What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-19 · 166 added, 57 removed, 177 unchanged (56% of the section changed)

9 unchanged sentences

Although we have incurred continuing losses from operations and net losses in the past few years, our business has experienced continuous growth in sales.

Our total revenue decreased by $69,269, or 8%, from $885,285 for the three months ended March 31, 2024, to $816,016 for the three months ended March 31, 2025.

Our gross profit decreased by $69,770, from $475,136 for the three months ended March 31, 2024, to $405,366 for the three months ended March 31, 2025.

Gross profit margin decreased from 54% for the three months ended March 31, 2024 to 50% for the three months ended March 31, 2025.

Our total revenue decreased by $214,963, or 23% from $940,611 for the three months ended June 30, 2024, to $725,648 for the three months ended June 30, 2025.

Our gross profit decreased by $206,754, from $529,472 for the three months ended June 30, 2024, to $322,718 for the three months ended June 30, 2025.

Gross profit margin decreased from 56% for the three months ended June 30, 2024 to 44% for the three months ended June 30, 2025.

Our total revenue decreased by $284,232, or 16% from $1,825,896 for the six months ended June 30, 2024, to $1,541,664 for the six months ended June 30, 2025.

Our gross profit decreased by $276,524, from $1,004,608 for the six months ended June 30, 2024, to $728,084 for the six months ended June 30, 2025.

Gross profit margin decreased from 55% for the six months ended June 30, 2024 to 47% for the six months ended June 30, 2025, as a result of decreased revenue during 2025.

We completed a merger with Battery Future Acquisition Corp.

on April 4, 2025 and became a Nasdaq listed public company.

Business Model

11 unchanged sentences

Our business model is dependent upon our ability to grow and maintain a large user base, and it also requires that we grow and keep registered users and paid subscribers.

As of March 31, 2025 and December 31, 2024, we have 65,614 and 61,387 registered users, respectively.

As of June 30, 2025 and December 31, 2024, we have 68,374 and 61,387 registered users, respectively.

"Registered users" are individuals who have signed up and created an account on our platform.

16 unchanged sentences

To be the platform of choice for educator partners, we continue to invest in increasing the size and engagement of our user base, improving recommendation and personalization features, and developing marketing capabilities that drive higher conversions.

As of March 31, 2025 and December 31, 2024, we have 977 and 936 educator partners working with us, respectively.

As of June 30, 2025 and December 31, 2024, we have 1,051 and 936 educator partners working with us, respectively.

Operating Efficiency

1 unchanged sentence

The significant component of our cost of revenues is the compensation expense to our educators.

Our gross profit margin decreased from 54% for the three months ended March 31, 2024 to 50% for the three months ended March 31, 2025 due to the lack of consulting revenue stream in 2025 as consulting services were provided over the past nine months ended in 2024.

We pay our educators based on the number of hours they teach.

15 unchanged sentences

Results of Operations

For the three months ended June 30, 2025 and 2024

The following table summarizes our results of operations for the years presented.

The results below are not necessarily indicative of results to be expected for future periods.

For the Three Months Ended March 31,

For the Three Months Ended June 30,

Variance Amount

Service revenues

10 unchanged sentences

(Loss) from operations

Other income (expense)

Change in fair value of warrants

Change in fair value of crypto assets

Change in fair value of convertible debt

Financing cost

Staking rewards

Interest and other expense

Total other income (expense)

(Loss) before provision for income taxes

Provision for income taxes

$ (3,866,169 )

$ (3,693,350 )

The summary information by revenue stream are as follows:

For the Three Months Ended March 31,

For the Three Months Ended June 30,

Variance Amount

Service revenues

Consulting revenues (related party)

Our total revenue decreased by $69,269, or 8% from $885,285 for the three months ended March 31, 2024, to $816,016 for the three months ended March 31, 2025.

The decrease in the revenue in the first quarter of 2024 as compared to the first quarter of 2025 was primarily attributable to the absence of consulting revenue, partially offset by the increase in service revenues.

Total revenues

Our total revenue decreased by $214,963, or 23% from $940,611 for the three months ended June 30, 2024, to $725,648 for the three months ended June 30, 2025.

