What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-08-09 compared with 2023-05-10 · 139 added, 47 removed, 159 unchanged (54% of the section changed)

9 unchanged sentences

Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, include without limitation:

• The effects of the COVID-19 pandemic or other pandemics;

• Low margins in the foodservice distribution industry and periods of significant or prolonged inflation or deflation;

5 unchanged sentences

• Dependency on the timely delivery of products from vendors, particularly the prolonged diminution of global supply chains;

• The steps taken by the governments where our suppliers are located, including the People’s Republic of China, to address the COVID-19 pandemic;

• The effects of the COVID-19 pandemic or other pandemics;

• The steps taken by the governments where our suppliers are located, including the People’s Republic of China, to address the COVID-19 pandemic or other pandemics;

• Disruption of relationships with or loss of customers;

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• Difficulties in integrating operations, personnel, and assets of acquired businesses that may disrupt our business, dilute stockholder value, and adversely affect our operating results;

• Our ability to regain compliance with Nasdaq listing requirements;

• The impact on the price and demand for our common stock resulting from the relative illiquidity of the market for our common stock and the as yet resolved Nasdaq delisting determination;

• The impact on the price and demand for our common stock resulting from the relative illiquidity of the market for our common stock;

• Significant stockholders’ ability to significantly influence the Company;

• The impact of state antitakeover laws and related provision in our governance documents.

• The impact of state antitakeover laws and related provisions in our governance documents.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

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See Note 6 - Acquisitions to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q for additional information.

We have grown our distribution network to 18 distribution centers nationwide with a fleet of over 400 refrigerated vehicles.

We aim to supply the increasing demand for Asian American restaurant cuisine, leveraging our nationwide network of distribution centers and our strong relations with growers and suppliers of fresh, high-quality specialty restaurant food products and supplies in the US, South America, and China.

Capitalizing on our deep understanding of the Chinese culture, we have become a trusted partner serving Asian and Chinese restaurants and other foodservice customers throughout the United States, providing sales and service support to customers who mainly converse in Mandarin or other Chinese dialects.

We are dedicated to serving the vast array of Asian and Chinese restaurants in need of high-quality and specialized food ingredients at competitive prices.

Financial Overview

Three Months Ended June 30, Change Six Months Ended June 30, Change

($ in thousands) 2023 2022 Amount % 2023 2022 Amount %

Net revenue $ 292,312 $ 299,642 $ (7,330) (2.4) % $ 586,167 $ 577,857 $ 8,310 1.4 %

Net (loss) income $ (1,560) $ 4,494 $ (6,054) (134.7) % $ (7,357) $ 7,634 $ (14,991) (196.4) %

Adjusted EBITDA $ 6,942 $ 13,923 $ (6,981) (50.1) % $ 12,198 $ 31,836 $ (19,638) (61.7) %

For additional information on our non-GAAP financial measures, EBITDA and Adjusted EBITDA, see the section entitled “EBITDA and Adjusted EBITDA” below.

How to Assess HF Group’s Performance

22 unchanged sentences

• does not reflect the significant interest expense, or the cash requirements, necessary to service our debt.

For additional information on EBITDA and Adjusted EBITDA, see the section entitled “EBITDA and Adjusted EBITDA” below.

For additional information on EBITDA and Adjusted EBITDA and a reconciliation to their most directly comparable U.S.

GAAP financial measures, see “ Results of Operations — EBITDA and Adjusted EBITDA ” below.

Results of Operations

The following table sets forth a summary of our consolidated results of operations for the three months ended March 31, 2023 and 2022 .

Comparison of Three Months Ended June 30, 2023 to Three Months Ended June 30, 2022

The following table sets forth a summary of our consolidated results of operations for the three months ended June 30, 2023 and 2022 .

The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

Three Months Ended March 31, Change

Three Months Ended June 30, Change

($ in thousands) 2023 2022 Amount %

8 unchanged sentences

Lease guarantee expense (90) (42) (48) 114.3%

(Loss) income before income tax provision (8,023) 4,244 (12,267) (289.0)%

Income (benefit) tax provision (2,226) 1,104 (3,330) (301.6)%

(Loss) income before income taxes (1,351) 5,591 (6,942) (124.2)%

Income tax expense 209 1,097 (888) (80.9)%

Net (loss) income and comprehensive (loss) income (1,560) 4,494 (6,054) (134.7)%

net income attributable to noncontrolling interests 136 26 110 423.1%

net (loss) income attributable to noncontrolling interests (710) (70) (640) 914.3%

Net (loss) income and comprehensive (loss) income attributable to HF Foods Group Inc.

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The following table sets forth the components of our consolidated results of operations expressed as a percentage of net revenue for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30,

Net revenue 100.0 % 100.0 %

7 unchanged sentences

Lease guarantee expense — % — %

(Loss) income before income tax provision (2.7) % 1.5 %

Income tax (benefit) provision (0.8) % 0.4 %

(Loss) income before income taxes (0.5) % 1.9 %

Income tax expense 0.1 % 0.4 %

Net (loss) income and comprehensive (loss) income (0.5) % 1.5 %

net (loss) income attributable to noncontrolling interests (0.2) % — %

Net (loss) income and comprehensive (loss) income attributable to HF Foods Group Inc.

(0.3) % 1.5 %

Net revenue for the three months ended June 30, 2023 decreased by $7.3 million, or 2.4%, compared to the same period in 2022.

This decrease was primarily attributable to a $7.0 million decrease in Meat and Poultry revenue compared to the same period in 2022 driven by deflationary pricing in poultry.

Gross profit was $50.7 million for three months ended June 30, 2023 compared to $52.6 million in the same period in 2022 , a decrease of $1.9 million, or 3.6%.

The decrease was primarily attributable to a decrease in Meat and Poultry revenue.

Gross profit margin for three months ended June 30, 2023 decreased to 17.3% from 17.5% in the same period in 2022 .

The decrease was primarily attributable to the deflationary pressure in Meat and Poultry partially offset by improved Seafood margins.

Distribution, Selling and Administrative Expenses

Distribution, selling and administrative expenses increased by $6.4 million, or 14.0%, primarily due to an increase of $1.8 million in payroll and related labor costs and higher professional fees, which increased by $1.3 million, from $6.8 million for the three months ended June 30, 2022 to $8.1 million for the three months ended June 30, 2023 .

In addition, the Company recognized asset impairment of $1.2 million related to our exit of HF Foods Industrial, LLC (“HFFI”).

Distribution, selling and administrative expenses as a percentage of net revenue increased to 17.9% for the three months ended June 30, 2023 from 15.3% in the same period in 2022, primarily due to higher professional fees and increased headcount.

Interest Expense

Interest expense for the three months ended June 30, 2023 increased by $1.3 million, or 83.8% , compared to the three months ended June 30, 2022, primarily due to a sharply higher interest-rate environment.

Average floating interest rates on our floating-rate debt for the three months ended June 30, 2023 increased by approximately 4.3% on our line of credit and 4.3% on the JPMorgan Chase mortgage-secured term loan, compared to the same period in 2022.

Our average daily line of credit balance increased by $1.6 million, or 4.4% , to $37.2 million for the three months ended June 30, 2023 from $35.6 million for the three months ended June 30, 2022, and our average daily JPMorgan Chase mortgage-secured term loan balance decreased by $5.1 million, or 4.4% , to $109.3 million for the three months ended June 30, 2023 from $114.3 million for the three months ended June 30, 2022.

Income Tax Expense

Income tax expense was $209 thousand for the three months ended June 30, 2023, compared to an income tax expense of $1.1 million for the three months ended June 30, 2022, primarily due to a loss from operations of $1.6 million during the current period compared to income from operations of $6.7 million in the prior period.

Net (Loss) Income Attributable to HF Foods Group Inc.

Net loss attributable to HF Foods Group Inc.

was $0.9 million for the three months ended June 30, 2023 , compared to net income of $4.6 million for the three months ended June 30, 2022.

The decrease of $5.4 million, or 118.6% , is primarily due to the increased distribution, selling, and administrative costs as well as a $1.3 million increase in interest expense, partially offset by the $2.6 million change in the fair value of interest rate swaps.

