What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-20 compared with 2024-02-22 · 193 added, 197 removed, 990 unchanged (28% of the section changed)

6 unchanged sentences

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Convertible and Redeemable Convertible Preferred Stock and Stockholders' Equity

Consolidated Statements of Stockholders' Equity

Consolidated Statements of Cash Flows

4 unchanged sentences

We have audited the accompanying consolidated balance sheets of Kaltura, Inc.

and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive loss, convertible and redeemable convertible preferred stock and stockholders' equity and cash flows for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements").

and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive loss, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S.

66 unchanged sentences

161,980,907 and 150,274,107 , shares issued as of December 31, 2024 and 2023, respectively;

142,588,917 and 134,564,429 shares outstanding as of December 31, 2023 and 2022, respectively

152,057,148 and 142,588,917 outstanding as of December 31, 2024 and 2023, respectively

Treasury stock –

7,685,190 shares of common stock, $ 0.0001 par value per share, as of December 31, 2023 and 2022

9,923,759 and 7,685,190 shares of common stock, $ 0.0001 par value per share, as of December 31, 2024 and 2023, respectively

( 7,801 ) ( 4,881 )

Additional paid-in capital 500,024 471,635

Accumulated other comprehensive income (loss)

1,047 ( 301 )

Accumulated other comprehensive income

Accumulated deficit ( 468,810 ) ( 437,495 )

21 unchanged sentences

Restructuring — 973 1,238

Other operating expenses — — 1,724

Total operating expenses 143,205 150,889 163,319

4 unchanged sentences

Net loss $ 31,315 $ 46,366 $ 68,495

Preferred stock accretion and cumulative undeclared dividends — — 8,241

Net loss attributable to common stockholders $ 46,366 $ 68,495 $ 67,592

Net loss per share attributable to common stockholders, basic and diluted $ 0.34 $ 0.53 $ 0.95

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 138,237,017 130,366,385 71,073,052

Net loss per share $ 0.21 $ 0.34 $ 0.53

Weighted-average shares used in computing net loss per share 147,925,797 138,237,017 130,366,385

The accompanying notes are an integral part of the consolidated financial statements.

14 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONVERTIBLE AND REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

dollars in thousands (except share data)

Convertible preferred Stock Redeemable convertible preferred Stock Common stock Treasury stock Receivables on account of stock Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity (deficit)

Number Amount Number Amount Number Amount Number Amount

Common stock Treasury stock Additional paid-in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders' equity

Number Amount Number Amount

— — — — — — — —

Balance as of December 31, 2021 126,925,104 $ 13 7,685,190 $ ( 4,881 ) $ 412,776 $ — $ ( 322,634 ) $ 85,274

Issuance of preferred stock upon exercise of warrants — — 27,011 1,149 — — — — — — — — —

Loan forgiveness — — — — — — — — 882 — — — 882

Accretion of redeemable convertible preferred stock — — — 1,569 — — — — — ( 1,569 ) — — ( 1,569 )

Redemption of redeemable convertible preferred stock upon initial public offering — — — ( 1,569 ) — — — — — — — — —

Conversion of convertible and redeemable convertible preferred stock to common stock upon initial public offering ( 1,043,778 ) ( 1,921 ) ( 15,806,333 ) ( 159,340 ) 76,262,942 8 — — — 161,253 — — 161,261

Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs — — — — 17,250,000 2 — — — 155,596 — — 155,598

Conversion of warrants to common stock upon initial public offering — — — — 7,067,699 1 — — — 70,676 — — 70,677

— — — — — — —

Stock-based compensation expenses — — — — 23,941 — — 23,941

Issuance of common stock upon exercise of stock options, and release of restricted stock units 7,026,070 — — — 2,927 — — 2,927

Exercise of warrants to common stock 613,255 — — — — — — —

Other comprehensive loss — — — — — ( 301 ) — ( 301 )

Net loss — — — — — — ( 68,495 ) ( 68,495 )

Balance as of December 31, 2021 — — — — 126,925,104 13 7,685,190 ( 4,881 ) — 412,776 — ( 322,634 ) 85,274

— — — — — — — —

Balance of December 31, 2022 134,564,429 $ 13 7,685,190 $ ( 4,881 ) $ 439,644 $ ( 301 ) $ ( 391,129 ) $ 43,346

— — — — — — — —

Stock-based compensation expenses — — — — 30,756 — — 30,756

Issuance of common stock upon exercise of stock options, and release of restricted stock units 8,024,488 1 — — 1,235 — — 1,236

Exercise of warrants to common stock — — — — 613,255 — — — — — — — —

Other comprehensive loss

Other comprehensive income

— — — — — 1,348 — 1,348

Net loss — — — — — — ( 46,366 ) ( 46,366 )

