What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-11-08 compared with 2021-08-09 · 129 added, 85 removed, 294 unchanged (42% of the section changed)

34 unchanged sentences

insurance offerings in our life vertical and in our health vertical via the acquisition of Crosspointe Insurance & Financial Services, LLC, or Crosspointe.

In the three months ended June 30, 2021 and 2020, our total revenue was $105.1 million and $78.3 million, respectively, representing year-over-year growth of 34.2%.

We had net losses of $1.9 million and $2.8 million for the three months ended June 30, 2021 and 2020, respectively, and had $6.6 million and $4.0 million in adjusted EBITDA for the three months ended Jun 30, 2021 and 2020, respectively.

In the six months ended June 30, 2021 and 2020, our total revenue was $208.9 million and $159.7 million, respectively, representing year-over-year growth of 30.8%.

We had net losses of $5.7 million and $4.3 million for the six months ended June 30, 2021 and 2020, respectively, and had $11.4 million and $7.8 million in adjusted EBITDA for the six months ended June 30, 2021 and 2020, respectively.

In August 2021, we launched our direct-to-consumer

insurance offerings in our auto and home verticals via the acquisition of Policy Fuel LLC and its affiliates, or PolicyFuel.

In the three months ended September 30, 2021 and 2020, our total revenue was $107.6 million and $90.0 million, respectively, representing year-over-year growth of 19.5%.

We had net losses of $5.3 million and $3.2 million for the three months ended September 30, 2021 and 2020, respectively, and had $2.7 million and $5.2 million in adjusted EBITDA for the three months ended September 30, 2021 and 2020, respectively.

In the nine months ended September 30, 2021 and 2020, our total revenue was $316.4 million and $249.6 million, respectively, representing year-over-year growth of 26.8%.

We had net losses of $11.0 million and $7.4 million for the nine months ended September 30, 2021 and 2020, respectively, and had $14.1 million and $13.0 million in adjusted EBITDA for the nine months ended September 30, 2021 and 2020, respectively.

See the section titled “—Non-GAAP Financial

Measure” for information regarding our use of adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the

United States, or GAAP.

Measure” for information regarding our use of adjusted EBITDA and its reconciliation to net income (loss) determined in accordance with generally accepted accounting principles in the United States, or GAAP.

In March 2020, the World Health Organization declared the outbreak of COVID-19

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To support the health and well-being of our employees, customers, partners and communities, a majority of our employees continue to work remotely, however our offices are open for use.

While such disruptions have not had a material adverse impact on our financial results through June 30, 2021, such disruptions may impact consumer insurance shopping behavior.

While such disruptions have not had a material adverse impact on our financial results through September 30, 2021, such disruptions may impact consumer insurance shopping behavior.

We continue to monitor and are managing our operations for the ongoing impact of COVID-19.

6 unchanged sentences

As a result, our auto insurance carrier customers reduced marketing spend and cost per sale targets the following year, ultimately impacting our revenue growth in the auto insurance vertical in 2017.

More recently, and specifically starting in the third quarter of 2021, the auto insurance industry has experienced similar challenges, which is impacting our revenue growth in the auto insurance vertical.

We believe this trend will continue into 2022.

Expanding consumer traffic

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Increases in revenue per quote request allow us to increase advertising and consumer traffic to our marketplace while maintaining or increasing variable marketing margin.

We believe revenue per quote request will decrease in the near term as a result of reduced marketing spend from our auto insurance carrier customers.

Cost per quote request

2 unchanged sentences

While we seek to minimize cost per quote request, we may incur increased cost per quote request in order to achieve profitability at relative volumes of quote requests and revenue per quote request.

We believe cost per quote request will decrease in the near term as a result of reduced marketing spend by the auto insurance industry.

Key Business Metrics

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Our revenue is comprised of consumer referral fees from the automotive and other insurance verticals, which includes home and renters, life, health and commercial insurance verticals, as follows:

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

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Acquisition-related

Acquisition-related costs include expenses associated with third-party professional services we utilize for the evaluation and execution of acquisitions as well as changes in the fair value of our contingent consideration liability recorded as the result of the Crosspointe acquisition.