The decrease in the revenue in the second quarter of 2025 as compared to the second quarter of 2024 was primarily attributable to the absence of consulting revenue and decrease in service revenues.

In the fourth quarter of 2023, we added a new revenue stream by providing marketing consulting services to Genius Kid Class LLC, one of our related parties.

Consulting revenue generated in the second quarter of 2024 was $100,000.

We completed our consulting service obligation by the end of 2024.

We are uncertain about future growth of consulting revenue as we have not secured any new consulting contracts yet as of June 30, 2025.

As a result, no consulting revenue was generated in the second quarter of 2025.

Service revenues decreased by $114,963, or 14%, from $840,611 for the three months ended June 30, 2024, to $725,648 for the three months ended June 30, 2025, driven by a decrease in credit-based subscriptions and number of courses delivered during the second quarter of 2025.

Costs of Revenue

For the Three Months Ended June 30,

Variance Amount

Payment Processing Fee

Streaming Services

Cost of revenues decreased by $8,209, or 2%, from $411,139 for the three months ended June 30, 2024, to $402,930 for the three months ended June 30, 2025.

Payment processing fee decreased by $5,287, or 29%, from $18,451 for the three months June 30, 2024, to $13,164 for the three months ended June 30, 2025.

The cost of streaming service decreased by $2,950, or 14%, from $20,850 for the three months June 30, 2024, to $17,900 for the three months ended June 30, 2025.

The decrease in payment processing and streaming service expenses was due to decreased class sessions provided during the second quarter of 2025.

Gross profit margin

Our gross profit and gross profit margin from the two revenue streams are summarized as follows:

For the Three Months Ended June 30,

Service revenues

Consulting revenues (related party)

The total gross profit margin decreased from 56% for the three months ended June 30, 2024 to 44% for the three months ended June 30, 2025, as a result of decreased revenue during the second quarter of 2025.

Our gross margin of service revenue decreased from 53% for the three months ended June 30, 2024 to 44% for the three months ended June 30, 2025, mainly due to lower student enrollment in 2025.

Operating expenses

During the three months ended June 30, 2025, we incurred total operating expenses of $2,021,751, an increase of $1,321,366, or 189%, as compared to a total of $700,385 during the three months ended June 30, 2024.

General and administrative expenses increased by $1,338,951, or 243% from $550,224 for the three months ended June 30, 2024, to $1,889,175 for the three months ended June 30, 2025.

Our general and administrative expenses include compensation related to the administrative personnel, amortization and depreciation expenses, rent, and other general expenses.

Other general expenses increased by $1,062,068 from $96,562 for the three months ended June 30, 2024, to $1,158,630 for the three months ended June 30, 2025.

The increase was primarily attributable to higher consulting fees, regulatory registration expenses, and insurance as we completed a merger with Battery Future Acquisition Corp.

(“BFAC”) in this quarter.

Employee compensation expenses increased by $121,197 from $347,458 for the three months ended June 30, 2024, to $468,655 for the three months ended June 30, 2025.

The increase is primarily driven by additional hiring during the second quarter of 2025 to support our growth.

In addition, there was an upward adjustment to executive compensation, further contributing to the overall compensation growth.

Employee stock compensation was $137,277 for the three months ended June 30, 2025.

There was no employee stock compensation in 2024.

Interest and other expenses for the three months ended June 30, 2025, were $2,128,776 as compared to $1,906 for the three months ended June 30, 2024.

The increase was primarily attributable to the financing cost and change in fair value of warrants, convertible notes, and crypto assets.

Provision for income taxes

Provision for income taxes for the three months ended June 30, 2025 was $38,360.

We had no income tax provision for the three months ended June 30, 2024 as we made fully allowance on the deferred tax assets as we have determined that it is not more likely than not that the assets will be realized.

As a result of the combination of factors discussed above, our net loss increased from $172,819 for the three months ended June 30, 2024 to $3,866,169 for the three months ended June 30, 2025.

For the six months ended June 30, 2025 and 2024

The following table summarizes our results of operations for the years presented.

The results below are not necessarily indicative of results to be expected for future periods.