— — — — — — — —

Balance as of December 31, 2023 142,588,917 $ 14 7,685,190 $ ( 4,881 ) $ 471,635 $ 1,047 $ ( 437,495 ) $ 30,320

— — — — — — — —

Stock-based compensation expenses — — — — 26,632 — — 26,632

Repurchase of common stock ( 2,238,569 ) — 2,238,569 ( 2,920 ) — — — ( 2,920 )

Issuance of common stock upon exercise of stock options, and release of restricted stock units 11,706,800 1 — — 1,757 — — 1,758

Other comprehensive income

Other comprehensive loss

— — — — — ( 88 ) — ( 88 )

Net loss — — — — — — ( 31,315 ) ( 31,315 )

— — — — — — — —

Balance as of December 31, 2024 152,057,148 $ 15 9,923,759 $ ( 7,801 ) $ 500,024 $ 959 $ ( 468,810 ) $ 24,387

8 unchanged sentences

Net loss $ ( 31,315 ) $ ( 46,366 ) $ ( 68,495 )

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 5,064 4,717 2,707

1 unchanged sentence

Amortization of deferred contract acquisition and fulfillment costs 11,447 11,669 10,865

Change in valuation of warrants to purchase preferred and common stock — — 15,046

Non-cash interest expense (income), net ( 1,023 ) ( 146 ) 331

Non-cash expenses with respect to stockholders’ loans — — 882

Loss (gain) on sale of property and equipment — 185 ( 757 )

Loss (income) on foreign exchange ( 728 ) 1,424 —

Non-cash interest income, net ( 1,219 ) ( 1,023 ) ( 146 )

Loss on sale of property and equipment — — 185

Losses (Gain) on foreign exchange ( 90 ) ( 728 ) 1,424

Changes in operating assets and liabilities:

8 unchanged sentences

Operating lease right-of-use assets and lease liabilities, net ( 840 ) ( 863 ) 527

Net cash used in operating activities ( 8,303 ) ( 46,828 ) ( 22,110 )

Net cash provided by (used in) operating activities 12,233 ( 8,303 ) ( 46,828 )

Cash flows from investing activities:

2 unchanged sentences

Purchases of property and equipment ( 521 ) ( 2,607 ) ( 1,218 )

Proceeds from sale of property and equipment — — 757

Capitalized internal-use software development costs — ( 1,493 ) ( 4,759 )

Investment in restricted bank deposit — ( 1,751 ) ( 2,600 )

Purchase of intangible assets — — ( 145 )

Net cash used in investing activities ( 12,414 ) ( 1,583 ) ( 49,757 )

Cash flows from financing activities:

Proceeds from initial public offering, net of underwriting discounts and commissions — — 160,425

Payment related to the conversion of Series F redeemable convertible preferred stock upon initial public offering — — ( 1,569 )

Proceeds from long-term loans — 3,500 —

3 unchanged sentences

Payment of debt issuance costs ( 17 ) ( 274 ) ( 125 )

Payment of deferred offering costs — — ( 5,188 )

Repurchase of common stock ( 2,920 ) — —

Payments on account of repurchase of common stock ( 30 ) — —

Net cash provided by (used in) financing activities ( 3,534 ) 109 ( 529 )

Effect of exchange rate changes on cash, cash equivalents and restricted cash 90 728 ( 1,424 )

Net increase (decrease) in cash, cash equivalents and restricted cash $ ( 9,049 ) $ ( 98,538 ) $ 116,016

Net decrease in cash, cash equivalents and restricted cash $ ( 3,625 ) $ ( 9,049 ) $ ( 98,538 )

Cash, cash equivalents and restricted cash at the beginning of the year 36,784 45,833 144,371

13 unchanged sentences

Lease incentive recognized as leasehold improvements $ — $ 4,924 $ 1,711

Conversion of warrants to common stock upon initial public offering $ — $ — $ 70,677

Conversion of convertible and redeemable convertible preferred stock to common stock upon initial public offering $ — $ — $ 161,261

Supplemental disclosure of cash flow information

48 unchanged sentences

Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity.

Realized gains and losses on sale of investments are included in financial expenses (income), net and are derived using the specific identification method for determining the cost of securities sold.

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

Realized gains and losses on sale of investments are included in financial expenses (income), net and are derived using the specific identification method for determining the cost of securities sold.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity.

25 unchanged sentences

There were no impairment charges to long-lived assets during the periods presented.

Intangible Assets, net

Intangible ass ets con sist primarily of customer relationships, technology and trade name.

The intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized.

Intangible assets consist primarily of customer relationships, technology, and trade name.

Amortization for the intangible assets was recognized over the following periods:

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

Intangible Assets, net

Intangible assets consist primarily of customer relationships, technology and trade name.

The intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized.

Intangible assets consist primarily of customer relationships, technology, and trade name.