Acquisition-related costs include expenses associated with third-party professional services we utilize for the evaluation and execution of acquisitions as well as changes in the fair value of our contingent consideration liabilities recorded as the result of the Crosspointe and PolicyFuel acquisitions.

Other income consists of interest income and other income.

1 unchanged sentence

Other income consists of miscellaneous income unrelated to our core operations.

We have not recorded income tax benefits for the net losses we have incurred in the six months ended June 30, 2021 and 2020 or for our research and development tax credits generated, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our net operating loss carryforwards and tax credits will not be realized.

We have not recorded income tax benefits for the net operating losses incurred or the research and development tax credits generated in the nine months ended September 30, 2021 and 2020, as we believe, based upon the weight of available evidence, that it is more likely than not that all of our net operating loss and tax credit carryforwards will not be realized.

As of December 31, 2020, we had federal net operating loss carryforwards of $72.9 million, which may be available to offset future taxable income, of which $9.0 million of the total net operating loss carryforwards expire at various dates beginning in 2029, while the remaining $63.9 million do not expire but are limited in their usage to an annual deduction equal to 80% of annual taxable income.

1 unchanged sentence

As of December 31, 2020, we also had federal and state research and development tax credit carryforwards of $4.5 million and $2.4 million, respectively, which may be available to reduce future tax liabilities and expire at various dates beginning in 2030 and 2029, respectively.

We have recorded a full valuation allowance against our net deferred tax assets at each balance sheet date.

We had recorded a full valuation allowance against our net deferred tax assets at December 31, 2020.

During the three and nine months ended September 30, 2021, we released $2.5 million of our valuation allowance related to the net deferred tax liability recorded as a result of the PolicyFuel acquisition.

We maintain a valuation allowance on our overall net deferred tax asset as it is deemed more likely than not the net deferred tax asset will not be realized.

Non-GAAP Financial

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Reconciliation of Net Loss to Adjusted EBITDA:

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

4 unchanged sentences

Interest income

Benefit from income taxes

Adjusted EBITDA

Results of Operations

Comparison of the Three and Six Months Ended June 30, 2021 and 2020

Comparison of the Three and Nine months ended September 30, 2021 and 2020

The following tables set forth our results of operations for the periods shown:

Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

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Total other income (expense), net

Loss before income taxes

Benefit from income taxes

Other Financial and Operational Data:

3 unchanged sentences

Comprised of revenue from the following distribution channels:

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Direct channels

1 unchanged sentence

Includes stock-based compensation expense as follows:

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

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Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

Revenue increased by $26.8 million from $78.3 million for the three months ended June 30, 2020 to $105.1 million for the three months ended June 30, 2021.

Revenue increased by $17.6 million from $90.0 million for the three months ended September 30, 2020 to $107.6 million for the three months ended September 30, 2021.

The increase in revenue was due to increases of $14.9 million and $2.7 million from our automotive and other insurance marketplace verticals, respectively.

The increase in revenue from our other marketplace verticals was driven by an increase in revenue per quote request as a result of increased demand for consumer referrals by our insurance providers, partially offset by a decrease in the volume of quote requests.

Revenue increased by $49.2 million from $159.7 million for the six months ended June 30, 2020 to $208.9 million for the six months ended June 30, 2021.

The increase in revenue from our automotive vertical was primarily due to an increase in the volume of quote requests resulting from increased advertising to attract consumers, partially offset by a decrease in revenue per quote request.

The increase in revenue from our other marketplace verticals was driven by an increase in revenue per quote request as a result of increased demand for consumer referrals by our insurance providers.

Revenue increased by $66.8 million from $249.6 million for the nine months ended September 30, 2020 to $316.4 million for the nine months ended September 30, 2021.

The increase in revenue was due to increases of $53.5 million and $13.3 million from our automotive and other insurance marketplace verticals, respectively.

