What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-15 compared with 2022-05-16 · 124 added, 80 removed, 181 unchanged (53% of the section changed)

16 unchanged sentences

We believe that our proprietary technology, our architecture, and the technology exclusively available to us through license agreements will offer us advantages both in terms of research and development, as well as the commercial value of our intended product offerings.

We sell access to a quantum computer with 20 algorithmic qubits, and we are in the process of researching and developing technologies for quantum computers with increasing computational capabilities.

We sell access to quantum computers, and we are in the process of researching and developing technologies for quantum computers with increasing computational capabilities.

We currently make access to our quantum computers available via three major cloud platforms, Amazon Web Services’ (AWS) Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, and to select customers via our own cloud service.

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We have incurred significant operating losses since our inception.

Our net losses were $4.2 million for the three months ended March 31, 2022, and we expect to continue to incur significant losses for the foreseeable future.

As of March 31, 2022, we had an accumulated deficit of $150.0 million.

Our net losses were $5.9 million for the six months ended June 30, 2022, and we expect to continue to incur significant losses for the foreseeable future.

As of June 30, 2022, we had an accumulated deficit of $151.7 million.

We expect to continue to incur losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve increasingly higher number of stable qubits and higher levels of fidelity than that which presently exists— prerequisites for quantum computing to reach broad quantum advantage.

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and Legacy IonQ changed its name to IonQ Quantum, Inc.

IonQ became the successor registrant with the SEC, meaning that Legacy IonQ’s financial statements for previous periods will be disclosed in the registrant’s future periodic reports filed with the SEC.

IonQ became the successor registrant with the SEC, meaning that Legacy IonQ’s financial statements for previous periods are disclosed in the registrant’s future periodic reports filed with the SEC.

While the legal acquirer in the Merger Agreement is dMY, for financial accounting and reporting purposes under accounting principles generally accepted in the United States of America (“U.S.

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Business and Technical Highlights

Announced a major commercial deal with Hyundai Motor Company to develop quantum algorithms that may improve the charging, discharging, durability, capacity, and safety of electric vehicle batteries.

Highlighted our collaboration with Oak Ridge National Laboratory to research metal hydrides, which can benefit the development of technologies including batteries and hydrogen storage for hydrogen powered vehicles.

Announced that the IonQ Aria system achieved a record 20 algorithmic qubits, representing a massive leap forward not just for IonQ.

Announced that IonQ Aria will soon be accessible on Microsoft Azure’s Quantum Cloud, bringing the world’s most powerful quantum computer out of private beta and giving full access to the public.

This will enable developers everywhere to learn about and begin leveraging quantum and demonstrates our dedication to spearheading access in the industry.

Recent results showed that IonQ’s new barium qubits are already delivering on their promise of more accurate quantum computing with a 13-fold reduction in state preparation and measurement errors.

Secured a sustainable, perpetual source of barium qubits through a partnership with the U.S.

Department of Energy’s Pacific Northwest National Laboratory (PNNL).

Announced the invention of a new family of quantum gates in collaboration with the Duke Quantum Center (DQC) at Duke University.

We believe these new gates will eventually lead to more efficient quantum algorithms requiring many fewer qubits.

Importantly, the gates can only be run using the unique architecture employed by IonQ and DQC systems.

We were part of a group of private companies and universities that received a research and development award from DARPA to fund a quantum algorithms benchmarking project.

While contracting is still being finalized, we are the only quantum hardware maker selected for this multi-year award.

In May 2022, we announced that the team has completed construction on IonQ Forte, the next generation in IonQ’s series of quantum computers.

Forte is a ytterbium system that uses IonQ’s in-house ion trap chip.

The system incorporates a new beam-steering technology for the lasers that control its qubits and is designed to allow IonQ to work with larger numbers of qubits and deliver stable beams which we believe can more precisely address and encode those qubits.

Forte is expected to launch with select developer, partner, and research access in the second half of this year and broader customer access in 2023.

Named as one of TIME’s 100 Most Influential Companies, honoring IonQ in the “New Frontiers” category for the Company’s impact across the globe.