For the Six Months Ended June 30,

Variance Amount

Service revenues

Consulting revenues (related party)

Total revenues

Cost of revenues

Total cost of revenues

Selling and marketing

General and administrative

Research and development

Total operating expenses

(Loss) from operations

Change in fair value of warrants

Change in fair value of crypto assets

Change in fair value of convertible debt

Financing cost

Staking rewards

Interest and other expense

Total other income (expense)

(Loss) before provision for income taxes

Provision for income taxes

$ (4,163,376 )

$ (3,823,468 )

The summary information by revenue stream are as follows:

For the Six Months Ended June 30,

Variance Amount

Service revenues

Consulting revenues (related party)

Total revenues

Our total revenue decreased by $284,232, or 16% from $1,825,896 for the six months ended June 30, 2024, to $1,541,664 for the six months ended June 30, 2025.

The decrease in the revenue was primarily attributable to the absence of consulting revenue and the increase in service revenues.

In the fourth quarter of 2023, we added a new revenue stream by providing marketing consulting services to Genius Kid Class LLC, one of our related parties.

Consulting revenue generated in the first quarter of 2024 was $100,000.

1 unchanged sentence

We completed our consulting service obligation by the end of 2024.

We are uncertain about future growth of consulting revenue as we have not secured any new consulting contracts yet as of March 31, 2025.As a result, no consulting revenue was generated in the first quarter of 2025.

Service revenues increased by $30,731, or 4%, from $785,285 for the three months ended March 31, 2024, to $816,016 for the three months ended March 31, 2025, driven by an increase in credit-based subscriptions and number of courses delivered during the first quarter of 2025.

We are uncertain about future growth of consulting revenue as we have not secured any new consulting contracts yet as of June 30, 2025.

As a result, no consulting revenue was generated in 2025.

Service revenues decreased by $84,232, or 5%, from $1,625,896 for the six months ended June 30, 2024, to $1,541,664 for the six months ended June 30, 2025, which is primarily attributable to a decrease in credit-based subscriptions and number of courses delivered in 2025.

Costs of Revenue

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Variance Amount

Payment Processing Fee

Streaming Services

Cost of revenues increased slightly by $501, from $410,149 for the three months ended March 31, 2024, to $410,650 for the three months ended March 31, 2025.

Compensation expense mainly comprises of wages for independent educators and certain employees directly involved in providing services.

Compensation expense increased by $3,115, or 1%, from $368,275 for the three months ended March 31, 2024, to $371,390 for the three months ended March 31, 2025, driven by an increase in registered users and courses delivered during the first quarter of 2025.

Additionally, we added competition classes , including AMC math competition preparation class and Math Kangaroo to our course portfolio.

The cost of streaming service increased by $1,045, or 5%, from $21,405 for the three months March 31, 2024, to $22,450 for the three months ended March 31, 2025, due to the increase in total cost of revenue.

The increase in streaming service expense is mainly attributable to increased class sessions provided during the first quarter of 2025.

Cost of revenues decreased by $7,708, or 1%, from $821,288 for the six months ended June 30, 2024, to $813,580 for the six months ended June 30, 2025.

Payment processing fee decreased by $8,946, or 23%, from $38,920 for the six months June 30, 2024, to $29,974 for the six months ended June 30, 2025.

The cost of streaming service decreased by $1,905, or 5%, from $42,255 for the six months June 30, 2024, to $40,350 for the six months ended June 30, 2025.

The decrease in payment processing and streaming service expenses were due to decreased class sessions provided during the second quarter of 2025.

Gross profit margin

Our gross profit and gross profit margin from the two revenue streams are summarized as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Service revenues

Consulting revenues (related party)

The total gross profit margin decreased from 54% for the three months ended March 31, 2024 to 50% for the three months ended March 31, 2025, as a result of decreased revenue during 2025.

Our gross margin of service revenue increased from 49% for the three months ended March 31, 2024 to 50% for the three months ended March 31, 2025, mainly due to a higher growth rate in service revenue as compared to growth rate in related costs as the company’s continuous effort to optimize class size and class schedules.

The total gross profit margin decreased from 55% for the six months ended June 30, 2024 to 47% for the six months ended June 30, 2025, as a result of decreased revenue during 2025.

Our gross margin of service revenue decreased from 51% for the six months ended June 30, 2024 to 47% for the six months ended June 30, 2025, mainly due to lower student enrollment.

