of common stock were outstanding as of both periods December 31, 2023 and 2022, but were excluded from the computation of diluted earnings per share for the periods then ended, because the options were anti-dilutive.

Excluded from the computation of diluted earnings per share were options to purchase 200,000 and 12,500 shares of common stock because of the loss in 2024 and options’ purchase price exceeding market price (underwater) in 2023, thus the options were anti-dilutive for the years ended December 31, 2024 and 2023, respectively.

Diversification of Credit Risk

3 unchanged sentences

We generally do business with our foreign distributors in U.S.

We believe that risk of loss is significantly reduced due to the diversity of our end-customers and geographic sales areas.

We perform on-going credit evaluations of our customers’ financial condition and require collateral, such as letters of credit and bank guarantees, or prepayment whenever deemed necessary.

The following represented greater than 10% of our consolidated accounts receivable for the applicable year:

We believe that the risk of loss is significantly reduced due to the diversity of our end customers and sales geographies.

We perform on-going credit evaluations of our customers’ financial conditions and require collateral, such as letters of credit and bank guarantees, or prepayment whenever deemed necessary.

The following represented greater than 10% of our consolidated accounts receivable for the applicable years:

Percentage of Consolidated Accounts Receivable

5 unchanged sentences

Diversification of net sales

The following represented greater than 10% of net sales for the applicable year:

The following represented greater than 10% of net sales for the applicable years:

Percentage of Net Sales

3 unchanged sentences

Percentage of each

In 2023, most of the direct implications of COVID-19 had passed, and we were dealing with the follow-on impacts or indirect impacts from COVID-19 and the policies put in place to mitigate the disease.

We continued to manage inflation, supply chain impacts and shortages, and the post lock down economic transitions in China and elsewhere.

New Accounting Pronouncements - Standards Issued and Implemented

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

Topic 326 is effective (Smaller Reporting Company) for reporting periods beginning after December 15, 2022.

Topic 326 replaces the incurred loss impairment methodology under current Generally Accepted Accounting Principles ("GAAP") with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments.

We adopted the new credit loss standard on January 1, 2023.

The new credit loss standard has not had a material impact on our financial condition, results of operations and cash flows, or financial statement disclosures.

Effective January 1, 2024, the Company adopted ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

This update requires entities, including those with a single reportable segment, to disclose significant segment expenses regularly provided to the Chief Operating Decision Maker (CODM) and included in the reported measure of segment profit or loss.

The Company operates as a single reportable segment.

The CODM evaluates the Company's performance based on operating income, as presented in the consolidated statements of operations.

Significant segment expenses are those that are already disclosed in operating income and regularly reviewed by the CODM for purposes of assessing performance and allocating resources.

Additional significant single segment expense categories are provided in Note 13 – Segment Information.

New Accounting Pronouncements - Standards Issued and Not Yet Implemented

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted.

We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

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

2 unchanged sentences

We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

In November 2024, FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation (Subtopic 220-40), which requires disclosure of specific information about costs and expenses within relevant expense captions on the face of the income statement, qualitative descriptions for expense captions not specifically disaggregated quantitatively, and the total amount and definition of selling expenses for interim and annual reporting periods.

This standard is effective for the annual reporting period beginning January 1, 2027 and interim reporting periods beginning January 1, 2028 and should be applied retrospectively to all comparative periods.

Early adoption is permitted.

The Company is currently evaluating the effects of adopting this new accounting guidance.

NOTE 2 – ACCOUNTS RECEIVABLE, NET

27 unchanged sentences

Other accrued liabilities

The changes in our product warranty liability for the year ending December 31, 2023 are follows:

The changes in our product warranty liability for the year ending:

(in thousands)

4 unchanged sentences

NOTE 6 – OPERATING LEASE COMMITMENTS

We have commitments under non-cancelable operating leases and other agreements, primarily for factory and office space, with initial or remaining terms of one year or more for the year ending December 31 are as follows:

We have commitments under non-cancellable operating leases and other agreements, primarily for factory and office space, with initial or remaining terms of one year or more for the year ending December 31 are as follows:

2024 Operating

Lease Commitments

3 unchanged sentences

Total operating lease liabilities

Payments for operating lease liabilities for the twelve months ended December 31, 2023 and 2022, respectively, was $ 894,000 and $ 779,000 which included short-term lease costs of $ 25,000 and 45,000 .

