What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-04-15 compared with 2025-04-09 · 193 added, 155 removed, 347 unchanged (50% of the section changed)

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion and analysis of our financial condition and results of operations should be read in conjunction with the historical

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“Company,” “our,” “we,” “us” and similar terms refer to Digital Brands Group, Inc., together

with its wholly-owned subsidiaries Bailey 44, LLC (“Bailey”), MOSBEST, LLC (“Stateside”) and Sunnyside (“Sundry”).

Brands Group is a curated collection of lifestyle brands, including Bailey 44, DSTLD, Stateside, Sundry and ACE Studios, that offers

a variety of apparel products through direct-to-consumer and wholesale distribution.

Our complementary brand portfolio provides us with

the unique opportunity to cross merchandise our brands.

We aim for our customers to wear our brands head to toe and to capture what we

call “closet share” by gaining insight into their preferences to create targeted and personalized content specific to their

Operating our brands under one portfolio provides us with the ability to better utilize our technological, human capital and

operational capabilities across all brands.

with its wholly-owned subsidiaries Bailey 44, LLC (“Bailey”), MOSBEST, LLC (“Stateside”) and SUNNYSIDE, LLC (“Sundry”).

Brands Group is a curated collection of lifestyle apparel brands, including Bailey 44, DSTLD, Stateside, and Sundry, that offers a variety

of apparel products through direct-to-consumer and wholesale distribution channels.

In 2025, the Company launched its collegiate name,

image and likeness (NIL) apparel program, entering into multi-year agreements with AAA Tuscaloosa (University of Alabama), Traffic Holdco,

The Grove Collective (Ole Miss), and Learfield/Buffalo Sports Properties (University at Buffalo).

Our complementary brand portfolio provides

us with the unique opportunity to cross merchandise our brands.

We aim for our customers to wear our brands head to toe and to capture

what we call “closet share” by gaining insight into their preferences to create targeted and personalized content specific

to their cohort.

Operating our brands under one portfolio provides us with the ability to better utilize our technological, human capital

and operational capabilities across all brands.

As a result, we have been able to realize operational efficiencies and continue to identify

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our websites, wholesale and license revenue.

44 combines beautiful, luxe fabrics and on-trend designs to create sophisticated ready-to-wear capsules for women on-the-go.

Designing for real life, this brand focuses on feeling and comfort rather than how it looks on a runway.

Bailey 44 is primarily a

wholesale brand, which we are transitioning to a digital, direct-to-consumer brand.

offers stylish high-quality garments without the luxury retail markup valuing customer experience over labels.

DSTLD is primarily

a digital direct-to-consumer brand, to which we recently added select wholesale retailers to generate brand awareness.

is an elevated, America first brand with all knitting, dyeing, cutting and sewing sourced and manufactured locally in Los Angeles.

The collection is influenced by the evolution of the classic T-shirt offering a simple yet elegant look.

Stateside is primarily a

wholesale brand that we will be transitioning to a digital, direct-to-consumer brand.

offers distinct collections of women’s clothing, including dresses, shirts, sweaters, skirts, shorts, athleisure bottoms

and other accessory products.

Sundry’s products are coastal casual and consist of soft, relaxed and colorful designs that feature

a distinct French chic, resembling the spirits of the French Mediterranean and the energy of Venice Beach in Southern California.

Sundry is primarily a wholesale brand that we will be transitioning to a digital, direct-to-consumer brand.

– Avo is a women’s essential brand that will offer t-shirts, sweats, dresses, sweaters and athleisure.

Avo eliminates

the wholesale mark-up, so its products have a sharper price point.

Avo also offers larger discounts when the customer bundles multiple

products to their cart, which allows Avo to leverage its shipping and fulfillment costs.

Avo leverages the Company’s current

design and supply chain infrastructure, so we use similar or the same fabrics and contractors for Avo that we do for our other brands.

Bailey 44 combines

beautiful, luxe fabrics and on-trend designs to create sophisticated ready-to-wear capsules for women on-the-go.

Designing for real

life, this brand focuses on feeling and comfort rather than how it looks on a runway.

