What changed in this filing

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Item 2. Management’s Discussion and Analysis

2020-11-16 compared with 2020-08-18 · 78 added, 53 removed, 182 unchanged (42% of the section changed)

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Disruption in the economic and financial conditions primarily from the impact of past terrorist attacks in the United States, threats of future attacks, police and military activities overseas and other disruptive worldwide political and economic events, health pandemics and environmental weather conditions.

We are also subject to other risks detailed from time to time in our other filings with Securities and Exchange Commission and elsewhere in this report.

We are also subject to other risks detailed from time to time in our other filings with the SEC and elsewhere in this report.

Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate.

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Doubtful Accounts Receivable

The Company maintained an allowance in the amount of $316,978 for doubtful accounts receivable at June 30, 2020, and $95,284 at December 31, 2019.

The Company maintained an allowance in the amount of $323,173 for doubtful accounts receivable at September 30, 2020, and $95,284 at December 31, 2019.

The increase in the allowance was mainly due to the increased likelihood of certain uncollectible amounts associated with national brand management customers.

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As a result, during the preliminary purchase price allocation period, which may be up to one year from the asset purchase date, we may record adjustments to the assets acquired.

Transactions w ith a Major Customer

On August 4, 2020, the Company paid the amount of $29,900 representing a deposit on certain inventory of GiftBox.

Transactions with a Major Customer

Transactions with a major customer and related economic dependence information is set forth immediately below and above in Note 2 to the Condensed Consolidated Financial Statements and also in our Annual Report on Form 10-K for the year ended December 31, 2019 (1) following our discussion of Liquidity and Capital Resources, (2) Concentrations of Credit Risk in Note 17 to the Consolidated Financial Statements, and (3) as the fourth item under Risk Factors.

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Foods, a leading broadline distributor.

These sales amounted to $3,188,119 (27% of total sales) and $8,669,200 (62% of total sales) for the three months ended June 30, 2020 and 2019 respectively;

These sales amounted to $10,571,697 (42% of total sales) and $16,210,496 (61% of total sales) for the six months ended June 30, 2020 and 2019 respectively.

These sales amounted to $5,213,917 (46% of total sales) and $8,037,169 (60% of total sales) for the three months ended September 30, 2020 and 2019 respectively;

These sales amounted to $15,785,614 (43% of total sales) and $24,247,665 (60% of total sales) for the nine months ended September 30, 2020 and 2019 respectively.

On January 26, 2015 we executed a contract between Food Innovations, Inc., our wholly-owned subsidiary, and U.S.

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This discussion should be read in conjunction with our consolidated financial statements, the notes thereto and other financial information included elsewhere in the report.

During the three and six months ended June 30, 2020, the world has been in the grip of a coronavirus pandemic which has wreaked havoc on economies world-wide, including in the U.S., which is our primary market.

During the three and nine months ended September 30, 2020, the world has been in the grip of a coronavirus pandemic which has wreaked havoc on economies world-wide, including in the U.S., which is our primary market.

As a result of the pandemic, restaurants, hotels, country clubs, casinos, catering houses and other of our primary customers have either been closed completely or are only partially open with significantly reduced operations.

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Accordingly, we have focused our resources on meeting the growth of e-commerce revenues.

Three Months Ended June 30 , 2020 Compared to Three Months Ended June 30 , 2019

Revenue decreased by $1,927,802 or approximately 13.8% to $11,997,649 for the three months ended June 30, 2020 from $13,925,451 in the prior year.

The decrease in decrease in revenues is primarily attributable to a decrease in specialty foodservice revenues which was driven by the nationwide closures of restaurants and other foodservice establishments related to COVID-19.

Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019

Revenue decreased by $2,231,138 or approximately 16.6% to $11,234,626 for the three months ended September 30, 2020 from $13,465,764 in the prior year.

The decrease in revenues is primarily attributable to a decrease in specialty foodservice revenues which was driven by the nationwide closures of restaurants and other foodservice establishments related to COVID-19.

The decline in specialty foodservice was partially offset with revenues increases mainly associated with e-commerce revenues.

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Our current sales from such markets may be hampered and negatively impacted by any economic tariffs that may be imposed in the United States or in foreign countries.