There were no new or modified leases during the twelve months ended December 31, 2023 that are accounted for in the amounts disclosed above.

Payments for operating lease liabilities for the twelve months ending December 31, 2024 and 2023, respectively, were $ 833,000 and $ 894,000 which included short-term lease costs of $ 38,000 and $ 25,000 .

The total annual lease expense in 2024 and 2023, including operating lease expenses and short-term lease expenses, was approximately $ 845,000 and $ 745,000 , respectively.

1 unchanged sentence

For the largest lease component, the company has three facilities with our headquarters and primary engineering and operational functions located in Redmond, Washington.

Our two subsidiary facilities in Munich, Germany and Shanghai, China provide extended worldwide sales, service, engineering and operation services.

Our two subsidiary facilities in Munich, Germany and Shanghai, China provide extended worldwide sales, service, engineering and operations services.

The total annual gross or base lease payments during 2024 and 2023 were approximately $ 795,000 and $ 823,000 , respectively.

The lease payment increase in 2023 was due primarily to lease abatement incentives for lease renewals in 2022 and standard rate increase in 2023.

The Redmond, Washington headquarters facility lease runs to January 31, 2026 at approximately 20,460 square feet.

The lease payment decrease in 2024 was due primarily to a reduction in lease rates for our Redmond, Washington and Shanghai, China facilities.

The lower rates reflect the real estate market conditions as part of the lease extensions which occurred in the fourth quarter of 2024.

The Redmond lease was renewed and extended by 3.75 years and the Shanghai, China lease was renewed and extended by 3 years.

The Redmond, Washington headquarters facility lease runs to October 31, 2029, at approximately 20,460 square feet.

The lease for the facility located in Shanghai, China runs to October 31, 2027, at approximately 19,400 square feet.

11 unchanged sentences

Most arrangements are cancelable without a significant penalty, and with short notice, typically less than 90 days.

At December 31, 2023, we had one contract with a commitment of approximately $ 232,000 to be paid in 2024 and $ 251,000 to be paid beyond one year.

On December 31, 2024, we had four contracts with a commitment of approximately $ 389,000 to be paid in 2025 and $ 1,630,000 to be paid beyond one year.

NOTE 8 – CONTINGENCIES

As of December 31, 2023, we were not a party to any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion, individually or in the aggregate, would have a material adverse effect on our results of operations or financial position.

As of December 31, 2024, we were not a party to any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion, individually or in aggregate, would have a material adverse effect on our results of operations or financial position.

NOTE 9 – STOCK AND RETIREMENT PLANS

Stock Option Plans

At December 31, 2023, there were 732,327 shares available for future grant under Data I/O Corporation 2023 Omnibus Incentive Compensation Incentive Plan (“2023 Plan”).

At December 31, 2024, there were 492,843 shares available for future grant under the Data I/O Corporation 2023 Omnibus Incentive Compensation Incentive Plan (the “2023 Plan”).

At December 31, 2024, there were shares of Common Stock reserved for issuance for outstanding awards, consisting of 61,250 inducement reserve shares, 79,875 shares under the 2000 Plan, and 530,775 shares under the 2023 Plan.

The inducement reserve shares remaining that were granted in 2019 consist of 12,500 options vested but unissued (using the terms of the 2000 Plan) and the grant in 2023 consisting of 75,000 RSU and 5000 PSU, (which were not from the 2023 Plan, but were made under the terms of the 2023 Plan).

The inducement reserve shares remaining that were granted in 2023 consisted of 56,250 RSU and 5,000 PSU, (which were not from the 2023 Plan, but were made under the terms of the 2023 Plan).

Pursuant to the 2000 and 2023 Plans, options are granted to our officers and key employees with exercise prices equal to the fair market value of the Common Stock at the date of grant and generally vest over four years.

Options granted under the plans have a maximum term of six years from the date of grant.

Stock awards are now granted under the 2023 Plan (previously the 2000 Plan) which for RSU awards generally vest over four years (some three years) and one year for nonemployee Directors.

