What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-08 compared with 2023-11-13 · 58 added, 100 removed, 128 unchanged (55% of the section changed)

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Examples of forward-looking statements include among other things, any expectations, projections, or other characterizations of future events, or circumstances, and include statements regarding:

the continued impact of COVID- 19 on our business, including as to revenue, and potential cost reduction measures, and the continued impact of COVID- 19 on our customers, suppliers, and on the economy in general;

our strategy and our ability to execute our business plan;

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our costs and expenses, including capital expenditures;

our investment of surplus funds and sales of marketable debt securities;

seasonality and demand;

our investment of surplus funds and sales of marketable securities seasonality and demand;

our investment in research and technology development;

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changes in laws and regulations, including with respect to taxes;

our plans and estimates related to and the impact of current and future litigation and arbitration;

our leases, sublease and the timing and income related thereto;

and our dividend, stock repurchase and equity distribution programs.

our plans and estimates related to and the impact of current and future litigation and arbitration and our dividend, stock repurchase and equity distribution programs.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control.

Actual results could differ materially from those projected in the forward-looking statements, therefore we caution you not to place undue reliance on these forward-looking statements.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors contained under Part I, Item 1 A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 22, 2023 and below under Part II, Item 1 A, “Risk Factors.”

Any forward-looking statements made by us in this report speak only as of the date of this report, and we do not intend to update these forward-looking statements after the filing of this report, unless required to do so by applicable law or regulation.

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As other companies follow our leadership in recognizing how important tactile feedback can be in people’s digital lives, we expect the opportunity to license our IP and technologies will continue to expand.

We have adopted a business model under which we offer licenses to our patented technology to our customers to integrate our patented technology into our customers’ products or enhance the functionality of our patented technology.

We have adopted a business model under which we offer licenses to our patented technology to our customers and offer our customers enabling software, related tools and technical assistance related to integrate our patented technology into our customers’ products or enhance the functionality of our patented technology.

Our licenses enable our customers to deploy haptically-enabled devices, content and other offerings, which they typically sell under their own brand names.

We and our wholly-owned subsidiaries hold more than 1,000 issu ed or pending patents worldwide as of September 30, 2023.

We and our wholly-owned subsidiaries hold more than 800 issu ed or pending patents worldwide as of March 31, 2024 .

Our patents cover a wide range of digital technologies and ways in which touch-related technology can be incorporated into and between hardware products and components, systems software, application software, and digital content.

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Results of Operations

Total revenues for the three months ended September 30, 2023 was $ 9.5 million, a decrease of $ 4.5 million, or 32 %, compared to the same period in 2022 .

Total revenues for the nine months ended September 30, 2023 was $ 23.5 million, a decrease of $ 5.8 million, or 20 %, compared to the same period in 2022 .

Total operating expenses were $ 3.0 million in each of the three months ended September 30, 2023 and 2022 .

Total operating expenses were $ 10.6 million in the nine months ended September 30, 2023 flat compared to $ 10.7 million total operating expense in the same period in 2022 .

Net income was $ 2.7 million in the three months ended September 30, 2023 compared to a net income of $ 7.7 million in the same period in 2022 .

Net income was $ 18.0 million and $ 11.0 million i n the nine months ended September 30, 2023 and 2022 , respectively.

Total revenues for the three months ended March 31, 2024 was $ 43.8 million, an increase of $ 36.8 million, or 520 %, compared to the same period in 2023 .

Total operating expenses were $ 27.2 million the three months ended March 31, 2024 , an increase of $ 23.4 million, or 614 %, compared to the same period in 2023 .

Net income was $ 18.7 million in the three months ended March 31, 2024 compared to a net income of $ 8.3 million in the same period in 2023 .

The following table sets forth our Condensed Consolidated Statements of Income and Comprehensive Income data as a percentage of total revenues:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Fixed fee license revenue

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Royalty and license revenue is composed of per unit royalties earned based on usage or net sales by licensees and fixed payment license fees charged for our IP and software.

Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

A revenue summary for the three months ended September 30, 2023 and 2022 is as follows (in thousands, except for percentages):

Three Months Ended September 30,

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

A revenue summary for the three months ended March 31, 2024 and 2023 is as follows (in thousands, except for percentages):

Three Months Ended March 31,

Fixed fee license revenue

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Royalty and license revenue

Fixed fee license revenue decreased by $ 6.5 million, or 84 %, in the third quarter of 2023 compared to the same period in 2022 primarily due to a $ 6.5 million decrease in mobility license revenue.

Per-unit royalty revenue increased by $ 2.0 million, or 32 %, in the third quarter of 2023 compared to the same period in 2022 , primarily due to an $ 1.9 million in crease in royalties from automotive licensees and a $ 0.8 million increase in royalties from gaming licensees partially offset by a $ 0.5 million decrease in royalties from mobility licensees.

Fixed fee license revenue increased by $ 37.5 million in the first quarter of 2024 compared to the same period in 2023 primarily due to an increase in gaming license revenue we recognized in the first quarter of 2024 following the License and Settlement Agreement we entered into with Meta Platforms, Inc., (“Meta”) in February 2024.

Per-unit royalty revenue decreased by $ 0.7 million, or 12 %, in the first quarter of 2024 compared to the same period in 2023 , primarily due to a $1.1 million decrease in royalties from gaming licensees partially offset by a $ 0.5 million increase in royalties from automotive licensees.

We expect royalty and license revenue to continue to be a major component of our future revenue as our technology is included in products and we succeed in our efforts to monetize our IP.

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We also anticipate that our royalty revenue will fluctuate relative to our customers’ unit shipments.

Geographically, revenues generated in Asia, North America and Europe for the three months ended September 30, 2023 represented 68 %, 8 %, and 24 %, respectively, of our total revenue as compared to 43 %, 54 %, and 3 %, respectively, for the three months ended September 30, 2022 .

Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

A revenue summary for the nine months ended September 30, 2023 and 2022 are as follows (in thousands, except for percentages):

Nine Months Ended September 30 ,

Fixed fee license revenue

Per-unit royalty revenue

Total royalty and license revenue

Development, services, and other revenue

Total revenues

Royalty and license revenue

Fixed fee license revenue decreased $ 7.1 million, or 66 %, in the first nine months of 2023 compared to the same period in 2022 primarily attributable to a $ 6.4 million decrease in mobility license revenue and a $ 0.5 million decrease in automotive license revenue.

Per-unit royalty revenue increased by $ 1.4 million, or 7 %, in the first nine months of 2023 compared to the same period in 2022 , primarily caused by a $ 2.0 million increase in royalties from gaming licensees and a $ 2.0 million increase in royalties from automotive licensees partially offset by a $ 2.3 million decrease in royalties from mobility licensees and $ 0.4 million decrease from other licensees.

Geographically, revenues generated in Asia, North America and Europe for the nine months ended September 30, 2023 represented 77 %, 12 %, and 11 %, respectively, of our total revenue as compared to 61 %, 33 %, and 6 %, respectively, for the nine months ended September 30, 2022 .

Geographically, revenues generated in North America, Asia and Europe for the three months ended March 31, 2024 represented 88%, 11%, and 1%, respectively, of our total revenue as compared to 12%, 84%, and 4%, respectively, for the three months ended March 31, 2023 .

Operating Expenses

A summary of operating expenses for the three and nine months ended September 30, 2023 , and 2022 is as follows (in thousands, except for percentages):

Three Months Ended September 30,

Sales and marketing

Research and development

General and administrative

Nine Months Ended September 30,

A summary of operating expenses for the three months ended March 31, 2024 , and 2023 is as follows (in thousands, except for percentages):

Three Months Ended March 31,

Sales and marketing

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marketing costs and allocated facilities costs.