The increase in revenue from our other marketplace verticals was primarily driven by an increase in revenue per quote request as a result of increased demand for consumer referrals by our insurance providers and to a lesser extent, an increase in the volume of quote requests resulting from increased advertising to attract consumers.

The increase in revenue from our automotive vertical was primarily due to an increase in revenue per quote request as a result of increased demand for higher performing consumer referrals by our insurance providers and an increase in the volume of quote requests resulting from increased advertising to attract consumers.

Cost of Revenue

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

2 unchanged sentences

Percentage of revenue

Cost of revenue increased by $0.8 million from $5.0 million for the three months ended June 30, 2020 to $5.8 million for the three months ended June 30, 2021.

The increase in cost of revenue was primarily due to increased third-party call center costs of $0.2 million related to volume increases of call referrals, increased hosting costs of $0.2 million, increased technical service costs of $0.2 million and increased depreciation and amortization expense of $0.2 million

Cost of revenue increased by $1.5 million from $10.3 million for the six months ended June 30, 2020 to $11.8 million for the six months ended June 30, 2021.

The increase in cost of revenue was primarily due to increased third-party call center costs of $0.6 million related to volume increases of call referrals, increased hosting costs of $0.5 million, increased technical service costs of $0.3 million and increased depreciation and amortization expense of $0.2 million.

Cost of revenue increased by $0.6 million from $5.4 million for the three months ended September 30, 2020 to $6.0 million for the three months ended September 30, 2021.

The increase in cost of revenue was primarily due to increased third-party call center costs of $0.8 million related to volume increases of call referrals and increased depreciation and amortization expense of $0.2 million, partially offset by a decrease in hosting costs of $0.3 million.

Cost of revenue increased by $2.1 million from $15.7 million for the nine months ended September 30, 2020 to $17.8 million for the nine months ended September 30, 2021.

The increase in cost of revenue was primarily due to increased third-party call center costs of $1.3 million related to volume increases of call referrals, increased depreciation and amortization expense of $0.5 million, increased hosting costs of $0.2 million and increased technical service costs of $0.2 million.

Sales and Marketing

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

2 unchanged sentences

Percentage of revenue

Sales and marketing expenses increased by $21.0 million from $64.6 million for the three months ended June 30, 2020 to $85.6 million for the three months ended June 30, 2021.

Sales and marketing expenses increased by $18.9 million from $73.6 million for the three months ended September 30, 2020 to $92.5 million for the three months ended September 30, 2021.

The increase in sales and marketing expense was primarily due to an increase in advertising expenditures of $14.6 million and an increase in personnel-related costs of $3.7 million.

Sales and marketing expenses increased by $42.1 million from $131.1 million for the six months ended June 30, 2020 to $173.2 million for the six months ended June 30, 2021.The increase in sales and marketing expense was primarily due to an increase in advertising expenditures of $32.2 million and an increase in personnel-related costs of $8.5 million.

Personnel-related costs for the six months ended June 30, 2021 and 2020 included stock-based compensation expense of $5.9 million and $4.2 million, respectively.

Sales and marketing expenses increased by $61.1 million from $204.7 million for the nine months ended September 30, 2020 to $265.7 million for the nine months ended September 30, 2021.

The increase in sales and marketing expense was primarily due to an increase in advertising expenditures of $46.8 million and an increase in personnel-related costs of $12.2 million.

Personnel-related costs for the nine months ended September 30, 2021 and 2020 included stock-based compensation expense of $9.2 million and $7.3 million, respectively.

Research and Development

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

2 unchanged sentences

Percentage of revenue

Research and development expenses increased by $2.1 million from $7.0 million for the three months ended June 30, 2020 to $9.1 million for the three months ended June 30, 2021.

Research and development expenses increased by $1.1 million from $8.1 million for the three months ended September 30, 2020 to $9.3 million for the three months ended September 30, 2021.

The increase in research and development expense was primarily due to an increase in personnel-related costs of $0.6 million as a result of our continued hiring of research and development employees and a shift towards hiring more senior personnel, to further develop and enhance our marketplace websites and technology.