Hired world-class talent, with key positions filled by Laurie Babinski as General Counsel and Secretary (Intuit’s Credit Karma) and Anant Sanchetee as Senior Director of Marketing (Meta, Dreem).

IonQ announced a paid contract with Airbus, who is using Aria to explore optimization problems that are core to their aerospace business, such as how to efficiently load cargo on aircraft.

IonQ expects that the quantum algorithm it is developing with Airbus will account for a number of critical aviation variables that make this problem particularly difficult for classical algorithms to solve.

IonQ announced a paid contract with Dow, a global leader in chemistry and material science, who is using Aria to explore the boundaries of quantum computing in materials discovery research.

They join other customers who are partnering with IonQ to explore the intersection of quantum machine learning, material science, and chemistry.

IonQ announced the results of a partnership with GE Research to develop a quantum algorithm that manages financial risk exposure.

The work used a large data set to generate risk models across up to four variables and is broadly applicable to industries which have risk-management needs, such as finance, insurance, and supply chain management.

Aria, which IonQ believes to be the most powerful commercial quantum computer in the world with 23 algorithmic qubits, which will be available tomorrow to all users of Microsoft Azure Quantum.

This announcement furthers IonQ’s commitment to making its industry-leading hardware publicly accessible to current and future generations of quantum programmers

IonQ signed a formal agreement to collaborate with the University of Maryland on a project for the National Science Foundation.

For this, IonQ will build and host a quantum router as a part of a new quantum network–the Mid-Atlantic Region Quantum Internet—spanning UMD’s campus and surrounding area.

The work is not only important for quantum communications, but also continues IonQ’s work towards connecting multiple quantum computers together to form even more powerful systems.

IonQ finalized a subcontract with Zapata Computing to collaborate on a multi-million dollar DARPA project.

Aria has increased its computational power by approximately 8x, now reaching #AQ 23, up from #AQ 20.

Aria will become IonQ’s newest cloud offering, representing more than a 130,000x increase in computational power from the existing offering.

IonQ announced an 8x increase in the computation power of IonQ Harmony, which has achieved up to #AQ 9, up from a previous benchmark of #AQ 6.

Harmony systems are available to customers via all three major cloud partners, including Microsoft Azure, Amazon Web Services, and Google Cloud.

IonQ is investing in cutting-edge research on natural language processing, or NLP.

IonQ created quantum NLP algorithms to represent linguistic qualities like ambiguity, vagueness, and novelty which are notoriously difficult to represent in classical compute.

No previously published work has demonstrated ambiguity resolution or language generation working on live quantum hardware.

IonQ believes quantum techniques of this nature can dramatically improve NLP performance.

IonQ has identified a facility in Seattle, Washington to host its first assembly lines for manufacturing quantum computers.

IonQ announced the hire of Dave Mehuys as Vice President of Product Engineering to support its production plans.

Mehuys comes to IonQ after serving as Vice President of Systems Engineering at PsiQuantum and brings with him a deep understanding of quantum hardware.

IonQ announced the creation of IonQ GmbH and IonQ Israel Ltd in support of growing regional investments in quantum computing.

IonQ welcomed Kathy Chou to the IonQ Board of Directors in July 2022.

Chou is currently the Senior Vice President of SaaS Engineering at Nutanix, and brings a wealth of experience in go-to-market strategy and developing and deploying SaaS applications.

Impact of COVID-19 on Our Business

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The change in fair value of warrant liabilities consists of mark-to-market fair value adjustments recorded associated with the public warrants assumed as part of the business combination.

Interest income, net

Interest income, net consists of income earned on our money market funds and other available-for-sale investments.

Other income (expense), net

Other income (expense), net consists of income earned on our money market funds and other available-for-sale investments, offset by certain other expenses.

Other income (expense), net consists of realized losses on our available-for-sale investments and certain other expenses.

