What changed in this filing

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Item 1. Financial Statements

2024-02-08 compared with 2023-11-07 · 125 added, 79 removed, 433 unchanged (32% of the section changed)

3 unchanged sentences

(in thousands, except par value data)

September 30,

Current assets:

1 unchanged sentence

Restricted cash

Accounts receivable, less provision for credit losses of $ 121 and $ 237 as of September 30, 2023 and June 30, 2023, respectively

Accounts receivable, less provision for credit losses of $ 109 and $ 237 as of December 31, 2023 and June 30, 2023, respectively

Costs capitalized to obtain revenue contracts, net

22 unchanged sentences

60,000 shares;

32,269 and 32,268 shares;

31,400 and 31,482 shares as of September 30, 2023 and June 30, 2023, respectively

32,462 and 32,268 ;

31,202 and 31,482 shares as of December 31, 2023 and June 30, 2023, respectively

Additional paid-in capital

Treasury stock, at cost:

869 and 786 common shares as of September 30, 2023 and June 30, 2023, respectively

1,260 and 786 shares of common stock as of December 31, 2023 and June 30, 2023, respectively

Notes receivable from stockholders

8 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

Professional services

11 unchanged sentences

Interest income

Other income, net

Other (expense) income, net

Income before income tax provision

9 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

Net income (loss)

6 unchanged sentences

(in thousands)

Three Months Ended September 30, 2023

Additional Paid-in

Three Months Ended December 31, 2023

Treasury Stock

Notes Receivable From

Accumulated Other Comprehensive

Total Stockholders'

Balances as of June 30, 2023

Repayment of notes receivable from stockholders

Notes Receivable

Comprehensive

Stockholders'

Balances as of September 30, 2023

Repayment of stockholder notes

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection

with employee stock purchase plan

Repurchase of common stock

1 unchanged sentence

Foreign currency translation adjustments

Balances as of December 31, 2023

See accompanying notes to condensed consolidated financial statements.

Three Months Ended December 31, 2022

Notes Receivable

Comprehensive

Stockholders'

Balances as of September 30, 2022

Three Months Ended September 30, 2022

Interest on stockholder notes

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Stock-based compensation

Foreign currency translation adjustments

Balances as of December 31, 2022

See accompanying notes to condensed consolidated financial statements.

EGAIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (cont.)

(in thousands)

Six Months Ended December 31, 2023

Treasury Stock

Notes Receivable

Comprehensive

Stockholders'

Balances as of June 30, 2023

Repayment of stockholder notes

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection

with employee stock purchase plan

Repurchase of common stock

Stock-based compensation

Foreign currency translation adjustments

Balances as of December 31, 2023

See accompanying notes to condensed consolidated financial statements.

EGAIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (cont.)

(in thousands)

Six Months Ended December 31, 2022

Additional Paid-in

Notes Receivable From

Accumulated Other Comprehensive

Accumulated Other

Comprehensive

Total Stockholders'

Balances as of June 30, 2022

Interest on stockholder notes

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection

with employee stock purchase plan

Stock-based compensation

Foreign currency translation adjustments

Balances as of September 30, 2022

Balances as of December 31, 2022

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended

September 30,

Six Months Ended

Cash flows from operating activities:

Net income (loss)

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

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

Amortization of costs capitalized to obtain revenue contracts

4 unchanged sentences

Stock-based compensation

Loss on disposal of property and equipment

Changes in operating assets and liabilities:

16 unchanged sentences

Proceeds from exercise of stock options

Proceeds from employee stock purchase plan

Repurchases of common stock

Repayment of notes receivable from stockholders

Repayment of stockholder notes

Net cash (used in) provided by financing activities

5 unchanged sentences

Cash paid for taxes

Non-cash items:

Purchases of equipment through trade accounts payable

See accompanying notes to condensed consolidated financial statements.

12 unchanged sentences

Basis of Presentation

The accompanying condensed consolidated balance sheet as of September 30, 2023 and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three months ended September 30, 2023 and 2022, are unaudited.

The accompanying condensed consolidated balance sheet as of December 31, 2023 and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and six months ended December 31, 2023 and 2022 are unaudited.

