What changed in this filing

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Item 7. Management’s Discussion and Analysis

2022-03-04 compared with 2021-03-05 · 83 added, 71 removed, 299 unchanged (34% of the section changed)

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See “CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS” for a discussion of the uncertainties, risks and assumptions associated with these statements.

We develop, manufacture, market and distribute Magnetic Resonance Imaging (“MRI”) compatible medical devices and accessories and services relating to them.

We are a leader in the development of innovative magnetic resonance imaging (“MRI”) compatible medical devices.

We develop, manufacture, market and distribute Magnetic Resonance Imaging (“MRI”) compatible medical devices and accessories, disposables and services relating to them.

We are a leader in the development of innovative MRI compatible medical devices.

We are the only known provider of a non-magnetic intravenous (“IV”) infusion pump system that is specifically designed to be safe for use during MRI procedures.

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Selling cycles for our devices have varied widely and have historically ranged between three and six months in duration with more recent trends lengthening beyond this historical range due to the COVID-19 pandemic.

We also enter into agreements with healthcare supply contracting companies in the U.S., which enable us to sell and distribute our MRidium MRI compatible IV infusion pump system to their member hospitals.

We also enter into agreements with integrated delivery health systems and healthcare supply contracting companies in the U.S.

Our agreements with healthcare supply contracting companies enable us to sell and distribute our products and services to their member hospitals.

Under these agreements, we are required to pay these group purchasing organizations (“GPOs”) a fee of three percent of the sales of our products to their member hospitals.

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Effects of the COVID-19 Pandemic

The COVID-19 global pandemic caused disruption in global supply and distribution channels and dramatically changed the way companies do business.

From the beginning of this global health crisis, our first priority has been the safety and well-being of our employees.

The COVID-19 pandemic, and related governmental and societal responses thereto, continue to cause disruption in global supply and distribution channels and significantly change the way companies manage their business.

From the beginning of this global health crisis, our priority has been the safety and well-being of our employees and continuing to supply our customers with access to our therapeutic and diagnostic device solutions.

We continue to monitor the developments associated with the COVID-19 pandemic and its effects on our employees, customers, supply chain and distribution channels.

The ongoing impact of the pandemic depends on a number of factors including the severity and duration of the pandemic and the extent and severity of the impact on our customers, which is uncertain and unpredictable.

Our future results of operations and cash flows may suffer adverse effects from delays in payments on outstanding accounts receivable, potential manufacturing, distribution and supply chain disruptions and uncertain demand, and effects of any actions we may take to address financial and operational challenges our customers may face.

The ongoing impact of the pandemic depends on several factors including the severity and duration of the pandemic and the extent and severity of the impact on our customers, which is uncertain and unpredictable.

Our future results of operations and cash flows may suffer adverse effects from disruptions in our supply chain and manufacturing operations, delays in payments on outstanding accounts receivable, uncertain demand for our products, and effects of any actions we may take to address financial and operational challenges our customers may face.

Our future results may potentially be heavily determined by global vaccination rates, duration of the pandemic, its geographic spread, further business disruptions and the overall impact on the global economy.

Other risks and uncertainties that we face include, but are not limited to:

● disruptions in our supply chain that may limit our ability to procure materials necessary to manufacture our products or procuring materials at elevated costs resulting in diminished financial results;

● postponement or cancellation of MRI medical procedures and their uncertain return which adversely impacts our business;

● potential temporary or prolonged closure of our office and production facility;

● the health of our employees and ability to meet staffing needs;

● the health of our employees and ability to meet our staffing needs;

● potential new or continued governmental actions that may limit employees’ ability to work;

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● other unanticipated effects that remain unknown.

We are actively managing our response to the COVID-19 pandemic and work with our customers, distributors, vendors, and suppliers and assessing the potential effects to our financial position, results of operations and cash flows.

As of the date of the issuance of these financial statements, the extent to which COVID-19 may materially impact our financial condition, liquidity, or results of operations in future periods remains uncertain.

We are actively managing our response to the COVID-19 pandemic and working with our customers, distributors, vendors, and suppliers and assessing the potential effects to our financial position, results of operations and cash flows.

As of the date of the issuance of these financial statements, the extent to which COVID-19, or its variants, may materially impact our financial condition, liquidity, or results of operations in future periods remains uncertain.