EBITDA and Adjusted EBITDA

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure:

Three Months Ended June 30, Change

($ in thousands) 2023 2022 Amount %

Net (loss) income $ (1,560) $ 4,494 $ (6,054) (134.7)%

Interest expense 2,847 1,549 1,298 83.8%

Income tax expense 209 1,097 (888) (80.9)%

Depreciation and amortization 6,440 6,080 360 5.9%

EBITDA 7,936 13,220 (5,284) (40.0)%

Lease guarantee expense (90) (42) (48) 114.3%

Change in fair value of interest rate swap contracts (2,856) (208) (2,648) NM

Stock-based compensation expense 752 221 531 240.3%

Acquisition and integration costs — 310 (310) NM

Asset impairment charges 1,200 422 778 184.4%

Adjusted EBITDA $ 6,942 $ 13,923 $ (6,981) (50.1)%

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NM Not Meaningful

Adjusted EBITDA was $6.9 million for the three months ended June 30, 2023, a decrease of $7.0 million, or 50.1%, compared to $13.9 million for the three months ended June 30, 2022.

The decrease in Adjusted EBITDA was attributable to the lower gross profit and higher distribution, selling and administrative costs.

Results of Operations

Comparison of Six Months Ended June 30, 2023 to Six Months Ended June 30, 2022

The following table sets forth a summary of our consolidated results of operations for the six months ended June 30, 2023 and 2022 .

The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

Six Months Ended June 30, Change

($ in thousands) 2023 2022 Amount %

Net revenue $ 586,167 $ 577,857 $ 8,310 1.4%

Cost of revenue 485,329 474,560 10,769 2.3%

Gross profit 100,838 103,297 (2,459) (2.4)%

Distribution, selling and administrative expenses 105,172 86,251 18,921 21.9%

(Loss) income from operations (4,334) 17,046 (21,380) (125.4)%

Interest expense 5,715 2,827 2,888 102.2%

Other income (355) (939) 584 (62.2)%

Change in fair value of interest rate swap contracts (110) (566) 456 (80.6)%

Lease guarantee expense (210) 5,889 (6,099) (103.6)%

(Loss) income before income taxes (9,374) 9,835 (19,209) (195.3)%

Income tax (benefit) expense (2,017) 2,201 (4,218) (191.6)%

Net (loss) income and comprehensive (loss) income (7,357) 7,634 (14,991) (196.4)%

net (loss) income attributable to noncontrolling interests (574) (44) (530) 1,204.5%

Net (loss) income and comprehensive (loss) income attributable to HF Foods Group Inc.

$ (6,783) $ 7,678 $ (14,461) (188.3)%

The following table sets forth the components of our consolidated results of operations expressed as a percentage of net revenue for the periods indicated:

Six Months Ended June 30,

Net revenue 100.0 % 100.0 %

Cost of revenue 82.8 % 82.1 %

Gross profit 17.2 % 17.9 %

Distribution, selling and administrative expenses 17.9 % 14.9 %

(Loss) income from operations (0.7) % 3.0 %

Interest expense 1.0 % 0.5 %

Other income, net (0.1) % (0.2) %

Change in fair value of interest rate swap contracts — % (0.1) %

Lease guarantee expense — % 1.0 %

(Loss) income before income taxes (1.6) % 1.8 %

Income tax (benefit) expense (0.3) % 0.4 %

Net (loss) income and comprehensive (loss) income (1.3) % 1.4 %

net income attributable to noncontrolling interests — % — %

1 unchanged sentence

(1.3) % 1.4 %

Net revenue for the three months ended March 31, 2023 increased by $15.6 million or 6% compared to the same period in 2022.

This increase was attributable to the additional Seafood revenue generated due to the Sealand Acquisition and product cost inflation, partially offset by a decrease in Meat and Poultry revenue compared to the same period in 2022.

Gross profit was $50.2 million for three months ended March 31, 2023 compared to $50.7 million in the same period in 2022 , a decrease of $0.6 million, or 1% .

Net revenue for the six months ended June 30, 2023 increased by $8.3 million, or 1.4%, compared to the same period in 2022.

This increase was attributable to the additional Seafood revenue generated due to the Sealand Food, Inc.

acquisition (the “Sealand Acquisition”) and product cost inflation, partially offset by a $16.0 million decrease in Meat and Poultry revenue compared to the same period in 2022 driven by deflationary pricing in poultry.

