What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-15 compared with 2022-05-13 · 95 added, 60 removed, 144 unchanged (52% of the section changed)

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our customers and suppliers;

our revenue and the recognition and components thereof;

our revenue trends related thereto, trends related thereto;

and the recognition and components thereof;

our costs and expenses, including capital expenditures;

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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 1,400 issued or pending patents worldwide as of March 31, 2022.

We and our wholly-owned subsidiaries hold more than 1,200 issued or pending patents worldwide as of June 30, 2022.

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 March 31, 2022 was $7.3 million, an increase of $0.1 million, or 2%, compared to the same period in 2021.

Total cost and operating expenses were $3.7 million in the three months ended March 31, 2022, a decrease of $1.0 million, or 21% compared to the same period in 2021.

In the three months ended March 31, 2022, we had net income of $5.1 million, an increase of $3.0 million, or 149.3% compared to same period in 2021.

The following table sets forth our C ondensed Consolidated Statements of Income data as a percentage of total revenues:

Total revenues for the three months ended June 30, 2022 was $8.0 million, a decrease of $3.0 million, or 27%, compared to the same period in 2021.

Total revenues for the six months ended June 30, 2022 was $15.3 million, a decrease of $2.9 million, or 16%, compared to the same period in 2021.

Total cost and operating expenses were $3.9 million in the three months ended June 30, 2022, a decrease of $1.3 million, or 25% compared to the same period in 2021.

Total cost and operating expenses were $7.6 million in the six months ended June 30, 2022, a decrease of $2.3 million, or 23% compared to the same period in 2021.

In the three months ended June 30, 2022, we had a net loss of $1.8 million compared to a net income of $5.3 million in the three months ended June 30, 2021.

In the six months ended June 30, 2022 and 2021 we had net income of $3.3 million and $7.4 million, respectively.

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

Three Months Ended

Per-Unit royalty revenue 75.0 % 81.0 %

June 30, Six Months Ended

2022 2021 2022 2021

Fixed fee license revenue 83 % 82 % 79 % 82 %

Royalty and license 99.0 99.0

Per-unit royalty revenue 16 17 20 17

Total royalty and license revenue 99 99 99 99

Development, services, and other 1 1 1 1

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Operating income 52 53 50 45

Interest and other income 27.8 (5.0)

Income from operations before benefits from (provision for) income taxes 77.0 30.0

Provision for income taxes (7.7) (2.0)

Net income 69.0 % 28.0 %

Interest and other income (loss), net (76) 1 (27) (1)

Income (loss) before benefit from (provision for) income taxes (24) 54 23 44

Benefit from (provision for) income taxes 2 (5) (3) (3)

Net income (loss) (22) % 49 % 20 % 41 %

Our revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue.

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.

A revenue summary for the three months ended March 31, 2022 and 2021 are as follows (in thousands, except for percentages):

Three Months Ended March 31,

Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021

A revenue summary for the three months ended June 30, 2022 and 2021 are as follows (in thousands, except for percentages):

Three Months Ended June 30,

2022 2021 $ Change % Change

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Royalty and license revenue

Per-unit royalty revenue decreased by $0.3 million, or 5%, in the first quarter of 2022 compared to the same period in 2021, primarily caused by a $0.4 million decrease in royalties from mobility licensees and a $0.2 million decrease royalties from automotive licensees partially offset by a $0.3 million increase in royalties from our gaming licensees.

Fixed fee license revenue increased $0.5 million or 37% in in the first quarter of 2022 compared to the same period in 2021 due to a $0.5 million increase in gaming license revenue.

Fixed fee license revenue decreased $0.6 million or 32% in in the second quarter of 2022 compared to the same period in 2021 due to a $0.6 million decrease in automotive license revenue.

Per-unit royalty revenue decreased by $2.4 million, or 26%, in the second quarter of 2022 compared to the same period in 2021, primarily caused by a $2.1 million decrease in royalties from mobility licensees and a $0.6 million decrease in royalties from automotive licensees and a $0.4 million decrease in royalties from gaming licensees.