Results of Operations

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Three Months Ended

Six Months Ended

(in thousands)

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Change in fair value of warrant liabilities

Interest income, net

Other income (expense), net

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Three Months Ended

Six Months Ended

(in thousands)

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General and administrative

Comparison of the Three Months Ended March 31, 2022 and 2021

Three Months Ended March 31,

Comparison of the Three Months Ended June 30, 2022 and 2021

Three Months Ended June 30,

(in thousands)

Revenue increased by $1.8 million, or 1,462%, to $2.0 million for the three months ended March 31, 2022, from $0.1 million for the three months ended March 31, 2021.

The increase was primarily driven by three new revenue contracts under which we provided services during the three months ended March 31, 2022.

Revenue increased by $2.5 million, or 2,704%, to $2.6 million for the three months ended June 30, 2022, from $0.1 million for the three months ended June 30, 2021.

The increase was primarily driven by new revenue contracts under which we provided services during the three months ended June 30, 2022, as well as an increase in services provided through our cloud service providers.

Cost of revenue

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

Cost of revenue (excluding depreciation and amortization)

Cost of revenue increased by $0.4 million, or 214%, to $0.6 million for the three months ended March 31, 2022, from $0.2 million for the three months ended March 31, 2021.

The increase was driven by the increase in costs to service active contracts for the three months ended March 31, 2022.

Cost of revenue increased by $0.4 million, or 127%, to $0.7 million for the three months ended June 30, 2022, from $0.3 million for the three months ended June 30, 2021.

The increase was driven by the increase in costs to service new contracts for the three months ended June 30, 2022.

Research and development

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

Research and development

Research and development expenses increased by $3.7 million, or 101%, to $7.3 million for the three months ended March 31, 2022, from $3.7 million for the three months ended March 31, 2021.

Research and development expenses increased by $4.2 million, or 76%, to $9.7 million for the three months ended June 30, 2022, from $5.5 million for the three months ended June 30, 2021.

The increase was primarily driven by a $2.5 million increase in payroll-related expenses, including stock-based compensation of $1.7 million, as a result of increased headcount, and a $1.5 million increase in materials, supplies and equipment costs.

Sales and marketing

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

Sales and marketing

Sales and marketing expenses increased by $1.6 million, or 724%, to $1.9 million for the three months ended March 31, 2022, from $0.2 million for the three months ended March 31, 2021.

Sales and marketing expenses increased by $1.3 million, or 145%, to $2.1 million for the three months ended June 30, 2022, from $0.9 million for the three months ended June 30, 2021.

The increase was primarily due to an increase of $1.0 million of payroll-related expenses, including an increase in stock-based compensation of $0.5 million, as a result of increased headcount, and increased costs to promote our services and other marketing initiatives of approximately $0.3 million.

General and administrative

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

General and administrative

General and administrative expenses increased by $6.2 million, or 211%, to $9.2 million for the three months ended March 31, 2022 from $3.0 million for the three months ended March 31, 2021.

The increase was primarily driven by an increase of $4.4 million in payroll-related expenses, including an increase in stock-based compensation of $3.8 million, primarily due to the issuance of equity awards during the period, and an increase of $1.1 million in director and officer insurance costs.

General and administrative expenses increased by $4.7 million, or 160%, to $7.6 million for the three months ended June 30, 2022, from $2.9 million for the three months ended June 30, 2021.

The increase was primarily driven by an increase of $1.5 million in payroll-related expenses, including an increase in stock-based compensation of $1.1 million, as a result of increased headcount, and an increase of $1.1 million in director and officer insurance costs.

The remaining increase is primarily due to additional costs incurred to operate as a public company and other general and administrative activities as a result of hiring additional personnel.

Depreciation and amortization

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

Depreciation and amortization

Depreciation and amortization expenses increased by $0.8 million, or 184%, to $1.3 million for the three months ended March 31, 2022, from $0.4 million for the three months ended March 31, 2021.

Depreciation and amortization expenses increased by $0.9 million, or 189%, to $1.5 million for the three months ended June 30, 2022, from $0.5 million for the three months ended June 30, 2021.

The increase was primarily driven by an increase of $0.1 million due to amortization of capitalized internally developed software and an increase of $0.5 million in depreciation expense associated with capitalized quantum computing system costs.