Bailey 44 is primarily a wholesale brand, which

we are transitioning to a digital, direct-to-consumer brand.

DSTLD offers stylish

high-quality garments without the luxury retail markup valuing customer experience over labels.

DSTLD is primarily a digital direct-to-consumer

brand, to which we recently added select wholesale retailers to generate brand awareness.

Stateside is an

elevated, America first brand with all knitting, dyeing, cutting and sewing sourced and manufactured locally in Los Angeles.

collection is influenced by the evolution of the classic T-shirt offering a simple yet elegant look.

Stateside is primarily a wholesale

brand that we will be transitioning to a digital, direct-to-consumer brand.

Sundry offers distinct

collections of women’s clothing, including dresses, shirts, sweaters, skirts, shorts, athleisure bottoms and other accessory

Sundry’s products are coastal casual and consist of soft, relaxed and colorful designs that feature a distinct French

chic, resembling the spirits of the French Mediterranean and the energy of Venice Beach in Southern California.

Sundry is primarily

a wholesale brand that we will be transitioning to a digital, direct-to-consumer brand.

is a women’s essential brand that will offer t-shirts, sweats, dresses, sweaters and athleisure.

Avo eliminates the wholesale

mark-up, so its products have a sharper price point.

Avo also offers larger discounts when the customer bundles multiple products

to their cart, which allows Avo to leverage its shipping and fulfillment costs.

Avo leverages the Company’s current design

and supply chain infrastructure, so we use similar or the same fabrics and contractors for Avo that we do for our other brands.

believe that successful apparel brands sell in all revenue channels.

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Supply chain issues have specifically impacted the following for our brands:

costs in raw materials from fabric prices, which have increased 10% to 100% depending on the fabric, the time of year, and the origin

of the fabric, as well as where the fabric is being shipped;

cost per kilo to ship via sea or air, which has increased from 25% to 300% depending on the time of year and from the country we

are shipping from;

transit time via sea or air, which have increased by two weeks to two months;

labor costs for producing the finished goods, which have increased 5% to 25% depending on the country and the labor skill required

to produce the goods.

We have been able to pass along some of these increased costs and also offset some of these increased costs

with higher gross margin online revenue.

Increased costs in raw

materials from fabric prices, which have increased 10% to 100% depending on the fabric, the time of year, and the origin of the fabric,

as well as where the fabric is being shipped;

Increased cost per kilo

to ship via sea or air, which has increased from 25% to 300% depending on the time of year and from the country we are shipping from;

Increased transit time

via sea or air, which have increased by two weeks to two months;

Increased labor costs for

producing the finished goods, which have increased 5% to 25% depending on the country and the labor skill required to produce the

We have been able to pass along some of these increased costs and also offset some of these increased costs with higher gross

margin online revenue.

quarterly operating results vary due to the seasonality of our individual brands, and are historically stronger in the second half of

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For example, it could:

it more difficult for us to satisfy our obligations to the holders of our outstanding debt, resulting in possible defaults on and

acceleration of such indebtedness;

us to dedicate a substantial portion of our cash flows from operations to make payments on our debt, which would reduce the availability

of our cash flows from operations to fund working capital, capital expenditures or other general corporate purposes;

our vulnerability to general adverse economic and industry conditions, including interest rate fluctuations;

us at a competitive disadvantage to our competitors with proportionately less debt for their size;

our ability to refinance our existing indebtedness or borrow additional funds in the future;

our flexibility in planning for, or reacting to, changing conditions in our business;

our ability to react to competitive pressures or make it difficult for us to carry out capital spending that is necessary or important

to our growth strategy.

make it more difficult

for us to satisfy our obligations to the holders of our outstanding debt, resulting in possible defaults on and acceleration of such

indebtedness;

require us to dedicate

a substantial portion of our cash flows from operations to make payments on our debt, which would reduce the availability of our

cash flows from operations to fund working capital, capital expenditures or other general corporate purposes;

increase our vulnerability

to general adverse economic and industry conditions, including interest rate fluctuations;

place us at a competitive

disadvantage to our competitors with proportionately less debt for their size;

limit our ability to refinance

our existing indebtedness or borrow additional funds in the future;

limit our flexibility in

planning for, or reacting to, changing conditions in our business;

limit our ability to react

to competitive pressures or make it difficult for us to carry out capital spending that is necessary or important to our growth strategy.

of the foregoing impacts of our substantial indebtedness could have a material adverse effect on our business, financial condition and

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Accounting Policies and Estimates

of Presentation and Principles of Consolidation

accounting and reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”).