These decreases were partially offset by a $0.8 million increase in royalties from other 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 March 31, 2022 represented 75%, 16%, and 9%, respectively, of our total revenue as compared to 74%, 19%, and 7%, respectively, for the three months ended March 31, 2021.

Geographically, revenues generated in Asia, North America and Europe for the three months ended June 30, 2022 represented 80%, 13%, and 7%, respectively, of our total revenue as compared to 84%, 8%, and 8%, respectively, for the three months ended June 30, 2021.

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

A revenue summary for the three months ended June 30, 2022 and 2021 are as follows (in thousands, except for percentages):

Six Months Ended June 30,

2022 2021 $ Change % Change

Fixed fee license revenue $ 2,991 $ 3,099 $ (108) (3)%

Per-unit royalty revenue 12,157 14,850 (2,693) (18)%

Total royalty and license revenue 15,148 17,949 (2,801) (16)%

Development, services, and other revenue 143 220 (77) (35)%

Total revenues $ 15,291 $ 18,169 $ (2,878) (16)%

Royalty and license revenue

Fixed fee license revenue was relatively flat in the first half of 2022 compared to the same period in 2021.

Per-unit royalty revenue decreased by $2.7 million, or 18%, in the first half of 2022 compared to the same period in 2021, primarily caused by a $2.5 million decrease in royalties from mobility licensees and a $0.8 million decrease royalties from automotive licensees partially offset by a $0.8 million increase in royalties from other licensees.

Geographically, revenues generated in Asia, North America and Europe for the six months ended June 30, 2022 represented 78%, 15%, and 8%, respectively, of our total revenue as compared to 80%, 12%, and 8%, respectively, for the six months ended June 30, 2021.

Operating Expenses

A summary of operating expenses for the three months ended March 31, 2022 and 2021 are as follows (in thousands, except for percentages):

Three Months Ended March 31,

A summary of operating expenses for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands, except for percentages):

Three Months Ended June 30,

2022 2021 $ Change % Change

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General and administrative 3,304 2,636 668 25 %

Six Months Ended June 30,

2022 2021 $ Change % Change

Sales and marketing $ 704 $ 2,300 $ (1,596) (69) %

Research and development 864 2,639 (1,775) (67) %

General and administrative 6,010 4,860 1,150 24 %

Sales and Marketing - Our sales and marketing expenses primarily consisted of employee compensation and benefits, including stock-based compensation;

sales commissions;

advertising and trade shows;

collateral marketing materials;

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and allocated facilities costs.

Sales and marketing expenses decreased $0.6 million, or 56%, in the first quarter of 2022 as compared to the same period in 2021 primarily due to a $0.5 million decrease in compensation, benefits and other personnel related costs largely attributable to lower headcount and a decrease in stock-based compensation expense.

Sales and marketing expenses decreased $1.0 million, or 82% and $1.6 million, or 69%, in the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

The decreases in Sales and Marketing expenses were

primarily attributable to decreases in compensation, benefits and other personnel related costs due to lower headcount and decreases in stock-based compensation expense.

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

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and allocated facilities costs.

Research and development expenses decreased $0.8 million, or 61%, in the first quarter of 2022 compared to the same period in 2021 primarily due to a $0.7 million decrease in compensation, benefits and other personnel related costs largely attributable to lower headcount and a decrease in stock-based compensation expense.

Research and development expenses decreased $1.0 million, or 73% and $1.8 million, or 67%, in the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

The decreases in Research and Development costs were primarily attributable to decreases in compensation, benefits and other personnel related costs due to lower headcount and decreases in stock-based compensation expense.

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

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and allocated facilities costs.

General and administrative expenses increased $0.5 million, or 22%, in the first quarter of 2022 as compared to the first quarter of 2021 primarily due to a $0.8 million increase in compensation, benefits and other personnel related costs in compensation, benefits and other personnel related costs partially offset by a $0.3 million decrease in legal costs and a $0.1 million decrease due to the non-recurrence of contract termination costs recorded in first quarter of 2021.