For further information regarding the potential impact of the COVID-19 pandemic on our company, see “Risk Factors” in Item 1A of this report.

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Consequently, we recorded an income tax receivable of approximately $1.4 million as of December 31, 2020.

Application of Critical Accounting Policies

Critical Accounting Policies and Estimates

We prepare our financial statements in conformity with U.S.

The preparation of these financial statements requires us to make estimates and use assumptions that affect the reported amounts of assets, liabilities and

related disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

The preparation of these financial statements requires us to make estimates and use assumptions that affect the reported amounts of assets, liabilities and related disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Actual results could differ from those estimates.

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The extent to which COVID-19 impacts our business and financial results will depend on numerous evolving factors including, but not limited to:

the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions, the speed of the anticipated recovery, access to capital markets, and governmental and business reactions to the pandemic.

the magnitude and duration of COVID-19 and its variants, the extent to which it will impact worldwide macroeconomic conditions, the speed of the anticipated recovery, access to capital markets, and governmental and business reactions to the pandemic.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021, and through the date of the filing of this Annual Report on Form 10-K.

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Our future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to our financial statements in future reporting periods.

Despite our efforts, the ultimate impact of COVID-19 depends on factors beyond our knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects.

As a result, we are unable to estimate the full extent to which COVID-19 will negatively impact our financial results or liquidity.

Despite our efforts, the ultimate impact of COVID-19 depends on factors beyond our knowledge or control, including the duration and severity of variants thereof, as well as third-party actions taken to contain its spread and mitigate its public health effects.

As a result, we are unable to estimate the full extent to which COVID-19 may again negatively impact our financial results or liquidity.

Revenue Recognition

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we sell our products through third-party distributors who resell our products to end users.

For most domestic sales, we enter into agreements with healthcare supply contracting companies, commonly referred to as Group Purchasing Organizations (“GPOs”), which enable us to sell and distribute our products to their member hospitals.

For many domestic sales, we enter into agreements with integrated delivery health systems and healthcare supply contracting companies, commonly referred to as Group Purchasing Organizations (“GPOs”).

GPO agreements enable us to sell and distribute our products to their member hospitals.

Our agreements with GPOs typically include negotiated pricing for all group members established at time of GPO contract execution.

Under these agreements, we are required to pay the GPOs a fee of three percent of the sales of our products to members of the GPO.

We do not sell to GPOs.

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We allocate the transaction price using the relative standalone selling price method.

Customer sale prices for our MRI compatible IV infusion pump systems and related disposables and services are contractually fixed over the GPO contract term.

Customer sale prices for our medical devices and related disposables and services are contractually fixed over the contract term.

We recognize a receivable at the point in time we have an unconditional right to payment.

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Variable Consideration

Most of our sales are subject to 30 to 60-day customer-specified acceptance provisions primarily for purposes of ensuring products were not damaged during the shipping process.

Our sales are typically subject to 30 to 60-day customer-specified acceptance provisions primarily for purposes of ensuring products were not damaged during the shipping process.

Historically, we have experienced immaterial product returns and, when experienced, we typically exchange the affected products with new products.

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We may be exposed to a number of factors that could result in portions of our inventory becoming either obsolete or in excess of anticipated usage.

These factors include, but are not limited to, technological changes, competitive pressures in products and prices, and the introduction of new product lines.

These factors include, but are not limited to, technological changes, competitive pressures in products and prices, and the introduction of new product versions and new products.

We regularly evaluate our ability to realize the value of inventory based on a combination of factors, including historical usage rates, forecasted sales, product life cycles, and market acceptance of new products.

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Treasury yield curve in effect at the time of the grant for instruments with a similar expected life.

We utilize a dividend yield of zero as we have no current intention to pay cash dividends.

Historically, we utilized a dividend yield of zero based on our expectations of not paying cash dividends as of the grant date.

We elect to recognize forfeitures as they occur.

We have not utilized stock options in equity compensation since 2019.

The grant date fair value of our restricted stock units is based on the closing price of our common stock on the date of grant.

The grant date fair value of our Performance-Based Restricted Stock Units (“PSUs”) is based on a Monte Carlo simulation, the closing price of our common stock, and other pertinent factors on the grant date.

Compensation expense for the PSUs is recognized on a straight-line basis over the requisite performance period, which is three years from the grant date.

As stock-based compensation is an important part of our employee compensation reward strategy, we expect the future impact of stock-based compensation expense on our financial results to grow due to additional stock grants and increased headcount.

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Total operating expenses

(Loss) income from operations

Income (loss) from operations

Other income, net

(Loss) income before provision for income taxes

Provision for income tax benefit

Income (loss) before provision for income taxes

Provision for income tax expense (benefit)

Comparison of the Years Ended December 31, 2021 and 2020

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Total revenue

Revenue decreased $(6.8) million, or (17.7) percent, to $31.7 million from $38.5 million for the same period in 2019.

This decrease is primarily due to a decrease in the number of our MRI compatible medical devices that we recognized in revenue, partially offset by higher revenue from our disposables, service and other.

Revenue increased $10.1 million, or 31.8 percent, to $41.8 million from $31.7 million for the same period in 2020.

Revenue from sales in the U.S.

decreased $(6.4) million, or (20.7) percent, to $24.5 million from $30.9 million for the same period in 2019.

Revenue from sales internationally decreased $(0.4) million, or (5.3) percent, to $7.2 million from $7.6 million for the same period in 2019.

increased $9.0 million, or 36.4 percent, to $33.5 million from $24.5 million for the same period in 2020.

Revenue from sales internationally increased $1.1 million, or 16.3 percent, to $8.3 million from $7.2 million for the same period in 2020.

Domestic sales accounted for 80.0 percent of total revenue for the year ended December 31, 2021, compared to 77.4 percent for the same period in 2020.

Revenue from sales of devices decreased $(8.7) million, or (31.1) percent, to $19.1 million from $27.8 million for the same period in 2019.

This decrease was the result of lower revenue from sales of our MRI compatible IV infusion pump systems.

Revenue from sales of devices increased $8.0 million, or 41.6 percent, to $27.1 million from $19.1 million for the same period in 2020.

This increase was the result of higher unit sales of our of our MRI compatible IV infusion pump and patient vital signs monitoring systems.

During the year ended December 31, 2021, we recognized revenue on 385 MRI compatible IV infusion pumps compared to 279 pumps in 2020.

The average selling price for our MRI compatible IV infusion pump systems recognized in

revenue during the year ended December 31, 2020 was approximately $33,600, compared to $34,800 for the same period in 2019.

The decrease in average selling price is the result of higher international unit sales and an unfavorable product sales mix during 2020 when compared to 2019.

The average selling price for our MRI compatible IV infusion pump systems recognized in revenue during the year ended December 31, 2021 was approximately $34,500, compared to $35,600 for the same period in 2020.

The decrease in average selling price is the result of a lower average selling price for domestic sales.

We recognized revenue on 344 MRI compatible patient vital signs monitoring systems during the year ended December 31, 2021, compared to 255 systems for the same period in 2020.

The average selling price for our MRI compatible patient vital signs monitoring systems recognized in revenue was approximately $40,100 during the year ended December 31, 2021, compared to $36,300 for the same period in 2020.

The increase in average selling price is due to higher domestic unit sales, partially offset by an unfavorable product sales mix in 2020 when compared to 2019.

The increase in average selling price is due to higher domestic unit sales and customer price increases.

Revenue from sales of our disposables, service and other increased $2.1 million, or 19.3 percent, to $12.8 million from $10.7 million for the same period in 2020.

Revenue from the amortization of our extended warranty agreements increased $0.1 million, or 1.6 percent, to $1.9 million from $1.8 million for the same period in 2019.

Revenue from the amortization of our extended warranty agreements was consistent at $1.9 million for the years ended December 31, 2021 and 2020.

Cost of Revenue and Gross Profit

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Gross profit percentage

Cost of revenue decreased approximately $(0.7) million, or (7.6) percent, to $8.1 million for the year ended December 31, 2020, from $8.8 million for the same period in 2019.

Gross profit decreased approximately $(6.1) million, or (20.6) percent, to $23.6 million for the year ended December 31, 2020 from $29.7 million for the same period in 2019.

The decrease in cost of revenue and gross profit is primarily due to lower revenue during the year ended December 31, 2020, compared to the same period in 2019.