Change in fair value of warrant liabilities

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands)

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The change in fair value of warrant liabilities increased $13.5 million to $13.5 million for the three months ended March 31, 2022, from zero for the three months ended March 31, 2021, as a result of mark-to-market income adjustments recorded for the public warrants assumed as part of the business combination.

Other income (expense), net

Three Months Ended March 31,

The change in fair value of warrant liabilities increased $16.1 million to $16.1 million for the three months ended June 30, 2022, from zero for the three months ended June 30, 2021, as a result of mark-to-market income adjustments recorded for the public warrants assumed as part of the Business Combination.

Interest income, net

Three Months Ended June 30,

(in thousands)

Other income (expense), net

Other income increased by $0.6 million, or 20,200%, to $0.6 million for the three months ended March 31, 2022, from less than $0.1 million for the three months ended March 31, 2021.

The increase was primarily driven by an increase of $0.8 million in interest income earned on our available-for-sale investments, offset by other expenses of $0.2 million.

Interest income, net

NM—Not Meaningful

Interest income, net increased by $1.3 million to $1.3 million for the three months ended June 30, 2022, from zero for the three months ended June 30, 2021.

The increase was primarily driven by interest income earned on our cash equivalents and available-for-sale investments.

Comparison of the Six Months Ended June 30, 2022 and 2021

Six Months Ended June 30,

(in thousands)

Revenue increased by $4.3 million, or 1,992%, to $4.6 million for the six months ended June 30, 2022, from $0.2 million for the six months ended June 30, 2021.

The increase was primarily driven by new revenue contracts under which we provided services during the six months ended June 30, 2022.

Cost of revenue

Six Months Ended June 30,

(in thousands)

Cost of revenue (excluding depreciation and amortization)

Cost of revenue increased by $0.8 million, or 158%, to $1.3 million for the six months ended June 30, 2022, from $0.5 million for the six months ended June 30, 2021.

The increase was driven by the increase in costs to service new contracts for the six months ended June 30, 2022.

Research and development

Six Months Ended June 30,

(in thousands)

Research and development

Research and development expense increased by $7.9 million, or 86%, to $17.0 million for the six months ended June 30, 2022 from $9.1 million for the six months ended June 30, 2021.

The increase was primarily driven by a $4.7 million increase in payroll-related expenses, including an increase in stock-based compensation of $2.9 million, as a result of increased headcount, and a $2.5 million increase in materials, supplies and equipment costs.

Sales and marketing

Six Months Ended June 30,

(in thousands)

Sales and marketing

Sales and marketing expense increased by $2.9 million, or 264%, to $4.0 million for the six months ended June 30, 2022, from $1.1 million for the six months ended June 30, 2021.

The increase was primarily due to an increase of $2.1 million of payroll-related expenses, including an increase in stock-based compensation of $0.6 million, as a result of increased headcount, and increased costs to promote our services and other marketing initiatives of approximately $0.8 million.

General and administrative

Six Months Ended June 30,

(in thousands)

General and administrative

General and administrative expenses increased by $10.9 million, or 186%, to $16.8 million for the six months ended June 30, 2022, from $5.9 million for the six months ended June 30, 2021.

The increase was primarily driven by an increase of $5.9 million in payroll-related expenses, including an increase in stock-based compensation of $4.9 million, as a result of increased headcount, and an increase of $2.2 million in director and officer insurance costs.

The remaining increase is primarily due to additional costs incurred to operate as a public company and other general and administrative activities as a result of hiring additional personnel.

Depreciation and amortization

Six Months Ended June 30,

(in thousands)

Depreciation and amortization

Depreciation and amortization expenses increased by $1.8 million, or 187%, to $2.7 million for the six months ended June 30, 2022, from $0.9 million for the six months ended June 30, 2021.

The increase was primarily driven by an increase of $0.4 million due to amortization of capitalized internally developed software and an increase of $0.9 million in depreciation expense associated with capitalized quantum computing system costs.