Performance Share Unit (PSU) awards vest based upon the three-year performance achievement on December 31, 2025.

Options granted under the plan have a maximum term of six years from the date of grant.

Stock awards are now granted under the 2023 Plan (previously the 2000 Plan) which for RSU awards generally vest over three or four years and one year for non-employee Directors.

Performance Share Unit (PSU) awards vesting based upon the three-year performance achievement on December 31, 2025 and 2026.

The performance measures for the PSUs awarded are revenue growth targets for the three-year period ending December 31, 2025.

Achieving a threshold growth measure earns 50% of the PSU target award;

achieving the target growth measure earns 100% of the PSU target award;

and achieving the maximum target growth measure earns 150% of the PSU target award.

The performance measures for the PSUs awarded in 2024 are revenue growth targets, EBITDA targets and for Engineers, project objectives for the three-year period ending December 31, 2026.

Achieving a threshold measure earns 50% of the PSU target award;

achieving the target measure earns 100% of the PSU target award;

and achieving the maximum target measure earns 150% of the PSU target award.

Employee Stock Purchase Plan

8 unchanged sentences

As no event has occurred, which would make the SARs exercisable, and no such event is deemed probable, no compensation expense has been recorded under this plan.

At December 31, 2023 and 2022, there were 12,500 SARs outstanding.

At December 31, 2024 and 2023, there were 200,000 and 12,500 SARs outstanding, respectively.

Retirement Savings Plan

8 unchanged sentences

For these awards we have recognized compensation expense using a straight-line amortization method and reduced for estimated forfeitures.

The impact on our results of operations of recording share-based compensation for the year ended December 31, 2023 and 2022 was as follows:

The impact on our results of operations of recording share-based compensation for the years ended December 31, 2024 and 2023 was as follows:

Year Ended December 31,

11 unchanged sentences

Outstanding at beginning of year

Cancelled, Expired or

Cancelled, Expired or Forfeited

Outstanding at end of year

11 unchanged sentences

Employee RSUs typically vest annually over three or four years and employee Non-Qualified stock options typically vest quarterly over four years and have a six-year exercise period.

Performance Stock Units (“PSUs”) typically cliff vest at the end of the performance period and the performance metric is cumulative revenue growth over the three-year period ending December 31, 2025 with a cumulative revenue threshold, target, and maximum performance measure.

Performance Stock Units (“PSUs”) typically cliff vest at the end of the performance period and the performance metric for 2023 awards is cumulative revenue growth over the three-year period ending December 31, 2025 with a cumulative revenue threshold, target, and maximum performance measure.

For 2024 awards, the performance metrics included revenue growth, EBITDA and project objective targets over the three-year period ending December 31, 2026.

The table above includes performance shares granted in 2024 of 124,000 shares at the target performance level ( the threshold level would be 50% and the maximum level would be 150% of the target level ).

7 unchanged sentences

Stock Options

Weighted average diluted shares

Weighted average shares

NOTE 11 – SHARE REPURCHASE PROGRAMS

12 unchanged sentences

Total income tax expense (benefit)

Income tax (expense) increased by $ 192,000 for the year ended December 31, 2024, compared to 2023.

The increase was primarily a result of the withholding tax of $ 337,000 on the repatriation of cash from China subsidiary in 2024.

Income tax (expense) in 2024 and 2023 is primarily the result of foreign subsidiary income tax and minimal U.S.

state income tax.

A reconciliation of our effective income tax and the U.S.

3 unchanged sentences

Statutory tax

State and foreign income tax, net of federal tax benefit

Valuation allowance for deferred tax asset

State and foreign income tax, net of federal income tax benefit

Valuation allowance for deferred tax assets

Foreign sourced deemed dividend income

1 unchanged sentence

Total income tax expense (benefit)

net operating loss carryforwards are $ 13.8 million at December 31, 2023 with expiration years from 2023 to 2034 .

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets are presented below:

Year Ended December 31,

(in thousands)

Deferred income tax assets:

Allowance for credit losses

Inventory and product return reserves

Compensation accruals

Accrued liabilities

Book-over-tax depreciation and amortization

Foreign net operating loss carryforwards

net operating loss carryforwards

credit carryforwards

Valuation Allowance

Total Deferred Income Tax Assets

The valuation allowance for deferred tax assets increased $ 584,000 and decreased $ 639,000 during the years ended December 31, 2024 and 2023, respectively.