The increase in compensation, benefits and other personnel related costs was primarily due to an increase in stock-based compensation expense in the first quarter of 2022 compared to the same period in 2021.

The decrease in legal expense was primarily attributable to reduced activities, as well as a decrease in patent maintenance and prosecution costs.

General and administrative expenses increased $0.7 million, or 25%, in the second quarter of 2022 as compared to the same period in 2021 primarily due to a $0.6 million increase in compensation, benefits and other personnel related costs.

General and administrative expenses increased $1.2 million, or 24%, in the first half of 2022 as compared to the same period in 2021 primarily due to a $1.7 million increase in compensation, benefits and other personnel related costs, a $0.2 million increase in Annual Stockholders' Meeting related costs partially offset by a $0.3 million decrease in legal costs.

The increases in compensation, benefits and other personnel related costs were driven by increases in stock-based compensation expense and higher variable compensation the three and six months ended June 30, 2022 compared to the same periods in 2021.

The decrease in legal expense in the six months ended June 30, 2022 compared to the same period in 2021was primarily attributable to reduced activities, as well as a decrease in patent maintenance and prosecution costs.

We may be required to engage in litigation to protect our IP, in which case our general and administrative expenses could substantially increase reflecting such litigation costs.

Interest and Other Income (Loss)

Interest and Other Income (loss) - Interest and other income consists primarily of interest income from cash and cash equivalents and short-term investments.

Interest and other income (loss) increased $2.4 million during the first quarter of 2022 compared to the first quarter of 2021 primarily driven by a $1.4 million increase in interest and dividend income, a $0.7 million increase in net gains on investments and a $0.2 million increase in foreign currency transaction and translation gains.

The increase in interest and dividend income in the first quarter of 2022 compared to the same period in 2021 primarily was due to higher interest and dividend income from investments as well as interest income from a Korean tax litigation settlement.

The increase in net gains on investments primarily consisted of $2.1 million increase in net unrealized gains on equity investments, a $1.0 million increase in net realized gains on equity investments and a $0.4 million increase in net realized gains on investment in corporate bonds.

These increases were partially offset by a $2.7 million in net unrealized losses on derivative instruments.

Provision For Income Taxes

A summary of provision for income taxes and effective tax rates for the three months ended March 31, 2022 and 2021 are as follows (in thousands):

Three Months Ended March 31,

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.

Interest and other income (loss) decreased $6.1 million during the three months ended June 30, 2022 compared to the same period in 2021 primarily driven by a $7.1 million net loss on marketable securities partially offset by a $1.2 million increase in interest and dividend income.

The net loss on marketable securities for the three months ended June 30, 2022 primarily consisted of $6.9 million in unrealized losses on marketable equity securities and $1.9 million unrealized loss on derivative instruments.

Interest and other income (loss) decreased $3.8 million during the six months ended June 30, 2022 compared to the same period in 2021 primarily driven by a $6.4 million net loss on marketable securities partially offset by a $2.7 million increase in interest and dividend income.

The net loss on marketable securities for the six months ended June 30, 2022 largely consisted of $4.8 million in unrealized loss on marketable equity securities, a $4.6 million net unrealized loss on derivative instruments partially offset by $1.9 million realized in realized gains from derivative instruments and $0.8 million in realized gains from marketable equity securities.

The increase in interest and dividend income in the three and six months ended June 30, 2022 compared to the same periods in 2021 was largely attributable to higher interest and dividend income from investments as well as interest income from a Korean tax litigation settlement.

Benefit From (Provision For) Income Taxes

A summary of benefit from (provision for) income taxes and effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands):

Three Months Ended June 30,

2022 2021 $ Change % Change

Income (loss) before benefit from (provision for) income taxes $ (1,993) $ 5,847

Benefit from (provision for) income taxes 174 (506) 680 (134) %

Effective tax rate (8.7) % (8.7) %

Six Months Ended June 30,

2022 2021 $ Change % Change

Income before provision for income taxes $ 3,644 $ 8,024

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Effective tax rate (10.6) % (8.1) %

Provision for income taxes for the three months ended March 31, 2022 and 2021 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

Benefit from (provision for) income taxes for the three months ended June 30, 2022 and 2021 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

Provision for income taxes for the six months ended June 30, 2022 and 2021 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate.