Personnel-related costs for the three months ended June 30, 2021 and 2020 included stock-based compensation expense of $2.3 million and $1.9 million, respectively.

Research and development expenses increased by $4.2 million from $13.4 million for the six months ended June 30, 2020 to $17.6 million for the six months ended June 30, 2021.

Personnel-related costs for the three months ended September 30, 2021 and 2020 included stock-based compensation expense of $2.7 million and $2.2 million, respectively.

Technical service costs also increased by $0.4 million for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020.

Research and development expenses increased by $5.3 million from $21.6 million for the nine months ended September 30, 2020 to $26.9 million for the nine months ended September 30, 2021.

The increase in research and development expense was primarily due to an increase in personnel-related costs of $4.4 million as a result of our continued hiring of research and development employees and a shift towards hiring more senior personnel, to further develop and enhance our marketplace websites and technology.

Personnel-related costs for the six months ended June 30, 2021 and 2020 included stock-based compensation expense of $4.6 million and $3.1 million, respectively.

Personnel-related costs for the nine months ended September 30, 2021 and 2020 included stock-based compensation expense of $7.3 million and $5.4 million, respectively.

Technical service costs also increased by $0.9 million for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020.

General and Administrative

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

2 unchanged sentences

Percentage of revenue

General and administrative expenses increased by $1.4 million from $4.8 million for the three months ended June 30, 2020 to $6.2 million for the three months ended June 30, 2021.

The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $1.0 million and an increase in insurance costs of $0.2 million.

Personnel-related costs for the three months ended June 30, 2021 and 2020 included stock-based compensation expense of $2.2 million and $1.8 million, respectively.

General and administrative expenses increased by $2.3 million from $9.5 million for the six months ended June 30, 2020 to $11.8 million for the six months ended June 30, 2021.

The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $1.4 million, an increase in professional fees of $0.4 million and an increase in insurance costs of $0.4 million.

Personnel-related costs for the six months ended June 30, 2021 and 2020 included stock-based compensation expense of $3.9 million and $3.3 million, respectively.

Acquisition-related Costs

Acquisition-related costs for the three and six months ended June 30, 2021 include expenses associated with third-party professional services we utilized for the evaluation of our anticipated acquisition of PolicyFuel, LLC of $0.5 million as well as changes in the fair value of our contingent consideration liability related to the Crosspointe acquisition of $(0.2) million and $(0.3) million, respectively.

General and administrative expenses increased by $1.1 million from $5.7 million for the three months ended September 30, 2020 to $6.7 million for the three months ended September 30, 2021.

The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $0.8 million.

Personnel-related costs for the three months ended September 30, 2021 and 2020 included stock-based compensation expense of $2.2 million and $1.8 million, respectively.

General and administrative expenses increased by $3.4 million from $15.1 million for the nine months ended September 30, 2020 to $18.5 million for the nine months ended September 30, 2021.

The increase in general and administrative expenses was primarily due to an increase in personnel-related costs of $2.1 million, an increase in professional and accounting fees of $0.5 million and an increase in insurance costs of $0.4 million.

Personnel-related costs for the nine months ended September 30, 2021 and 2020 included stock-based compensation expense of $6.1 million and $5.0 million, respectively.

Acquisition-related

Acquisition-related costs for the three and nine months ended September 30, 2021 include expenses associated with third-party professional services we utilized for the evaluation of our anticipated acquisition of PolicyFuel of $0.4 million and $0.9 million, respectively, as well as changes in the fair value of our contingent consideration liabilities related to our acquisitions of $0.4 million and $0.1 million, respectively.

The change in the fair value of our contingent consideration liabilities was primarily due to a change in estimate of our forecasted revenue related to PolicyFuel, partially offset by a decrease in the market value of our Class A common stock during the periods.

Acquisition-related costs for each of the three and nine months ended September 30, 2020 were $0.5 million consisting of expenses associated with third-party professional services we utilized for our acquisition of Crosspointe.