Amortization for the intangible assets was recognized over the following periods:

Customer relationships

Goodwill re presents the excess of the purchase price over the fair value of net assets acquired in business combinations using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective fair values.

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective fair values.

Goodwill is subject to an impairment test at the reporting unit level at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired.

24 unchanged sentences

The value of these deposits is recorded as an asset on the Company's balance sheet in other assets, noncurrent.

Severance expenses recorded in Kaltura Israel for the years ended December 31, 2023, 2022 and 2021 amounted to $ 3,194 , $ 3,976 and $ 3,937 , respectively.

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

Severance expenses recorded in Kaltura Israel for the years ended December 31, 2024, 2023 and 2022 amounted to $ 2,902 , $ 3,194 and $ 3,976 , respectively.

The Company's employees in the U.S.

3 unchanged sentences

These benefits, primarily severance, are not accrued until the amount can be reasonably estimated.

Severance expenses recorded in the U.S.

for the years ended December 31, 2023, 2022 and 2021, other than one-time termination benefits detailed in Note 18, were immaterial.

Severance expenses recorded in Kaltura U.S.

for the years ended December 31, 2024, 2023 and 2022, amounted to $ 343 , $ 2 and $ 71 , respectively.

Israeli Employees Defined Contribution Plan

64 unchanged sentences

Cost of Revenue

C ost of subscription revenue consists primarily of employee-related costs including payroll, benefits and stock-based compensation expense for operations and customer support teams, costs of cloud hosting providers and other third-party service providers, amortization of capitalized software development costs and acquired technology and allocated overhead costs.

C ost of subscription revenue consists primarily of employee-related costs including payroll, benefits and stock-based compensation expense for operations and customer support teams, production costs mainly consist of cloud hosting providers and other third-party service providers, amortization of capitalized software development costs and acquired technology and allocated overhead costs.

Cost of professional services consists primarily of personnel costs of our professional services organization, including payroll, benefits, and stock-based compensation expense, allocated overhead costs and other third-party service providers.

10 unchanged sentences

If the net book value is not expected to be fully recoverable, internal-use software would be impaired to its fair value.

During the year ended December 31, 2024 the Company did not capitalize software development costs.

During the years ended December 31, 2023 and 2022, the Company capitalized $ 1,660 and $ 5,115 of software development costs, respectively.

55 unchanged sentences

Net Loss per Share Attributable to Common Stockholders

The Company's basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration of potentially dilutive securities.

The Company's basic net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration of potentially dilutive securities.

The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities.

Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive shares of common stock are anti-dilutive.

Prior to the completion of the Company's initial public offering in July 2021 (“IPO”), the Company computed net loss per share using the two-class method required for participating securities.

The two-class method requires income available to common stockholder for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed.

The Company considered its convertible preferred stock to be participating securities as the holders of the convertible preferred stock would be entitled to dividends that would be distributed to the holders of common stock, on a pro-rata basis, assuming the conversion of all outstanding shares of convertible preferred stock into common stock.

These participating securities did not contractually require the holders of such stock to participate in the Company’s losses.

As such, net loss for the periods presented was not allocated to the Company’s participating securities.

Concentration of Credit Risks

9 unchanged sentences

*) Represents an amount that is lower than 10% of the Company’s total revenue.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Fair Value of Financial Instruments

4 unchanged sentences

Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

11 unchanged sentences

Recently Adopted Pronouncements

As an "emerging growth company," the Jumpstart Our Business Startups Act ("JOBS Act") allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies.

The Company has elected to use this extended transition period under the JOBS Act.

The adoption dates discussed below reflect this election.

In June 2016, the FASB issued ASU No.

2016-13, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected.

The Company adopted this guidance using modified retrospective approach, effective on January 1, 2023.

The adoption did not have a material effect on its consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (“ASU”) No.

1 unchanged sentence

Improvements to Reportable Segment Disclosures, which requires to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the impact of the adoption of this standard.

The Company adopted this guidance during the year ended December 31, 2024.

See Note 13 Reportable Segments and Geographical Information in the accompanying notes to the consolidated financial statements for further detail.

Recent Accounting Guidance Not Yet Adopted

In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid.

1 unchanged sentence

The Company is currently evaluating the impact of the adoption of this standard.

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures”, which requires disclosure, on an annual and interim basis, of disaggregated information about certain income statement expense line items.

The ASU does not change the expense captions presented on the face of the income statement;

rather, it mandates the disaggregation of certain expense captions into specified categories within the footnotes to the financial statements.

This ASU is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027.

The Company is currently evaluating the impact of adopting this standard.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

REVENUES FROM CONTRACTS WITH CUSTOMERS

18 unchanged sentences

$ 120,190 100 % $ 48,621 100 %

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Contract Balances

4 unchanged sentences

Substantially all the revenue that was included in the deferred revenue, current as of January 1, 2024, was recognized as revenue during 2024.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Remaining Performance Obligations

1 unchanged sentence

As of December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 203,379 , which consists of both billed consideration in the amount of $ 63,190 and unbilled consideration in the amount of $ 140,189 that the Company expects to recognize as revenue and was not yet recognized on the balance sheet.

