What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-09-09 compared with 2025-06-09 · 100 added, 56 removed, 119 unchanged (57% of the section changed)

9 unchanged sentences

Some of the important factors that could cause our actual results, performance or financial condition to differ materially from expectations are:

we are subject to risk as a result of our international manufacturing operations and are subject to the risk of doing business in foreign countries, particularly in China and Vietnam, including risks relating to the impacts of tariff policies, which could affect our ability to manufacture or sell our products, obtain products from foreign suppliers or control the costs of our products;

we are subject to risk as a result of our international manufacturing operations and are subject to the risk of doing business in foreign countries, particularly in China, Vietnam and India, including risks relating to the impacts of tariff policies and other trade maneuvers, which could affect our ability to manufacture or sell our products, obtain products from foreign suppliers or control the costs of our products;

a terrorist attack, other geopolitical crisis, or widespread outbreak of an illness or other health issue, such as the COVID-19 pandemic, could negatively impact our domestic and/or international operations;

our results of operations could be negatively affected by potential fluctuations in foreign currency exchange rates;

we have manufacturing and other operations in China, Vietnam, and other countries which may be adversely affected by tariff wars and other trade maneuvers;

our results of operations may vary widely from quarter to quarter;

8 unchanged sentences

data privacy and security laws relating to the handling of personal information are evolving across the world and may be drafted, interpreted, or applied in a manner that results in increased costs, legal claims, fines against us, or reputational damage;

our success depends in part on our proprietary technology, and if we fail to successfully obtain or enforce our intellectual property rights, our competitive position may be harmed;

our success depends in part on our proprietary technology, and if we fail to obtain or enforce our intellectual property rights successfully, our competitive position may be harmed;

we are implementing a new enterprise resource planning system;

9 unchanged sentences

adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties, could adversely affect our business, financial condition or results of operations;

the other factors referenced in this Form 10-Q, including, without limitation, in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the factors described under “Risk Factors” disclosed in our fiscal 2025 Form 10-K.

the other factors referenced in this Form 10-Q, including, without limitation, in the sections entitled “Part I – Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II – Item 1A – Risk Factors” and the factors described under “Risk Factors” disclosed in our fiscal 2025 Form 10-K.

We believe these forward-looking statements are reasonable;

7 unchanged sentences

Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a network of over 2,000 global safety and industrial supply distributors.

Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry.

In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control.

Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical and high-tech electronics manufacturers, as well as scientific, medical laboratories and the utilities industry.

We also supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control.

Internationally, we sell to a mixture of end-users directly and to industrial distributors, depending on the particular country and market.

In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community (“EEC”), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, New Zealand, Australia and Hong Kong.

In addition to the United States, sales are made into more than 50 foreign countries, the majority of which are into China, the European Economic Community (“EEC”), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, New Zealand, Australia and Hong Kong.

The Company’s strong market position across its focus product categories and markets is supported by continued and increasing investment in its global footprint, particularly owning and operating its own manufacturing facilities, acquiring complementary companies or products that expand and enhance product offerings and/or geographic customer territories and investing in sales and marketing resources in countries around the world.

We believe that ownership of manufacturing is the cornerstone of building a resilient supply chain and providing high-quality products to our customers.

Having ten manufacturing locations in eight countries on five continents, and sourcing core raw materials from multiple suppliers in various countries affords Lakeland with superior manufacturing capabilities and supply chain resilience compared to our competitors who use contractors.

Having ten manufacturing locations in eight countries on five continents, and sourcing core raw materials from multiple suppliers in various countries affords Lakeland superior manufacturing capabilities and supply chain resilience compared to our competitors who use contractors.

Additionally, our focus on providing customers with best-in-class service includes the strategic location of our sales team members.

Lakeland is committed to protecting the world’s workers, first responders, and communities while creating shareholder value.

Lakeland is committed to protecting the world’s workers, first responders, and communities while creating value for its shareholders.