Our consolidated financial statements are prepared

in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

In connection with the

preparation of our financial statements, we are required to make assumptions and estimates about future events and apply judgments that

affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures.

We base our assumptions, estimates

and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated

financial statements are prepared.

On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments

to ensure that our financial statements are presented fairly and in accordance with GAAP.

However, because future events and their effects

cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported

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Actual results could differ from those estimates.

record our acquisitions under the acquisition method of accounting, under which most of the assets acquired and liabilities assumed are

initially recorded at their respective fair values and any excess purchase price is reflected as goodwill.

We utilize management estimates

and, in some instances, independent third-party valuation firms to assist in determining the fair values of assets acquired, liabilities

assumed and contingent consideration, if any.

Such estimates and valuations require us to make significant assumptions, including projections

of future events and operating performance.

fair value of customer relationships, backlog and trade names/trademarks acquired in our acquisitions are determined using various valuation

methods, based on a number of significant assumptions.

determine which assets have finite lives and then determine the estimated useful life of finite assets.

expected useful life of customer relationships is established as three years, which is the period over which these assets are expected

to reasonably contribute to future cash flows.

We expect to amortize such customer relationships using the straight-line method.

estimated fair values are subject to change during the measurement period, which is limited to one year subsequent to the acquisition

are recognized when performance obligations are satisfied through the transfer of promised goods to our customers.

Control transfers

upon shipment of product and when the title has been passed to the customers.

This includes the transfer of legal title, physical possession,

the risks and rewards of ownership, and customer acceptance.

We provide the customer the right of return on the product and revenue is

adjusted based on an estimate of the expected returns based on historical rates.

We consider the sale of products as a single performance

Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included in accrued

Revenue is deferred for orders received for which associated shipments have not occurred.

Receivable and Expected Credit Loss

carry our accounts receivable at invoiced amounts less allowances for customer credit losses and other deductions to present the net

amount expected to be collected on the financial asset.

All receivables are expected to be collected within one year of the consolidated

balance sheet.

We do not accrue interest on the trade receivables.

Management evaluates the ability to collect accounts receivable based

on a combination of factors.

Receivables are determined to be past due based on individual credit terms.

An allowance for credit losses

is maintained based on the length of time receivables are past due, historical collections, or the status of a customer’s financial

Receivables are written off in the year deemed uncollectible after efforts to collect the receivables have proven unsuccessful.

We do not have any off balance sheet cried exposure related to our customers.

periodically review accounts receivable, estimate an allowance for bad debts, and simultaneously record the appropriate expense in the

statement of operations.

Such estimates are based on general economic conditions, the financial conditions of customers, and the amount

and age of past due accounts.

Past due accounts are written off against that allowance only after all collection attempts have been exhausted

and the prospects for recovery are remote.

Recovering of accounts receivable previously written off are recorded as income when received.

The Company provides credit to its customers in the normal course of business and has established credit evaluation and monitoring processes

to mitigate credit risk.

Marketing Expenses and Liability-Classified Share-Based Awards

Company enters into long-term marketing, licensing, manufacturing, and sponsorship arrangements with third-party service providers under

which it may issue common stock or equity-linked instruments in exchange for future services, including distribution, licensing access,

product specification support, and marketing and promotional activities.

These arrangements are accounted for as share-based payments

to nonemployees in accordance with ASC 718, Compensation—Stock Compensation .

share-based consideration is determined to be in exchange for distinct goods or services, including those received from a customer, the

Company accounts for such transactions as the purchase of services.

