What changed in this filing

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Item 1. Financial Statements

2023-05-08 compared with 2023-02-14 · 91 added, 75 removed, 396 unchanged (30% of the section changed)

16 unchanged sentences

Contract liability

Contract liability - related party

Total current liabilities

4 unchanged sentences

Preferred stock, 10,000,000 shares authorized, $ .001 par value, of which 200,000 shares are authorized as Class A Convertible stock.

No shares issued and outstanding at December 31, 2022 and September 30, 2022

No shares issued and outstanding at March 31, 2023 and September 30, 2022

Common stock, $ .001 par value:

75,000,000 shares authorized, 19,470,248 and 19,412,664 issued at December 31, 2022 and September 30, 2022

75,000,000 shares authorized, 19,520,259 and 19,412,664 issued at March 31, 2023 and September 30, 2022

Additional paid-in capital

Retained Earnings (accumulated deficit)

Treasury stock, at cost, 2,096,451 shares at December 31, 2022 and September 30, 2022

Treasury stock, at cost, 2,096,451 shares at March 31, 2023 and September 30, 2022

( 21,368,537 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31,

Three Months Ended March 31,

Six Months Ended March 31,

Engineering development contracts

16 unchanged sentences

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

Three Months Ended December 31, 2022

Six Months Ended March 31, 2023

Balance, September 30, 2022

4 unchanged sentences

( 21,368,537 )

Share-based compensation

Balance, March 31, 2023

( 21,368,537 )

The accompanying notes are an integral part of these statements.

1 unchanged sentence

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

Three Months Ended December 31, 2021

Six Months Ended March 31, 2022

Balance, September 30, 2021

5 unchanged sentences

( 21,368,537 )

Share-based compensation

Balance, March 31, 2022

( 3,320,192 )

( 21,368,537 )

The accompanying notes are an integral part of these statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended December 31,

For the Six Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES:

5 unchanged sentences

(Increase) decrease in:

Accounts receivable

Accounts receivables

Prepaid expenses and other assets

Other non-current assets

Increase (decrease) in:

Accounts payable

Accounts payables

Accrued expenses

Income taxes payable

Income taxes payable / receivable

Contract liability

9 unchanged sentences

Cash and cash equivalents, end of period

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for income taxes

The accompanying notes are an integral part of these statements.

14 unchanged sentences

The consolidated balance sheet as of September 30, 2022 is derived from the audited financial statements of the Company.

Operating results for the three-month period ended December 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2023.

Operating results for the three-and six-month periods ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2023, including in terms of the impact of the coronavirus pandemic (the “COVID-19 pandemic”), which cannot be determined at this time.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes of the Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022.

9 unchanged sentences

Highly liquid investments, purchased with an original maturity of three months or less, are classified as cash equivalents.

Cash equivalents at December 31, 2022 and September 30, 2022 consist of cash on deposit and cash invested in money market funds with financial institutions.

Cash equivalents at March 31, 2023 and September 30, 2022 consist of cash on deposit and cash invested in money market funds with financial institutions.

Inventory Valuation

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, net of write-downs for excess and obsolete inventory.

Assets Held for Sale

Assets to be disposed of by sale (“disposal groups”) are reclassified into “assets held for sale” if their carrying amounts are principally expected to be recovered through a sale transaction rather than through continuing use.

The reclassification occurs when the disposal group is available for immediate sale and the sale is probable.

These criteria are generally met when an agreement to sell exists, or management has committed to a plan to sell the assets within one year.

Disposal groups are measured at the lower of carrying amount or fair value less costs to sell and are not depreciated or amortized.

When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale.

The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group.

Property and Equipment

8 unchanged sentences

The estimation of fair value is generally measured by discounting expected future cash flows.

No impairment charges were recorded during the three-month periods ended December 31, 2022 or 2021.

No impairment charges were recorded during the three-and six-month periods ended March 31, 2023 or 2022.

Fair Value of Financial Instruments

10 unchanged sentences

These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and September 30, 2022, according to the valuation techniques the Company used to determine their fair values.

Fair Value Measurement on December 31, 2022

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2023 and September 30, 2022, according to the valuation techniques the Company used to determine their fair values.

Fair Value Measurement on March 31, 2023

Quoted Price in

23 unchanged sentences

Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract.

whereby the transfer of the goods or services is separately identifiable from other promises in the contract.

Most of our revenue is derived from purchases under which we provide a specific product or service and, as a result, there is only one performance obligation.

26 unchanged sentences

The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue.