We continue to maintain a full valuation allowance against all of our federal and state deferred tax assets in the United States as well as federal tax assets in Canada.

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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 a valuation allowance of $27.3 million against certain of our deferred tax assets, including all federal, 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.

We continue to maintain a valuation allowance of against certain of our deferred tax assets, including all federal, 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 March 31, 2022, we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $6.3 million and applicable interest of $0.1 million.

As of June 30, 2022, we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $6.3 million and applicable interest of $0.1 million.

The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $1.3 million.

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All marketable equity securities are stated at market value.

Realized gains and losses on marketable equity securities and marketable debt securities are recorded in Other income (expense), net on the Condensed Consolidated Statements of Income and Other Comprehensive Income.

Unrealized gains and losses on marketable equity securities (including mutual funds) are reported as Other income (expense), net on our Condensed Consolidated Statement of Income and Other Comprehensive Income.

Unrealized gains and losses on marketable equity securities (including mutual funds) are reported as Other income (expense), net on our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss).

Unrealized gains and losses on marketable debt securities reported as a component of Accumulated other comprehensive income on our Condensed Consolidated Balance Sheets .

Cash, cash equivalents and short-term investments

As of March 31, 2022, our cash, cash equivalents, and short-term investments totaled $146.5 million, an increase of $8.6 million from $137.9 million on December 31, 2021.

A summary of select cash flow information for the three months ended March 31, 2022 and 2021 (in thousands):

Three Months Ended

Cash, cash equivalents and short-term investments - As of June 30, 2022, our cash, cash equivalents, and short-term investments totaled $136.9 million, a decrease of $1.1 million from $137.9 million on December 31, 2021.

A summary of select cash flow information for the six months ended June 30, 2022 and 2021 (in thousands):

Six Months Ended June 30,

Net cash provided by operating activities $ 18,639 $ 9,054

Net cash provided by (used in) investing activities $ 4,833 $ (57)

Net cash used in investing activities $ (6,722) $ (88)

Net cash provided by (used in) financing activities $ (6,017) $ 38,786

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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 $11.0 million in the first quarter of 2022, a $6.6 million increase compared to the same period in 2021.

This cash increase was primarily attributable to a $3.0 million increase in net income and a $3.9 million increase due to changes in net operating assets and liabilities partially offset by a $0.3 million decrease resulting from changes in non-cash items.

Net cash provided by operating activities was $18.6 million in the first half of 2022, a $9.6 million increase compared to the same period in 2021.

This cash increase was primarily attributable to a $7.2 million increase from changes in net operating assets and a $6.4 million increase from changes in non-cash items partially offset by a $4.1 million decrease in net income.

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 computer equipment, furniture and leasehold improvements.

Net cash provided by investing activities during the first quarter of 2022 was $4.8 million primarily consisting of $46.7 million in proceeds from selling marketable securities and derivative instruments partially offset by $41.9 million in cash used to purchase marketable securities and in the settlement of derivative instruments.

Net cash used in investing activities during the first quarter of 2021 was $0.1 million consisting of property and equipment purchases.

Net cash used in investing activities during the first half of 2022 was $6.7 million primarily consisting of $80.9 million in cash used to purchase marketable securities and in the settlement of derivative instrument partially offset by $74.1 million in proceeds from selling marketable securities and derivatives.

Net cash used in investing activities during the first half of 2021 was $0.1 million consisting of property and equipment purchases.

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 by financing activities during the first quarter of 2022 was $4.4 million primarily consisting of cash paid for stock repurchases.

Net cash provided by financing activities during the first quarter of 2021 was $38.7 million primarily consisting of $35.9 million of net proceeds from common stock issuances and $2.8 million cash proceeds from stock option exercises and stock purchases under our employee stock purchase plan.

Total cash, cash equivalents, and marketable equity securities were $146.5 million as of March 31, 2022 of which approximately 32%, or $46.4 million, was held by our foreign subsidiaries and subject to repatriation tax effects.