Other Income (Expense)

Interest income was less than $0.1 million in both the three months ended June 30, 2021 and 2020.

Interest income was less than $0.1 million in the six months ended June 30, 2021 compared to $0.2 million in the six months ended June 30, 2020.

Other income (expense), net included net foreign transaction losses of less than $0.1 million for the three and six months ended June 30, 2021.

Other income (expense), net included sublease income of $0.1 million and $0.2 million in the three and six months ended June 30, 2020, respectively.

Other income (expense), net was not significant for the three and nine months ended September 30, 2021.

Other income (expense), net included sublease income of $0.1 million and $0.3 million in the three and nine months ended September 30, 2020, respectively.

Benefit from income taxes

We recorded an income tax benefit of $2.5 million for the three and nine months ended September 30, 2021 due to the release of a portion of our valuation allowance as a result of the PolicyFuel acquisition.

The net deferred tax liability recorded for PolicyFuel primarily relates to the intangible assets recognized in purchase accounting which are non-deductible

for tax purposes and result in a deferred tax liability.

The net deferred tax liability is a source of income to support the recognition of a portion of our existing deferred tax assets.

Therefore, we recorded a discrete tax benefit for the release of a portion of our valuation allowance related to the net deferred tax liability recorded in purchase accounting.

We maintain a valuation allowance on our overall net deferred tax asset as it is deemed more likely than not the net deferred tax asset will not be realized.

Quote Requests

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands except percentages)

1 unchanged sentence

Quote requests

Quote requests increased for the three and six months ended June 30, 2021 as compared to prior year periods due to increased spending on advertising.

Quote requests increased for the three and nine months ended September 30, 2021 as compared to prior year periods due to increased spending on advertising.

Variable Marketing Margin

Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

(dollars in thousands)

total advertising expense (a

component of sales and marketing

total advertising expense (a component of sales and marketing expense)

Variable marketing margin

Percentage of revenue

The increase in variable marketing margin was due primarily to increased revenue per quote request.

The increase in variable marketing margin was due primarily to increased quote requests.

Liquidity and Capital Resources

At June 30, 2021, our principal sources of liquidity were cash and cash equivalents of $54.5 million and availability of $25.0 million under our revolving line of credit.

At September 30, 2021, our principal sources of liquidity were cash and cash equivalents of $41.8 million and availability of $25.0 million under our revolving line of credit.

Borrowings under our revolving line of credit are collateralized by substantially all of our assets and property.

2 unchanged sentences

In addition, we are required to maintain a minimum asset coverage ratio of 1.5 to 1 calculated as the sum of unrestricted cash and qualified accounts receivable divided by borrowings outstanding under the revolving line of credit.

As of June 30, 2021, we were in compliance with these covenants.

As of September 30, 2021, we were in compliance with these covenants.

Events of default under our revolving line of credit include failure to make payments when due, insolvency events, failure to comply with covenants and material adverse events with respect to us.

5 unchanged sentences

If we need additional funds and are unable to obtain funding on a timely basis, we may need to significantly curtail our operations in an effort to provide sufficient funds to continue our operations, which could adversely affect our business prospects.

The following table shows a summary of our cash flows for the six months ended June 30, 2021 and 2020:

Ended June 30,

The following table shows a summary of our cash flows for the nine months ended September 30, 2021 and 2020:

Nine Months Ended

September 30,

(in thousands)

2 unchanged sentences

Net cash provided by financing activities

Effect of exchange rate changes on cash, cash equivalents

and restricted cash

Net increase in cash, cash equivalents and restricted cash

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Net decrease in cash, cash equivalents and restricted cash

Net cash provided by operating activities

Operating activities provided $11.2 million and $7.9 million of cash during the six months ended June 30, 2021 and 2020, respectively.

Cash provided by operating activities in the six months ended June 30, 2021 primarily resulted from the offset of net non-cash

Operating activities provided $14.0 million and $13.9 million of cash during the nine months ended September 30, 2021 and 2020, respectively.

