What changed in this filing

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Item 1. Financial Statements

2021-02-05 compared with 2020-11-05 · 105 added, 99 removed, 438 unchanged (32% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEET S

September 30,

(In thousands, except share

37 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATION S

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands, except per share amounts)

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands, except per share amounts)

6 unchanged sentences

Interest income, net

Other expense, net

Other income (expense), net

Loss before income taxes

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands)

7 unchanged sentences

Income (Loss)

Three months ended September 30, 2020

Three months ended December 31, 2020

(In thousands, except share amounts)

Balance, June 30, 2020

Balance, September 30, 2020

Issuance of common stock under employee stock option plans

1 unchanged sentence

Net unrealized loss on available-for-sale investments

Balance, December 31, 2020

Three months ended December 31, 2019

Balance, September 30, 2019

Three months ended September 30, 2019

Balance, June 30, 2019

Issuance of common stock under employee stock option plans

Stock-based compensation expense

Net unrealized gain on available-for-sale investments

Balance, September 30, 2019

Net unrealized loss on available-for-sale investments

Balance, December 31, 2019

Comprehensive

1 unchanged sentence

Income (Loss)

Six months ended September 30, 2020

Nine months ended December 31, 2020

(In thousands, except share amounts)

3 unchanged sentences

Net unrealized loss on available-for-sale investments

Balance, September 30, 2020

Six months ended September 30, 2019

Balance, December 31, 2020

Nine months ended December 31, 2019

Balance, March 31, 2019

2 unchanged sentences

Net unrealized gain on available-for-sale investments

Balance, September 30, 2019

Balance, December 31, 2019

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW S

Six Months Ended September 30,

Nine Months Ended December 31,

(In thousands)

16 unchanged sentences

Maturities of short-term investments

Decrease in MikaMonu escrow deposit

Purchases of property and equipment

1 unchanged sentence

Cash flows from financing activities:

Payment of MikaMonu escrow deposit

Proceeds from issuance of common stock under employee stock plans

19 unchanged sentences

However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020.

The consolidated results of operations for the six months ended September 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year.

The consolidated results of operations for the nine months ended December 31, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year.

Significant accounting policies

8 unchanged sentences

The Company has instituted many preventative measures and is regularly evaluating those measures and others as it continues to better understand its current and future operating environment.

Except for the Company’s employees located in Taiwan, the majority of its employees are working from home around the world, and productivity remains high.

Except for the Company’s employees located in Taiwan, the majority of its employees are working from home around the world.

The Company has maintained a substantial portion of its manufacturing operational capacity at its primary manufacturing support facility located in Hsin Chu, Taiwan where the Company’s suppliers are located and where all of the Company’s products are manufactured.

2 unchanged sentences

Shipping and receiving operations are being maintained by a skeleton crew with minimal impact.

The Company’s revenues have been and are expected to continue to be impacted by changes in customer buying patterns and communication limitations

related to shelter in place restrictions that require a significant number of its customer contacts to work from home.

The Company’s results for the three month and six month periods ended September 30, 2020 demonstrate the challenges that the Company is facing during the COVID-19 global pandemic, which has restricted the activities of the Company’s sales force and distributors, reduced customer demand and caused the postponement of investment in certain customer sectors.

The Company’s revenues have been and are expected to continue to be impacted by changes in customer buying patterns and communication limitations related to shelter in place restrictions that

require a significant number of its customer contacts to work from home.

The Company’s results for the three month and nine month periods ended December 31, 2020 demonstrate the challenges that the Company is facing during the COVID-19 global pandemic, which has restricted the activities of the Company’s sales force and distributors, reduced customer demand and caused the postponement of investment in certain customer sectors.

These challenges are also impacting the Company as it enters new markets and engages with target customers.

Industry conferences and on-site training workshops, which are typically used for building a sales pipeline, are unavailable due to COVID-19 related restrictions.

The Company is adapting its sales strategies for the COVID-19 environment, where it cannot do face-to-face meetings and conduct secure meetings with government and defense customers, but the Company is still not operating at an optimal level.

The Company has adapted its sales strategies for the COVID-19 environment, where it cannot do face-to-face meetings and conduct secure meetings with government and defense customers, but the Company is still not operating at an optimal level.

The disruption to the marketplace resulting from the COVID-19 global pandemic that the Company continues to experience is unlike anything the Company has ever had to deal with.

1 unchanged sentence

The Company believes that during the next 12 months the COVID-19 pandemic could impact general economic activity and demand in its end markets.

Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it is expected to have an adverse effect on the Company’s results of operations, financial position, and liquidity during fiscal year 2021.

This includes results from new information that may emerge concerning COVID-19 and any actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets.