Gross profit was $100.8 million for the six months ended June 30, 2023 compared to $103.3 million in the same period in 2022 , a decrease of $2.5 million, or 2.4% .

The decrease was primarily attributable to a decrease in Meat and Poultry revenue, partially offset by the additional Seafood revenue generated due to the Sealand Acquisition.

Gross profit margin for three months ended March 31, 2023 decreased from 18.2% in 2022 to 17.1% for the same period in 2023.

The decrease was primarily attributable to the shift in product mix to higher Seafood sales, timing of inventory purchases, increases in key commodity pricing and a higher than normal gross profit margin in the prior year due to our sales recovery to above pre-COVID-19 pandemic levels during the three months ended March 31, 2022.

Gross profit margin for the six months ended June 30, 2023 decreased to 17.2% from 17.9% for the same period in 2022.

The decrease was primarily attributable to the shift in product mix to higher Seafood sales and the deflationary pressure in Meat and Poultry.

Distribution, Selling and Administrative Expenses

Distribution, selling and administrative expenses increased by $12.5 million, or 31%, primarily due to an increase of $2.8 million in payroll and related labor costs, inclusive of the additional costs due to the Sealand Acquisition, increased professional fees of $4.2 million, from $2.9 million for the three months ended March 31, 2022 to $7.1 million for the three months ended March 31, 2023, primarily driven by legal costs and increased compliance costs as a result of the SEC and Special Investigation Committee investigations, as well as a $0.8 million increase in sales-related costs driven primarily by the Sealand Acquisition.

Distribution, selling and administrative expenses as a percentage of net revenue increased to 18.0% for the three months ended March 31, 2023 from 14.5% in the same period in 2022 primarily due to higher professional fees and increased headcount.

Distribution, selling and administrative expenses increased by $18.9 million, or 21.9%, primarily due to an increase of $4.6 million in payroll and related labor costs, inclusive of the additional costs due to the Sealand Acquisition.

Professional fees increased $5.5 million to $15.2 million for the six months ended June 30, 2023 , from $9.7 million for the six months ended June 30, 2022.

In addition, the Company recognized asset impairment of $1.2 million related to our exit of HFFI.

Distribution, selling and administrative expenses as a percentage of net revenue increased to 17.9% for the six months ended June 30, 2023 from 14.9% in the same period in 2022, primarily due to higher professional fees and increased headcount.

Interest Expense

Interest expense for the three months ended March 31, 2023 increased by $1.6 million or 124% , compared to the three months ended March 31, 2022, primarily due to the increase of $46.0 million to our JPMorgan Chase mortgage-secured term loan on March 31, 2022 coupled with a sharply higher interest-rate environment.

Our average daily line of credit balance decreased by $19.4 million, or 31% , to $42.6 million for the three months ended March 31, 2023 from $62.0 million for the three months ended March 31, 2022, and our average daily JPMorgan Chase mortgage-secured term loan balance increased by $41.2 million, or 59% , to $110.5 million for the three months ended March 31, 2023 from $69.3 million for the three months ended March 31, 2022.

Average floating interest rates for the three months ended March 31, 2023 increased by approximately 4.41% on the line of credit and 4.41% on the JPMorgan Chase mortgage-secured term loan, compared to the same period in 2022, which further contributed to higher interest expense.

Income Tax (Benefit) Provision

Income tax (benefit) provision was an income tax benefit of $2.2 million for the three months ended March 31, 2023 , compared to income tax provision of $1.1 million for the three months ended March 31, 2022, primarily due to decreased income before taxes.

Net (Loss) Income Attributable to HF Foods Group Inc.

Interest expense for the six months ended June 30, 2023 increased by $2.9 million or 102.2% , compared to the six months ended June 30, 2022, primarily due to a sharply higher interest-rate environment.

Average floating interest rates on our floating-rate debt for the six months ended June 30, 2023 increased by approximately 4.4% on the line of credit and 4.4% on the JPMorgan Chase mortgage-secured term loan, compared to the same period in 2022.