Cash provided by operating activities in the nine months ended September 30, 2021 primarily resulted from the offset of net non-cash

charges of $24.2 million to our net loss of $11.0 million and net cash provided by changes in our operating assets and liabilities of $0.8 million.

Net cash provided by changes in our operating assets and liabilities consisted primarily of an aggregate $0.4 million increase in accounts payable and accrued expenses and other current liabilities and a $0.3 million decrease in accounts receivable, partially offset by a $0.3 million increase in other assets.

Cash provided by operating activities in the six months ended June 30, 2020 primarily resulted from the offset of net non-cash

charges of $12.3 million to our net loss of $4.3 million.

Net cash used by changes in our operating assets and liabilities for the six months ended June 30, 2020 was $0.1 million and consisted primarily of a $4.3 million increase in accounts receivable, partially offset by a $3.6 million decrease in prepaid expenses and other current assets and a $0.4 million increase in other long-term liabilities.

Net cash provided by changes in our operating assets and liabilities consisted primarily of a $1.7 million decrease in accounts receivable and an aggregate $1.2 million increase in accounts payable and accrued expenses and other

current liabilities, partially offset by a $0.9 million increase in prepaid expenses and other current assets and a $1.1 million increase in other assets.

During the nine months ended September 30, 2020, operating activities provided $13.9 million of cash, which primarily resulted from the offset of net non-cash

charges of $20.2 million to our net loss of $7.4 million and net cash provided by changes in our operating assets and liabilities of $1.2 million.

Net cash provided by changes in our operating assets and liabilities for the nine months ended September 30, 2020 consisted primarily of a $7.7 million increase in accounts payable and accrued expenses and other current liabilities and a $2.0 million decrease in prepaid expenses and other current assets, partially offset by a $9.3 million increase in accounts receivable.

Other long-term liabilities also increased by $0.8 million primarily due to the deferred payment of employer tax remittances.

Changes in accounts receivable, accounts payable and accrued expenses and other current liabilities in both periods were generally due to growth in our business and timing of customer and vendor invoicing and payments.

Net cash used in investing activities

Net cash used in investing activities was $1.3 million and $1.9 million for the six months ended June 30, 2021 and 2020, respectively.

Net cash used in investing activities for the six months ended June 30, 2021 and 2020 included the acquisition of property and equipment, which included the purchase of computer equipment for our operations and employees, equipment, furniture, leasehold improvements and the capitalization of certain software development costs.

During the six months ended June 31, 2021, and 2020, we capitalized $1.1 million and $1.5 million of software development costs, respectively.

Net cash used in investing activities was $18.2 million and $17.6 million for the nine months ended September 30, 2021 and 2020, respectively.

Net cash used in investing activities for the nine months ended September 30, 2021 and 2020 included cash paid of $16.0 million and $14.9 million to purchase PolicyFuel and Crosspointe, respectively.

Net cash used in investing activities for the nine months ended September 30, 2021 and 2020 also included the acquisition of property and equipment, which included the purchase of computer equipment for our operations and employees, equipment, furniture and leasehold improvements and the capitalization of certain software development costs.

During the nine months ended September 30, 2021 and 2020, we capitalized $1.7 million and $2.1 million of software development costs, respectively.

Net cash provided by financing activities

During the six months ended June 30, 2021 and 2020, net cash provided by financing activities was $1.7 million and $2.3 million, respectively, and consisted of proceeds received from the exercise of common stock options.

During the nine months ended September 30, 2021 and 2020, net cash provided by financing activities was $3.1 million and $3.6 million, respectively, and consisted of proceeds received from the exercise of common stock options.

Contractual Obligations and Commitments

18 unchanged sentences

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

During the six months ended June 30, 2021 and 2020, inflation and changing prices have not had a material effect on our business.

During the nine months ended September 30, 2021 and 2020, inflation and changing prices have not had a material effect on our business.

We are unable to predict whether inflation or changing prices will materially affect our business in the foreseeable future.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis