What changed in this filing

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Item 1. Financial Statements

2023-11-08 compared with 2023-08-08 · 126 added, 79 removed, 385 unchanged (35% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEET S

September 30,

(In thousands, except share

36 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATION S

Three Months Ended June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands, except per share amounts)

Cost of revenues ($ 0 , $ 140 , $ 0 and $ 197 to a related party)

5 unchanged sentences

Interest income, net

Other income (expense), net

Other expense, net

Loss before income taxes

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands)

Net unrealized gain (loss) on available-for-sale investments

5 unchanged sentences

Stockholders'

Three months ended June 30, 2023

Three months ended September 30, 2023

(In thousands, except share amounts)

Balance, June 30, 2023

Issuance of common stock pursuant to an At-the-Market offering, net of offering costs of $ 389

Stock-based compensation expense

Net unrealized gain on available-for-sale investments

Balance, September 30, 2023

Comprehensive

Stockholders'

Three months ended September 30, 2022

(In thousands, except share amounts)

Balance, June 30, 2022

Stock-based compensation expense

Net unrealized gain on available-for-sale investments

Balance, September 30, 2022

Comprehensive

Stockholders'

Six months ended September 30, 2023

(In thousands, except share amounts)

Balance, March 31, 2023

Issuance of common stock under employee stock option plans

Issuance of common stock pursuant to an At-the-Market offering, net of offering costs of $ 389

Stock-based compensation expense

Net unrealized gain on available-for-sale investments

Balance, June 30, 2023

Balance, September 30, 2023

Comprehensive

Stockholders'

Three months ended June 30, 2022

Six months ended September 30, 2022

(In thousands, except share amounts)

3 unchanged sentences

Net unrealized loss on available-for-sale investments

Balance, June 30, 2022

Balance, September 30, 2022

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW S

Three Months Ended June 30,

Six Months Ended September 30,

(In thousands)

19 unchanged sentences

Cash flows from financing activities:

Proceeds from issuance of common stock under At-the-Market offering, net of offering costs of $ 389

Proceeds from issuance of common stock under employee stock plans

18 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, 2023.

The consolidated results of operations for the three months ended June 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year.

The consolidated results of operations for the six months ended September 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year.

Reclassifications

2 unchanged sentences

There have been no material changes to our significant accounting policies that were disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

Government Agreements

From time to time, the Company may enter into agreements with federal government agencies.

GAAP does not have specific accounting standards covering agreements between the government and business entities.

The Company applies International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance, by analogy when accounting for agreements entered into with the government.

Under IAS 20, government grants or awards are initially recognized when there is reasonable assurance the conditions of the grant or award will be met and the grant or award will be received.

After initial recognition, government grants or awards are recognized on a systematic basis in a manner consistent with the manner in which the Company recognizes the underlying costs for which the grant or award is intended to compensate.

The Company follows ASC 832, Disclosures by Business Entities about Government Assistance, with respect to the disclosures of government grants or awards.

Credit Losses — Marketable Securities

5 unchanged sentences

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss.

Any other impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive loss.

Credit Losses — Accounts Receivable

Accounts receivable are recorded at the amounts billed less estimated allowances for credit losses for any potential uncollectible amounts.

The Company continually monitors customer payments and maintains an allowance

for estimated losses resulting from a customer’s inability to make required payments.

The Company continually monitors customer payments and maintains an allowance for estimated losses resulting from a customer’s inability to make required payments.

The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and economic conditions that may affect a customer’s ability to pay.

1 unchanged sentence

Risk and uncertainties

The decline in the global economic environment due to, among other things, rising interest rates, worldwide inflationary pressures and significant fluctuations in energy prices has affected the business activities of the Company, its customers, suppliers, and other business partners in the fiscal year ended March 31, 2023 and into the three months ended June 30, 2023.

Our software development and certain regional sales activities for our APU product offerings occur in Israel.

Our Vice President, Associative Computing, along with a team of software development experts are based in our Israel facility.

This team is needed for the development of the various levels of software required in the use of our APU product offering.

Proof of concept customers for our SAR imagine processing acceleration system are also based in Israel.

We are closely monitoring developments in the evolving military conflict with Hamas that began on October 7, 2023 including potential impacts to our business, customers, employees and operations in Israel.

At this time, the impact on GSI Technology are uncertain and subject to change given the volatile nature of the situation, but adverse changes in the military conditions in Israel could harm our business and our stock price could decline.

The Company believes that during the next 12 months disruptions in the capital markets as a result of rising interest rates, worldwide inflationary pressures, significant fluctuations in energy prices and the decline in the global economic environment could impact general economic activity and demand in the Company’s end markets.

23 unchanged sentences

Variable consideration is not typically significant and primarily results from stock rotation rights and quick pay discounts provided to certain distributors.

As a practical expedient, the Company is recognizing the incremental costs of obtaining a contract, specifically commission expenses that have a period of benefit of less than twelve months, as an expense when

Additionally, the Company has adopted an accounting policy to recognize shipping costs that occur after control transfers to the customer as a fulfillment activity.

6 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 June 30, 2023 and March 31, 2023.

Substantially all of the Company’s revenue is derived from sales of SRAM products, which represent approximately 99 % and 97 % of total revenues in the three months ended June 30, 2023 and 2022, respectively.

Warranty costs and the accrued warranty liability were not material as of September 30, 2023 and March 31, 2023.

Substantially all of the Company’s revenue is derived from sales of SRAM products, which represent approximately 98 % and 96 % of total revenues in the six months ended September 30, 2023 and 2022, respectively.

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 34 % and 15 % of the Company’s net revenues in the three months ended June 30, 2023 and 2022, respectively.

Based on information provided to the Company by its contract manufacturers and distributors, purchases by Nokia represented approximately 20 % and 14 % of the Company’s net revenues in the three months ended September 30, 2023 and 2022, respectively, and 27 % and 14 % of the Company’s net revenues in the six months ended September 30, 2023 and 2022, respectively.

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 June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands)

Contract manufacturers

2 unchanged sentences

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

Three Months Ended June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands, except per share amounts)

Denominators:

5 unchanged sentences

Net loss per common share—Diluted

The following shares of common stock underlying outstanding stock options and ESPP shares, 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 June 30,

The following shares of common stock underlying outstanding stock options and unissued ESPP shares, 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,

(In thousands)

Shares underlying options and ESPP shares

NOTE 4—BALANCE SHEET DETAIL

June 30, 2023

September 30, 2023

March 31, 2023

3 unchanged sentences

Inventory at distributors

June 30, 2023

September 30, 2023

March 31, 2023

3 unchanged sentences

Allowances for credit losses

June 30, 2023

September 30, 2023

March 31, 2023

4 unchanged sentences

Other prepaid expenses and other current assets

June 30, 2023

September 30, 2023

March 31, 2023

6 unchanged sentences

Accumulated depreciation

Depreciation expense was $ 217,000 and $ 197,000 for the three months ended June 30, 2023 and 2022, respectively.

The following tables summarize the components of intangible assets and related accumulated amortization balances at June 30, 2023 and March 31, 2023 (in thousands):

As of June 30, 2023

Depreciation expense was $ 172,000 and $ 196,000 for the three months ended September 30, 2023 and 2022, respectively, and $ 388,000 and $ 393,000 for the six months ended September 30, 2023 and 2022, respectively.

The following tables summarize the components of intangible assets and related accumulated amortization balances at September 30, 2023 and March 31, 2023 (in thousands):

As of September 30, 2023

Intangible assets:

3 unchanged sentences

Product designs

Amortization of intangible assets included in cost of revenues was $ 59,000 for the three months ended June 30, 2023 and 2022.

Amortization of intangible assets included in cost of revenues was $ 58,000 and $ 59,000 for the three months ended September 30, 2023 and 2022, respectively, and $ 117,000 for each of the six months ended September 30, 2023 and 2022.

The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.

4 unchanged sentences

Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from the APU product could result in a non-cash impairment charge in future periods.

As of June 30, 2023, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):

As of September 30, 2023, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):

Fiscal year ending March 31,

2024 (remaining nine months)

June 30, 2023

2024 (remaining six months)

September 30, 2023

March 31, 2023

7 unchanged sentences

On November 30, 2022, the Company announced cost reduction initiatives which included an approximate 15 % reduction in the Company’s global workforce.

The Company incurred $ 0.3 million in severance related charges during fiscal 2023 including $ 0.1 million recorded as cost of revenues and $ 0.2 million recorded as selling, general and administrative expense.

There were no severance related charges in the three months ended June 30, 2023 and 2022.

The Company expects to incur an additional $ 0.3 million in severance related charges during the second quarter of fiscal 2024.

There were no severance charges accrued as of June 30, 2023 and March 31, 2023 as the terms of the severance benefits have not been communicated to employees expected to be impacted.

There were no severance related charges in the three and six months ended September 30, 2023 and 2022.

NOTE 5—GOODWILL

3 unchanged sentences

The Company has one reporting unit.

The Company had a goodwill balance of $ 8.0 million as of both June 30, 2023 and March 31, 2023.

The Company had a goodwill balance of $ 8.0 million as of both September 30, 2023 and March 31, 2023.

The goodwill resulted from the acquisition of MikaMonu Group Ltd.

2 unchanged sentences

NOTE 6—INCOME TAXES

The current portion and long-term portion of the Company’s income tax liability related to unrecognized tax benefits was $ 0 at both June 30, 2023 and March 31, 2023.

As of June 30, 2023, $ 3.8 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets.

The current portion and long-term portion of the Company’s income tax liability related to unrecognized tax benefits was $ 0 at both September 30, 2023 and March 31, 2023.

Due to historical losses in the United States, the Company has a full valuation allowance on its United States federal and state deferred tax assets.

5 unchanged sentences

Fiscal years 2020, 2021, 2022 and 2023 are subject to audit by the Israeli tax authorities.

For the three months ended June 30, 2023 and June 30, 2022, the Company incurred income tax expense of $ 51,000 and $ 60,000 on net losses before income taxes of ($ 5.1 million) and ($ 3.9 million), respectively.

For the six months ended September 30, 2023 and September 30, 2022, the Company incurred income tax expense of $ 84,000 and $ 97,000 on net losses before income taxes of ($ 9.1 million) and ($ 7.1 million), respectively.

The provision was calculated using the annualized effective tax rate method.

The Company’s estimated annual effective

income tax rate, including discrete items, was approximately ( 2.25 %) and ( 1.49 %) as of June 30, 2023 and 2022, respectively.

The annual effective tax rates as of June 30, 2023 and 2022 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 ( 1.53 %) and ( 1.69 %) as of September 30, 2023 and 2022, respectively.

The annual effective tax rates as of September 30, 2023 and 2022 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 or 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 June 30, 2023, the Level 1 category included money market funds of $ 10.4 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

As of September 30, 2023, the Level 1 category included money market funds of $ 10.8 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 June 30, 2023, the Level 2 category included short-term investments of $ 891,000 , which were comprised of certificates of deposit and government securities.

As of September 30, 2023, the Level 2 category included short-term investments of $ 651,000 , which were comprised of government 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 June 30, 2023, 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 September 30, 2023, 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

Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is re-measured to fair value with changes recorded in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

During the most recent re-measurement of the contingent consideration liability as of June 30, 2023, the Company used a risk-adjusted discount rate of approximately 15.1 % to adjust the probability-weighted cash flows to their present value using probabilities ranging from 15 % to 90 % for the remaining contingent events.

The contingent consideration liability is included in contingent consideration, non-current on the Condensed Consolidated Balance Sheets at June 30, 2023 and March 31, 2023 in the amount of $ 1.0 million and $ 1.1 million, respectively.

During the most recent re-measurement of the contingent consideration liability as of September 30, 2023, the Company used a risk-adjusted discount rate of approximately 15.9 % to adjust the probability-weighted cash flows to their present value using probabilities ranging from 25 % to 70 % for the remaining contingent events.

The contingent consideration liability is included in contingent consideration, non-current on the Condensed Consolidated Balance Sheets at September 30, 2023 and March 31, 2023 in the amount of $ 728,000 and $ 1.1 million, respectively.

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

3 unchanged sentences

and Liabilities

June 30, 2023

September 30, 2023

Money market funds

9 unchanged sentences

Contingent consideration

The following table sets forth the changes in fair value of contingent consideration for the three months ended June 30, 2023 and 2022, respectively:

Three Months Ended June 30,

The following table sets forth the changes in fair value of contingent consideration for the six months ended September 30, 2023 and 2022, respectively:

Six Months Ended September 30,

(In thousands)

3 unchanged sentences

Contingent consideration, end of period

Short-term and long-term investments

Short-term investments

All of the Company’s short-term investments are classified as available-for-sale.

1 unchanged sentence

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 $ 10.4 million and $ 7.8 million at June 30, 2023 and March 31, 2023, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

The Company had money market funds of $ 10.8 million and $ 7.8 million at September 30, 2023 and March 31, 2023, 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:

June 30, 2023

September 30, 2023

(In thousands)

Short-term investments:

Certificates of deposit

Supranational obligations

6 unchanged sentences

Total short-term investments

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that do not have an allowance for credit losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position as of June 30, 2023 and March 31, 2023, respectively.

June 30, 2023

September 30, 2023

Less Than 12 Months

1 unchanged sentence

(In thousands)

Certificates of deposit

Supranational obligations

5 unchanged sentences

Supranational obligations

The Company’s investment portfolio consists of both corporate and governmental securities that have a maximum maturity of three years .

The Company’s investment portfolio consists of governmental securities that have a maximum maturity of three years .

