What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-11 compared with 2022-05-16 · 89 added, 82 removed, 106 unchanged (62% of the section changed)

18 unchanged sentences

The DA segment delivers real-time information and insights to our customers to enable optimization of operations and reduction of emissions and their carbon intensity.

Real-time composition and physical properties are delivered simultaneously on their refined fuels, NGLs, natural gas, crude oil, and condensates using the industry’s only field-deployable, in-line optical near-infra-red spectrometer that generates no emissions.

Real-time composition and physical properties are delivered simultaneously on their refined fuels, natural gas liquids (NGLs), natural gas, crude oil, and condensates using the industry’s only field-deployable, in-line optical near-infra-red spectrometer that generates no emissions.

The instrument's response is processed with advanced chemometrics modeling, artificial intelligence, and machine learning algorithms to deliver these valuable insights every 15 seconds.

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Changes often occur.

We expect North American and International onshore activity to continue to improve throughout 2022 from first quarter levels for the next nine months provided that commodity prices remain at or above current levels.

We expect North American and International onshore activity to continue to improve throughout 2022 from second quarter levels for the next nine months provided that commodity prices remain at or above current levels.

The strongest potential growth throughout 2022 will likely comes from private, rather than publicly traded exploration and production companies.

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Additionally, we have reestablished our ability to sell product through other service companies and believe sales through indirect channels should accelerate in 2022.

In 2020, the Company launched a diversified line of EPA and FDA compliant products that target industrial, agricultural and consumer markets with particular focus on customers that are seeking to accelerate their focus on sustainability and minimized impact on the environment.

The Company’s product line includes adjuvants, disinfectants, surface cleaners, degreasers,

solvents and a multitude of proprietary chemistries for industrial, commercial and consumer use.

The Company believes these adjacent markets provide an opportunity to diversify and expand the Company’s portfolio of chemistry solutions to meet the growing demand.

The Company has a diversified line of EPA and FDA compliant products that target industrial, agricultural and consumer markets with particular focus on customers that are seeking to accelerate their focus on sustainability and minimized impact on the environment.

The Company’s product line includes adjuvants, disinfectants, surface cleaners, degreasers, solvents and a multitude of proprietary chemistries for industrial, commercial and consumer use.

The Company believes these adjacent markets diversify and expand the Company’s portfolio of chemistry solutions to meet the growing demand.

We have signed four manufacturing sales representation groups with 150+ sales personnel covering 48 states.

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ESG-focused solutions continue to be an emphasis for the Company as the energy, industrial and consumer markets are seeking to accelerate their focus on sustainability and minimized impact on the environment.

The Company’s products and services offer a significant benefit to businesses seeking to improve their ESG performance, including improving safety, reliability and efficiency of their operations.

The Company’s products and services

offer a significant benefit to businesses seeking to improve their ESG performance, including improving safety, reliability and efficiency of their operations.

The Company offers sustainable chemistry solutions, tailoring product selection to enable operational efficiencies, improve water management and reduce greenhouse gas emissions for its customers in the exploration and production sector of the oil and gas industry.

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We believe the performance-driven ESG focus of the Company assists in reducing environmental liabilities and improving returns for our customers.

During 2020 and 2021 challenging supply chain issues emerged that “are already continuing into 2022” according to Secretary of Transportation Peter Buttigieg.

During 2020 and 2021 challenging supply chain issues emerged that are continuing throughout 2022 according to Secretary of Transportation Peter Buttigieg.

The anticipated activity increases will strain supply chains generally.

4 unchanged sentences

• Demand forecasting.

All bidding will require the risk of shipping costs and delays be factored into proposals.

Trucking availability and pricing will impact North American opportunities while sea-freight costs will impact sales of North American manufactured goods being

delivered internationally for the foreseeable future.

All bidding will require the risk of shipping costs and delays to be factored into proposals.

Trucking availability and pricing will impact North American opportunities while sea-freight costs will impact sales of North American manufactured goods being delivered internationally for the foreseeable future.

The import of raw materials from China will also incur price increases.

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could also result in supply disruption.

During the first three months of 2022 there were no major weather events that had a material impact on first quarter results.

The impacts of COVID-19 continue to affect the U.S.