The Company recognizes a prepaid marketing or service asset measured

at the grant-date fair value of the share-based consideration issued, representing the value of services to be received over the contractual

Such prepaid assets are amortized on a straight-line basis over the period in which the related services are received, which generally

corresponds to the contractual service period.

share-based arrangements include make-whole provisions that require the Company to deliver a fixed monetary value using a variable number

of shares, or, in certain cases, cash.

These provisions result in liability classification under ASC 718 and ASC 480, Distinguishing

Liabilities from Equity , as the Company has an obligation to settle a fixed dollar amount rather than a fixed number of shares.

Liability-classified

share-based awards are initially measured at fair value on the grant date and subsequently remeasured at fair value at each reporting

date until settlement.

Changes in fair value are recognized in earnings in the period of change.

Compensation cost is recognized over

the requisite service period, with cumulative adjustments recorded for changes in fair value.

Company evaluates features within these arrangements, including make-whole provisions, under ASC 815, Derivatives and Hedging ,

to determine whether such features should be accounted for separately as derivatives.

The Company has concluded that these features qualify

for the scope exception applicable to share-based payment arrangements and therefore are not accounted for as freestanding or embedded

Accordingly, no bifurcation is required.

fair value of liability-classified share-based awards is estimated using a Monte Carlo simulation model.

This valuation technique incorporates

significant assumptions, including the Company’s stock price, expected volatility, risk-free interest rate, expected term, and

other market-based inputs.

Due to the use of significant unobservable inputs, these measurements are classified within Level 3 of the

fair value hierarchy.

certain contractual marketing investment commitments represent best-efforts obligations and do not create a present obligation or identifiable

Accordingly, such costs are expensed as incurred in accordance with ASC 720, Advertising Costs .

Inventory is stated at the lower

of cost or net realizable value and accounted for using the weighted average cost method for DSTLD and first-in, first-out method for

Bailey, Stateside and Sundry.

The inventory balances as of December 31, 2025 and 2024 consist substantially of finished good products

purchased or produced for resale, as well as any raw materials the Company purchased to modify the products and work in progress.

are required to assess our goodwill for impairment at least annually for each reporting unit that carries goodwill.

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shipping costs to the customer from the warehouse and any returns from the customer to the warehouse.

addition, going forward, the amortization of the identifiable intangibles acquired in the acquisitions will be included in operating

addition, the amortization of the identifiable intangibles acquired in the acquisitions

is included in operating expenses.

expense consists primarily of interest related to our debt outstanding to our senior lender, convertible debt, and other interest bearing

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Sales and marketing

Other operating expenses (income)

Other operating expenses

Operating loss

(29,533,777 )

(10,200,782 )

Other expenses

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(28,252,558 )

(13,106,589 )

Provision for income taxes

1 unchanged sentence

(28,252,558 )

Loss from discontinued operations

(13,106,589 )

$ (28,252,558 )

$ (13,106,589 )

revenues decreased by $4.2 million to $7.4 million for the year ended December 31, 2025, compared to $11.6 million in the corresponding

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gross margin was 14.3% for the year ended December 31, 2025 compared to 31.5% for year ended December 31, 2024.

The decrease in gross

margin was due to corresponding decrease in the ecommerce revenue and write down of sundry’s inventory.

The decrease in gross margin

was due to corresponding decrease in the ecommerce revenue and write down of Sundry’s inventory.

and Administrative Expenses

and administrative expenses decreased by $5.6 million for the year ended December 31, 2024 to $8.7 million compared to $14.3 million

The decrease in general and administrative expenses was primarily due to lower consulting and professional fees, as well as

other cost cutting measures across our company, as all brands achieved operational synergies in 2024.

and administrative expenses increased by $1.0 million for the year ended December 31, 2025 to $9.7 million compared to $8.7 million in

The increase was primarily due to accrued legal contingencies, partially offset by a decrease due to lower consulting and professional

fees, as well as other cost cutting measures across our Company, as all brands achieved operational synergies in 2025.