Sales and marketing expenses increased $ 0.1 million, or 30 %, in the three months ended September 30, 2023 compared to the same period in 2022 primarily attributable to a $ 0.1 million increase in compensation, benefits and other personnel-related costs due to an increase in stock-based compensation.

Sales and marketing expenses decreased $ 0.1 million, or 13 %, in the nine months ended September 30, 2023 compared to the same period in 2022 primarily attributable to a decrease in compensation, benefits and other personnel-related costs due to lower headcount partially offset by an increase in stock-based compensation expense.

Research and Development - Our research and development expenses primarily consisted of employee compensation and benefits, including stock-based compensation;

office expense and allocated facilities costs.

Research and development expenses decreased $ 0.2 million, or 88 %, and $ 0.9 million, or 77 % , in the three and nine months ended September 30, 2023 , respectively, compared to the same periods in 2022 .

This decrease was primarily attributable to decreases in compensation, benefits and other personnel-related costs due to lower headcount.

Sales and marketing expenses increased $ 1.2 million in the three months ended March 31, 2024 compared to the same period in 2023 primarily attributable to a $1.3 million increase in compensation, benefits and other personnel-related costs due to an increase in variable compensation and stock-based compensation.

Research and Development - Our research and development expenses primarily consisted of employee compensation and benefits, including stock-based compensation and office expense.

Research and development expenses decreased $ 0.1 million, or 68 %, in the three months ended March 31, 2024 , compared to the same period in 2023 .

This decrease was primarily attributable to decreases in compensation, benefits and other personnel-related costs due to a decrease in severance costs.

General and Administrative - Our general and administrative expenses primarily consisted of employee compensation and benefits including stock-based compensation;

legal other professional fees;

legal and other professional fees;

external legal costs for patents;

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and allocated facilities costs.

General and administrative expense was flat in the three months ended September 30, 2023 compared to the same period in 2022 .

General and administrative expenses increased $ 1.0 million, or 11 %, in the first nine months of 2023 as compared to the same period in 2022 primarily due to a $ 0.7 million increase in compensation, benefits and other personnel related costs and a $ 0.3 million increase in legal costs.

The increase in compensation, benefits and other personnel related costs in the nine months ended September 30, 2023 compared to the same period in 2022 were largely driven by increases in variable compensation and severance costs.

The increase in legal expenses in the three and nine months ended September 30, 2023 compared to the same period in 2022 was largely attributable to an increase in legal consulting costs.

General and administrative expenses increased $ 22.3 million in the three months ended March 31, 2024 as compared to the same period in 2023 primarily due to a $20.8 million increase in legal costs and a $1.7 million increase in compensation, benefits and other personnel related costs.

The increase in compensation, benefits and other personnel related costs in the three months ended March 31, 2024 compared to the same period in 2023 were largely driven by increases in variable compensation partially offset by a decrease in stock-based compensation.

The increase in legal costs in the three months ended March 31, 2024 compared to the same period in 2023 was due to an increase from legal costs related to the Meta litigation.

We are engaged in, and may be required to engage in further, litigation to protect our IP, which may cause our general and administrative expenses to substantially increase reflecting such litigation costs.

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Interest and Other Income (loss) - Interest and other income consists primarily of interest and dividend income from cash and cash equivalents and marketable debt and equity securities, short-term investments realized and unrealized gains (losses) on our marketable equity securities and derivative instruments and realized gains (losses) on our marketable debt securities.

Three Months Ended September 30,

Interest and other income (loss), net

Other income (expense), net

Interest and other income (loss), net

Nine Months Ended September 30,

Three Months Ended March 31,

Interest and other income (loss), net

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Interest and other income (loss), net

Interest and other income (loss) decreased $ 0.2 million during the three months ended September 30, 2023 compared to the same period in 2022 , primarily driven by a $ 1.1 million decrease in net gains from investments in marketable equity securities and derivative instruments partially offset by a $ 0.9 million increase in interest income.