Net cash used by financing activities during the first half of 2022 was $6.0 million primarily consisting of cash paid for stock repurchases.

Net cash provided by financing activities during the first half of 2021 was $38.8 million primarily consisting of $35.8 million of net proceeds from common stock issuances and $3.0 million cash proceeds from stock option exercises and stock purchases under our employee stock purchase plan.

Total cash, cash equivalents, and marketable equity securities were $136.9 million as of June 30, 2022 of which approximately 18%, or $24.8 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.

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The stock repurchase program does not obligate us to repurchase any dollar amount or number of shares, and the program may be suspended or discontinued at any time.

In the first quarter of 2022, we repurchased approximately 34,282 shares of our common stock for $0.2 million at an average cost of $4.89 per share.

As of March 31, 2022, we have $29.8 million available for repurchase under the stock repurchase program.

At March 31, 2022, we had a liability for unrecognized tax benefits totaling $0.3 million, none of which could be payable in cash.

We did not have any other significant non-cancellable purchase commitments as of March 31, 2022.

In the first half of 2022, we repurchased 316,047 shares of our common stock for $1.7 million at an average cost of $5.37 per share.

As of June 30, 2022, we have $28.3 million available for future repurchase under the stock repurchase program.

At June 30, 2022, we had a liability for unrecognized tax benefits totaling $0.2 million, none of which could be payable in cash.

We did not have any other significant non-cancellable purchase commitments as of June 30, 2022.

We anticipate that capital expenditures for property and equipment for the remainder of 2022 will be less than $1.0 million.

While the unprecedented public health and governmental efforts to contain the spread of COVID-19 have created significant uncertainty as to general economic and capital market conditions in 2022 and beyond, as of May 13, 2022, the date of this Quarterly Report on Form 10-Q, we believe we have sufficient capital resources to meet our working capital needs for the next twelve months and beyond.

While the unprecedented public health and governmental efforts to contain the spread of COVID-19 have created significant uncertainty as to general economic and capital market conditions in 2022 and beyond, as of August 15, 2022, the date of this Quarterly Report on Form 10-Q, we believe we have sufficient capital resources to meet our working capital needs for the next twelve months and beyond.

Critical Accounting Estimates

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Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets.

We are not aware of any specific event or circumstance that would require updates to our estimates or judgments or require us to revise the carrying value of our assets or liabilities as of May 13, 2022 the date of issuance of this Quarterly Report on Form 10-Q.

We are not aware of any specific event or circumstance that would require updates to our estimates or judgments or require us to revise the carrying value of our assets or liabilities as of August 15, 2022 the date of issuance of this Quarterly Report on Form 10-Q.

These estimates may change as new events occur and additional information is obtained.

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generally accepted accounting principles (“GAAP”) and our discussion and analysis of our financial condition and operating results require the management to make judgments, assumptions and estimates that affect the amounts reported.

Significant Accounting Policies of the N otes to Condensed Consolidated Financial Statements in Part I, Item 1 herein, which describes the significant accounting policies and methods used in the preparation of our condensed consolidated financial statements.

Significant Accounting Policies of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein, which describes the significant accounting policies and methods used in the preparation of our condensed consolidated financial statements.

Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Recent Accounting Pronouncements

See Note 1 Significant Accounting Policies of the N otes to Condensed Consolidated Financial Statements for information regarding the effect of new accounting pronouncements on our financial statements.

See Note 1 Significant Accounting Policies of the Notes to Condensed Consolidated Financial Statements for information regarding the effect of new accounting pronouncements on our financial statements.

Control and Procedures

Based on their evaluation as of March 31, 2022, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to ensure that the information required to be disclosed by us in this Quarterly Report on Form 10-Q was (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes to internal controls over financial reporting that occurred during the quarter ended March 31, 2022 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Based on their evaluation as of June 30, 2022, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to ensure that the information required to be disclosed by us in this Quarterly Report on Form 10-Q was (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes to internal controls over financial reporting that occurred during the quarter ended June 30, 2022 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all error and all fraud.

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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