Operating expenses

During the three months ended March 31, 2025, we incurred total operating expenses of $701,273, an increase of $640,253, or 10%, as compared to a total of $558,863 during the three months ended March 31, 2024.

Selling expenses increased by $8,568, or 8% from $121,427 for the three months ended March 31, 2024, to $112,859 for the three months ended March 31, 2025.

Selling expenses include sales personnel payroll expenses, marketing and promotion expenses, and meals and entertainment expenses in relation to sales activities.

There was an approximately 25% increase in our sales personnel payroll expenses from $91,341 for the three months ended March 31, 2024, to $114,025 for the three months ended March 31, 2025.

The increase in sales personnel payroll expenses was primarily attributable to the implementation of a performance-based compensation model that aligns incentives more closely to the Company’s overall performance.

As a result, our growth in service revenue has pushed up our sales personnel payroll expenses in 2025.

The increase in selling expenses was partially offset by a decrease in marketing and promotional expenses.

There was an approximately 64% decrease in our marketing and promotional expenses from $20,349 for the three months ended March 31, 2024 to $7,402 for the three months ended March 31, 2025.

The reduction in marketing and promotional expenses from 2025 to 2024 was primarily achieved through the implementation of strategic cost saving measures, specifically the reduction of expenditures on social media companies and channels.

Additionally, we engaged in collaborative partnerships with social influencers in the education sector to bolster audience engagement, leveraging their audience base for more targeted and impactful outreach efforts.

Notably, the results delivered by our influencer partners are more promising as compared to traditional marketing, and more importantly, at a lower cost.

General and administrative expenses increased by $63,468, or 13% from $508,902 for the three months ended March 31, 2024, to $573,539 for the three months ended March 31, 2025.

During the six months ended June 30, 2025, we incurred total operating expenses of $2,723,024, an increase of $1,382,386, or 103%, as compared to a total of $1,340,638 during the six months ended June 30, 2024.

General and administrative expenses increased by $1,403,588, or 133% from $1,059,126 for the six months ended June 30, 2024, to $2,462,714 for the six months ended June 30, 2025.

Our general and administrative expenses include compensation related to the administrative personnel, amortization and depreciation expenses, rent, and other general expenses.

The increase was primarily attributable to an increase in consulting expenses relating to our general operations.

Other general expenses increased by $64,744, or 61% from $106,584 for the three months ended March 31, 2024, to $171,328 for the three months ended March 31, 2025.

The increase was primarily attributable to a higher professional fee expenditures in 2025 when we incurred professional consulting fees and regulatory registration expenses as we prepared for a merger with Battery Future Acquisition Corp.

Interest and other expenses for the three months ended March 31, 2025, was $1,300 as compared to $1,972 for the three months ended March 31, 2024.

Other general expenses increased by $1,126,812 from $203,147 for the six months ended June 30, 2024, to $1,329,958 for the six months ended June 30, 2025.

The increase was primarily attributable to higher professional consulting fees, regulatory registration expenses, insurance as we completed a merger with Battery Future Acquisition Corp.

Employee compensation expenses increased by $113,787 from $649,767 for the six months ended June 30, 2024, to $763,555 for the six months ended June 30, 2025.

The increase is primarily driven by additional hiring during 2025 to support our growth.

In addition, there was an upward adjustment to executive compensation, further contributing to the overall compensation growth.

Employee stock compensation was $137,277 for the six months ended June 30, 2025.

There was no employee stock compensation in 2024.

Interest and other expenses for the six months ended June 30, 2025, were $2,130,076 as compared to $3,878 for the six months ended June 30, 2024.

The increase was primarily attributable to the financing cost and change in fair value of warrants, convertible notes, and crypto assets.

Provision for income taxes

We had no income tax provision for the three months ended March 31, 2025 and 2024 as we made fully allowance on the deferred tax assets as we have determined that it is not more likely than not that the assets will be realized.

As a result of the combination of factors discussed above, our net loss increased from $167,089 for the three months ended March 31, 2024 to $297,207 for the three months ended March 31, 2025.

Provision for income taxes for the six months ended June 30, 2025 was $38,360.

We had no income tax provision for the six months ended June 30, 2024 as we made fully allowance on the deferred tax assets as we have determined that it is not more likely than not that the assets will be realized.