The Company expects to recognize 59 % of its remaining performance obligations as revenue in the year ending December 31, 2024, and the remainder thereafter.

The Company expects to recognize 58 % of its remaining performance obligations as revenue in the year ending December 31, 2025, and the remainder over the next four years.

Costs to Obtain a Contract

10 unchanged sentences

The following table represents a roll forward of costs to fulfill a contract:

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

2024 2023 2022

6 unchanged sentences

Total deferred costs to fulfill a contract $ 2,167 $ 3,740 $ 5,522

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

MARKETABLE SECURITIES

The following is a summary of available-for-sale marketable securities as of December 31, 2024 and December 31, 2023, respectively:

December 31, 2024

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

9 unchanged sentences

$ 3,377 $ 2 $ — $ 3,379

December 31, 2023

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

1 unchanged sentence

Corporate bonds $ 6,985 $ 4 $ — $ 6,989

Municipal securities 1,751 — ( 4 ) 1,747

Treasury 8,795 17 — 8,812

2 unchanged sentences

$ 32,672 $ 30 $ ( 10 ) $ 32,692

Available-for-sale – matures after one year:

Corporate bonds $ 2,944 $ 14 $ — $ 2,958

Treasury 2,869 17 — 2,886

$ 5,813 $ 31 $ — $ 5,844

As of December 31, 2024 and December 31, 2023 the Company did not record an allowance for credit losses for its available-for-sale marketable debt securities and all of the gross unrealized losses of the Company's marketable securities have been in a continuous loss position for less than 12 months.

There were no gains or losses from available-for-sale marketable securities that were reclassified out of accumulated other comprehensive loss during the periods presented.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

FAIR VALUE MEASUREMENTS

9 unchanged sentences

Corporate bonds Level 2 $ 27,309 $ 6,989

Municipal securities Level 2 $ — $ 1,747

Treasury Level 2 $ 16,956 $ 8,812

11 unchanged sentences

Options and forward contracts designated as hedging instruments Level 2 $ 24 $ —

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

DERIVATIVES AND HEDGING

The Company enters into forward, put and call option contracts to hedge certain forecasted payroll costs denominated in NIS against exchange rate fluctuations of the U.S.

The Company enters into forward contracts to hedge certain forecasted payroll costs denominated in NIS against exchange rate fluctuations of the U.S.

dollar for a period of up to twelve months.

1 unchanged sentence

The Company does not use derivative instruments for trading or speculative purposes.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Notional Amount of Foreign Currency Contracts

The Company had outstanding contracts designated as hedging instruments in the aggregate notional amount of $ 15,093 and $ 8,345 as of December 31, 2023 and December 31, 2022, respectively.

The fair value of the Company’s outstanding contracts amounted to an asset of $ 998 as of December 31, 2023 and a liability of $ 120 as of December 31, 2022.

The Company had outstanding contracts designated as hedging instruments in the aggregate notional amount of $ 35,718 , $ 15,093 as of December 31, 2024 and December 31, 2023, respectively.

The fair value of the Company’s outstanding contracts amounted to an asset of $ 960 and $ 998 as of December 31, 2024 and December 31, 2023, respectively and a liability of $ 24 as of December 31, 2024.

These assets and liabilities were recorded under prepaid expenses and other current assets and accrued expenses and other current liabilities.

Losses of $ 2,241 and $ 1,418 was reclassified from accumulated other comprehensive income (loss) during the year ended December 31, 2023 and 2022, respectively.

Such losses was reclassified from accumulated other comprehensive income (loss) when the related expenses were incurred.

The Company did not enter into hedging contracts during the year ended December 31, 2021.

Effect of Foreign Currency Contracts on the Consolidated Statements of Operations

1 unchanged sentence

Statement of Operations Location:

Year Ended December 31, 2023 Year Ended December 31, 2022

Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022

Cost of revenue $ ( 123 ) $ 326 $ 230

4 unchanged sentences

Total $ ( 832 ) $ 2,241 $ 1,418

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Gain of $ 832 and Losses of $ 2,241 and $ 1,418 was reclassified from accumulated other comprehensive income (loss) during the year ended December 31, 2024, 2023 and 2022, respectively.

Such losses was reclassified from accumulated other comprehensive income (loss) when the related expenses were incurred.

The Company leases its office facilities under agreements that expire at various dates through July 2032.