All unrealized gains and losses are due to changes in interest rates and bond yields.

2 unchanged sentences

The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis.

The deferred tax asset related to unrecognized gains and losses on short-term investments was $ 3,000 and $ 10,000 at June 30, 2023 and March 31, 2023, respectively.

As of June 30, 2023, contractual maturities of the Company’s available-for-sale investments were as follows:

The deferred tax asset related to unrecognized gains and losses on short-term investments was $ 1,000 and $ 10,000 at September 30, 2023 and March 31, 2023, respectively.

As of September 30, 2023, contractual maturities of the Company’s available-for-sale investments were as follows:

(In thousands)

9 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

June 30, 2023

September 30, 2023

March 31, 2023

6 unchanged sentences

The following table provides the details of lease costs:

Three Months Ended June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands)

Operating lease cost

1 unchanged sentence

The following table provides other information related to leases:

Three Months Ended June 30,

Six Months Ended September 30,

(In thousands)

7 unchanged sentences

Operating leases

The following table provides the maturities of the Company’s operating lease liabilities as of June 30, 2023:

The following table provides the maturities of the Company’s operating lease liabilities as of September 30, 2023:

Operating Lease

(In thousands)

2024 (remaining nine months)

2024 (remaining six months)

Total undiscounted future cash flows

5 unchanged sentences

The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters.

Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights.

In each of these circumstances, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims.

3 unchanged sentences

NOTE 10—STOCK-BASED COMPENSATION

As of June 30, 2023, 3,606,778 shares of common stock were available for grant under the Company’s Amended and Restated 2016 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the three months ended June 30, 2023:

As of September 30, 2023, 3,076,860 shares of common stock were available for grant under the Company’s Amended and Restated 2016 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the six months ended September 30, 2023:

Number of Shares

1 unchanged sentence

Balance at March 31, 2023

Balance at June 30, 2023

Balance at September 30, 2023

Options vested and exercisable

1 unchanged sentence

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 June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands)

Cost of revenues

2 unchanged sentences

NOTE 11—RELATED PARTY TRANSACTION

The Company incurred non-recurring engineering service expense and production charges of approximately $ 0 and $ 57,000 during the three months ended June 30, 2023 and 2022, respectively, 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.

The Company incurred non-recurring engineering service expense and production charges of approximately $ 0 and $ 140,000 during the three months ended September 30, 2023 and 2022, respectively, and $ 0 and $ 197,000 during the six months ended September 30, 2023 and 2022, respectively, 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 $ 0 and $ 8,000 at June 30, 2023 and March 31, 2023, respectively, is included in accounts payable in the Condensed Consolidated Balance Sheets.

The amount owed to WNC, of $ 0 and $ 8,000 at September 30, 2023 and March 31, 2023, respectively, 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 June 30,

Three Months Ended September 30,

Six Months Ended September 30,

(In thousands)

United States

1 unchanged sentence

All sales are denominated in United States dollars.

NOTE 13—SUBSEQUENT EVENT

On August 1, 2023, the Company commenced a registered securities offering pursuant to a Sales Agreement (the “Sales Agreement”) with Needham & Company, LLC (“Needham”).

The Sales Agreement provides that the Company may offer and sell its common stock having an aggregate offering price of up to $ 25.0 million from time to time (the “Offering”) through Needham, acting as the Company’s sales agent.

The Company did no t receive any proceeds from the Offering during the quarter ended June 30, 2023.

From August 2, 2023 to August 7, 2023, the Company sold 133,000 shares at an average price of $ 4.20 for net proceeds of $ 542,000 .

NOTE 13—GOVERNMENT AGREEMENTS

In June 2023, the Company entered into a prototype agreement with the Space Development Agency for the development of a Next-Generation Associative Processing Unit-2 for Enhanced Space-Based Capabilities (“Prototype Agreement”).

Under the Prototype Agreement, the Company will receive an award funded by the Small Business Innovation Research program.

Pursuant to an agreed-upon schedule, the Company will receive milestone payments totaling an estimated $ 1.25 million upon successful completion of each milestone.

The Prototype Agreement is unrelated to the Company’s ordinary business activities.

The Company has discretion in managing the activities under the Prototype Agreement and retains all developed intellectual property.

The Company applies IAS 20, by analogy, and recognizes the award as a reduction of research and development expenses based on a cost incurred method.

During the three and six months ended September 30, 2023, the Company recognized $ 260,000 as a reduction to research and development expense in the Condensed Consolidated Statements of Operations.

As of September 30, 2023, the Company had received total milestone payments of $ 297,000 under the Prototype Agreement.

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