The condensed consolidated balance sheet as of June 30, 2023 was derived from audited consolidated financial statements as of that date but does not include all the information and footnotes required by GAAP for complete financial statements.

9 unchanged sentences

Actual results could differ significantly from estimates.

We make estimates

that we believe to be reasonable based on historical experience and other assumptions.

We make estimates that we believe to be reasonable based on historical experience and other assumptions.

Significant estimates and assumptions made by management include the following:

18 unchanged sentences

Legacy revenue is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell.

Professional services includes consulting, implementation, training, and managed services.

Professional services include consulting, implementation, training, and managed services.

Significant Judgment Applied in the Determination of Revenue Recognition

51 unchanged sentences

Amortization of costs to obtain revenue contracts is included as a component of sales and marketing expenses in our condensed consolidated statements of operations.

During the three months ended September 30, 2023 and 2022, we capitalized $ 89,000 and $ 191,000 of costs to obtain revenue contracts, respectively, and amortized $ 500,000 and $ 375,000 to sales and marketing expense, respectively.

Capitalized costs to obtain revenue contracts, net were $ 3.2 million and $ 3.6 million as of September 30, 2023 and June 30, 2023, respectively, on our condensed consolidated balance sheets.

During the three and six months ended December 31, 2023, we capitalized $ 397,000 and $ 486,000 of costs to obtain revenue contracts, respectively, and amortized $ 345,000 and $ 845,000 to sales and marketing expense, respectively.

During the three and six months ended December 31, 2022, we capitalized $ 218,000 and $ 409,000 of costs to obtain revenue contracts, respectively, and amortized $ 395,000 and $ 770,000 to sales and marketing expense, respectively.

Capitalized costs to obtain revenue contracts, net were $ 3.3 million and $ 3.6 million as of December 31, 2023 and June 30, 2023, respectively, on our condensed consolidated balance sheets.

Deferred Revenue

2 unchanged sentences

The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements.

Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the quarter.

Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, and new business linearity within the financial reporting period.

Segment Information

7 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

Income (loss) from operations:

3 unchanged sentences

The following table presents our long-lived assets, corresponding to our geographic areas are as follows (in thousands):

September 30,

Long-lived assets:

8 unchanged sentences

We also partner with system integrators and managed service providers.

Two customers, who are also our partners, accounted for 17 % and 11 %, respectively, of total revenue during the three months ended September 30, 2023.

One customer, who is also our partner, accounted for 24 % of total revenue during the three months ended September 30, 2022.

Two and three different customers accounted for more than 10% of our gross accounts receivable, less provision for credit losses balance as of September 30, 2023 and 2022, respectively.

One customer, who is also a partner, accounted for 19 % and 18 % of total revenue during the three and six months ended December 31, 2023, respectively.

The same partner and a different partner, accounted for 19 % and 10 %, respectively, of total revenue during the three months ended December 31, 2022 and 21 % and 8 %, respectively, for the six months ended December 31, 2022.

Three customers accounted for more than 10% of our gross accounts receivable balance as of December 31, 2023.

Accounts Receivable and Provision for Credit Losses

9 unchanged sentences

Unbilled accounts receivables are recorded when revenue recognized on the contract exceeds billings, pursuant to contract provisions, and become billable upon certain criteria being met.

Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $ 1.1 million and $ 1.7 million as of September 30, 2023, and June 30, 2023, respectively, and are included in the accounts receivable, provision for credit losses, balance on the accompanying condensed consolidated balance sheets.

Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $ 1.2 million and $ 1.7 million as of December 31, 2023 and June 30, 2023, respectively, and are included in the accounts receivable, less provision for credit losses, balance on the accompanying condensed consolidated balance sheets.

As of fiscal year 2024, we adopted ASU 2016-13 - Measurement of Credit Losses on Financial Instruments with no material impact on our condensed consolidated financial statements.

Stock-Based Compensation

1 unchanged sentence

Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period, net of expected forfeitures.

Stock-based compensation expense consists of expenses for stock options granted under our Amended and Restated 2005 Management Stock Option Plan, our Amended and Restated 2005 Stock Incentive Plan, and our 2017 Employee Stock Purchase Plan (ESPP).