Our average daily line of credit balance decreased by $8.9 million, or 18.2%, to $39.9 million for the six months ended June 30, 2023 from $48.8 million for the six months ended June 30, 2022, and our average daily JPMorgan Chase mortgage-secured term loan balance increased by $18.1 million, or 19.7%, to $109.9 million for the six months ended June 30, 2023 from $91.8 million for the six months ended June 30, 2022.

Income Tax (Benefit) Expense

Income tax benefit of $2.0 million for the six months ended June 30, 2023, compared to income tax expense of $2.2 million for the six months ended June 30, 2022, primarily due to losses from operations during the six months ended June 30, 2023.

Net (Loss) Income Attributable to HF Foods Group Inc.

was a net loss of $5.9 million for the three months ended March 31, 2023 , compared to net income of $3.1 million for the three months ended March 31, 2022.

The decrease of $9.0 million, or 291% , is primarily due to the increased distribution, selling, and administrative costs and interest expense described above as well as the year-over-year change in fair value of interest rate swap contracts of $3.1 million.

Net loss attributable to HF Foods Group Inc.

was $6.8 million for the six months ended June 30, 2023 , compared to net income of $7.7 million for the six months ended June 30, 2022.

The decrease of $14.5 million, or 188.3% , is primarily due to the increased distribution, selling, and administrative costs as well as a $2.9 million increase in interest expense.

EBITDA and Adjusted EBITDA

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure:

Three Months Ended March 31, Change

Six Months Ended June 30, Change

($ in thousands) 2023 2022 Amount %

1 unchanged sentence

Interest expense 5,715 2,827 2,888 102.2%

Income tax (benefit) provision (2,226) 1,104 (3,330) (301.6)%

Income tax (benefit) expense (2,017) 2,201 (4,218) (191.6)%

Depreciation and amortization 13,129 11,859 1,270 10.7%

4 unchanged sentences

Acquisition and integration costs — 1,059 (1,059) NM

Asset impairment charges 1,200 422 778 184.4%

Adjusted EBITDA $ 12,198 $ 31,836 $ (19,638) (61.7)%

Adjusted EBITDA was $5.3 million for the three months ended March 31, 2023, a decrease of $12.7 million or 71% , compared to $17.9 million for the three months ended March 31, 2022.

The decrease in Adjusted EBITDA was attributable to the lower gross profit and higher distribution, selling and administrative costs as described above.

_________________

NM Not Meaningful

Adjusted EBITDA was $12.2 million for the six months ended June 30, 2023, a decrease of $19.6 million or 61.7%, compared to $31.8 million for the three months ended June 30, 2022.

The decrease in Adjusted EBITDA was attributable to the lower gross profit and higher distribution, selling and administrative costs.

Liquidity and Capital Resources

As of March 31, 2023, we had cash of approximately $17.5 million, checks issued not presented for payment of $14.1 million and access to approximately $55.5 million in additional funds through our $100.0 million line of credit, subject to a borrowing base calculation.

As of June 30, 2023, we had cash of approximately $14.9 million, checks issued not presented for payment of $20.9 million and access to approximately $57.8 million in additional funds through our $100.0 million line of credit, subject to a borrowing base calculation.

We have funded working capital and other capital requirements primarily by cash flow from operations and bank loans.

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However, our ability to repay our current obligations will depend on the future realization of our current assets.

Management has considered the historical experience, the economy, the trends in the foodservice distribution industry to determine the expected collectability of accounts receivable and the realization of inventories as of March 31, 2023.

On March 15, 2023, we entered into an amortizing IRS contract with J.P.

Morgan Chase Bank for an initial notional amount of $120.0 million, effective from March 1, 2023 and expiring on March 2028, as a means to partially hedge its existing floating rate loans exposure.

We are party to an amortizing IRS contract with J.P.

Morgan Chase Bank for an initial notional amount of $120.0 million, expiring in March 2028, as a means to partially hedge our existing floating rate loans exposure.

Pursuant to the agreement, we will pay the swap counterparty a fixed rate of 4.11% in exchange for floating payments based on CME Term SOFR.