As a result of the combination of factors discussed above, our net loss increased from $339,908 for the six months ended June 30, 2024 to $4,163,376 for the six months ended June 30, 2025.

Liquidity and Capital Resources

As of March 31, 2025, we had cash and cash equivalents of $80,416.

As of June 30, 2025, we had cash and cash equivalents of $5,978,572.

Cash consists primarily of cash on hand and bank deposits.

1 unchanged sentence

The following table shows the breakout between cash on hand and bank deposits:

June 30, 2025

December 31, 2024

Bank deposits

1 unchanged sentence

The accompanying consolidated financial statements have been prepared applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

As of March 31, 2025, the Company had cash of $80,416, current liabilities of $3,595,464, a working capital deficit of $3,509,780, and a stockholders’ deficit of $4,816,361, and a net loss of $297,207 For the three months ended March 31, 2025.

These factors among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

The Business Combination with BFAC was consummated on April 4, 2025 and the Company received $1,075,936 from BFAC’s trust account at closing.

In addition, the Company received an aggregate of $4,700,000 net proceed from a PIPE investor following the business combination.

On April 30, 2025, the Company entered into an Equity Purchase Facility Agreement (the “EPFA”) with Solana Strategic Holdings LLC (“SSH”).

Pursuant to the EPFA, subject to certain conditions precedent contained therein, the Company has the right to issue and sell to SSH, and SSH shall purchase from the Company, up to an aggregate of $400 million in newly issued shares of the Company’s Class B common stock.

The Company has evaluated the significance and conditions of the trust account balance , the PIPE Financing, the EPFA, and concluded that the above financing plan is an effective mitigation plan that provides sufficient liquidity to support its continuous operations and to meet its payment obligations when liabilities fall due within the next twelve months from the date of issuance of these combined and consolidated financial statements.

Accordingly, the factors raising the going concern uncertainty are alleviated.

As of June 30, 2025, the Company had cash of $5,978,572, current liabilities of $4,585,015, a working capital of $1,400,847 and a stockholders’ equity of $2,704,703.

For the three months ended June 30, 2025 and 2024, the Company had losses of $3,866,169 and $172,819, respectively, and for the six months ended June 30, 2025 and 2024, the Company had losses of $4,163,376 and $339,908, respectively.

The continuing losses raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

The Company completed business combination with Battery Future Acquisition Corp on April 4, 2025 and received $1,075,936 from BFAC’s trust account.

Additionally, the Company received an aggregate of $4,700,000 from PIPE investors following the business combination, and entered into an equity purchase facility agreement (the “FPFA”) with Solana Holdings for up to an aggregate of $400 million in newly issued shares of the Company’s Class B common stock.

Moreover, on May 30, 2025, the “Company entered into a Securities Purchase Agreement with an investor and the Company may sell to the investor up to an aggregate of $500 million in newly issued Notes.

On June 6, 2025, the Company consummated the initial closing of $11 million of Notes.

Management of the Company has evaluated the mitigation plans and determined that the current working capital, cash position, FPFA, and Notes available for future issuance are sufficient to support its continuous operations and to meet its payment obligations when liabilities fall due within the next twelve months from the date of issuance of these combined and consolidated financial statements.

Accordingly, the Company’s combined and consolidated financial statements are prepared on going concern basis, which assumes that the Company will continue in operation for the foreseeable future and, accordingly, will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due.

These financial statements do not include any adjustment relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

4 unchanged sentences

We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

For the three months ended March 31,

For the Six months ended June 30,

Net cash (used in) operating activities

5 unchanged sentences

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2025, was primarily attributable to net loss of $297,207 and decrease in operating lease liabilities of $77,063 as we made payment under the lease contract and decrease in deferred revenues of $104,044.

Cash outflow was partially offset by the non-cash amortization of operating lease right-of-use assets $75,221, depreciation and amortization expenses of $16,221, increase in due to related parties of $48,365, and increase in accrued liabilities and other payables of $37,171.

Net cash used in operating activities for the three months ended March 31, 2024, was primarily attributable to net loss of $167,089, decrease in due to related party $88,144 as we repaid our related party for the amount due, and decrease in operating lease liabilities of $72,340 as we made payment under the lease contract.