The aggregate impact of adjustments in contract estimates did not change our revenue and operating earnings (and diluted earnings per share) for the three-month periods ended December 31, 2022 and 2021, respectively.

The aggregate impact of adjustments in contract estimates did not change our revenue and operating earnings (and diluted earnings per share) for the three-and six-month periods ended March 31, 2023 and 2022, respectively.

Contract Balances

7 unchanged sentences

Increases due to invoicing prior to satisfaction of performance obligations

December 31, 2022

March 31, 2023

Customer Service Revenue

1 unchanged sentence

The Company’s customer service revenue and cost of sales are included in product sales and product cost of sales, respectively, on the accompanying consolidated statements of operations.

The Company’s customer service revenue and cost of sales for the three-month periods ended December 31, 2022 and 2021 respectively are as follows:

For the Three Months Ended December 31,

The Company’s customer service revenue and cost of sales for the three-and six-month periods ended March 31, 2023 and 2022 respectively are as follows:

For the Three Months Ended March 31,

For the Six Months Ended March 31,

Customer Service Sales

17 unchanged sentences

both prudent and feasible.

For the quarter ended June 30, 2021, the valuation allowance was released for all federal and some state deferred tax assets.

This release both increased the deferred tax asset and removed the valuation allowance.

The Company will continue to assess all available evidence during future periods to evaluate any changes to the realization of its deferred tax assets.If the Company were to determine that it would be able to realize additional state deferred tax assets in the future, it would make an adjustment to the valuation allowance which would reduce the provision for income taxes.

14 unchanged sentences

The Company invests a significant percentage of its sales on engineering development, both Research & Development (“R&D”) and EDC.

At December 31, 2022, approximately 21 % of the Company’s employees were engineers engaged in various engineering development projects.

At March 31, 2023, approximately 22 % of the Company’s employees were engineers engaged in various engineering development projects.

Total engineering development expense comprises both internally funded R&D and product development and design charges related to specific customer contracts.

7 unchanged sentences

Pursuant to FASB ASC Topic 220, “Comprehensive Income,” the Company is required to classify items of other comprehensive income by their nature in a financial statement and display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of its consolidated balance sheets.

For the three-month periods ended December 31, 2022 and 2021, comprehensive income consisted of net income only, and there were no items of other comprehensive income for any of the periods presented.

For the three-and six-month periods ended March 31, 2023 and 2022, comprehensive income consisted of net income only, and there were no items of other comprehensive income for any of the periods presented.

Share-Based Compensation

22 unchanged sentences

Liabilities associated with the risks that are retained by the Company are estimated based upon actuarial assumptions such as historical claims experience and demographic factors.

The Company estimated the total medical claims incurred but not reported and the Company believes that it has adequate reserves for these claims at December 31, 2022 and September 30, 2022, respectively.

The Company estimated the total medical claims incurred but not reported and the Company believes that it has adequate reserves for these claims at March 31, 2023 and September 30, 2022, respectively.

However, the actual value of such claims could be significantly affected if future occurrences and claims differ from these assumptions.

At December 31, 2022 and September 30, 2022, the estimated liability for medical claims incurred but not reported was $ 48,146 and $ 51,590 , respectively.

The Company has recorded the excess of funded premiums over estimated claims incurred but not reported of $ 505,776 and $ 424,155 as a current asset in the accompanying consolidated balance sheets as of December 31, 2022 and September 30, 2022, respectively.

At March 31, 2023 and September 30, 2022, the estimated liability for medical claims incurred but not reported was $ 45,632 and $ 51,590 , respectively.

The Company has recorded the excess of funded premiums over estimated claims incurred but not reported of $ 464,373 and $ 424,155 as a current asset in the accompanying consolidated balance sheets as of March 31, 2023 and September 30, 2022, respectively.

Concentrations

Major Customers and Products

In the three-month period ended December 31, 2022, three customers, Pilatus Aircraft Ltd (“Pilatus”), Air Transport Services Group, and Textron Aviation, Inc.

In the three-month period ended March 31, 2023, four customers, Pilatus Aircraft Ltd (“Pilatus”), Challenge Airlines, Air Transport Services Group and Textron Aviation, Inc.

(“Textron”), accounted for 21 %, 18 %, 16 % and 10 % of net sales, respectively.

In the three-month period ended December 31, 2021, two customers, Air Transport Services Group, and Pilatus, accounted for 25 %, and 24 % of net sales, respectively.