Interest and other income (loss) increase $ 16.7 million during the nine months ended September 30, 2023 , compared to the same period in 2022 , primarily driven by a $ 14.6 million increase in net gains from investments in marketable equity securities and derivative instruments and a 2.2 million increase in interest income.

Other income (expense), net increased $ 0.4 million during the nine months ended September 30, 2023 compared to the same period in 2022 , primarily driven by a $ 0.4 million decrease in net foreign currency translation losses.

A summary of provision for income taxes and effective tax rates for the three and nine months ended September 30, 2023 and 2022 is as follows (in thousands):

Three Months Ended September 30,

Income before provision for income taxes

Provision for income taxes

Effective tax rate

Nine Months Ended September 30,

Interest and other income (loss) increased $ 1.9 million during the three months ended March 31, 2024 compared to the same period in 2023 , primarily driven by a $0.9 million increase in net gains from investments in marketable equity securities and derivative instruments and a $ 0.9 million increase in interest income.

Other income (expense), net decreased $ 0.3 million during the three months ended March 31, 2024 compared to the same period in 2023 , primarily driven by a $ 0.2 million increase in net foreign currency translation losses.

A summary of provision for income taxes and effective tax rates for the three months ended March 31, 2024 and 2023 is as follows (in thousands):

Three Months Ended March 31,

Income before provision for income taxes

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Effective tax rate

Provision for income taxes for the three and nine months ended September 30, 2023 resulted primarily from estimated domestic and foreign taxes included in the calculation of the effective tax rate.

Provision for income taxes for the three months ended September 30, 2022 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

Provision for income taxes for the nine months ended September 30, 2022 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

We maintain a partial valuation allowance against our U.S.

federal deferred tax assets and maintain a full valuation allowance against our U.S.

state and Canadian federal deferred tax assets.

The change in the estimated effective tax rate was mainly driven by higher U.S.

taxable income which was a result of higher U.S.

passive income.

We provided a partial valuation allowance for certain U.S.

federal assets, whose future realization is not more likely than not and continue to maintain full valuation allowance for state and certain foreign deferred tax assets in Canada as a result of uncertainties regarding the realization of the asset balance due to historical losses, the variability of operating results, and uncertainty regarding near term projected results.

Provision for income taxes for the three months ended March 31, 2024 resulted primarily from estimated domestic and foreign taxes included in the calculation of the effective tax rate.

Provision for income taxes for the three months ended March 31, 2023 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

We provided no valuation allowance for federal assets, whose future realization is more likely than not and continue to maintain full valuation allowance for state deferred tax assets in the United States as well as federal tax assets in Canada.

The year-over-year change in provision for income taxes resulted primarily from the change in income from continuing operations across various tax jurisdictions.

We continue to maintain full valuation allowance for state and certain foreign deferred tax assets in the United States and Canada as a result of uncertainties regarding the realization of the asset balance due to historical losses, the variability of operating results, and uncertainty regarding near term projected results.

In the event that we determine the deferred tax assets are realizable based on an assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made.

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We also maintain liabilities for uncertain tax positions.

As of September 30, 2023 , we had unrecognized tax benefits under Accounting Standards Certification (“ASC”) 740 Income Taxes of approximately $ 7.3 million and applicable interest of $ 0.1 million.

As of March 31, 2024 , we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $ 7.5 million, of which $ 4.9 million could be payable in cash.

In addition, interest and penalty $ 0.2 million could also be payable in cash in relation to the unrecognized tax benefits.

The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $ 4.9 million.

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Interest income from certificates of deposit are reported as Interest and other income (loss), net on the Condensed Consolidated Statement of Income and Comprehensive Income.

Cash, cash equivalents and investments-current - As of September 30, 2023 , our cash, cash equivalents, and investments- current totaled $ 150.7 million, an increase of $ 1.0 million from $ 149.7 million on December 31, 2022.

A summary of select cash flow information for the nine months ended September 30, 2023 and 2022 are as follows (in thousands):

Nine Months Ended September 30,

Cash, cash equivalents and investments-current - As of March 31, 2024 , our cash, cash equivalents, and investments- current totaled $ 179.1 million, an increase of $ 18.7 million from $ 160.4 million on December 31, 2023 .