The net deferred tax assets have a full valuation allowance provided due to uncertainty regarding our ability to utilize such assets in future years.

This full valuation allowance evaluation is based upon our volatile history of losses and the cyclical nature of our industry and capital spending.

Credit carryforwards consist primarily of research and experimental and foreign tax credits.

We intend to continue to reinvest foreign earnings of our operating subsidiaries.

net operating loss carryforwards are $ 14.2 million on December 31, 2024 with expiration years from 2024 to 2035 .

Utilization of net operating loss and credit carryforwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended.

10 unchanged sentences

Tax years that remain open for examination include 2021, 2022, 2023 and 2024 in the United States of America.

In addition, various tax years from 2002 to 2014 may be subject to examination in the event that we utilize the net operating losses and credit carryforwards from those years in our current or future year tax returns.

NOTE 13 – SEGMENT AND GEOGRAPHIC INFORMATION

We consider our operations to be a single operating segment, focused on the design, manufacturing and sale of programming systems used by designers and manufacturers of electronic products.

In addition, various tax years from 2004 to 2014 may be subject to examination if we utilize the net operating losses and credit carryforwards from those years in our current or future year tax returns.

NOTE 13 –SEGMENT INFORMATION

Data I/O operates as a single segment entity, with the sole objective to design, manufacture, and sell programming systems.

We operate in three separate locations — Redmond, WA;

Shanghai, China;

and Munich, Germany — these locations function as part of a single, integrated business and all operations are strategically aligned to support this objective.

The accounting policies of the programing system segment are the same as those described in the summary of significant accounting policies.

The measure of segment assets is reported on the balance sheet as total consolidated assets.

Our chief operating decision maker (CODM) is the President/CEO who reviews the company’s financial performance on a consolidated basis without distinguishing between different business lines or geographic areas for the purpose of making operating decisions, allocating resources and evaluating financial performance.

Financial performance is assessed using operating results, actual net income vs.

plan, balance sheet fluctuations, and other key performance indicators.

Significant single segment expense categories that are provided to the chief operating decision maker and included in the reported segment operating profits are outlined in the following table:

Year Ended December 31,

(in thousands)

Cost of goods sold

Operating Expenses:

Employee expenses

Customer acquisition costs

Professional and outside services

Occupancy costs (OPEX portion)

Depreciation & amortization

Total operating expense

Operating income (loss)

NOTE 14 –GEOGRAPHIC INFORMATION

Major operations outside the U.S.

include sales, engineering and service support by subsidiaries in Germany as well as in China, which also manufactures some of our products.

None of our employees are represented by a collective bargaining agreement.

We determine international sales by the international geographic destination into which the products are sold and delivered and include not only sales by foreign subsidiaries but also export sales from the U.S.

1 unchanged sentence

International sales do not include transfers between Data I/O and our foreign subsidiaries.

Operating income by region is based on sales noted above less direct costs and allocated costs including U.S.

headquarter operations, engineering and SG&A.

The following tables provide summary operating information by geographic area:

1 unchanged sentence

(in thousands)

Rest of World

Included in Europe and Rest of World are the following Net Sales significant balances:

Net sales by region

Asia and others

Operating income:

Rest of World

Asia and others

Identifiable assets:

Americas (primarily U.S.)

Europe (primarily Germany)

Rest of World (primarily China)

Asia & others (primarily China)

NOTE 15 – SUBSEQUENT EVENTS

In preparing the financial statements, the Company has reviewed all known events which have occurred after December 31, 2023 through the date on which the financial statements are available for issuance, for potential recognition or disclosure in the consolidated financial statements and footnotes.

In preparing the financial statements, the Company has reviewed all known events which occurred after December 31, 2024 through the date on which the financial statements are available for issuance, for potential recognition or disclosure in the consolidated financial statements and footnotes.

There were no other subsequent events which would require additional disclosures to the financial statements other than those already disclosed throughout the Notes to Consolidated Financial Statements.

1 unchanged sentence

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 8. Financial Statements and Supplementary Data