During the first six months of 2022 there were no major weather events that had a material impact on the first and second quarter results.

The imp acts of COVID-19 continue to affect the U.S.

and global economy.

We believe our protocols and processes established to maintain business continuity with COVID-19 have proven robust enough to diminish concern about business disruption unless new variants emerge.

The resumption of travel has begun to accelerate and we estimate that in person customer visits that began in earnest during the first quarter of 2022 will continue to accelerate.

The resumption of travel has begun to accelerate and in person customer visits began in earnest during the first quarter of 2022, continued through-out the second quarter of 2022, will likely continue to accelerate.

Consolidated Results of Operations (in thousands)

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2022 2021 2022 2021

Revenue from external customers $ 12,824 $ 9,165 $ 23,206 $ 20,935

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Cost of goods sold 31,678 10,775 45,036 22,853

Cost of good sold % 103.7 % 102.6 %

Cost of goods sold % 107.8 % 117.6 % 106.6 % 109.2 %

Gross profit (loss) (2,305) (1,610) (2,784) (1,918)

4 unchanged sentences

Research and development 1,115 1,466 2,530 3,008

Loss on sale of property and equipment 8 2

Gain on sale of property and equipment (1,914) (71) (1,906) (69)

Gain on lease termination — — (584) —

Change in fair value of convertible notes payable 3,892

Loss from operations (10,284) (8,243)

Change in fair value of contract consideration

convertible notes payable (17,158) — (13,266) —

Income (loss) from operations 8,039 (7,461) (2,245) (15,704)

Operating margin % 27.4 % (81.4) % (5.3) % (75.0) %

Interest and other income, net (1,701) 936 (2,145) 885

Loss before income taxes (10,728) (8,294)

Income tax benefit/ (expense) 4 (6)

Net Loss $ (10,724) $ (8,300)

Net loss % (83.3) % (70.5) %

Consolidated revenue for the three months ended March 31, 2022, increased $1.1 million, or 9.4%, versus the same period of 2021.

Revenue during the three months ended March 31, 2022 reflected an increase of revenue in the CT segment of $1.5 million driven by the impacts of industry consolidation of customers and increased related party activity, see further discussion in Note 15, “Related Party Transaction”.

This increase was partially offset by a decrease in revenue in the DA segment of $0.4 million due to one-time orders from customers in the three months ended March 31, 2021 not repeated in 2022.

Consolidated cost of goods sold for the three months ended March 31, 2022, increased $1.3 million, or 10.6% versus the same period of 2021 primarily attributable to the increase in revenue with the change in margin being due to sales mix.

Income (loss) before income taxes 6,338 (6,525) (4,390) (14,819)

Income tax expense (98) (21) (94) (27)

Net income (loss) $ 6,240 $ (6,546) $ (4,484) $ (14,846)

Consolidated revenue for the three and six months ended June 30, 2022 increased $20.2 million, or 220.5%, and $21.3 million or 101.8%, respectively, versus the same period of 2021 driven by activity with ProFrac starting in the second quarter.

Consolidated cost of goods sold for the three and six months ended June 30, 2022, increased $20.9 million or 194.0%, and $22.2 million or 97.1%, respectively, versus the same periods of 2021, primarily attributable to the increase in revenues.

Cost of goods sold were also impacted by one- time expenses incurred due to the ramp up of ProFrac activity.

Selling general and administrative (“SG&A”) expenses are not directly attributable to products sold or services provided.

SG&A expenses for the three months ended March 31, 2022 , decreased $1.2 million, or 19.8%, versus the same period of 2021.

S G&A expenses decreased as a result of a reduction in professional fees due to a decrease in contract labor and consulting and, legal fees partially offset by increased advisor fees relating to work around the ProFrac/PIPE deal and other items.

Corporate marketing costs also decreased primarily due to nonrecurring marketing fees and other initiatives.

Depreciation and amortization expense decreased $0.1 million, or 36.4% for the three months ended March 31, 2022, versus the same period of 2021 The decrease is as a result of asset disposals and the reclassification of assets relating to the Monahans, Texas and Waller, Texas facilities to assets held for sale in 2021.