A summary of select cash flow information for the three months ended March 31, 2024 and 2023 are as follows (in thousands):

Three Months Ended March 31,

Net cash provided by operating activities

Net cash used in investing activities

Net cash provided by (used in) investing activities

Net cash used in financing activities

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stock-based compensation expense, deferred income taxes and the effect of changes in operating assets and liabilities.

Net cash provided by operating activities was $ 12.8 million in the nine months ended September 30, 2023 , a $ 19.5 million decrease compared to the same period in 2022 .

This cash decrease was primarily attributable to a $ 14.7 million decrease from changes in non-cash items and $ 11.8 million decrease from changes in net operating assets partially offset by a $ 7.0 million increase in net income.

Net cash provided by operating activities was $ 29.9 million in the three months ended March 31, 2024 , a $ 26.4 million increase compared to the same period in 2023 .

This cash increase was primarily attributable to a $10.0 million increase in net income and $16.9 million increase from changes in net operating assets partially offset by a $0 .9 million decrease in non-cash items.

The increase in cash from changes in net operating assets primarily consisted of $8.5 million increase in deferred revenue resulted from the Nintendo license agreement renewal and $6.1 million increase in income taxes payable.

Cash provided by (used in) investing activities - Our investing activities primarily consist of purchases of marketable securities and other investments and proceeds from disposal of marketable securities and other investments;

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payments made to settle derivative instruments and purchases of property and equipment.

Net cash used in investing activities during the nine months ended September 30, 2023 was $ 19.4 million primarily consisting of $ 167.9 million in cash used to purchase marketable securities and in the settlement of derivative instruments partially offset by $ 148.5 million in proceeds from selling marketable securities and derivatives.

Net cash used in investing activities during the first nine months of 2022 was $ 35.6 million primarily consisting of $ 141.9 million in cash used to purchase marketable securities and in the settlement of derivative instrument partially offset by $ 106.4 million in proceeds from selling marketable securities and derivatives.

Net cash provided in investing activities during the three months ended March 31, 2024 was $ 6.9 million primarily consisting of $48.7 million in proceeds from selling marketable securities and derivatives partially offset by a $40.9 million in cash used to purchase marketable securities and in the settlement of derivative instruments.

Net cash used in investing activities during the three months ended March 31, 2023 was $19.7 million primarily consisting of $56.3 million in cash used to purchase marketable securities and in the settlement of derivative instrument partially offset by $36.6 million in proceeds from selling marketable securities and derivatives.

Cash provided by (used in) financing activities — Our financing activities primarily consist of cash proceeds from issuance of common stock, proceeds from stock option exercises and stock purchases under our employee stock purchase plan and cash paid for repurchases of our common stock.

Net cash used in financing activities during the nine months September 30, 2023 was $ 13.5 million primarily consisting of $ 6.4 million in dividend payments, $ 6.2 million stock repurchases and $ 1.1 million in shares withheld to cover payroll taxes.

Net cash used in financing activities during the nine months ended September 30, 2022 was $ 11.4 million primarily consisting of cash paid for stock repurchases.

Total cash, cash equivalents, and short-term investments were $ 150.7 million as of September 30, 2023 of which approximately 19 %, or $ 33.9 million, was held by our foreign subsidiaries and subject to repatriation tax effects.

Net cash used in financing activities during the three months March 31, 2024 was $ 1.7 million primarily consisting of $1.5 million in dividend payments, and $0.3 million in shares withheld to cover payroll taxes.

Net cash used in financing activities during the three months ended March 31, 2023 was $ 5.2 million primarily consisting of $4.4 million cash paid for stock repurchases and $0.8 million in shares withheld to cover payroll taxes.

Total cash, cash equivalents, and short-term investments were $ 179.1 million as of March 31, 2024 of which approximately 35%, or $63.4 million, was held by our foreign subsidiaries and subject to repatriation tax effects.

Our intent is to permanently reinvest a majority of our earnings from foreign operations, and current plans do not anticipate that we will need funds generated from foreign operations to fund our domestic operations.

On November 14, 2022, our Board of Directors (“Board”) declared a quarterly dividend in the amount of $ 0.03 per share, which was paid on January 30, 2023, to stockholders of record on January 15, 2023.

In addition, on December 29, 2022, our Board declared a special dividend in the amount of $ 0.10 per share, which was paid on January 30, 2023, to stockholders of record on January 15, 2023.

On February 21, 2023, our Board declared a second quarterly dividend, in the amount of $ 0.03 per share, which was paid on April 28, 2023, to stockholders of record on April 13, 2023.

On May 10, 2023, the Board declared a third quarterly dividend in the amount of $ 0.03 per share which was paid on July 28, 2023, to shareholders of record on July 13, 2023.

On August 11, 2023 , the Board declared a quarterly dividend in the amount of $ 0.03 per share, which was paid on October 27 , 2023 to shareholders of record on October 16 , 2023 .

On November 13 , 2023 , our Board declared a quarterly dividend in the amount of $ 0.045 per share , will be payable, subject to any prior revocation, on January 25, 2024 to shareholders of record on January 14, 2024.

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The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews our capital allocation strategy from time-to-time.

On February 21, 2023, the Board declared a quarterly dividend, in the amount of $ 0.03 per share, which was paid on April 28, 2023 to stockholders of record on April 13, 2023.

On February 28, 2024, our Board declared a quarterly dividend in the amount of $ 0.045 per share , which was paid on April 19 , 2024 to shareholders of record on April 12 , 2024.

We may continue to invest in, protect, and defend our extensive IP portfolio, which can result in the use of cash in the event of litigation.

On December 29, 2022, the Board approved a stock repurchase program of up to $ 50.0 million of our common stock for a period of up to twelve months (the “December 2022 Stock Repurchase Program”), which terminated and superseded the stock repurchase program that had been approved by our Board on February 23, 2022.

Any stock repurchases may be made through open market and privately negotiated transactions, at such times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10 b 5 - 1 trading plans adopted in accordance with Rule 10 b 5 - 1 of the Exchange Act.

On December 29, 2022, our Board of Directors ( the “ Board” ) approved a stock repurchase program of up to $ 50.0 million of our common stock for a period of up to twelve months (the “December 2022 Stock Repurchase Program”), which terminated and superseded the stock repurchase program that had been approved by the Board on February 23, 2022.

Additionally, the Board authorized the use of any derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions or other similar transactions or any combination of the foregoing transactions.

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On August 8, 2023, the Board approved an amendment to extend the expiration date of the December 2022 Stock Repurchase Program that was set to expire on December 29, 2023 to December 29, 2024 .

We repurchased 898,757 shares of our common stock for $ 6.2 million at an average purchase price of $ 6.8602 per share during the nine months ended September 30, 2023 .

As of September 30, 2023 , we had $ 43.8 million available for repurchase under the December 2022 Stock Repurchase Program.

We did not have any other significant non-cancellable purchase commitments as of September 30, 2023 .

During 2023, we repurchased 1,217,774 shares of our common stock for $ 8.3 million at an average purchase price of $ 6.77 per share.

We did not repurchase any stock during the three months ended March 31, 2024.

As of March 31, 2024, we had $ 41.7 million available for repurchase under the December 2022 Stock Repurchase Program.

We did not have any other significant non-cancellable purchase commitments as of March 31, 2024 .

We anticipate that capital expenditures for property and equipment for the remainder of 2024 will be less than $ 1.0 million.

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Actual results may differ from these estimates and assumptions.

Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 22, 2023, for a complete discussion of our critical accounting policies and estimates.

Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023 , filed with the SEC on March 11, 2024, for a complete discussion of our critical accounting policies and estimates.

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

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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