Stock-based compensation expense consists of expenses for stock options, restricted stock units (RSUs), and discounted employee common stock granted under our Amended and Restated 2005 Management Stock Option Plan, our Amended and Restated 2005 Stock Incentive Plan, and our 2017 Employee Stock Purchase Plan (ESPP).

The ESPP provides that eligible employees may purchase the Company’s common stock through payroll deductions at a price equal to 85 % of the lower of the fair market value at the entry date of the applicable offering period or at the end of each applicable purchasing period.

5 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

Stock-based compensation expense:

4 unchanged sentences

Total stock-based compensation expense

Total stock-based compensation includes expense related to non-employee awards of $ 26,000 and $ 44,000 during the three months ended September 30, 2023 and 2022, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 79,000 and $ 127,000 for the three months ended September 30, 2023 and 2022, respectively.

Total stock-based compensation includes expense related to non-employee awards of $ 25,000 and $ 51,000 during the three and six months ended December 31, 2023, respectively.

Total stock-based compensation includes expense related to non-employee awards of $ 38,000 and $ 82,000 during the three and six months ended December 31, 2022, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 87,000 and $ 166,000 for the three and six months ended December 31, 2023, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 63,000 and $ 190,000 for the three and six months ended December 31, 2022, respectively.

We utilize the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted and ESPP stock purchase rights.

All shares of our common stock issued pursuant to our stock option and ESPP plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the SEC on Registration Statements on Form S-8.

During the three months ended September 30, 2023 and 2022, we granted options to purchase 29,100 and 100,867 shares of common stock with a weighted-average fair value of $ 3.39 and $ 5.04 per share, respectively.

All shares of our common stock issued pursuant to our stock option, RSUs, and ESPP plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the SEC on Registration Statements on Form S-8.

During the three months ended December 31, 2023 and 2022, we granted options to purchase 21,300 and 53,200 shares of common stock with a weighted-average fair value of $ 3.16 and $ 4.32 per share, respectively.

During the six months ended December 31, 2023 and 2022, we granted options to purchase 50,400 and 154,067 shares of common stock with a weighted-average fair value of $ 3.29 and $ 4.79 per share, respectively.

We used the following weighted-average assumptions as inputs into the Black-Scholes valuation model to estimate the fair value of the options granted:

Three Months Ended

September 30,

Six Months Ended

Expected volatility

6 unchanged sentences

Treasury Strips rate with maturities approximating the expected lives of the awards during the period, which approximate the rate in effect at the time of the grant.

On June 1, 2023 and 2022, employees were granted the right to purchase an aggregate of 77,057 and 97,982 shares under the ESPP, respectively.

During each of the three months ended September 30, 2023 and 2022, no ESPP grants or purchase occurred.

As of September 30, 2023, there were 938,403 shares of common stock available for issuance under the ESPP.

On December 1, 2023, employees were granted the right to purchase an aggregate of 87,332 shares under the ESPP, and compensation expense related to those purchase rights for the three and six months ended December 31, 2023 was $ 34,000 , respectively.

On December 1, 2022, employees were granted the right to purchase an aggregate of 88,414 shares under the ESPP, and compensation expense related to those purchase rights for the three and six months ended December 31, 2022 was $ 41,000 , respectively.

As of December 31, 2023, there were 868,129 shares of common stock available for issuance under the ESPP.

We base our estimate of expected life of a stock option on the historical exercise behavior and cancellations of all past option grants made by the Company during the time period which its equity shares have been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options.

1 unchanged sentence

Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense.

As of September 30, 2023 there was approximately $ 3.5 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested stock options, which is expected to be recognized over the weighted-average period of 1.1 years.

There were 1,000 and 7,225 options exercised during the three months ended September 30, 2023 and 2022 , respectively.

As of December 31, 2023, there was approximately $ 2.7 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested stock options, which is expected to be recognized over the weighted-average period of 1.0 years.

There were 122,500 and 121,936 options exercised during the three months ended December 31, 2023 and 2022 , respectively.

There were 123,500 and 129,161 options exercised during the six months ended December 31, 2023 and 2022, respectively.

As of December 31, 2023, there was approximately $ 1.1 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested RSUs, which is expected to be recognized over the weighted-average period of 0.87 years.