Research and development (“R&D”) costs decreased $0.1 million, or 8.2% for the three months ended March 31, 2022, versus the same period of 2021 due to lower personnel costs as a result of our reduction in workforce and lower non-labor cost primarily from the re-negotiation of a contract which resulted in a credit for past expenses taken.

Loss from operations worsened by $2.0 million, or 24.8% for the three months ended March 31, 2022 , versus the same period in 2021.

The loss from operations increase is primarily a result of the revaluation of the convertible note payable partly offset by a gain from lease termination of $0.6 million, increased revenue and the reduction in expenses for SG&A, depreciation and amortization and R&D described above.

Loss before income taxes for the three months ended March 31, 2022 , was impacted by interest charges of $0.4 million versus $0.05 million for the same period in 2021.

The Company’s income tax benefit for the three months ended March 31, 2022 and expense for the same period in 2021 was minimal.

SG&A expenses for the three and six months ended June 30, 2022, increased $3.2 million or 76.8%, and $2.0 million or 19.7%, respectively, versus the same period of 2021.

SG&A expenses increased as a result of higher professional fees relating to the ProFrac and PIPE transactions, higher employee costs due to an ERC credit reported in 2021 and decreased legal fees due to large expense incurred on two significant matters in 2021.

Depreciation of property and equipment decreased $0.1 million or 28.2%, for the three months ended June 30, 2022, versus the same period of 2021.

Depreciation of property and equipment decreased $0.2 million or 32.7% for the six months ended June 30, 2022.

Research and development (“R&D”) costs for the three and six months ended June 30, 2022 decreased $0.4 million or 23.9% and $0.5 million or 15.9%, respectively, versus the same period of 2021 due to lower personnel costs as a result of a reduction in workforce and lower non-labor cost.

Income from operations increased by $15.5 million or 207.7% for the three months ended June 30, 2022, versus the same period in 2021.

The income from operations increase is a result of the revaluation of the contract consideration convertible notes payable and the gain on sale of property and equipment partially offset by higher SG&A expenses.

For the six months ended June 30, 2022, loss from operations decreased by $13.5 million or 85.7% attributable mainly to the revaluation of the

contract consideration convertible notes payable and gain on sale of property and equipment and partially offset by increased SG&A expenses.

Income before income taxes for the three months ended June 30, 2022, was impacted by interest charges of $1.6 million versus $17 thousand for the same period in 2021.

For the six months ended June 30, 2022 and 2021 interest charges were $2.3 million and $35 thousand respectively.

The increased interest costs relate to payment in kind interest expense on the Contract Consideration Convertible Notes Payable.

The Company’s income tax expense for the three and six months ended June 30, 2022 and 2021 was minimal.

Results by Segment (in thousands):

Chemistry Technologies Results of Operations:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2022 2021 2022 2021

Revenue $ 28,660 $ 7,688 $ 40,468 $ 17,990

Loss from operations (6,057) (3,589)

CT revenue for the three months ended March 31, 2022, increased $1.5 million compared to 2021.

The increase in revenue during 2022 compared to 2021 was driven by impacts from industry consolidation and increased related party activity, see further discussion in Note 15, “Related Party Transaction”.

W hile the pandemic continued to weigh on economic activity in 2021, global supply and demand has steadily normalized through the second half of 2021 and into 2022.

Loss from operations for the CT segment for the three months ended March 31, 2022, worsened $2.4 million, or (68.8)% compared to 2021.

The reduction is a result of the revaluation of the convertible note of $3.9 million.

Excluding the revaluation of the note there was an overall improvement.

The improvement in loss from operations is due to increased revenues, lower personnel costs due to reduced headcount and lower rental fees for International Organization for Standardization (ISO) tanks.

The improvement in loss from operations was partially offset by an increase in the bad debt provision.

Income (loss) from operations 14,944 (3,819) 8,887 (7,407)

CT revenue for the three and six months ended June 30, 2022 increased $21.0 million, and $22.5 million, respectively, compared to the same periods of 2021.

The increased revenue in 2022 is driven mainly by the ProFrac contract commencing in the second quarter, of which $16.5 million relates to the ProFrac Agreements along with a significant increase in revenue with two other major customers.

Income from operations for the CT segment for the three months ended June 30, 2022 improved by $18.8 million or 491% compared to the same period of 2021.

The improvement is primarily as a result of the favourable revaluation of the Contract Consideration Convertible Notes Payable of $17.2 million.

Excluding the revaluation there was an overall improvement in income from operations of $1.6 million for the three months ended June 30, 2022, attributable mainly to the gain on sale of property and equipment.

Income from operations for the six months ended June 30, 2022 improved by $16.3 million or $220% compared to the same period of 2021.

The improvement relates mainly to the revaluation of the Contract Consideration Convertible Notes Payable of $13.3 million and the gain on sale of property and equipment and lease termination.

Data Analytics Results of Operations:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2022 2021 2022 2021

Revenue $ 713 $ 1,477 $ 1,784 $ 2,945

Loss from operations (1,198) (773) (2,006) (1,067)

DA revenue for the three months ended March 31, 2022 , decreased $0.4 million compared to the same period in 2021 due to one time orders not repeated in 2022.

Loss from operations for the DA segment for the three months ended March 31, 2022 worsened by $0.5 million or 176.7% compared to the same period in 2021.

The worsening loss from operations is primarily the result of the decrease in revenues and the fair value adjustment of the JP3 earnout.

DA revenue for the three and six months ended June 30, 2022 decreased $0.8 million, and $1.2 million, respectively, compared to the same periods of 2021 due to less orders in 2022 and some projects being delayed to later in the year.

Loss from operations for the DA segment for the three and six months ended June 30, 2022 worsened by $0.4 million or 55%, and $0.9 million or 88%, respectively, compared to the same period of 2021.

The worsening loss from operations is primarily as a result of the decrease in revenues.

Capital Resources and Liquidity

The Company’s ongoing capital requirements relate to the acquisition and maintenance of equipment and funding working capital requirements.

During the first three months of 2022, the Company funded working capital requirements with proceeds from convertible notes of $20.0 million and cash on hand.

As of March 31, 2022, the Company had available cash and cash equivalents of $24.8 million, as compared to $11.5 million at December 31, 2021.

During the three months ended March 31, 2022, the Company had an operating loss of $10.7 million, $8.5 million of cash used in operating activities and $20.0 million of cash provided by financing activities.

Cash provided by investing activities was minimal.

The Company currently funds its operations and growth primarily from cash on hand.

During the six months ended June 30, 2022, the Company funded working capital requirements with proceeds from warrants issued for $19.5 million and cash on hand.

As of June 30, 2022, the Company had available cash and cash equivalents of $33.1 million, as compared to $11.5 million at December 31, 2021.

During the six months ended June 30, 2022, the Company had an operating loss of $2.2 million, $23.9 million of cash used in operating activities, $4.2 million cash provided by investing activities and $39.4 million of cash provided by financing activities.

The Company currently funds its operations and growth primarily from cash on hand which includes the proceeds from the convertible notes and warrants received in the second quarter.

The ability of the Company to grow and be competitive in the marketplace is dependent on the availability of adequate capital.

1 unchanged sentence

The Company has a history of losses and negative cash flows from operations and expects to utilize a significant amount of cash in operations in the following year.

Uncertainty surrounding the long- term stability and strength of the oil and gas markets, or reduced spending by our customers could have a further negative impact on our liquidity

On February 2, 2022, the Company completed a Private Investment in Public Equity (PIPE) transaction with a consortium of investors, including with related parties, through the issuance of $21.2 million in aggregate principal amount of convertible notes that resulted in net cash proceeds of approximately $19.5 million.

Under the ProFrac Agreement, ProFrac Services, LLC is obligated to order chemicals from the Company at least equal to the greater of (a) the chemicals required for 33% of their hydraulic fracturing fleets and (b) a baseline measured by the first ten hydraulic fracturing fleets deployed by ProFrac Services, LLC.

If minimum volumes are not achieved in any given year, the Company receives liquidated damages equal to 25% of the difference between (i) the aggregate Purchase Price of the quantity of Products comprising the Minimum Purchase Obligation and (ii) the actual purchased volume during such calendar year.