In the six-month period ended March 31, 2023, four customers, Pilatus, Air Transport Services Group, Textron and Challenge Airlines, accounted for 29 %, 15 %, 11 % and 10 % of net sales, respectively.

In the three-month period ended March 31, 2022, three customers, Pilatus, Amazon.com and Textron, accounted for 29 %, 11 % and 10 % of net sales, respectively.

In the six-month period ended March 31, 2022, two customers, Pilatus, and Air Transport Services Group, accounted for 26 %, and 13 % of net sales, respectively.

Major Suppliers

1 unchanged sentence

Although there are a limited number of suppliers of particular components, management believes other suppliers could provide similar components on comparable terms.

For the three-month period ended December 31, 2022, the Company had two suppliers, respectively that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three-month period ended December 31, 2021, the Company had two suppliers that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three- and six-month periods ended March 31, 2023, the Company had three and four suppliers, respectively that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

For the three- and six-month periods ended March 31, 2022, the Company had three suppliers that were individually responsible for greater than 10% of the Company’s total inventory related purchases.

Concentration of Credit Risk

12 unchanged sentences

The adoption of this standard is not expected to have a material impact on our consolidated financial statements or related disclosures.

In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes ” (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”), and clarifies certain aspects of ASC 740 to promote consistency among reporting entities.

We adopted this update effective October 1, 2021.

The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures.

Supplemental Balance Sheet Disclosures

12 unchanged sentences

Computer equipment

Corporate airplanes

Corporate airplane

Furniture and office equipment

3 unchanged sentences

( 11,934,113 )

Depreciation and amortization related to property and equipment was $ 85,409 and $ 92,372 for the three-month periods ended December 31, 2022 and 2021, respectively.

Depreciation and amortization related to property and equipment was $ 85,981 and $ 88,122 for the three-month periods ended March 31, 2023 and 2022, respectively.

The corporate airplane is utilized primarily in support of product development.

Depreciation and amortization related to property and equipment was approximately $ 171,390 and $ 180,494 for the six-month periods ended March 31, 2023 and 2022, respectively.

Other assets consist of the following:

September 30,

Intangible assets, net of accumulated amortization of $ 636,158 at December 31, 2022 and September 30, 2022

Intangible assets, net of accumulated amortization of $ 636,158 at March 31, 2023 and September 30, 2022

Operating lease right-of-use asset

1 unchanged sentence

Intangible assets consist of licensing and certification rights which are amortized over a defined number of units.

No impairment charges were recorded in the three-month periods ended December 31, 2022 and 2021.

Intangible asset amortization expense was $ 0 for the three-month periods ended December 31, 2022 and 2021, respectively.

No impairment charges were recorded in the six-month periods ended March 31, 2023 and 2022.

Intangible asset amortization expense was $ 0 and $ 1,063 for the three-month periods ended March 31, 2023 and 2022, respectively.

Intangible asset amortization expense was $ 0 and $ 1,063 for the six-month periods ended March 31, 2023 and 2022, respectively.

The timing of future amortization expense is not determinable because the intangible assets are being amortized over a defined number of units.

Other non-current assets as of December 31, 2022 and September 30, 2022 include the security deposit for an airplane hangar and a deposit for medical claims required under the Company’s medical plan.

Other non-current assets as of March 31, 2023 and September 30, 2022 include the security deposit for an airplane hangar, supplier credit from one of our suppliers and a deposit for medical claims required under the Company’s medical plan.

In addition, other non-current assets as of March 31, 2023 and September 30, 2022 includes $ 47,772 and $ 0 , respectively, of prepaid software licenses that will be earned upon the shipment of a certain product to a customer.

Other non-current assets amortization expense was $ 0 and $ 3,557 for the three-month periods ended March 31, 2023 and 2022, respectively.

Other non-current assets amortization expense was $ 0 and $ 6,577 for the six-month periods ended March 31, 2023 and 2022, respectively.

Accrued expenses

4 unchanged sentences

Operating lease

Warranty cost and accrual information for the three-month period ended December 31, 2022 is highlighted below:

Warranty cost and accrual information for the three-and six-month periods ended March 31, 2023 is highlighted below:

Three Months Ending

December 31, 2022

Six Months Ending

March 31, 2023

Warranty accrual, beginning of period

4 unchanged sentences

If the Company were to determine that it would be able to realize additional state deferred tax assets in the future, it would make an adjustment to the valuation allowance which would reduce the provision for income taxes.

The 2017 Tax Cuts and Jobs Act amended IRC §174 to require that amounts paid or incurred for specified research or experimental expenditures, including software development expenses, be amortized ratably over 60 months for tax years beginning after 2021.

The 2017 Tax Cuts and Jobs Act amended §174 of the U.S.

Internal Revenue Code of 1986, as amended, to require that amounts paid or incurred for specified research or experimental expenditures, including software development expenses, be amortized ratably over 60 months for tax years beginning after 2021.

Under the law change, research and experimental expenditures may no longer be deducted.

1 unchanged sentence

The Company must now amortize these expenses beginning at the mid-point of the tax year in which the expenditures are paid or incurred.

The effective tax rate for the three-month period ended December 31, 2022 was 24.5 % and differs from the statutory tax rate primarily due to permanent items, first quarter discrete adjustments related to stock compensation, and state taxes.

The effective tax rate for the three-month period ended December 31, 2021 was 21.3 % and differs from the statutory tax rate primarily due to permanent items and state taxes.

The effective tax rate for the three-month period ended March 31, 2023 was 19.6 % and differs from the statutory tax rate primarily due to an increased R&D credit, as well as permanent items and state taxes.

The effective tax rate for the three-month period ended March 31, 2022 was 21.4 % and differs from the statutory tax rate primarily due to permanent items and state taxes.

The effective tax rate for the six-month period ended March 31, 2023 was 21.4 % and differs from the statutory tax rate primarily due to an increased R&D credit, as well as permanent items and state taxes.

The effective tax rate for the six-month period ended March 31, 2022 was 21.4 % and differs from the statutory tax rate primarily due to permanent items and state taxes.

Shareholders’ Equity and Share-Based Payments

At December 31, 2022, the Company’s Amended and Restated Articles of Incorporation provides the Company authority to issue 75,000,000 shares of common stock and 10,000,000 shares of preferred stock.

At March 31, 2023, the Company’s Amended and Restated Articles of Incorporation provides the Company authority to issue 75,000,000 shares of common stock and 10,000,000 shares of preferred stock.

Share-Based compensation

6 unchanged sentences

In addition, the 2019 Plan provides that no more than 300,000 shares may be awarded in any calendar year to any employee.

As of December 31, 2022, there were 628,825 shares of common stock available for awards under the 2019 Plan.

As of March 31, 2023, there were 307,905 shares of common stock available for awards under the 2019 Plan.

If any award is forfeited, terminates or otherwise is settled for any reason without an actual distribution of shares to the participant, the related shares of common stock subject to such award will again be available for future grant.

Any shares tendered by a participant in payment of the exercise price of an option or the tax liability with respect to an award (including, in any case, shares withheld from

any such award) will not be available for future grant under the 2019 Plan.

Any shares tendered by a participant in payment of the exercise price of an option or the tax liability with respect to an award (including, in any case, shares withheld from any such award) will not be available for future grant under the 2019 Plan.

If there is any change in the Company’s corporate capitalization, the Compensation Committee must proportionately and equitably adjust the number and kind of shares of common stock which may be issued in connection with future awards, the number and kind of shares of common stock covered by awards then outstanding under the 2019 Plan, the aggregate number and kind of shares of common stock available under the 2019 Plan, any applicable individual limits on the number of shares of common stock available for awards under the 2019 Plan, the exercise or grant price of any award, or if deemed appropriate, make provision for a cash payment with respect to any outstanding award.

In addition, the Compensation Committee may make adjustments in the terms and conditions of any awards, including any performance goals, in recognition of unusual or nonrecurring events affecting the Company or any subsidiary, or in response to changes in applicable laws, regulations, or accounting principles.

The compensation expense related to stock options and awards issued to employees under the 2019 Plan was $ 233,125 and $ 45,591 for the three-month periods ended December 31, 2022 and 2021, respectively.

The compensation expense under the 2019 Plan related to stock awards issued to non-employee members of the Board was $ 50,070 and $ 40,018 for the three-month periods ended December 31, 2022 and 2021, respectively.

Total compensation expense associated with the 2019 Plan was $ 283,195 and $ 85,609 for the three-month periods ended December 31, 2022 and 2021, respectively.

At December 31, 2022, unrecognized compensation expense of $ 0 , related to non-vested stock options under the 2019 Plan, will be recognized.

The compensation expense related to stock options and awards issued to employees under the 2019 Plan was $ 556,673 and $ 789,798 for the three- and six- month periods ended March 31, 2023, respectively.

The compensation expense related to stock options and awards issued to employees under the 2019 Plan was $ 44,594 and $ 90,185 for the three- and six- month periods ended March 31, 2022, respectively.

The compensation expense under the 2019 Plan related to stock awards issued to non-employee members of the Board was $ 176,703 and $ 226,773 for the three- and six-month periods ended March 31, 2023, respectively.

The compensation expense under the 2019 Plan related to stock awards issued to non-employee members of the Board was $ 159,995 for each of the three- and six-month periods ended March 31, 2022, respectively.

Total compensation expense associated with the 2019 Plan was $ 733,376 and $ 204,589 for the three-month periods ended March 31, 2023 and 2022, respectively.

Total compensation expense associated with the 2019 Plan was $ 1,016,571 and $ 250,180 for the six-month periods ended March 31, 2023 and 2022, respectively.

At March 31, 2023, unrecognized compensation expense of approximately $ 370,427 , net of forfeitures, related to non-vested stock options under the 2019 Plan, will be recognized.

Earnings Per Share

Three Months Ended December 31,

Three Months Ended March 31,

Six Months Ended March 31,

Basic weighted average shares

6 unchanged sentences

The number of incremental shares from the assumed exercise of stock options and RSUs is calculated by using the treasury stock method.

As of December 31, 2022 and 2021, there were 0 and 100,000 options to purchase common stock outstanding, respectively, and 7,886 and 0 shares subject to vesting of restricted stock units outstanding, respectively.

As of March 31, 2023 and 2022, there were 25,000 and 100,000 options to purchase common stock outstanding, respectively, and 82,886 and 0 shares subject to vesting of restricted stock units outstanding, respectively.

The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period.

For the three-month periods ended December 31, 2022 and 2021, respectively, 0 and 100,000 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

Commitments and Contingencies

For the three-month periods ended March 31, 2023 and 2022, respectively, 277,520 and 100,000 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the six-month periods ended March 31, 2023 and 2022, respectively, 138,760 and 100,000 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

Contingencies

In the ordinary course of business, the Company is at times subject to various legal proceedings and claims.

The Company does not believe any such matters that are currently pending will, individually or in the aggregate, have a material effect on the results of operations or financial position.

The Company does not believe any such matters that are currently pending will, individually or in aggregate, have a material effect on the results of operations or financial position.

Related Party Transactions

In recent years, the Company has had sales to AML Global Eclipse, LLC, (“Eclipse”), whose principal shareholder is also a principal shareholder in the Company.

Eclipse is a new related party for fiscal year 2022 due to their president acquiring more that 10 % in shares on the company.

Eclipse is a new related party for fiscal year 2022 due to their president acquiring more that 10 % in shares of the company.

Prior balances are disclosed below for comparability.

Sales to Eclipse amounted to $ 0.03 million , $ 0.3 million and $ 0.03 million for the first quarters ended December 31 2022, 2021 and 2020, respectively.

As of December 31, 2022 and 2021, a contract liability to Eclipse was $ 0.01 million and $ 0.3 million, respectively.

Sales to Eclipse amounted to $ 0.04 million and $ 0.22 million for the three-month periods ended March 31, 2023 and 2022, respectively.

Sales to Eclipse amounted to $ 0.08 million and $ 0.52 million for the six month periods ended March 31, 2023 and 2022, respectively.

As of March 31, 2023 and September 30, 2022, a contract liability to Eclipse was $ 0.05 million and $ 0.12 million, respectively.

The Company accounts for leases in accordance with ASU 2016-02 and records “right-of-use” assets and corresponding lease liabilities on the balance sheet for most leases with an initial term of greater than one year.

18 unchanged sentences

In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis over a similar term.

The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheet as of December 31, 2022:

Classification on the Consolidated Balance Sheet on December 31, 2022

The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheet as of March 31, 2023:

Classification on the Consolidated Balance Sheet on March 31, 2023

Operating leases

4 unchanged sentences

Total lease liabilities

Rent expense and cash paid for various operating leases in aggregate are $ 3,669 for the three-month period ended December 31, 2022.

The weighted average remaining lease term is 1.9 years and the weighted average discount rate is 5.0 % as of December 31, 2022.

Future minimum lease payments under operating leases are as follows at December 31, 2022:

Rent expense and cash paid for various operating leases in aggregate are $ 3,669 and $ 7,338 for the three- and six-month periods ended March 31, 2023.

The weighted average remaining lease term is 1.7 years and the weighted average discount rate is 5.0 % as of March 31, 2023.

Future minimum lease payments under operating leases are as follows at March 31, 2023:

Twelve Months

5 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