Components of operating lease expense were as follows:

Year Ended December 31, 2023 Year Ended December 31, 2022

Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022

Operating lease cost $ 2,697 $ 2,875 $ 2,827

3 unchanged sentences

Supplementary cash flow information related to operating leases was as follows:

Year Ended December 31, 2023 Year Ended December 31, 2022

Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022

Cash paid for operating leases $ 3,906 $ 3,353 $ 1,845

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

As of December 31, 2024, the weighted-average discount rate is 4.6 % and the weighted-average remaining term is 7.2 years.

5 unchanged sentences

Total operating lease liabilities $ 17,767

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

COMMITMENTS AND CONTINGENCIES

Purchase Commitments

COMMITMENTS AND CONTINGENCIES Commitments

The Company has entered into various non-cancelable agreements with third-party providers for use of mainly cloud and other services, under which it committed to minimum and fixed purchases through the year ending December 31, 2026.

2 unchanged sentences

Total purchase commitment $ 57,303

During the year ended December 31, 2024, the Company had accelerated expenses in the amount of $ 1,312 related to its minimum commitment with one of its cloud hosting service due to the Company's decision not to utilize the provider's cloud service.

Such expenses were recorded under general and administrative expenses in the consolidated statement of operations.

The Company is occasionally a party to claims or litigation in the normal course of the business.

3 unchanged sentences

Prepaid expenses and other current assets consisted of the following:

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Prepaid expenses $ 4,085 $ 2,656

Government institutions — 422

Restricted bank deposits 3,507 3,397

2 unchanged sentences

$ 9,481 $ 8,410

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Property and Equipment, net

3 unchanged sentences

Leasehold improvements 7,127 7,267

Finance leases of computers and peripheral equipment 253 253

Internal use software 13,755 13,755

3 unchanged sentences

Depreciation expenses for the years ended December 31, 2024, 2023 and 2022 were $ 4,586 , $ 4,162 and $ 2,042 , respectively.

In 2024, the Company disposed of fully depreciated fixed assets totaling $ 3,050 .

Other assets, noncurrent

4 unchanged sentences

$ 2,983 $ 3,100

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Accrued expenses and other current liabilities

4 unchanged sentences

$ 14,262 $ 17,279

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Other liabilities, noncurrent

Accrued taxes $ 8,599 $ —

Deferred tax 463 418

Other 1,710 1,877

$ 10,772 $ 2,295

GOODWILL AND INTANGIBLE ASSETS, NET

9 unchanged sentences

Intangible assets, net $ 212

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

December 31, 2023

3 unchanged sentences

Customer relationship 3.25 2,419

Tradename 0.42 980

Accumulated amortization and impairments

1 unchanged sentence

Customer relationship ( 2,253 )

Tradename ( 903 )

Intangible assets, net $ 689

During the year ended December 31, 2023, 2022 and 2021, the Company recorded amortization expenses in the amount of $ 555 , $ 665 and $ 1,005 , respectively, included in cost of revenue and sales and marketing expenses in the consolidated statements of operations.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

During the year ended December 31, 2024, 2023 and 2022, the Company recorded amortization expenses in the amount of $ 477 , $ 555 and $ 665 , respectively, included in cost of revenue, sales and marketing expenses in the consolidated statements of operations.

The estimated future amortization expense of intangible assets as of December 31, 2024, is as follows:

3 unchanged sentences

Loss (income) before taxes on income is comprised as follows:

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Year Ended December 31,

3 unchanged sentences

Loss before taxes on income $ 23,665 $ 37,455 $ 60,627

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

The provision for income taxes was as follows:

The provision for income taxes is as follows:

Year Ended December 31,

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Management currently believes that it is more likely than not that the deferred tax regarding the tax loss carry forwards and other temporary differences will not be realized in the foreseeable future in the U.S.

Significant components of the Company's deferred tax assets are as follows:

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

Significant components of the Company's deferred tax assets are as follows:

Deferred tax assets:

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Operating lease right-of-use assets ( 542 ) ( 742 )

Property and equipment — ( 138 )

Other ( 458 ) ( 195 )

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The annual limitation may result in the expiration of substantial net operating losses before utilization (the 80% limitation was waived for NOLs utilized in 2019 and 2020 under the CARES Act).

The Company has analyzed the impact of Section 382 on its NOLs through 2024 and believes that the NOLs are not materially limited by Section 382.

However, any future changes of ownership could impact the Company’s ability to utilize NOLs.

A reconciliation of the Company's theoretical income tax expense to actual income tax expense is as follows:

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

The Company has analyzed the impact of Section 382 on its NOLs through 2020 and believes that the NOLs are not materially limited by Section 382.

However, any future changes of ownership could impact the Company’s ability to utilize NOLs.

A reconciliation of the Company's theoretical income tax expense to actual income tax expense is as follows:

Year Ended December 31,

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Non-deductible expenses and other permanent differences 259 1,026 154

Remeasurement of warrants to Fair Value — — 3,160

Stock based compensation 1,639 2,403 2,193

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On December 22, 2017, the U.S.

enacted the Tax Cuts and Jobs Act, a comprehensive tax law that includes significant changes to the taxation of business entities.

enacted the Tax Cuts and Jobs Act, a comprehensive tax law that included significant changes to the taxation of business entities.