Uncertainty surrounding the stability and strength of the oil and gas markets, or reduced spending by our customers could have a further negative impact on our liquidity

On February 2, 2022, the Company completed a Private Investment in Public Equity (PIPE) transaction with a consortium of investors, including related parties, through the issuance of $21.2 million in aggregate principal amount of 10% convertible notes (the Convertible Notes Payable) that resulted in net cash proceeds of approximately $19.5 million (see Note 9, “Debt and Convertible Notes Payable”).

Also, on February 2, 2022, the Company entered into a long-term supply agreement with ProFrac Services, LLC (the “ProFrac Agreement”) upon issuance of $10 million in aggregate principal amount of the convertible notes (the “Contract Consideration Convertible Notes Payable”) to ProFrac Holdings LLC (see Note 9, “Debt and Convertible Notes Payable”).

Under the ProFrac Agreement, ProFrac Services, LLC is obligated to order chemicals from the Company at least equal to the greater of (a) the chemicals required for 33% of ProFrac Services, LLC’s hydraulic fracturing fleets and (b) a baseline measured by the first ten hydraulic fracturing fleets deployed by ProFrac Services, LLC during the term of the ProFrac Agreement.

If the minimum volumes are not achieved in any given year, ProFrac Services LLC shall pay to the Company, as liquidated damages an amount equal to twenty-five percent (25%) of the difference between (i) the aggregate purchase price of the quantity of products comprising the minimum purchase obligation and (ii) the actual purchased volume during such calendar year.

The term of the ProFrac Agreement is three years starting on April 1, 2022.

The Company also sold and its manufacturing facility in Waller, Texas.

These facilities were classified as held for sale as of March 31, 2022.

Subsequent to March 31, 2022, the Company executed a contract to sell its Waller facility for $4.3 million of gross proceeds.

The sale closed in April 2022.

Based on our cash and liquid assets, including the transactions subsequent to March 31, 2022 described above and in Note 17 - “Subsequent Events”, we believe that our cash and liquid assets will provide us with sufficient financial resources to fund operations and meet our capital requirements and anticipated obligations as they become due in the next 12 months.

These Contract Consideration Convertible Notes Payable were issued in addition to the Convertible Notes Payable purchased in cash by ProFrac Holdings, LLC as one of the investors in the PIPE.

On May 17, 2022, the Company entered into an amendment to the ProFrac Agreement (the “Amended ProFrac Agreement” and collectively the “ProFrac Agreements”) upon issuance of $50 million in aggregate principal amount of Contract Consideration Convertible Notes Payable (see Note 9, “Debt and Convertible Notes Payable”).

The ProFrac Agreement was amended to (a) increase ProFrac Services LLC’s minimum purchase obligation for each year to the greater of 70% of ProFrac Services LLC’s requirements and a baseline measured by ProFrac Services LLC’s first 30 hydraulic fracturing fleets, and (b) increase the term to 10 years.

On June 21, 2022, the “Company issued prefunded warrants (the “Prefunded Warrants”) to ProFrac Holdings II, LLC in exchange for $19.5 million in cash, net of issuance costs, (see Note 13, “Stockholders’ Equity”).

The Prefunded Warrants will permit ProFrac Holdings II, LLC to purchase 13,104,839 shares of common stock of the Company at an exercise price equal to $0.0001 per share.

The Company also sold its manufacturing facility in Waller, Texas.

The sale closed on April 18,2022 with $4.3 million of gross proceeds.

Based on our cash and liquid assets, we believe that our cash and liquid assets will provide us with sufficient financial resources to fund operations and meet our capital requirements and anticipated obligations as they become due in the next 12 months.

However the Company cannot guarantee a sufficient level of cash flows in the future.

Consolidated cash flows by type of activity are noted below (in thousands):

Three months ended March 31,

Six months ended June 30,

Net cash used in operating activities $ (23,915) $ (11,242)

Net cash provided by (used in) investing activities 24 (17)

Net cash provided by investing activities 4,189 43

Net cash provided by (used in) financing activities 39,431 (273)

2 unchanged sentences

Operating Activities

Net cash used in operating activities was $8.5 million and $5.3 million during the three months ended March 31, 2022 and 2021, respectively.

Consolidated net loss for the three months ended March 31, 2022 and 2021, were $10.7 million and $8.3 million, respectively.