The Company has made estimates of the impact of COVID-19 within its financial statements and there may be changes to those estimates in future periods.

Recent accounting pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2019-12, “Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards.

The standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences.

The standard also clarifies and simplifies other aspects of the accounting for income taxes.

The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.

Early adoption is permitted.

The Company is currently evaluating the impact that this guidance will have upon its financial position and results of operations, if any .

In August 2018, the FASB issued ASU No.

Accounting pronouncements recently adopted

In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2018-13, “Fair Value Measurement (Topic 820):

12 unchanged sentences

Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Accounting pronouncements not yet effective for fiscal 2021

In December 2019, the FASB issued ASU No.

2019-12, “Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes” as part of its initiative to reduce complexity in the accounting standards.

The standard also clarifies and simplifies other aspects of the accounting for income taxes.

The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.

Early adoption is permitted.

The Company is currently evaluating the impact that this guidance will have upon its financial position and results of operations, if any .

In June 2016, the FASB issued ASU No.

1 unchanged sentence

Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

For trade and other receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable.

For trade and other

receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable.

Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities.

26 unchanged sentences

The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues.

Warranty costs and the accrued warranty liability were not material as of September 30, 2020.

The majority of the Company’s revenue is derived from sales of SRAM products which represent approximately 98% of total revenues in the six months ended September 30, 2020.

Warranty costs and the accrued warranty liability were not material as of December 31, 2020.

The majority of the Company’s revenue is derived from sales of SRAM products which represent approximately 98% of total revenues in the nine months ended December 31, 2020.

Nokia, the Company’s largest customer, purchases products directly from the Company and through contract manufacturers and distributors.

Based on information provided to the Company by its contract manufacturers and distributors, purchases by Nokia represented approximately 39% and 46% of the Company’s net revenues in the six months ended September 30, 2020 and 2019, respectively.

Based on information provided to the Company by its contract manufacturers and

distributors, purchases by Nokia represented approximately 40% of the Company’s net revenues in the nine months ended December 31, 2020 and 2019.

See “Note 12 — Segment and Geographic Information” for revenue by shipment destination.

The following table presents the Company’s revenue disaggregated by customer type.

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands)

3 unchanged sentences

The following table sets forth the computation of basic and diluted net loss per share:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands, except per share amounts)

7 unchanged sentences

The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net loss per share as they had an anti-dilutive effect:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands)

1 unchanged sentence

NOTE 4—BALANCE SHEET DETAIL

September 30, 2020

December 31, 2020

March 31, 2020

3 unchanged sentences

Inventory at distributors

September 30, 2020

December 31, 2020

March 31, 2020

3 unchanged sentences

Allowances for doubtful accounts and other

September 30, 2020

December 31, 2020

March 31, 2020

5 unchanged sentences

Other prepaid expenses and other current assets

September 30, 2020

December 31, 2020

March 31, 2020

6 unchanged sentences

Accumulated depreciation

Depreciation expense was $287,000 and $305,000 for the three months ended September 30, 2020 and 2019, respectively, and $590,000 and $611,000 for the six months ended September 30, 2020 and 2019, respectively.

September 30, 2020

Depreciation expense was $197,000 and $293,000 for the three months ended December 31, 2020 and 2019, respectively, and $787,000 and $904,000 for the nine months ended December 31, 2020 and 2019, respectively.

December 31, 2020

March 31, 2020

1 unchanged sentence

Other assets:

The following tables summarize the components of intangible assets and related accumulated amortization balances at September 30, 2020 and March 31, 2020 (in thousands):

As of September 30, 2020

The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2020 and March 31, 2020 (in thousands):

As of December 31, 2020

Intangible assets:

3 unchanged sentences

Product designs

Amortization of intangible assets included in cost of revenues was $59,000 and $58,000 for the three months ended September 30, 2020 and 2019, respectively, and $117,000 and $116,000 for the six months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):

Amortization of intangible assets included in cost of revenues was $58,000 and $58,000 for the three months ended December 31, 2020 and 2019, respectively, and $175,000 and $175,000 for the nine months ended December 31, 2020 and 2019, respectively.

As of December 31, 2020, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):

Fiscal year ending March 31,

2021 (Remaining six months)

September 30, 2020

2021 (Remaining three months)

December 31, 2020

March 31, 2020

11 unchanged sentences

The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year.

The Company had a goodwill balance of $8.0 million as of both March 31, 2020 and September 30, 2020.

The Company had a goodwill balance of $8.0 million as of both March 31, 2020 and December 31, 2020.

The goodwill resulted from the acquisition of MikaMonu Group Ltd.