These changes include several key tax provisions, among others:

4 unchanged sentences

income tax base) and (iv) a one-time deemed repatriation tax on accumulated offshore earnings held in cash and illiquid assets, with the latter taxed at a lower rate.

In addition, begging in 2022, U.S research and experimental expenditures should be capitalized and amortized ratably over a five-year period, Any such expenditures attributable to research conducted outside of the U.S must be capitalized and amortized over a-15 year period.

In addition, beginning in 2022, U.S companies are required to capitalize and amortize research and experimental expenditures ratably over a five-year period, Any such expenditures attributable to research conducted outside of the U.S must be capitalized and amortized over a-15 year period.

The Israeli corporate tax rate was 23 % for the years ended December 31, 2024, 2023 and 2022.

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Kaltura Israel elected benefits under the alternative track of benefits according to which it was exempt from income tax in the first two years (from the date Kaltura Israel earned taxable income).

If a dividend is distributed out of tax exempt income earned by a Benefited Enterprise the amount distributed will be subject to corporate tax at the rate that would have otherwise been applicable on the Benefited Enterprise income.

Dividends paid out of income attributed to a Beneficiary Enterprise are generally subject to withholding tax at source at the rate of 15% or such lower rate as may be provided in an applicable tax treaty.

As of December 31, 2024, approximately $ 518 was derived from tax exempt profits earned by Kaltura Israel's “Beneficiary Enterprise.”

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

As of December 31, 2023, approximately $ 520 was derived from tax exempt profits earned by Kaltura Israel's "Beneficiary Enterprise." The Company and its Board of Directors have determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by Kaltura Israel.

The Company and its Board of Directors have determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by Kaltura Israel.

Accordingly, no provision for deferred income taxes has been provided on income attributable to Kaltura Israel's “Beneficiary Enterprise” as such income is essentially permanently reinvested.

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Kaltura Israel received final tax assessments through 2018 while the rest of the Company's subsidiaries did not have any final tax assessments as of December 31, 2024.

A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows:

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows:

Unrecognized Tax Benefits

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In addition, the Company is subject to the continuous examination of its income tax returns by the IRS and other tax authorities.

The Company’s federal and state income tax returns for years subsequent to 2007 remain open to examination.

The Company’s federal and state income tax returns for years 2010 and forward remain open to examination.

In the Company’s foreign jurisdictions – Israel and the United Kingdom – the tax years subsequent to 2020 remain open to examination.

The Company is currently under audit in Israel.

The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations.

2 unchanged sentences

The Company currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate.

NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented:

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented:

Year Ended December 31,

1 unchanged sentence

Net loss $ 31,315 $ 46,366 $ 68,495

Preferred stock accretion and cumulative dividends — — 8,241

Total loss attributable to common stockholders $ 46,366 $ 68,495 $ 67,592

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 147,925,797 138,237,017 130,366,385

16 unchanged sentences

The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements, which includes certain corporate overhead allocations.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

December 31, 2024

1 unchanged sentence

Revenue $ 128,704 $ 50,013 $ 178,717

Cost of revenue

Production costs $ 16,693 $ 13,973 $ 30,666

Compensation 10,868 6,464 17,332

Depreciation and amortization 1,354 2,370 3,724

Other segment items 2,861 5,028 7,889

Total cost of revenue 31,776 27,835 59,611

Gross profit 96,928 22,178 119,106

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Revenue $ 125,154 $ 50,018 $ 175,172

Cost of revenue

Production costs $ 18,528 $ 14,771 $ 33,299

Compensation 11,080 8,876 19,956

Depreciation and amortization 1,022 2,389 3,411

Other segment items 2,900 3,372 6,272

Total cost of revenue 33,530 29,408 62,938

Gross profit 91,624 20,610 112,234

Operating expenses 150,889

Financial expenses, net 4,248

Financial income, net ( 1,200 )

Provision for income taxes 8,911

Net loss $ 46,366

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

December 31, 2022

1 unchanged sentence

Revenue $ 120,190 $ 48,621 $ 168,811

Cost of revenue

Production costs 18,284 11,385 29,669

Compensation 14,117 10,134 24,251

Depreciation and amortization 765 687 1,452

Other segment items 3,212 3,287 6,499

Total cost of revenue 36,378 25,493 61,871

Gross profit 83,812 23,128 106,940

Operating expenses 163,319

Financial expenses, net 20,106

Financial income, net 4,248

Provision for income taxes 7,868

Net loss $ 68,495

Other segment items include costs related to subcontractors and consultants, allocated rent, IT expenses and other general costs.

Geographical information

Revenue by location is determined by the billing address of the customer.