There were 200,821 RSUs granted during the three and six months ended December 31, 2023 with a weighted average grant date fair value of $ 6.50 per share.

No RSUs were granted during the three and six months ended December 31, 2022.

Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases .

18 unchanged sentences

We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company.

We had no indicators of impairment during the three months ended September 30, 2023.

We had no indicators of impairment during the three and six months ended December 31, 2023.

REVENUE RECOGNITION

Disaggregation of Revenue

The following table presents our subscription and professional services revenue during the three months ended September 30, 2023 and 2022, respectively (in thousands):

The following table presents our subscription and professional services revenue during the three and six months ended December 31, 2023 and 2022, respectively (in thousands):

Three Months Ended

September 30,

Six Months Ended

Legacy revenue

2 unchanged sentences

Total revenue

The following table presents our revenue recognized over-time and at a point-in-time during the three months ended September 30, 2023 and 2022, respectively (in thousands):

The following table presents our revenue recognized over-time and at a point-in-time during the three and six months ended December 31, 2023 and 2022, respectively (in thousands):

Three Months Ended

September 30,

Six Months Ended

Point-in-time

4 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

North America

3 unchanged sentences

Contract assets, if any, consist of unbilled receivables for completed performance obligations which have not been invoiced, and for which we do not have an unconditional right to consideration.

Unbilled receivables are included in accounts receivable, less allowance for doubtful accounts on our condensed consolidated balance sheets.

Unbilled receivables are included in accounts receivable, less provision for credit losses on our condensed consolidated balance sheets.

Contract liabilities consist of deferred revenue for which we have an obligation to transfer services to customers and have received consideration in advance or the amount is due from customers.

1 unchanged sentence

The following table presents our contract liabilities (in thousands):

Balance as of September 30, 2023

Balance as of June 30, 2023

December 31, 2023

June 30, 2023

Contract liabilities:

2 unchanged sentences

Total deferred revenue

$ 12.9 million of deferred revenue as of June 30, 2023 was recognized to revenue during the three months ended September 30, 2023.

$ 10.5 million and $ 23.4 million of deferred revenue as of June 30, 2023 was recognized to revenue during the three and six months ended December 31, 2023, respectively.

Remaining Performance Obligations

1 unchanged sentence

The transaction price allocated to the remaining performance obligation is influenced by a variety of factors, including seasonality, timing of renewals, average contract terms and foreign currency exchange rates.

As of September 30, 2023, our remaining performance obligations were $ 82.4 million of which we expect to recognize $ 59.7 million and $ 22.7 million as revenue within one year and beyond one year, respectively.

As of December 31, 2023, our remaining performance obligations were $ 77.9 million of which we expect to recognize $ 55.8 million and $ 22.1 million as revenue within one year and beyond one year, respectively.

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed using the weighted-average number of shares of common stock outstanding.

In periods where net income is reported, the weighted-average number of shares is increased by stock options in the money to calculate diluted net income per share.

The following table represents the calculation of basic and diluted net income (loss) per share (unaudited, in thousands, except per share data):

In periods where net income is reported, the weighted-average number of shares is increased by stock options in the money and shares issuable for RSUs subject to service-based vesting requirements to calculate diluted earnings per share.

The following table represents the calculation of basic and diluted earnings (loss) per share (in thousands, except per share data):

Three Months Ended

September 30,

Six Months Ended

Net income (loss)

2 unchanged sentences

Weighted-average shares used in computation:

Effect of dilutive options

Weighted-average shares of stock options to purchase 3,564,660 and 3,707,271 shares of common stock for the three months ended September 30, 2023 and 2022, respectively, were not included in the computation of diluted net income (loss) per share due to their anti-dilutive effect.

Effect of dilutive options and RSUs

Weighted-average shares of stock options to purchase 3,487,402 and 3,628,963 shares of common stock for the three months ended December 31, 2023 and 2022, respectively, and weighted-average shares of stock options to purchase 3,527,031 and 3,658,692 shares of common stock for the six months ended December 31, 2023 and 2022, respectively, were not included in the computation of diluted earnings (loss) per share due to their anti-dilutive effect.

Such securities could have a dilutive effect in future periods.

11 unchanged sentences

We consider many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.