Cost of revenue increased approximately $1.7 million, or 19.9 percent, to $9.8 million for the year ended December 31, 2021, from $8.1 million for the same period in 2020.

Gross profit increased approximately $8.4 million, or 36.0 percent, to $32.0 million for the year ended December 31, 2021 from $23.6 million for the same period in 2020.

The increase in cost of revenue and gross profit is primarily due to higher revenue during the year ended December 31, 2021, compared to the same period in 2020.

Gross profit margin was 76.6 percent and 74.3 percent for the years ended December 31, 2021 and 2020, respectively.

The decrease in gross profit margin is the result of unfavorable overhead variance adjustments, partially offset by favorable pricing adjustments in 2020 compared to 2019.

The increase in gross profit margin is the result of favorable overhead variance adjustments and higher average selling prices in 2021 compared to 2020.

Operating Expenses

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General and Administrative

General and administrative expense increased approximately $1.8 million, or 17.4 percent, to $12.3 million for the year ended December 31, 2020, from $10.5 million for the same period last year.

This increase is primarily due to higher expenses for stock compensation, and payroll and benefits, partially offset by lower employee recruiting costs, GPO administrative fees and regulatory approval and certification costs.

During the year ended December 31, 2020, the

Company recognized total general and administrative expense of $3.2 million related to our former Chief Executive Officer, of which $2.7 million relates to the separation.

General and administrative expense decreased approximately $(2.5) million, or (20.4) percent, to $9.8 million for the year ended December 31, 2021, from $12.3 million for the same period last year.

This decrease is primarily due to lower expenses for stock compensation, and legal and professional costs, partially offset by higher expenses for regulatory approval and certification costs, and payroll and employee benefits costs.

During the year ended December 31, 2020, the Company recognized total general and administrative expense of $3.2 million related to our former Chief Executive Officer, of which $2.7 million relates to the separation.

Sales and Marketing

Sales and marketing expense increased approximately $0.4 million, or 3.9 percent, to $10.6 million for the year ended December 31, 2021, from $10.2 million for the same period in 2020.

This increase is primarily the result of higher expenses for payroll and benefits, and sales commissions, partially offset by lower sales activities expenses and tradeshow costs during 2020 when compared to 2019.

This increase is primarily the result of higher expenses for sales commissions, sales activities and software costs, partially offset by lower expenses for payroll and benefits.

Research and Development

Research and development expense increased approximately $0.5 million, or 32.8 percent, to $1.9 million for the year ended December 31, 2020, from $1.4 million for the same period in 2019.

This increase is primarily due to higher payroll and benefits expenses and employee recruiting fees, partially offset by lower consulting expenses during 2020 when compared to 2019.

Research and development expense was consistent at $1.9 million for the years ended December 31, 2021 and 2020.

This is primarily due to higher expenses for prototype and consulting costs, offset by lower allocated payroll and benefits costs.

Other Income, Net

Other income, net consists of interest income, foreign currency transactional gains and losses, and other miscellaneous income.

We reported other income of approximately $0.1 million and $0.4 for the years ended December 31, 2020 and 2019, respectively.

We reported other income of approximately $19 thousand and $139 thousand for the years ended December 31, 2021 and 2020, respectively.

This decrease is primarily the result of lower interest income during the year ended December 31, 2021 compared to the same period in 2020.

We recorded a provision for income tax benefit of approximately $(2.0) million and $(0.6) million for the years ended December 31, 2020 and 2019, respectively.

We recorded a provision for income tax expense of approximately $0.5 million for the year ended December 31, 2021, compared to a tax benefit of approximately $(2.0) million for the year ended December 31, 2020.

Our effective tax rate for the year ended December 31, 2021 was 5.2 percent compared to 321.9 percent for the same period in 2020.

The increase in our effective tax rate is primarily the result of a loss before the provision for income taxes, discrete items related to tax benefits associated with the exercise and sale of employee options and vesting of restricted stock units, and the carryback of net operating losses to years prior to the enactment of the Tax Cuts and Jobs Act, as allowable under the Coronavirus Aid, Relief, and Economic Security Act.

These were partially offset by a statutory limitation on the deductibility of certain executive compensation associated with the separation of our former Chief Executive Officer.

The decrease in our effective tax rate is primarily the result of higher income before the provision for income taxes and discrete items related to tax benefits associated with the exercise and sale of employee options and vesting of restricted stock units.

Comparison of the Years Ended December 31, 2020 and 2019

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Total revenue

Revenue increased $8.1 million, or 26.5 percent, to $38.5 million from $30.4 million for the same period in 2018.

This increase is primarily due to an increase in the number of our MRI compatible medical devices that we

recognized in revenue, higher revenue from our disposables, services and other, and a higher average selling price for our infusion pump system.

Revenue decreased $(6.8) million, or (17.7) percent, to $31.7 million from $38.5 million for the same period in 2019.

Revenue from sales in the U.S.

increased $6.4 million, or 26.2 percent, to $30.9 million from $24.5 million for the same period in 2018.

Revenue from sales internationally increased $1.7 million, or 27.9 percent, to $7.6 million from $5.9 million for the same period in 2018.

decreased $(6.4) million, or (20.7) percent, to $24.5 million from $30.9 million for the same period in 2019.

Revenue from sales internationally decreased $(0.4) million, or (5.3) percent, to $7.2 million from $7.6 million for the same period in 2019.

Domestic sales accounted for 77.4 percent of total revenue for the year ended December 31, 2020, compared to 80.3 percent for the same period in 2019.

Revenue from sales of devices increased $6.6 million, or 31.0 percent, to $27.8 million from $21.2 million for the same period in 2018.

Revenue from sales of devices decreased $(8.7) million, or (31.1) percent, to $19.1 million from $27.8 million for the same period in 2019.

This decrease was the result of lower revenue from sales of our MRI compatible IV infusion pump systems.

During the year ended December 31, 2020, we recognized revenue on 279 MRI compatible IV infusion pumps compared to 519 pumps in 2019.

The average selling price for our MRI compatible IV infusion pump systems recognized in revenue during the year ended December 31, 2020 was approximately $33,600, compared to $34,800 for the same period in 2019.

The increase in average selling price is the result of higher domestic unit sales and a favorable product sales mix during 2019 when compared to 2018.

The decrease in average selling price is the result of higher international unit sales and an unfavorable product sales mix during 2020 when compared to 2019.

We recognized revenue on 255 MRI compatible patient vital signs monitoring systems during the year ended December 31, 2020, compared to 278 systems for the same period in 2019.

The average selling price for our MRI compatible patient vital signs monitoring systems recognized in revenue was approximately $36,300 during the year ended December 31, 2020, compared to $34,700 for the same period in 2019.

The decrease in average selling price is due to higher international unit sales in 2019 when compared to 2018.

Revenue from sales of our disposables, services and other increased $1.2 million, or 15.3 percent, to $8.9 million from $7.7 million for the same period in 2018.

The increase in average selling price is due to higher domestic unit sales, partially offset by an unfavorable product sales mix in 2020 when compared to 2019.

Revenue from sales of our disposables, service and other increased $1.8 million, or 20.3 percent, to $10.7 million from $8.9 million for the same period in 2020.

Revenue from the amortization of our extended warranty agreements increased $0.1 million, or 1.6 percent, to $1.9 million from $1.8 million for the same period in 2019.

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Gross profit percentage

Cost of revenue increased approximately $1.6 million, or 22.2 percent, to $8.8 million for the year ended December 31, 2019, from $7.2 million for the same period in 2018.

Gross profit increased approximately $6.5 million, or 27.9 percent, to $29.7 million for the year ended December 31, 2019 from $23.2 million for the same period in 2018.

The increase in cost of revenue and gross profit is due to higher sales during the year ended December 31, 2019, compared to the same period in 2018.

Cost of revenue decreased approximately $(0.7) million, or (7.6) percent, to $8.1 million for the year ended December 31, 2020, from $8.8 million for the same period in 2019.

Gross profit decreased approximately $(6.1) million, or (20.6) percent, to $23.6 million for the year ended December 31, 2020 from $29.7 million for the same period in 2019.

The decrease in cost of revenue and gross profit is primarily due to lower revenue during the year ended December 31, 2020, compared to the same period in 2019.

Gross profit margin was 74.3 percent and 77.1 percent for the years ended December 31, 2020 and 2019, respectively.

The increase in gross profit margin is the result of favorable overhead variance adjustments, partially offset by unfavorable pricing adjustments in 2019 compared to 2018.