Total revenues from external customers on the basis of the Company's geographical areas are as follows:

Total revenue from external customers on the basis of the Company's geographical areas are as follows:

Year Ended December 31,

10 unchanged sentences

$ 28,498 $ 33,985

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

LONG-TERM LOAN

4 unchanged sentences

Commitments under the Revolving Credit Facility decreased to $ 25,000 .

In July 2024, the Company entered into a new amendment to the then-existing Credit Agreement in connection with our Repurchase Program (as defined below), which updated the aggregate amount of permitted Restricted Payments (as defined in the Credit Agreement;

which term includes, among others, repurchase of the Company’s outstanding common stock) and conditions for making such payments (see Note 15 for further information).

Following the effectiveness of the Fifth Amendment, borrowings under the Credit Facilities bear interest, determined as follows:

(a) SOFR loans accrue interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus 0.10 % per annum plus a margin of 2.50 % (the Adjusted Term SOFR (as defined in the Credit Agreement) is subject to a 1.00 % floor), and (b) ABR loans accrue interest at a rate per annum equal to the ABR plus a margin of 1.50 % (ABR is equal to the highest of (i) the prime rate and (ii) the Federal Funds Effective Rate plus 0.50 %, subject to a 2.00 % floor).

As of December 31, 2023, the current rate of interest under the Credit Facilities was equal to a rate per annum of 7.98 %, consisting of 5.38 % (the 3-month SOFR rate as of December 31, 2023), 0.10 % credit spread adjustment and the margin of 2.50 %.

The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $ 438 for installments payable on December 31, 2023 (deferred to January 9, 2024), through September 30, 2024, (ii) $ 656 for installments payable on December 31, 2024 through September 30, 2025, and (iii) $ 1,313 for installments payable on and after December 31, 2025.

As of December 31, 2024, the current rate of interest under the Credit Facilities was equal to a rate per annum of 6.93 %, consisting of 4.33 % (the 3-months SOFR rate as of December 31, 2024), 0.10 % credit spread adjustment and the margin of 2.50 %.

The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $ 438 for installments payable on December 31, 2023 (deferred to January 9, 2024), through September 30, 2024 (ii) $ 656 for installments payable on December 31, 2024 ($218 of the amount deferred to January 2025) , through September 30, 2025, (iii) $ 1,313 for installments payable on and after December 31, 2025.

The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date.

3 unchanged sentences

The aggregate principal annual maturities according to the Credit Facilities agreements are as follows:

Year ended December 31,

The carrying amounts of the loans approximate their fair value.

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

Year ended December 31,

The carrying amounts of the loans approximate their fair valu e.

STOCKHOLDERS' EQUITY

Preferred Stock

In connection with the IPO, the Company amended and restated its Certificate of Incorporation to change the authorized preferred stock to 20,000,000 shares of preferred stock, all with a par value of $ 0.0001 per share.

The shares of common stock confer upon their holders the right to receive notice to participate and vote in general stockholders meetings of the Company, and the right to receive dividends, if declared, and to participate in the distribution of the surplus assets of the Company upon liquidation of the Company, as more fully described in the Company's Certificate of Incorporation.

18 unchanged sentences

and the remaining 25% of the award will vest upon the fair market value increasing two-hundred percent (200%) above the exercise price.

During the year ended December 31, 2024, the Company canceled the market-based options to its officers.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

Following the Company’s IPO, no additional awards will be granted under the Old Plans.

4 unchanged sentences

in addition, certain shares of common stock subject to awards under the Old Plans, such as those subject to expirations, terminations, exercise and tax-related withholding, or failures to vest, will become available for issuance under the 2021 Plan.

KALTURA, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

dollars in thousands (except share and per share data)

The number of shares of common stock available for issuance under the 2021 Plan will also include an annual increase on the first day of each fiscal year beginning on January 1, 2022, equal to the lesser of:

19 unchanged sentences

16,302,264 $ 3.29 4.33 $ 5,212

The weighted average grant-date fair value of the service-based awards granted in the year ended December 31, 2021, was $ 2.45 per option.

The total grant-date fair value of the service-based awards that vested during the years ended December 31, 2023, 2022 and 2021, was $ 11,409 , $ 12,763 and $ 13,152 , respectively.

The aggregate intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021, was $ 3,169 , $ 5,272 and $ 5,437 , respectively.

No stock options were granted during the years ended December 31, 2024, 2023 and 2022.

The total grant-date fair value of the service-based awards that vested during the years ended December 31, 2024, 2023 and 2022, was $ 6,679 ,

KALTURA, INC.

2 unchanged sentences

dollars in thousands (except share and per share data)

$ 11,409 and $ 12,763 , respectively.

The aggregate intrinsic value of options exercised during the years ended December 31, 2024, 2023 and 2022, was $ 1,449 , $ 3,169 and $ 5,272 , respectively.