Net cash used in operating activities for the six months ended June 30, 2025, was primarily attributable to net loss of $4,163,376, decrease in operating lease liabilities of $154,885 as we made payment under the lease contract, decrease in deferred revenues of $240,112, and change in fair value of crypto assets of $182,665.

Cash outflow was partially offset by the change in fair value of warrants of $1,540,424, increase in accounts payable of $1,513,002, change in fair value of convertible debt of $260,630, non-cash amortization of operating lease right-of-use assets $151,201, employee stock compensation of $118,444, and increase in accrued liabilities and other payables of $374,008.

Net cash used in operating activities for the six months ended June 30, 2024, was primarily attributable to net loss of $339,908, decrease in due to related party $170,765 as we repaid our related party for the amount due, and decrease in operating lease liabilities of $115,394 as we made payment under the lease contract.

Cash outflow was partially offset by the non-cash amortization of operating lease right-of-use assets $145,419, stock compensation issued for consulting services $25,120 and increase in deferred revenues of $92,329 as we collected in advance from online class subscription.

Investing Activities

Net cash used in investing activities was $0 for the three months ended March 31, 2025, as compared to $128,554 for the three months ended March 31, 2024.

The decrease was primarily due to no purchases of property and equipment in 2025, as compared to $128,554 of purchases in 2024.

Net cash used in investing activities was $2,300,000 for the six months ended June 30, 2025.

The decrease was primarily due to our purchases of crypto assets and intangible assets.

Net cash used in investing activities was $136,394 for the six months ended June 30, 2024.

The decrease was primarily due to our purchases of property and equipment.

Financing Activities

Net cash provided by financing activities was $318,000, for the three months ended March 31, 2025, an increase of $218,000, as compared to $100,000 net cash provided by financing activities for the three months ended March 31, 2024.

The increase was mainly due to the issuance of promissory notes in the amount of $140,000 to the related party, and an advance of $178,000 from related party for the Company’s operating fund.

Net cash provided by financing activities was $8,852,667 for the Six months ended June 30, 2025.

The increase was mainly due to the issuance of promissory notes of $3,089,400, capital contribution from private placement of $4,700,000, and proceeds from the reverse recapitalization of $1,077,752.

Net cash provided by financing activities was $100,000, for the six months ended June 30, 2024.

The decrease was mainly due to the issuance of convertible loan.

Critical Accounting Policies and Estimates

38 unchanged sentences

Costs related to maintenance and repairs that do not extend the assets’ useful life are expensed as incurred.

Investment accounts — Investment accounts consist of cash and crypto assets held for investment purposes.

Cash is carried at cost, which approximates fair value due to its short-term nature.

The Company has elected to use the weighted average cost (WAC) method to determine the cost basis for its initial recognition of crypto asset holdings.

Under this method, the cost of crypto assets sold or exchanged is calculated using the weighted average cost per unit at the time of the transaction.

This method is applied consistently across all crypto asset holdings.

The Company measures the fair value of its crypto assets subsequently, with gains and losses from changes in the fair value of such crypto assets recognized in net income each reporting period.

The Company establishes a deferred tax liability if the market value of crypto assets at the reporting date is greater than the average cost basis of the Company’s crypto holdings at such reporting date, and any subsequent increases or decreases in the market value of crypto assets increases or decreases the deferred tax liability.

In determining the gain (loss) to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the crypto assets with WAC method.

Intangible assets — Intangible assets acquired by the Company are stated at cost less accumulated amortization (where the estimated useful life is finite) and impairment losses.

Amortization of intangible assets with finite useful lives is charged to profit or loss on a straight-line basis over the assets’ estimated useful life, which is the period over which an asset is expected to be available for use.

The estimates and associated assumptions of useful life determined by the Company are based on technical or commercial obsolescence, legal or contractual limits on the use of the asset, and other relevant factors.

Both the period and method of amortization are reviewed annually.

Intangible assets are not amortized while their useful lives are assessed to be indefinite.

Any conclusion that the useful life of an intangible asset is indefinite is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset.

If they do not, the change in the useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above.

Income Taxes —The Company provides for income taxes in accordance with the asset and liability method.

18 unchanged sentences

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