See “Transactions with Major Customers” and the Securities and Exchange Commission’s (“SEC”) mandated FR-60 disclosures following the “Liquidity and Capital Resources” section for a further discussion of the significant customer concentrations, loss of significant customer, critical accounting policies and estimates, and other factors that could affect future results.

See “Transactions with Major Customers” and the SEC’s mandated FR-60 disclosures following the “Liquidity and Capital Resources” section for a further discussion of the significant customer concentrations, loss of significant customer, critical accounting policies and estimates, and other factors that could affect future results.

Cost of goods sold

Our cost of goods sold for the three months ended June 30, 2020 was $8,677,096, a decrease of $1,185,273 or approximately 12.0% compared to cost of goods sold of $9,862,369 for the three months ended June 30, 2019.

Cost of goods sold is made up of the following expenses for the three months ended June 30, 2020:

Our cost of goods sold for the three months ended September 30, 2020 was $8,367,565, a decrease of $1,496,619 or approximately 15.2% compared to cost of goods sold of $9,864,484 for the three months ended September 30, 2019.

Cost of goods sold is made up of the following expenses for the three months ended September 30, 2020:

cost of goods of specialty, meat, game, cheese, seafood, poultry and other sales categories in the amount of $5,441,823;

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Selling, general, and administrative expenses

Selling, general, and administrative expenses increased by $877,601 or approximately 21.8% to $4,895,430 during the three months ended June 30, 2020 compared to $4,017,829 for the three months ended June 30, 2019.

The increase in selling, general, and administrative expenses was primarily due to increases in payroll and related costs of approximately $535,377, increases in advertising costs of $420,045, increases in professional and legal fees in the amount of $184,118, increases in taxes in the amount of $73,895;

increases in banking and credit card fees of $61,400, and increases in insurance costs of $50,318.

These increases were partially offset by a decrease in depreciation and amortization of $207,950;

a decrease in office, facility, and vehicle costs of $144,706, and a decrease in travel and entertainment costs of $67,617.

Selling, general, and administrative expenses increased by $877,601 or approximately 21.8% to $4,466,631 during the three months ended September 30, 2020 compared to $3,754,012 for the three months ended September 30, 2019.

The increase in selling, general, and administrative expenses was primarily due to increases in payroll and related costs of approximately $468,219, including an increase of $55,646 in share based compensation;

increases in advertising costs of $297,619;

increases in computer and IT costs of $78,265;

increases in banking and credit card fees of $50,414;

increases in office, facilities, and vehicle costs of $44,236;

increases in insurance costs of approximately $29,261;

and increases in taxes of approximately $14,098.

These increases were partially offset by decreases in depreciation and amortization of $164,703;

decreases in travel and entertainment costs of $78,291;

and decreases in legal and professional fees of $44,481.

The increases were driven mainly by additional costs including increases in costs including warehouse fulfillment costs associated with COVID-19, increased costs associated with additional personnel mainly associated with warehouse operations, overall employee costs and insurance costs, increased legal, accounting, facility and IT costs including costs associated with the planned launch of new websites, and significant increased advertising associated with increased spending in digital marketing related to certain of the Company’s e-commerce websites.

Other Leasing Income

During the three months ended September 30, 2020, the Company recognized revenue in the amount of $10,977 in connection with the lease of space in our Mountaintop warehouse facility.

There was no such activity during the prior year.

Gain on Sale of Fixed Assets

During the three months ended September 30, 2019, the Company recognized a gain in the amount of $12,495 in connection with the sale of fixed assets.

There was no comparable transaction during the current period.

Interest expense, net

Interest expense, net of interest income, increased by $67,497 or approximately 291.6% to $90,646 during the three months ended June 30, 2020, compared to $23,149 during the three months ended June 30, 2019.

Interest accrued or paid on the Company’s commercial loans and notes payable increased by $64,429 to $89,221 during the current period, compared to $24,792 during the prior period, primarily due to interest on the Company’s mortgage on the logistics and warehouse facility in Mountaintop, Pennsylvania, which was $33,407 during the three months ended June 30, 2020 compared to $0 during the prior period, and the interest on the credit line with Fifth Third Bank in the amount of $19,118 during the three months ended June 30, 2020, compared to $0 during the prior period.