The following table summarizes the RSU activity for the year ended December 31, 2024:

20 unchanged sentences

As of December 31, 2024, there were $ 13,995 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plans.

These costs are expected to be recognized over a weighted-average period of approximately two years.

Rights Agreement

On August 7, 2022, the Board of Directors of the Company approved and declared a dividend distribution of one preferred stock purchase right (each, a “Right”) for each share of common stock of the Company outstanding at the close of business on August 22, 2022.

The Rights expired in accordance with their terms on August 6, 2023.

These costs are expected to be recognized over a weighted-average period of approximately 1.5 years.

Stock Repurchase Program

On June 11, 2024, the Company’s board of directors authorized a stock repurchase program of the Company’s outstanding common stock for up to $ 5,000 of the Company’s common stock (the “Repurchase Program”).

Under the Repurchase Program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means.

The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization.

The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements and other factors.

The Repurchase Program does not obligate the Company to repurchase any specific amount of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors.

During the year ended December 31, 2024, the Company repurchased 2,238,569 shares of common stock at an weighted average price of $ 1.27 per share (excluding broker and transaction fees of $ 67 ).

As of December 31, 2024, the Company had remaining authorization under the Repurchase Program to repurchase common stock up to an aggregate amount of $ 2,148 , subject to satisfying required conditions under the Companies Law and Companies Regulations.

KALTURA, INC.

8 unchanged sentences

Foreign currency translation adjustments, net 175 2,169 —

3,530 4,904 962

Financial expenses:

Bank fees 135 153 160

Remeasurement of warrants to fair value — — 15,046

Interest expense 2,682 3,178 2,301

4 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive loss by component, net of tax, during the year ended December 31, 2023:

The following table summarizes the changes in accumulated other comprehensive loss by component, net of tax, during the years ended December 31, 2024, December 31, 2023 and December 31, 2022:

Net Unrealized Income (Losses) on Available-for-Sale Securities Instruments Net Unrealized Income (Losses) on Derivatives Designated as Hedging Instruments Total

Balance as of December 31, 2023 $ 49 $ 998 $ 1,047

Other comprehensive income (loss) before reclassifications 230 ( 1,155 ) ( 925 )

Net realized losses reclassified from accumulated other comprehensive income — 2,273 2,273

Other comprehensive income 230 1,118 1,348

Other comprehensive income before reclassifications ( 26 ) 770 744

Net realized income reclassified from accumulated other comprehensive income — ( 832 ) ( 832 )

Other comprehensive loss ( 26 ) ( 62 ) ( 88 )

Balance as of December 31, 2024 $ 23 $ 936 $ 959

3 unchanged sentences

dollars in thousands (except share and per share data)

Net Unrealized Income (Losses) on Available-for-Sale Securities Instruments Net Unrealized Income (Losses) on Derivatives Designated as Hedging Instruments Total

Balance as of December 31, 2022 $ ( 181 ) $ ( 120 ) $ ( 301 )

Other comprehensive loss before reclassifications 230 ( 1,155 ) ( 925 )

Net realized losses reclassified from accumulated other comprehensive income — 2,273 2,273

Other comprehensive loss 230 1,118 1,348

Balance as of December 31, 2023 $ 49 $ 998 $ 1,047

Net Unrealized Losses on Available-for-Sale Securities Instruments Net Unrealized Income (Losses) on Derivatives Designated as Hedging Instruments Total

4 unchanged sentences

Balance as of December 31, 2022 $ ( 181 ) $ ( 120 ) $ ( 301 )

There was no accumulated other comprehensive income (loss) activity during the year ended December 31, 2021.

RESTRUCTURING ACTIVITIES

2022 Restructuring Plan

On August 7, 2022, the Board of Directors of the Company approved a cost-reduction and re-organization plan (the "2022 Restructuring Plan") that included, among other things, downsizing around 10 % of the Company's employees.

During the year ended December 31, 2022, in connection with the 2022 Restructuring Plan, the Company recorded expenses of $ 1,238 , all for one time employee termination benefits.

The Company does not expect to incur additional costs related to the 2022 Restructuring Plan.

2023 Reorganization Plan

On January 3, 2023, the Board of Directors of the Company approved a re-organization plan (the “2023 Reorganization Plan”) that included, among other things, downsizing approximately 11 % of the Company’s workforce and adapting the Company's organizational structure, roles, and responsibilities accordingly.

During the year ended December 31, 2023, in connection with the 2023 Reorganization Plan, the Company recorded expenses of $ 973 , all for one time employee termination benefits.

The Company does not expect to incur additional costs related to the 2023 Reorganization Plan.

As of December 31, 2023, the Company has paid its full obligations regarding all restructuring activities and therefore there is no additional balance to be paid.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

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 8. Financial Statements and Supplementary Data