During the three months ended March 31, 2022, non-cash adjustments to net income totaled $5.6 million as compared to $1.2 million for the same period of 2021.

• For the three months ended March 31, 2022, non-cash adjustments included $3.9 million for the change in fair value of convertible notes, $0.7 million stock compensation expense, $0.5 million PIK interest expense, $0.2 million provision for doubtful accounts and $0.2 million for depreciation.

A benefit of $0.6 million was included for the gain on lease termination.

• For the three months ended March 31, 2021, non-cash charges included $0.3 million for depreciation, and a $0.3 million decrease in the fair value of contingent consideration.

During the three months ended March 31, 2022, changes in working capital used $3.3 million of cash as compared to providing $1.9 million for the same period of 2021.

• For the three months ended March 31, 2022, changes in working capital resulted primarily from a decrease in accrued liabilities of $2.6 million partially due to payment of the ADM Settlement (Note 11) and an increase in inventories of $1.0 million.

• For the three months ended March 31, 2021 the cash provided by working capital primarily resulted from routine operations, including a reduction in accounts receivable and other current assets totaling $0.5 million combined with an increase of accounts payable of $0.7 million, partially offset by a decrease in accrued liabilities of $0.3million.

Net cash used in operating activities was $23.9 million and $11.2 million during the six months ended June 30, 2022 and 2021, respectively.

Consolidated net loss for the six months ended June 30, 2022 and 2021, were $4.5 million and $14.8 million, respectively.

During the six months ended June 30, 2022, non-cash adjustments to net income (loss) totaled $10.0 million as compared to $1.8 million for the same period of 2021.

During the six months ended June 30, 2022, changes in working capital used $9.4 million of cash as compared to providing $1.8 million for the same period of 2021.

• For the six months ended June 30, 2022, changes in working capital resulted primarily from an increase in accounts receivable and inventories of $10.1 million and $4.5 million, respectively, due to increased revenue, change in contract asset of $3.6 million attributable to fees associated with the Contract Consideration Convertible Notes Payable and decreased accrued liabilities due mainly to payment of the ADM Settlement (Note 12, “Commitments and Contingencies”).

This is partially offset by an increase in accounts payable of $12.2 million relating mainly to purchases made to support our contract with ProFrac.

• For the six months ended June 30, 2021 the cash provided by working capital primarily resulted from routine operations, including a reduction in accounts receivable of $2.0 million, partially offset by a decrease in accrued liabilities of $1.0 million.

Investing Activities

Net cash from investing activities for the three months ended March 31, 2022 and 2021 was negligible.

Net cash from investing activities for the six months ended June 30, 2022 was $4.2 million from the sale of the manufacturing facility in Waller, Texas which closed on April 18, 2022.

Net cash from investing activities for the six months ended June 30, 2021 was negligible.

Financing Activities

Net cash provided by financing activities was $20.0 million for the three months ended March 31, 2022, primarily from the proceed from the issuance of convertible notes.

Net cash used in financing activities was $0.1 million for the three months ended March 31, 2021, primarily from purchases of common stock related to tax withholding requirements.

Net cash provided by financing activities was $39.4 million for the six months ended June 30, 2022, primarily from the proceeds of the issuance of convertible notes and warrants partially offset by issuance costs relating to the convertible notes.

Net cash used in financing activities was $0.3 million for the six months ended June 30, 2021, primarily for purchases of common stock related to tax withholding requirements.

Off-Balance Sheet Arrangements

There have been no transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as “structured finance” or “special purpose entities” (“SPEs”), established for the purpose of facilitating off balance sheet arrangements or other contractually narrow or limited purposes.

As of March 31, 2022, the Company was not involved in any unconsolidated SPEs.

The Company has not made any guarantees to customers or vendors nor does the Company have any off-balance sheet arrangements or commitments that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, change in financial condition, revenue, expenses, results of operations, liquidity, capital expenditures, or capital resources that would be material to investors other than the long term terpene agreement discussed in Note 11 - Commitments and Contingencies

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with U.S.

generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions, and estimates that affect the amounts reported.

Note 2, “Summary of Significant Accounting Policies” of the Notes to Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 describe the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements.

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