Interest expense, net of interest income, increased by $37,372 or approximately 215.1% to $54,749 during the three months ended September 30, 2020, compared to $17,377 during the three months ended September 30, 2019.

Interest accrued or paid on the Company’s commercial loans and notes payable increased by $34,216 to $53,310 during the current period, compared to $19,094 during the prior period, primarily due to interest on the Company’s mortgage on the logistics and warehouse facility in Mountaintop, Pennsylvania, which was $39,531 during the three months ended September 30, 2020 compared to $0 during the prior period, and the interest on the credit line with Fifth Third Bank in the amount of $17,889 during the three months ended September 30, 2020, compared to $0 during the prior period.

Interest expense also increased by the amortization of the discount on notes payable, which was $3,157 during the current period, compared to $0 during the comparable period of 2019.

Interest income increased by $1 to $1,718 during the current period compared to $1,717 during the prior period.

Net (loss) income

For the reasons above, the Company had a net loss for the three months ended June 30, 2020 of $(1,654,546) which is an increase of approximately $1,676,650 or 7,585% compared to net income of $22,104 during the three months ended June 30, 2019.

The loss for the three months ended June 30, 2020 includes a total of $272,999 in non-cash charges, including depreciation expense of $117,931 and charges for non-cash compensation in the amount of $155,068.

The income for the three months ended June 30, 2019 includes a total of $421,989 in non-cash charges, including amortization of intangible assets in the amount of $250,567, depreciation expense of $75,314, and non-cash compensation of $96,108.

Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019

Revenue decreased by $1,481,097 or approximately 5.5% to $25,303,569 for the six months ended June 30, 2020 from $26,784,666 in the prior year.

For the reasons above, the Company had a net loss for the three months ended September 30, 2020 of $(1,643,342) which is an increase of approximately $1,485,728 or 942.6% compared to a net loss of $(157,614) during the three months ended September 30, 2019.

The loss for the three months ended September 30, 2020 includes a total of $282,235 in non-cash charges, including depreciation expense of $125,338 and charges for non-cash compensation in the amount of $156,897.

The net lossfor the three months ended September 30, 2019 includes a total of $386,538 in non-cash charges, including amortization of intangible assets in the amount of $210,028, depreciation expense of $80,402, and non-cash compensation of $96,108.

Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019

Revenue decreased by $3,712,235 or approximately 9.2% to $36,538,195 for the nine months ended September 30, 2020 from $40,250,430 in the prior year.

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Our current sales from such markets may be hampered and negatively impacted by any economic tariffs that may be imposed in the United States or in foreign countries.

Cost of goods sold

Our cost of goods sold for the six months ended June 30, 2020 was $18,869,960, an increase of $126,211 or approximately 0.7% compared to cost of goods sold of $18,743,749 for the six months ended June 30, 2019.

Cost of goods sold is made up of the following expenses for the six months ended June 30, 2020:

Our cost of goods sold for the nine months ended September 30, 2020 was $27,237,525, a decrease of $1,370,708 or approximately 4.8% compared to cost of goods sold of $28,608,233 for the nine months ended September 30, 2019.

Cost of goods sold is made up of the following expenses for the nine months ended September 30, 2020:

cost of goods of specialty, meat, game, cheese, seafood, poultry and other sales categories in the amount of $17,343,148, shipping, delivery, handling, and purchase allowance expenses in the amount of $9,368,498, and cost of goods associated with logistics of $525,879.

Total gross margin was approximately 25.5% of sales in 2020 compared to approximately 28.9% of sales in 2019.

The increase in cost of goods sold and the decrease in gross margins from 2019 is primarily attributable to variation in product and revenue mix across our various selling channels including a decrease in higher gross margin revenues associated with National Brand Management and variations in both revenue mix and gross margins associated with foodservice and e-commerce revenues including revenue and margin variations driven by the COVID-19 pandemic.

The decrease in gross margins from 2019 is primarily attributable to variation in product and revenue mix across our various selling channels including a decrease in higher gross margin revenues associated with National Brand Management and variations in both revenue mix and gross margins associated with foodservice and e-commerce revenues including revenue and margin variations driven by the COVID-19 pandemic.

In 2020, we continued to price our products in order to increase sales, gain market share and increase the number of our end users and e-commerce customers.