4 unchanged sentences

NOTE 6—INCOME TAXES

The current portion of the Company’s unrecognized tax benefits was $0 at both September 30, 2020 and March 31, 2020.

The long-term portion at September 30, 2020 and March 31, 2020 was $327,000 and $613,000, respectively, of which the timing of the resolution is uncertain.

As of September 30, 2020, $2.8 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets.

As of September 30, 2020, the Company’s net deferred tax assets of $10.8 million were subject to a valuation allowance of $10.8 million.

The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2020 and March 31, 2020.

The long-term portion at December 31, 2020 and March 31, 2020 was $326,000 and $613,000, respectively, of which the timing of the resolution is uncertain.

As of December 31, 2020, $3.0 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets.

As of December 31, 2020, the Company’s net deferred tax assets of $12.4 million were subject to a valuation allowance of $12.4 million.

As of March 31, 2020, the Company’s net deferred tax assets of $9.4 million were subject to a valuation allowance of $9.4 million.

8 unchanged sentences

settled an income tax audit in Israel for fiscal years 2016 through 2019 that resulted in a discrete tax provision of $479,000 and a tax liability of $713,000 as of June 30, 2020 that was paid in the quarter ended September 30, 2020.

The Company’s estimated annual effective income tax rate, including discrete items, was approximately (3.3%) and (2.3%) as of September 30, 2020 and 2019, respectively.

The annual effective tax rates as of September 30, 2020 and 2019 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses and the foreign tax differential.

The Company’s estimated annual effective income tax rate, including discrete items, was approximately (3.4%) and (2.2%) as of December 31, 2020 and 2019, respectively.

The annual effective tax rates as of December 31, 2020 and 2019 vary from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses and the foreign tax differential.

NOTE 7—FINANCIAL INSTRUMENTS

5 unchanged sentences

The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market.

As of September 30, 2020, the Level 1 category included money market funds of $24.7 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

As of December 31, 2020, the Level 1 category included money market funds of $23.2 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date;

2 unchanged sentences

The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers.

As of September 30, 2020, the Level 2 category included short-term investments $12.1 million and long-term investments of $8.7 million, which were comprised of certificates of deposit, government and agency securities.

As of December 31, 2020, the Level 2 category included short-term investments of $9.2 million and long-term investments of $10.1 million, which were comprised of certificates of deposit, government and agency securities.

Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing.

As of September 30, 2020, the Company’s Level 3 financial instruments measured at fair value on the Condensed Consolidated Balance Sheets consisted of the contingent consideration liability related to the acquisition of MikaMonu.

As of December 31, 2020, the Company’s Level 3 financial instruments measured at fair value on the Condensed Consolidated Balance Sheets consisted of the contingent consideration liability related to the acquisition of MikaMonu.

The fair value of the contingent consideration liability was initially determined as of the acquisition date using unobservable inputs.

5 unchanged sentences

During the most recent re-measurement of the contingent consideration liability as of March 31, 2020, the Company used a risk-adjusted discount rate of approximately 14.5% to adjust the probability-weighted cash flows to their present value using probabilities ranging from 0% to 10% for the remaining contingent events.

The contingent consideration liability is included in contingent consideration, non-current on the Consolidated Balance Sheet at September 30, 2020 and March 31, 2020 in the amount of $3.9 million and $3.9 million, respectively.

The contingent consideration liability is included in contingent consideration, non-current on the Consolidated Balance Sheet at December 31, 2020 and March 31, 2020 in the amount of $4.0 million and $3.9 million, respectively.

The fair value of financial assets measured on a recurring basis is as follows (in thousands):

3 unchanged sentences

and Liabilities

September 30, 2020

December 31, 2020

Money market funds

9 unchanged sentences

Contingent consideration

The following table sets forth the changes in fair value of contingent consideration for the six months ended September 30, 2020 and September 30, 2019:

Six Months Ended September 30,

The following table sets forth the changes in fair value of contingent consideration for the nine months ended December 31, 2020 and December 31, 2019:

Nine Months Ended December 31,

(In thousands)

1 unchanged sentence

Change due to accretion

Payment of contingent consideration

Contingent consideration, end of period

3 unchanged sentences

Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets.

The Company had money market funds of $24.7 million and $14.1 million at September 30, 2020 and March 31, 2020, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

The Company had money market funds of $23.2 million and $14.1 million at December 31, 2020 and March 31, 2020, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary.

The following table summarizes the Company’s available-for-sale investments:

September 30, 2020

December 31, 2020

(In thousands)

16 unchanged sentences

Total long-term investments

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position as of September 30, 2020 and March 31, 2020, respectively.

September 30, 2020

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position as of December 31, 2020 and March 31, 2020, respectively.