These synergies

included the elimination of its warehouse, office, fulfillment and redundancies in headcount

and administrative expenses as a percentage of revenue was 75% in 2024 as compared to 96% in 2023.

and administrative expenses as a percentage of revenue were 131% in 2025 compared to 75% in 2024, reflecting the significant revenue

decline relative to the largely fixed cost base.

and Marketing Expenses

and marketing expenses decreased by $1.1 million for the year ended December 31, 2024 to $2.9 million compared to $4 million in 2023.

The decrease in sales and marketing expenses was primarily due to decreased spending on advertising and other cost-cutting marketing

and marketing expenses increased by $11.7 million for the year ended December 31, 2025 to $14.6 million compared to $2.9 million in 2024.

The increase in sales and marketing expenses was primarily driven by the amortization of prepaid marketing assets under multi-year marketing

and sponsorship agreements entered into during 2025, including collegiate NIL program agreements with AAA Tuscaloosa, Traffic Holdco,

The Grove Collective, and Learfield, as well as cash-based marketing agreements with MavDB Consulting, Velora Marketing, i2i Marketing,

and Candlelight Ventures.

and marketing expenses as a percentage of revenue was 198% in 2025 as compared to 25% in 2024.

Operating Expenses (income)

operating expenses included distribution expenses, impairment and change in fair value of contingent consideration.

Other operating expenses

were $2.3 million in 2024 as compared to gain of $9.7 million in 2023, an increase in expenses of $12 million.

In 2024, there was $1.3

million in impairment charges on Bailey’s and Stateside’s intangible assets.

In 2023, the Company recorded a $10.7 million

increase in the change in fair value of contingent consideration pertaining to the Norwest waiver for Bailey and H&J Settlement.

expenses decreased by $3.2 million to $3.0 million in the year ended December 31, 2024 compared to $6.2 million in the corresponding

fiscal period in 2023.

The decrease in other expenses in 2023 was primarily due to lower interest expense in 2024 compared to 2023.

Loss from Continuing Operations

net loss from continuing operations increased by $4.5 million to a loss of $13.2 million for the year ended December 31, 2024 compared

to a loss of $8.7 million for the corresponding fiscal period in 2023 primarily due to the impairment and lower gross profit.

Other operating expenses included distribution expenses, impairment and

change in fair value of contingent consideration.

Other operating expenses were $6.3 million in 2025 as compared to expenses of $2.3 million

in 2024, an increase in expenses of $4.0 million.

In 2025, there was $5.7 million in impairment charges on goodwill and intangible assets,

comprising $3.2 million of goodwill impairment (Bailey and Stateside), $1.3 million of Stateside brand name impairment, and $1.2 million

of OpenDaily technology asset impairment.

In 2024, the Company recorded a $3.2 million increase in the change in fair value of contingent

consideration pertaining to the Norwest waiver for Bailey and H&J Settlement.

Income (Expense)

income (expense) was $(1.3) million in the year ended December 31, 2025 as compared to $3.0

million in the year ended December 31, 2024.

During the year ended December 31, 2025, the Company recorded a change in the fair value

of share based liability of $(1.7) million.

net loss increased by $15.2 million to a loss of $28.3 million for the year ended December 31, 2025 compared to a loss of $13.1

million for the corresponding fiscal period in 2024 primarily due to the higher operating expenses and lower gross profit.

and Capital Resources

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on that facility with excess cash flow from operations.

of December 31, 2024, we had cash of $164,431, but we had a working capital deficit of $16.1 million.

The Company requires significant

capital to meet its obligations as they become due.

Throughout the next twelve months, the Company intends to fund its operations primarily from the funds raised through

its operations.

The Company may pursue secondary equity offerings or debt financings to provide working capital and satisfy debt obligations.

There can be no assurance as to the availability or terms upon which such financing and capital might be available in the future.

the Company is unable to secure additional funding, it may be forced to curtail or suspend its business plans.

February 2025, the Company completed an offering consisting of the sale of common stock, warrants and pre-funded warrants for gross proceeds

of $7,500,000, before deducting placement agent fees and commissions and other offering expenses.

Company requires significant capital to meet its obligations as they become due.