Change in fair value of warrant liabilities

Six Months Ended June 30,

(in thousands)

Change in fair value of warrant liabilities

NM—Not Meaningful

The change in fair value of warrant liabilities increased $29.5 million to $29.5 million for the six months ended June 30, 2022, from zero for the six months ended June 30, 2021, as a result of mark-to-market income adjustments recorded for the public warrants assumed as part of the Business Combination.

Interest income, net

Six Months Ended June 30,

(in thousands)

Interest income, net

NM—Not Meaningful

Interest income, net increased by $1.9 million to $1.9 million for the six months ended June 30, 2022, from zero for the six months ended June 30, 2021.

The increase was primarily driven by interest income earned on our cash equivalents and available-for-sale investments.

Liquidity and Capital Resources

As of March 31, 2022, we had cash and cash equivalents of $86.8 million and available-for-sale securities of $499.7 million, with $329.2 million classified as short-term investments and $170.5 million classified as long-term investments.

We believe that our cash, cash equivalents and investments as of March 31, 2022, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months.

As of June 30, 2022, we had cash, cash equivalents and available-for-sale securities of $571.3 million.

We believe that our cash, cash equivalents and investments as of June 30, 2022, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months.

We believe we will meet longer term expected future cash requirements and obligations through a combination of cash flows from operating activities and available funds from our cash, cash equivalents and investment balances.

However, this determination is based upon internal projections and is subject to changes in market and business conditions.

We have incurred losses since our inception, and as of March 31, 2022, we had an accumulated deficit of $150.0 million.

During the three months ended March 31, 2022, we incurred net losses of $4.2 million.

We have incurred losses since our inception, and as of June 30, 2022, we had an accumulated deficit of $151.7 million.

During the six months ended June 30, 2022, we incurred net losses of $5.9 million.

We expect to incur additional losses and higher operating expenses for the foreseeable future.

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We expect to use these investments to fund our strategic operations.

Our primary uses of cash are to fund our operations as we continue to grow our business.

Our primary uses of cash and investments are to fund our operations as we continue to grow our business.

We require a significant amount of cash for expenditures as we invest in ongoing research and development and commercialization of our products.

Until such time as we can generate significant revenue from sales of our QCaaS, if ever, we expect to finance our cash needs through our cash, cash equivalents and investments, as well as equity or debt financings or other capital sources, including potential collaborations and other similar arrangements.

Until such time as we can generate significant revenue from sales of our QCaaS, if ever, we expect to finance our liquidity needs through our cash, cash equivalents and investments, as well as equity or debt financings or other capital sources, including potential collaborations and other similar arrangements.

However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all.

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Other than operating expenses, including our continued investment in our quantum computers, cash requirements for the year ending December 31, 2022, are expected to consist primarily of capital expenditures for corporate facilities.

Our material cash requirements as of March 31, 2022, include operating lease commitments, including the lease of our headquarters in College Park, Maryland.

As of March 31, 2022, we have total operating lease obligations of $6.8 million, with $0.7 million payable within 12 months.

Our material cash requirements as of June 30, 2022, include operating lease commitments, including the lease of our headquarters in College Park, Maryland.

As of June 30, 2022, we have total operating lease obligations of $6.7 million, with $0.7 million payable within 12 months.

The following table summarizes our cash flows for the period indicated:

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

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Our operating cash flows are also affected by our working capital needs to support growth in personnel-related expenditures and fluctuations in accounts payable and other current assets and liabilities.

Net cash used in operating activities during the three months ended March 31, 2022, was $8.3 million, resulting from a net loss of $4.2 million, adjusted for non-cash activity, primarily related to the gain recorded as a result of mark-to-market activity for our public warrants offset by other working capital activities.

Net cash used in operating activities during the six months ended June 30, 2022, was $16.9 million, primarily resulting from a net loss of $5.9 million, adjusted for non-cash activity, primarily related to the gain recorded as a result of mark-to-market activity for our public warrants offset by stock-based compensation and other working capital activities.

The increase in net cash used in operations from the prior year period was primarily related to increased research and development activities, increased compensation costs as a result of hiring personnel and increased costs incurred as a public company.