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As a result of impairment tests, the Company was required by applicable accounting rules to record an impairment of goodwill and intangible assets in the aggregate amount of $1,698,952.

At June 30, 2020, the net carrying value of goodwill and other intangible assets on the Company’s balance sheet is $1,630,822.

At September 30, 2020, the net carrying value of goodwill and other intangible assets on the Company’s balance sheet is $1,630,822.

There was no such comparable charge during the prior period.

Selling, general, and administrative expenses

Selling, general, and administrative expenses increased by $1,701,365 or approximately 21.8% to $9,508,191 during the six months ended June 30, 2020 compared to $7,806,826 for the six months ended June 30, 2019.

The increase in selling, general, and administrative expenses was primarily due to increases in payroll and related costs of approximately $698,696, increases in advertising costs of $551,812, increases in professional and legal fees in the amount of $297,548, an increase in allowance for doubtful accounts of $221,829, increases in insurance costs of $102,854, increases in banking and credit card fees of $100,524, increase in computer and IT costs of $88,856, and increased taxes in the amount of $57,413.

These increases were partially offset by a decrease in depreciation and amortization of $188,590, a decrease in office, facility, and vehicle costs of $113,951, and a decrease in travel and entertainment costs of $106,664.

Selling, general, and administrative expenses increased by $2,413,984 or approximately 20.9% to $13,974,822during the nine months ended September 30, 2020 compared to $11,560,838 for the nine months ended September 30, 2019.

The increase in selling, general, and administrative expenses was primarily due to increases in payroll and related costs of approximately $1,166,915, including an increase of $80,504 in share based compensation;

increases in advertising costs of $849,431;

increases in professional and legal fees in the amount of $253,067;

an increase in allowance for doubtful accounts of $225,318;

increases in computer and IT costs of $167,121;

increases in banking and credit card fees of $150,938;

increases in insurance costs of $131,845;

and increases in taxes of approximately $71,511.

These increases were partially offset by a decrease in depreciation and amortization of $353,293, a decrease in travel and entertainment costs of $184,955, and decreases in office, facility, and vehicle costs of $69,715.

The increases were driven mainly by additional costs including increases in costs including warehouse fulfillment costs associated with COVID-19, increased costs associated with additional personnel mainly related to warehouse operations, overall employee costs and insurance costs, increased legal, accounting, facility and IT costs including costs associated with the planned launch of new websites, and significant increased advertising associated with increased spending in digital marketing related to certain of the Company’s e-commerce websites.

Other Leasing Income

During the nine months ended September 30, 2020, the Company recognized revenue in the amount of $32,833 in connection with the lease of space in our Mountaintop warehouse facility.

There was no such activity during the prior year.

Gain on Sale of Fixed Assets

During the nine months ended September 30, 2019, the Company recognized a gain in the amount of $12,495 in connection with the sale of fixed assets.

There was no comparable transaction during the current period.

Interest expense, net

Interest expense, net of interest income, increased by $108,439 or approximately 223.0% to $157,066 during the six months ended June 30, 2020, compared to $48,627 during the six months ended June 30, 2019.

Interest accrued or paid on the Company’s commercial loans and notes payable increased by $102,428 to $154,216 during the current period, compared to $51,788 during the prior period, primarily due to interest on the Company’s mortgage on the logistics and warehouse facility in Mountaintop, Pennsylvania, which was $74,894 during the six months ended June 30, 2020 compared to $0 during the prior period, and the interest on the credit line with Fifth Third Bank in the amount of $22,604 during the six months ended June 30, 2020, compared to $0 during the prior period.

Interest expense, net of interest income, increased by $145,811 or approximately 220.9% to $211,815 during the nine months ended September 30, 2020, compared to $66,004 during the nine months ended September 30, 2019.

Interest accrued or paid on the Company’s commercial loans and notes payable increased by $136,644 to $207,526 during the current period, compared to $70,882 during the prior period, primarily due to interest on the Company’s mortgage on the logistics and warehouse facility in Mountaintop, Pennsylvania, which was $114,425 during the nine months ended September 30, 2020 compared to $0 during the prior period, and the interest on the credit line with Fifth Third Bank in the amount of $40,493 during the nine months ended September 30, 2020, compared to $0 during the prior period.

Interest expense also increased by the amortization of the discount on notes payable, which was $9,403 during the current period, compared to $0 during the comparable period of 2019.

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Net (loss) income

For the reasons above, the Company had a net loss for the six months ended June 30, 2020 of $(4,908,744) which is an increase of approximately $5,094,208 or 2,747% compared to net income of $185,464 during the six months ended June 30, 2019.

The loss for the six months ended June 30, 2020 includes a total of $2,590,632 in non-cash charges, including impairment of intangible assets in the amount of $1,698,952, uncollectible debt allowance of $221,799, amortization of intangible assets in the amount of $210,032, depreciation expense of $232,433, charges for non-cash compensation in the amount of $221,109, and amortization of the discount on notes payable of $6,246.

The income for the six months ended June 30, 2019 includes a total of $827,338 in non-cash charges, including amortization of intangible assets in the amount of $479,697, depreciation expense of $151,389, and non-cash compensation of $196,252.

Liquidity and Capital Resources at June 30 , 2020

As of June 30, 2020, the Company had current assets of $10,301,805, consisting of cash and cash equivalents of $5,258,069, trade accounts receivable of $1,870,850, inventory of $2,830,047, and other current assets of $342,839.

Also at June 30, 2020, the Company had current liabilities of $7,483,913, consisting of trade payables and accrued liabilities of $3,822,730, accrued interest of $44,259, deferred revenue of $227,821, line of credit of $2,000,000, lease liabilities – operating leases, current portion of $99,972, lease liabilities – financing leases, current portion of $49,666, current portion of contingent liabilities of $187,000, and current portion of notes payable of $1,052,465.

During the six months ended June 30, 2020, the Company had cash used in operating activities of $2,135,462.

For the reasons above, the Company had a net loss for the nine months ended September 30, 2020 of $(6,552,086) which is an increase of approximately $6,579,936 or 23,626% compared to net income of $27,850 during the nine months ended September 30, 2019.

The loss for the nine months ended September 30, 2020 includes a total of $2,879,303 in non-cash charges, including impairment of intangible assets in the amount of $1,698,952, uncollectible debt allowance of $225,138, amortization of intangible assets in the amount of $210,032, depreciation expense of $357,771, charges for non-cash compensation in the amount of $378,006, and amortization of the discount on notes payable of $9,403.

The income for the nine months ended September 30, 2019 includes a total of $1,218,600 in non-cash charges, including amortization of intangible assets in the amount of $689,725, depreciation expense of $231,371, and charges for non-cash compensation in the amount of $297,503.

Liquidity and Capital Resources at September 30, 2020

As of September 30, 2020, the Company had current assets of $9,137,359, consisting of cash and cash equivalents of $3,717,545, trade accounts receivable of $1,792,109, inventory of $3,254,645, and other current assets of $373,060.

Also at September 30, 2020, the Company had current liabilities of $8,217,642, consisting of trade payable and accrued liabilities of $4,049,953, accrued interest of $24,621, deferred revenue of $339,785, line of credit of $2,000,000, lease liabilities – operating leases, current portion of $89,844, lease liabilities – financing leases, current portion of $53,036, current portion of contingent liabilities of $187,000, and current portion of notes payable of $1,473,403.

During the nine months ended September 30, 2020, the Company had cash used in operating activities of $3,573,616.

Cash used in operations consisted of the Company’s consolidated net loss of $(6,552,086) plus non-cash compensation in the amount of $378,006, depreciation and amortization of $567,803, impairment of goodwill and intangible assets of $1,698,952;

amortization of right-of-use asset of $137,712, amortization of prepaid loan fees of $9,403, and provision for doubtful accounts of $226,254.

The Company’s cash position also increased due to a change in the components of current assets and liabilities in the amount of $75,440.

The Company had cash used in investing activities of $104,207 for the six months ended June 30, 2020, which consisted of cash paid for the acquisition of property and equipment of $90,207 and cash paid for website development of $14,000.

The Company had cash flow from financing activities of $3,531,688 for the six months ended June 30, 2020, which consisted of advances on a line of credit in the amount of $2,000,000 and proceeds from the PPP Loan of $1,650,221, partially offset by principal payments made on notes payable of $97,860 and principal payments on financing leases of $20,673.

The Company had net working capital of $2,817,892 as of June 30, 2020.

The Company used cash in operations during the six months ended June 30, 2020 in the amount of $2,135,462.

This compares to cash used in operations of $858,947 during the six months ended June 30, 2019.

The Company’s cash position also decreased due to a change in the components of current assets and liabilities in the amount of $39,660.

The Company had cash used in investing activities of $142,618 for the nine months ended September 30, 2020, which consisted of cash paid for the acquisition of property and equipment of $128,618 and cash paid for website development of $14,000.

The Company had cash flow from financing activities of $3,467,729 for the nine months ended September 30, 2020, which consisted of advances on a line of credit in the amount of $2,000,000 and proceeds from the PPP Loan of $1,650,221, partially offset by principal payments made on notes payable of $149,705 and principal payments on financing leases of $32,787.

The Company had net working capital of $919,717 as of September 30, 2020.

The Company used cash in operations during the nine months ended September 30, 2020 in the amount of $3,573,616.

This compares to cash used in operations of $848,376 during the nine months ended September 30, 2019.

The Company intends to continue to focus on increasing market share and cash flow from operations by focusing its sales activities on specific market segments and new product lines.

As of June 30, 2020, we do not have any material long-term obligations other than those described in Notes 12, 13, and 14 to the financial statements included in this report.

As of September 30, 2020, we do not have any material long-term obligations other than those described in Notes 12, 13, and 14 to the financial statements included in this report.

As we seek to increase our sales of new items and enter new markets, acquire new businesses as well as identify new and other consumer and food service oriented products and services, we may use existing cash reserves, long-term financing, or other means to finance such diversification.

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In any of these events, the Company may be unable to implement its current plans for expansion, repay its debt obligations as they become due or respond to competitive pressures, any of which circumstances would have a material adverse effect on its business, prospects, financial condition and results of operations.

During 2020, in addition to our efforts to increase sales in our existing foodservice operations we plan to attempt to expand our business by expanding our focus to additional specialty foods markets in both the consumer and foodservice sector, exploring potential acquisition and partnership opportunities and continuing to extend our focus in the specialty food market through the growth of the Company’s existing sales channels and through a variety of additional sales channel relationships which are currently being explored.

We are also currently exploring the introduction of a variety of new product categories and new product lines, including private label products and proprietary branded products, including products which could leverage the new capabilities of our facility in Mountaintop PA to leverage our existing foodservice and consumer customer base.

In addition, the COVID-19 pandemic had accelerated shift towards e-commerce channels and we plan on continuing expanding our e-commerce activities through both our existing web properties, the launch or relaunch of additional web properties or e-commerce areas within our existing sites, leveraging our fulfillment capabilities to partner in both wholesale and direct to consumer in the e-commerce area.

During 2020, in addition to our efforts to increase sales in our existing foodservice operations we plan to attempt to expand our business by expanding our focus to additional specialty foods markets in the consumer sector, exploring potential acquisition and partnership opportunities and continuing to extend our focus in the specialty food market through the growth of the Company’s existing sales channels and through a variety of additional sales channel relationships which are currently being explored.

We are also continuing to explore the introduction of a variety of new product categories and new product lines, including private label products and proprietary branded products, including products which could leverage the new capabilities of our facility in Mountaintop PA to leverage our existing foodservice and consumer customer base.

In addition, the COVID-19 pandemic had accelerated shift towards e-commerce channels and we plan on continuing expanding our e-commerce activities through both our existing web properties, and continuing to explore the launch or relaunch of additional web properties or e-commerce areas within our existing sites, leveraging our fulfillment capabilities to partner in both wholesale and direct to consumer in the e-commerce area.

and the expansion of third-party partnerships or other strategic relationships within the e-commerce space.

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In the opinion of management, inflation has not had a material effect on the Company’s financial condition or results of its operations.

The Company’s business and success is subject to numerous risk factors as detailed in its Annual Report on Form 10-K for the year ended December 31, 2019 which is available at no cost at www.sec.gov .

The Company’s business and success is subject to numerous risk factors as detailed in its Annual Report on Form 10-K for the year ended December 31, 2019 and other of its Current Reports on Form 8-K all of which reports are available at no cost at www.sec.gov .

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