As of September 30, 2023, utilization of net operating loss (NOL) or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required.

As of December 31, 2023, utilization of the net operating loss (NOL) or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required.

Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization.

As of September 30, 2023, the Company did not identify any ownership change that would significantly limit the NOL carryovers.

As of December 31, 2023, the Company did not identify any ownership change that would significantly limit the NOL carryovers.

Under the Tax Cuts and Jobs Act, enacted on December 22, 2017 (TCJA), federal NOLs incurred in 2018 and in future years may be carried forward indefinitely, but generally may not be carried back, and the deductibility of such NOLs is limited to 80% of taxable income.

13 unchanged sentences

As our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments.

Total operating lease costs were $ 326,000 and $ 321,000 for the three months ended September 30, 2023 and 2022, respectively.

For the three months ended September 30, 2023 and 2022, operating cash outflows for operating leases were $ 315,000 and $ 298,000 , respectively.

Total operating lease costs were $ 325,000 and $ 315,000 for the three months ended December 31, 2023 and 2022, respectively.

Total operating lease costs were $ 650,000 and $ 636,000 for the six months ended December 31, 2023 and 2022, respectively.

For the three and six months ended December 31, 2023, operating cash outflows for operating leases were $ 276,000 and $ 590,000 , respectively.

For the three and six months ended December 31, 2022, operating cash outflows for operating leases were $ 295,000 and $ 593,000 , respectively.

The following tables present information about leases on our condensed consolidated balance sheets (in thousands):

September 30, 2023

June 30, 2023

Operating lease right-of-use assets

2 unchanged sentences

The following table presents information about the weighted average lease term and discount rate as follows:

September 30, 2023

December 31, 2023

June 30, 2023

1 unchanged sentence

Weighted average discount rate

As of September 30, 2023, remaining maturities of lease liabilities are as follows (in thousands):

As of December 31, 2023, remaining maturities of lease liabilities are as follows (in thousands):

Fiscal Period:

Remaining nine months of fiscal 2024

Remaining six months of fiscal 2024

Total minimum lease payments

28 unchanged sentences

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the assets or liabilities in an orderly transaction between market participants on the measurement date.

Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur.

Subsequent changes in fair

value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur.

ASC 820 applies whenever other statements require or permit assets or liabilities to be measured at fair value.

7 unchanged sentences

Our money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy.

As of September 30, 2023 and June 30, 2023, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $ 73.6 million and $ 73.2 million, respectively.

As of December 31, 2023 and June 30, 2023, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $ 79.9 million and $ 67.3 million, respectively.

SHARE REPURCHASE PROGRAM

On November 14, 2022, the Company’s Board of Directors authorized a stock repurchase program under which we may purchase up to $ 20.0 million of our outstanding common stock.

As of September 30, 2023, approximately $ 13.7 million remained available for stock repurchases pursuant to our stock repurchase program.

As of December 31, 2023, approximately $ 11.2 million remained available for stock repurchases pursuant to our stock repurchase program.

Under the stock repurchase program, we may purchase shares of common stock on a discretionary basis from time to time through open market transactions or privately negotiated transactions at prices deemed appropriate by us.

1 unchanged sentence

The timing and number of shares repurchased will be determined based on an evaluation of market conditions and other factors, including stock price, trading volume, general business and market conditions, and the availability of capital.

The stock repurchase program is effective immediately on November 14, 2022, has a term of one year from adoption unless extended, does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice.

The original stock repurchase program is effective immediately as of November 14, 2022, and was amended to extend the term by an additional year until November 14, 2024, unless further extended, does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice.

The stock repurchase program will be funded using existing cash or future cash flows.

During the three months ended September 30, 2023, 83,056 shares have been repurchased for an average acquisition cost per share of $ 6.23 , totaling $ 517,000 .

During the three months ended December 31, 2023, 390,842 shares have been repurchased for an average acquisition cost per share of $ 6.39 , totaling $ 2.5 million.

During the six months ended December 31, 2023, 473,898 shares have been repurchased for an average acquisition cost per share of $ 6.36 , totaling $ 3.0 million.

We intend to reissue repurchased shares at a later date and therefore carry the shares as treasury stock at cost.

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