Subsequent to March 31, 2023, effective as of April 20, 2023, we and certain parties to the Delaware Action reached an agreement to settle the Delaware Action on the terms and conditions set forth in a binding term sheet (the “Binding Term Sheet”), which was incorporated into a long-form settlement agreement on May 5, 2023 and filed with the Court of Chancery on May 8, 2023.

Effective as of April 20, 2023, we and certain parties to the Delaware Action reached an agreement to settle the Delaware Action on the terms and conditions set forth in a binding term sheet (the “Binding Term Sheet”), which was incorporated into a long-form settlement agreement on May 5, 2023 and filed with the Court of Chancery on May 8, 2023.

The Binding Term Sheet provided for, among other things, the dismissal of the Delaware Action with prejudice in exchange for Zhou Min Ni, a former Chairman and Chief Executive Officer of the Company, and Chan Sin Wong, a former President and Chief Operating Officer of the Company, making a payment to the Company in the sum of $9.25 million.

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However, there are a number of factors that could potentially arise which might result in shortfalls in anticipated cash flow, such as the demand for our products, economic conditions, competitive pricing in the foodservice distribution industry, and our bank and suppliers being able to provide continued support.

If the future cash flow from operations and other capital resources is insufficient to fund our liquidity needs, we may have to resort to reducing or delaying our expected acquisition plans, liquidating assets, obtaining additional debt or equity capital, or refinancing all or a portion of our debt.

As of March 31, 2023, we have no off balance sheet arrangements that currently have or are reasonably likely to have a material effect on our consolidated financial position, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

The following table summarizes cash flow data for the years ended March 31, 2023 and 2022:

Three Months Ended March 31, Change

If the future cash flow from operations and other capital

resources is insufficient to fund our liquidity needs, we may have to resort to reducing or delaying our expected acquisition plans, liquidating assets, obtaining additional debt or equity capital, or refinancing all or a portion of our debt.

As of June 30, 2023, we have no off balance sheet arrangements that currently have or are reasonably likely to have a material effect on our consolidated financial position, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

The following table summarizes cash flow data for the six months ended June 30, 2023 and 2022:

Six Months Ended June 30, Change

($ in thousands) 2023 2022 Amount %

7 unchanged sentences

Net cash provided by operating activities consists primarily of net income adjusted for non-cash items, including depreciation and amortization, changes in deferred income taxes and others, and includes the effect of working capital changes.

Net cash provided by operating activities increased by $2.5 million, or 24% , primarily due to lower working capital requirements for the three months ended March 31, 2023 compared to increased working capital investment as a direct result of increasing sales volume and the need for normal inventory level build up post-COVID-19 for the same period in 2022.

Net cash provided by operating activities decreased by $4.9 million, or 36%, primarily due to the net loss for the six months ended June 30, 2023 as well as the timing of working capital outlays.

Investing Activities

Net cash used in investing activities decreased by $19.3 million, or 97% , primarily due to the inventory acquired related to the Great Wall Acquisition in the three months ended March 31, 2022.

Net cash used in investing activities decreased by $47.1 million, or 97%, primarily due to acquisitions in the six months ended June 30, 2022.

Financing Activities

Net cash used in financing activities increased by $30.2 million, or 264% , primarily due to the net impact of our line of credit from net proceeds of $13.3 million for the three months ended March 31, 2022 to a net repayment of $8.6 million for the three months ended March 31, 2023, as well as the net impact of $7.6 million on our checks issued not presented for payment from net proceeds of $0.7 million for the three months ended March 31, 2022 to net repayments of $7.6 million for the three months ended March 31, 2023.

Net cash provided by financing activities decreased by $55.6 million, or 142%, to $16.6 million used in financing activities primarily due to proceeds from long-term debt of $46.0 million for the six months ended June 30, 2022, as well as the net impact of our line of credit from net proceeds of $4.9 million for the six months ended June 30, 2022 to a net repayment of $10.9 million for the six months ended June 30, 2023.

Critical Accounting Policies and Estimates

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Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2022 Annual Report on Form 10-K includes a summary of the critical accounting policies we believe are the most important to aid in understanding our financial results.

There have been no changes to those critical accounting policies that have had a material impact on our reported amounts of assets, liabilities, revenue, or expenses during the three months ended March 31, 2023.

Recent Accounting Pronouncements

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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