What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-14 compared with 2022-08-15 · 57 added, 45 removed, 70 unchanged (59% of the section changed)

52 unchanged sentences

Results of operations

Three months ended June 30, 2022 compared to the three months

ended June 30, 2021

For the three months ended June 30, 2022, the

Company had a loss from operations before income taxes of $325,000 compared to a loss from operations before income taxes of $293,000

for the three months ended June 30, 2021.

The increased loss before income taxes of

$32,000 was primarily a result of an increase in Other operating expenses of $40,000 and an increase in Interest and other income of $3,000,

offset by a decrease of compensation and benefits of $5,000 for the three months ended June 30, 2022.

Three months ended September 30, 2022 compared to the three months

ended September 30, 2021

For the three months ended September 30, 2022,

the Company had a loss from operations before income taxes of $262,000 compared to a loss from operations before income taxes of $298,000

for the three months ended September 30, 2021.

The decreased loss before income taxes of

$36,000 was primarily a result of a decrease in Other operating expenses of $20,000, increase in Interest and other income of $15,000,

and a decrease of compensation of $1,000 for the three months ended September 30, 2022.

Compensation and benefits

For the three months ended June 30, 2022, Compensation

and benefits were $113,000 as compared to $118,000 for the three months ended June 30, 2021.

For the three months ended September 30, 2022,

Compensation and benefits were $110,000 as compared to $111,000 for the three months ended September 30, 2021.

Other operating expenses

For the three months ended June 30, 2022, Other

operating expenses were $215,000 as compared to $175,000 for the three months ended June 30, 2021.

For the three months ended September 30, 2022,

Other operating expenses were $167,000 as compared to $187,000 for the three months ended September 30, 2021.

The decreased operating

expenses of $20,000 were primarily the result of decreased insurance expenses of $21,000, increased professional fees of $3,000, and decreased

other expenses of $2,000.

Interest and other income

For the three months ended September 30, 2022,

Interest and other income was $15,000 as compared to zero for the three months ended September 30, 2021.

The increased interest and other

income of $15,000 was primarily the result of the investments in U.S.

Treasury securities and the resulting interest income of $15,000

during the three months ended September 30, 2022.

For the three months

ended June 30, 2022 and 2021, the Company recorded zero and approximately $1,000 income tax expense from operations, respectively.

tax benefit has been recorded in relation to the pre-tax loss for the three months ended June 30, 2022 and 2021, due to a full valuation

allowance to offset any deferred tax asset related to net operating loss carry forwards attributable to the losses.

Six months ended June 30, 2022 compared to the six months ended

June 30, 2021

For the six months ended June 30, 2022, the Company

had a loss from operations before income taxes of $639,000 compared to a loss from operations before income taxes of $542,000 for the

six months ended June 30, 2021.

ended September 30, 2022 and 2021, the Company recorded zero and approximately $1,000 income tax expense from operations, respectively.

No tax benefit has been recorded in relation to the pre-tax loss for the three months ended September 30, 2022 and 2021, due to a full

valuation allowance to offset any deferred tax asset related to net operating loss carry forwards attributable to the losses.

Nine months ended September 30, 2022 compared to the nine months

ended September 30, 2021

For the nine months ended September 30, 2022,

the Company had a loss from operations before income taxes of $901,000 compared to a loss from operations before income taxes of $840,000

for the nine months ended September 30, 2021.

The increased loss before income taxes of

$97,000 was primarily the result of an increase in Other operating expenses of $41,000, and increase Compensation and benefits of $6,000,

$61,000 was primarily the result of an increase in Other operating expenses of $21,000, and increase in Compensation and benefits of $5,000,

offset by a decrease in Interest and other income of $35,000.

Compensation and benefits

For the six months ended June 30, 2022, Compensation

and benefits were $230,000 as compared to $224,000 for the six months ended June 30, 2021.

For the nine months ended September 30, 2022,

Compensation and benefits were $340,000 as compared to $335,000 for the nine months ended September 30, 2021.

The increased Compensation and benefits of $5,000

is the result of an increase in salary expense for the six months ended June 30, 2022 in comparison to the six months ended June 30, 2021.

is the result of an increase in salary expense for the nine months ended September 30, 2022 in comparison to the nine months ended September

Other operating expenses

For the six months ended June 30, 2022, Other

operating expenses were $412,000 as compared to $371,000 for the six months ended June 30, 2021.

The increased operating expenses of $41,000

were primarily the result of increased professional fees of $16,000, increased insurance expenses of $11,000, and increased other expenses

For the nine months ended September 30, 2022,

Other operating expenses were $579,000 as compared to $558,000 for the nine months ended September 30, 2021.

The increased operating expenses

of $21,000 were primarily the result of increased professional fees of $19,000, decreased insurance expenses of $11,000, and increased

other expenses of $13,000.

Interest and other income

For the six months ended June 30, 2022, Interest

and other income was $3,000 as compared to $53,000 for the six months ended June 30, 2021.

The decreased interest and other income of

$50,000 was primarily the result of increased interest income of $3,000, offset by decreased other income due to the extinguishment of

debt of $53,000 during the six months ended June 30, 2021.

For the six months ended

June 30, 2022 and 2021, the Company recorded zero and approximately $1,000 income tax expense from operations, respectively.

No tax benefit

has been recorded in relation to the pre-tax loss for the six months ended June 30, 2022 and 2021, due to a full valuation allowance to

offset any deferred tax asset related to net operating loss carry forwards attributable to the losses.

For the nine months ended September 30, 2022,

Interest and other income was $18,000 as compared to $53,000 for the nine months ended September 30, 2021.

The decreased interest and

other income of $35,000 was primarily the result of the investments in U.S.

Treasury securities and the resulting interest income of $18,000,

offset by decreased other income due to the extinguishment of debt of $53,000 during the nine months ended September 30, 2021.

For the nine months ended

September 30, 2022 and 2021, the Company recorded zero and approximately $2,000 income tax expense from operations, respectively.

benefit has been recorded in relation to the pre-tax loss for the nine months ended September 30, 2022 and 2021, due to a full valuation

allowance to offset any deferred tax asset related to net operating loss carry forwards attributable to the losses.

Financial condition

Liquidity and Capital Resources

At June 30, 2022, the Company had cash and cash

equivalents totaling $4,768,000, which it intends to use to acquire interests in one or more operating

businesses, to fund the Company’s general and administrative expenses, and the directors will also consider alternatives for distributing

some or all of its cash and cash equivalents to stockholders.

The Company believes that its working capital is sufficient to support its

operating requirements through September 30, 2023.

At September 30, 2022, the Company had cash and

cash equivalents totaling $2,068,000, which it intends to use to acquire interests in one or more

operating businesses, to fund the Company’s general and administrative expenses, and the directors will also consider alternatives

for distributing some or all of its cash and cash equivalents to stockholders.

The Company believes that its working capital is sufficient

to support its operating requirements through November 30, 2023.

Cash equivalents represent short-term, highly

2 unchanged sentences

The decrease in cash and cash equivalents of $3,328,000

for the quarter ended June 30, 2022 was primarily the result $580,000 used in operating activities and the repurchase of Treasury stock

for the nine months ended September 30, 2022 was primarily the result of $863,000 used in operating activities, investment in U.S.

Bills of $2,417,000, and the repurchase of Treasury stock for $48,000.

Quantitative and Qualitative Disclosures About Market Risk

1 unchanged sentence

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