Net cash used in operating activities during the three months ended March 31, 2021, was $3.9 million, resulting primarily from a net loss of $7.3 million, adjusted for non-cash charges of $0.4 million in depreciation and amortization and $1.4 million in stock-based compensation.

The increase in net cash used in operations from the prior year was primarily related to our increased research and development activities and associated hiring of personnel, partially offset by an increase in accrued expenses primarily driven by legal fees related to the merger with dMY.

Net cash used in operating activities during the six months ended June 30, 2021, was $9.8 million, primarily resulting from a net loss of $17.3 million, adjusted for non-cash activity, primarily related to stock-based compensation, costs associated with research and development arrangements and other working capital activities.

Cash flows from investing activities

Net cash used in investing activities during the three months ended March 31, 2022, was $304.1 million, primarily resulting from purchases of available-for-sale investments of $311.2 million, additions of $2.7 million to property and equipment related to the development of our quantum computing systems, offset by cash received from maturities of available-for-sale investments of $10.4 million.

Net cash used in investing activities during the three months ended March 31, 2021, was $2.2 million, primarily resulting from additions of $1.7 million to property and equipment primarily related to the development of our quantum computing systems, $0.3 million of capitalized internal software development costs, and $0.2 million of intangible assets acquisition costs.

Net cash used in investing activities during the six months ended June 30, 2022, was $339.2 million, primarily resulting from purchases of available-for-sale investments of $403.9 million, additions of $7.0 million to property and equipment related to the development of our quantum computing systems, offset by cash received from sales and maturities of available-for-sale investments of $73.1 million.

Net cash used in investing activities during the six months ended June 30, 2021, was $4.0 million, primarily resulting from additions of $3.0 million to property and equipment related to the development of our quantum computing systems, $0.8 million of capitalized internal software development costs, and $0.2 million of intangible assets acquisition costs.

Cash flows from financing activities

Net cash provided by financing activities during the three months ended March 31, 2022, was $0.1 million, primarily resulting from proceeds from stock options exercised.

Net cash provided by financing activities during the three months ended March 31, 2021, was $5.4 million, primarily resulting from proceeds from stock options exercised.

Net cash provided by financing activities during the six months ended June 30, 2022, was $1.1 million, primarily resulting from proceeds from stock options exercised and tax withholding receipts related to restricted stock units.

Net cash provided by financing activities during the six months ended June 30, 2021, was $5.4 million primarily resulting from proceeds from stock options exercised.

Critical Accounting Estimates

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See Note 2, Summary of Significant Accounting Policies, in the notes to our condensed consolidated financial statements included in Part I, Item I of this Quarterly Report on Form 10-Q for a discussion of recent accounting pronouncements.

Quantitative and Qualitative Disclosures about Market Risk

Interest rate risk

We had cash and cash equivalents of $86.8 million and total investments of $499.7 million as of March 31, 2022.

We hold our cash and cash equivalents for working capital purposes.

Our cash and cash equivalents are held in cash deposits and money market funds.

Our investments are held in commercial paper, corporate notes and bonds, municipal bonds, and U.S.

government and agency securities.

The primary objective of our investment activities is to preserve principal while at the same time maximizing yields without significantly increased risk.

To achieve this object, we invest in highly liquid securities depending on our strategic cash needs.

Due to the nature of these instruments, we believe that we do not have any material exposure to changes in the fair value due to changes in interest rates.

Declines in interest rates, however, would reduce our future interest income.

Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change.

Concentration of Credit Risk

We deposit our cash, cash equivalents and investments with financial institutions, and, at times, such balances may exceed federally insured limits.

Management believes the financial institutions that hold our cash, cash equivalents and investments are financially sound and, accordingly, minimal credit risk exists with respect to cash, cash equivalents and investments.

Emerging Growth Company and Smaller Reporting Company Status

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We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as (i) our voting and non-voting common stock held by nonaffiliates is less than $250.0 million measured on the last business day of our second fiscal quarter or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

Quantitative and Qualitative Disclosures About Market Risk

Not applicable for smaller reporting companies.

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