December 31, 2020

Less Than 12 Months

1 unchanged sentence

(In thousands)

Certificates of deposit

Supranational obligations

7 unchanged sentences

Subject to normal credit risks, the Company has the ability to realize the full value of all these investments upon maturity.

The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $(26,000) and $(30,000) at September 30, 2020 and March 31, 2020, respectively.

As of September 30, 2020, contractual maturities of the Company’s available-for-sale investments were as follows:

The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $(22,000) and $(30,000) at December 31, 2020 and March 31, 2020, respectively.

As of December 31, 2020, contractual maturities of the Company’s available-for-sale investments were as follows:

(In thousands)

6 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

September 30, 2020

December 31, 2020

March 31, 2020

6 unchanged sentences

The following table provides the details of lease costs:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands)

3 unchanged sentences

The following table provides other information related to leases:

Six Months Ended September 30,

Nine Months Ended December 31,

(In thousands)

7 unchanged sentences

Operating leases

The following table provides the maturities of the Company’s operating lease liabilities as of September 30, 2020:

The following table provides the maturities of the Company’s operating lease liabilities as of December 31, 2020:

Operating Lease

(In thousands)

2021 (Remaining six months)

2021 (Remaining three months)

Total undiscounted future cash flows

13 unchanged sentences

The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues.

Warranty costs and the accrued warranty liability were not material as of September 30, 2020 and March 31, 2020 and for the three months ended September 30, 2020 or 2019.

Warranty costs and the accrued warranty liability were not material as of December 31, 2020 and March 31, 2020 and for the three months ended December 31, 2020 or 2019.

NOTE 10—STOCK-BASED COMPENSATION

As of September 30, 2020, 1,849,761 shares of common stock were available for grant under the Company’s 2016 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the six months ended September 30, 2020:

As of December 31, 2020, 1,576,722 shares of common stock were available for grant under the Company’s 2016 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2020:

Number of Shares

1 unchanged sentence

Balance at March 31, 2020

Balance at September 30, 2020

Balance at December 31, 2020

Options vested and exercisable

Options vested and expected to vest

The weighted average fair value per underlying share of options granted during the three months ended September 30, 2020 and 2019 was $2.24 and $2.90, respectively, and $2.34 and $2.88 for the six months ended September 30, 2020 and 2019, respectively.

Options outstanding by exercise price at September 30, 2020 were as follows:

The weighted average fair value per underlying share of options granted during the three months ended December 31, 2020 and 2019 was $2.51 and $2.66, respectively, and $2.39 and $2.84 for the nine months ended December 31, 2020 and 2019, respectively.

Options outstanding by exercise price at December 31, 2020 were as follows:

Options Outstanding

3 unchanged sentences

The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In Thousands)

4 unchanged sentences

The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

No tax benefit related to stock-based compensation was recognized in the six months ended September 30, 2020 due to a full valuation allowance.

No tax benefit related to stock-based compensation was recognized in the nine months ended December 31, 2020 due to a full valuation allowance.

There were no windfall tax benefits realized from exercised stock options in either of these periods.

Compensation cost capitalized within inventory at September 30, 2020 was immaterial.

As of September 30, 2020, the Company’s total unrecognized compensation cost was $5.1 million, which will be recognized over a weighted average period of 2.20 years.

Compensation cost capitalized within inventory at December 31, 2020 was immaterial.

As of December 31, 2020, the Company’s total unrecognized compensation cost was $5.2 million, which will be recognized over a weighted average period of 2.09 years.

The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

Stock Option Plans:

7 unchanged sentences

NOTE 11—RELATED PARTY TRANSACTION

The Company incurred non-recurring engineering service expense of approximately $84,000 during the six months ended September 30, 2020 from Wistron Neweb Corp (“WNC”) in connection with the manufacturing of single-APU PCIe boards, Gemini I™, to be used in the Company’s in-place associative computing product.

The Company incurred non-recurring engineering service expense of approximately $326,000 during the nine months ended December 31, 2020 from Wistron Neweb Corp (“WNC”) in connection with the manufacturing of single-APU PCIe boards, to be used in the Company’s in-place associative computing product.

Haydn Hsieh, a member of the Company’s board of directors, is the Chairman and Chief Strategy Officer of WNC.

The amount owed to WNC, of $243,000 at December 31, 2020, is included in accounts payable in the Condensed Consolidated Balance Sheets.

NOTE 12—SEGMENT AND GEOGRAPHIC INFORMATION

2 unchanged sentences

The following is a summary of net revenues by geographic area based on the location to which product is shipped:

Three Months Ended September 30,

Six Months Ended September 30,

Three Months Ended December 31,

Nine Months Ended December 31,

(In thousands)

3 unchanged sentences

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