Management believes its existing cash resources and

planned operations—including revenues expected from its collegiate apparel program, continued cost reduction measures, and the

potential release of $5,744,174 in restricted cash currently held pursuant to the Series D offering—will be sufficient to fund

operations for at least twelve months from the date of issuance of these financial statements.

The Company may also pursue additional

equity or debt financings as needed.

There can be no assurance as to the availability or terms upon which such financing might be available.

The Bailey sellers’ promissory note of $3,500,000 matured on December 8, 2025 and remains in default;

management is in active discussions

with the lender regarding repayment or extension.

2025, the Company completed an offering consisting of several equity offerings generating aggregate net financing proceeds of approximately

$23.8 million, including the February 2025 S-1 offering ($6.6 million net), the Series D Convertible Preferred Stock offering ($11.4

million net), and warrant exercises ($6.3 million).

Flow Activities

following table presents selected captions from our statement of cash flows for the years ended December 31, 2024 and 2023:

following table presents selected captions from our condensed statement of cash flows for the years ended December 31, 2025 and 2024:

Net cash provided by operating activities:

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$ (6,152,338 )

Net cash provided by investing activities

Net cash provided by (used in) investing activities

Net cash provided by financing activities

Net change in cash

$ (1,262,509 )

Flows Used In Operating Activities

cash used in operating activities increased by $0.1 million to $6.1 million for the year ended December 31, 2024 as compared to cash

used of $6 million for the corresponding fiscal period in 2023.

The increase in net cash used in operating activities was primarily driven

by a higher net loss in 2024, partially offset by a increase in non-cash adjustments of $5.4 million and lesser cash provided by changes

in our operating assets and liabilities compared to 2023.

For the year ended December 31, 2025, net cash used in operating activities

was $15.9 million, compared to $6.2 million for the year ended December 31, 2024.

The increase in cash used in operating activities was

primarily driven by a higher net loss of $28.3 million in 2025 compared to $13.1 million in 2024, partially offset by non-cash adjustments

of $6.6 million and favorable changes in operating assets and liabilities of $5.8 million.

Flows provided by Investing Activities

cash provided by investing activities was $0 in the year ended December 31, 2024 as compared to $0.1 million for the corresponding fiscal

period in 2023.

cash provided by investing activities was $0 in the year ended December 31, 2025 and December 31, 2024.

Flows Provided by Financing Activities

provided by financing activities was $6.3 million for the year ended December 31, 2024 compared of $4.7 million for the corresponding

fiscal period in 2023.

Cash inflows in 2024 included $9.4 million in equity proceeds after offering costs including proceeds from the

exercise of warrants, $0.8 million from the issuance of notes, loans and merchant advances, partially offset by note, loan and notes

payable repayments of $3.9 million.

Cash inflows in 2023 were primarily related to $8.1 million in equity proceeds after offering costs,

$1.1 million from exercise of warrants, $5.6 million from convertible notes and loans and advances from factor, partially offset by note

repayments and related party advances of $10.3 million.

Cash provided by financing activities was $23.4 million for the year ended

December 31, 2025 compared to $6.3 million for the corresponding fiscal period in 2024.

Cash inflows in 2025 included $11.4 million from

the issuance of Series D Convertible Preferred Stock, $6.6 million from proceeds for the issuance of pre-funded warrants, $5.8 million

from the exercise of warrants, and $0.2 million from the issuance of notes, loans and merchant advances, partially offset by note, loan

and notes payable repayments of $0.7 million.

Cash inflows in 2024 included $9.4 million in equity proceeds after offering costs including

proceeds from the exercise of warrants, $0.8 million from the issuance of notes, loans and merchant advances, partially offset by note,

loan and notes payable repayments of $3.9 million.

Obligations and Commitments

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changes in financial condition, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

STATEMENTS AND SUPPLEMENTARY DATA

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

FINANCIAL STATEMENTS

AND SUPPLEMENTARY DATA

information required by this item may be found on pages F-1 through F-30 of this annual report on Form 10-K.

IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

CHANGES IN AND DISAGREEMENTS

WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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

What changed 10-K

Item 7. Management’s Discussion and Analysis