The decrease in gross profit margin is the result of unfavorable overhead variance adjustments, partially offset by favorable pricing adjustments in 2020 compared to 2019.

Operating Expenses

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General and administrative expense increased approximately $1.8 million, or 17.4 percent, to $12.3 million for the year ended December 31, 2020, from $10.5 million for the same period last year.

This increase is primarily due to higher expenses for payroll and benefits, legal and professional costs, employee relocation and recruiting costs, regulatory approval and certification costs, GPO administrative fees due to higher sales and stock compensation expense.

Sales and Marketing

Sales and marketing expense increased approximately $1.0 million, or 10.8 percent, to $10.2 million for the year ended December 31, 2020, from $9.2 million for the same period in 2019.

This is primarily the result of higher salary and commissions expenses resulting from the increased size of our sales team and higher sales during 2019 when compared to 2018.

Research and Development

Research and development expense decreased approximately $(0.1) million, or (5.6) percent, to $1.4 million for the year ended December 31, 2019, from $1.5 million for the same period in 2018.

This is primarily due to lower expenses for payroll and stock compensation expense.

Research and development expense increased approximately $0.5 million, or 32.8 percent, to $1.9 million for the year ended December 31, 2020, from $1.4 million for the same period in 2019.

This increase is primarily due to higher payroll and benefits expenses and employee recruiting fees, partially offset by lower consulting expenses during 2020 when compared to 2019.

Other Income, Net

Other income, net consists of interest income, foreign currency transactional gains and losses, and other miscellaneous income.

We reported other income of approximately $0.4 million and $0.2 for the years ended December 31, 2019 and 2018, respectively.

This increase is primarily the result of higher interest income and gains on maturities of investments during the year ended December 31, 2019 compared to the same period in 2018.

We reported other income of approximately $0.1 million and $0.4 million for the years ended December 31, 2020 and 2019, respectively.

This decrease is primarily the result of lower interest income during the year ended December 31, 2020 compared to the same period in 2019.

We recorded a provision for income tax benefit of approximately $(2.0) million and $(0.6) million for the years ended December 31, 2020 and 2019, respectively.

Our effective tax rate for the year ended December 31, 2020 was 321.9 percent compared to (6.5) percent for the same period in 2019.

The decrease in our provision for income taxes and effective tax rate is primarily the result of discrete items related to tax benefits associated with the exercise and sale of employee options and vesting of restricted stock units.

These were partially offset by a statutory limitation on the deductibility of certain executive compensation associated with the separation of our former Chief Executive Officer.

Liquidity and Capital Resources

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Operating Activities

For the year ended December 31, 2021, cash provided by operations increased $5.5 million to $11.3 million, from $5.8 million in 2020.

During 2021, cash provided by operations was positively impacted by higher net income, stock-based compensation, depreciation and amortization, accrued payroll and benefits, and deferred income taxes.

Cash provided by operations was negatively impacted by prepaid expenses and other current assets, accounts receivable, and prepaid income taxes.

For the year ended December 31, 2020, cash provided by operations decreased $(4.4) million to $5.8 million, from $10.2 million in 2019.

During 2020, cash provided by operations was negatively impacted by lower net income, prepaid expenses and other current assets, income taxes, other accrued taxes, accrued payroll and benefits, and accounts

Cash provided by operations was positively impacted by stock-based compensation, accounts receivable, depreciation and amortization and deferred income taxes.

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Investing Activities

For the year ended December 31, 2021, cash provided by investing activities increased $0.4 million to $0.6 million, from $0.2 million in 2020.

During 2021, cash provided by investing activities was positively impacted by maturities of investments, partially offset by negative impacts from purchases of property and equipment, and capitalized intangible assets.

For the year ended December 31, 2020, cash provided by investing activities decreased $(3.0) million to $0.2 million, from $3.2 million in 2019.

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Financing Activities

For the year ended December 31, 2021, cash provided by financing activities decreased $(0.5) million to $0.0 million, from $0.5 million in 2020.

During 2021, cash provided by financing activities was positively impacted by proceeds from the exercise of stock options, offset by taxes paid for the net share settlement of restricted stock units.

For the year ended December 31, 2020, cash provided by financing activities decreased $(1.5) million to $0.5, from $2.0 million in 2019.

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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-K

Item 7. Management’s Discussion and Analysis