Key elements of our corporate strategy include:

18 unchanged sentences

Jolly’s primary customers are based in Europe.

Our net sales attributable to customers outside the United States were $26.0 million and $22.0 million for the three months ended April 30, 2025 and 2024, respectively.

Our net sales attributable to customers outside the U.S.

were $30.4 million and $26.1 million for the three months ended July 31, 2025 and 2024, respectively, and $56.4 million and $48.2 million for the six months ended July 31, 2025 and 2024, respectively.

Key Trends Affecting Our Operations

Trade Policies and Regulations

Recently, the executive branch of the U.S.

government has pursued a policy of imposing tariffs on imports from many foreign countries, including countries where the Company has manufacturing facilities, such as China, India, and Vietnam, among others.

In response, China and other countries announced retaliatory tariffs against certain U.S.

These tariffs have been, and may continue to be, announced, amended, paused, reinstated and rescinded with little or no advance notice.

As the situation remains fluid due to the rapidly changing global trade environment, we continue to evaluate the potential implications of these actions on our business, and we are uncertain about the ultimate impact that these policies will have on our business.

Thus far, however, they have increased the cost of importing certain products, which has affected our operating results and margins.

Therefore, we expect that, as long as such tariffs are in effect, they will continue to affect our operating results and margins, and as a result, our historical and current gross profit margins may not be indicative of our gross profit margins for future periods.

Russia-Ukraine Conflict

We are continually monitoring the potential financial impact of the Russian invasion of Ukraine on our operations.

For the three months ended April 30, 2025, sales in Russia were approximately 1.4% of our consolidated sales and sales into Ukraine were not significant.

For the first half of FY26, sales in Russia accounted for approximately 2.2% of our consolidated sales, and sales into Ukraine were not significant.

We do not have any capital assets in Russia.

Results of Operations

Three Months ended April 30, 2025, Compared to the Three Months Ended April 30, 2024

Net sales were $46.7 million for the three months ended April 30, 2025, an increase of $10.4 million or 28.7% compared to $36.3 million for the three months ended April 30, 2024.

Sales of our Fire Services product line increased $10.5 million due to $9.8 million in sales from Veridian acquired in December 2024 and LHD acquired in July 2024, and $0.7 million growth in the product line.

Our Industrials product line sales in Q1 FY26 were in line with Q1 FY25 with a slight contraction of $0.1 million.

Three Months ended July 31, 2025, Compared to the Three Months Ended July 31, 2024

Net sales were $52.5 million for the three months ended July 31, 2025, an increase of $14.0 million or 36.4%, compared to $38.5 million for the three months ended July 31, 2024.

Sales of our Fire Service product line increased $13.6 million due to $5.1 million in sales from Veridian, and a net increase in sales of $8.5 million from LHD and Jolly acquired in FY25.

Sales of our Disposable products increased $1.6 million and High Performance products sales increased by $0.8 million, offset by weakness in Wovens as sales declined $2.5 million, primarily in Latin America.

Gross Profit.

Gross profit for the three months ended April 30, 2025 was $15.6 million, a decrease of $0.6 million, or 3.7%, compared to $16.2 million for the three months ended April 30, 2024.

Gross profit as a percentage of net sales decreased to 33.5% for the three-month period ended April 30, 2025, from 44.6% for the three months ended April 30, 2024.

Gross profit performance declined in the three months ended April 30, 2025 due to revenue mix coupled with lower margins in our acquired businesses, higher manufacturing and freight costs.

Our margins in the acquired businesses were impacted by the amortization of the write-up in inventory as part of purchase accounting.

Operating Expense .

Operating expenses increased by $6.3 million, or 45.0%, from $14.0 million for the three months ended April 30, 2024 to $20.3 million for the three months ended April 30, 2025.

This increase is attributable to the acquisitions of Veridian and LHD which increased operating expenses by $2.8 million.

In addition, the Company incurred transaction-related expenses related to our acquisitions of $0.9 million coupled with severance costs of $0.6 million, costs of $0.2 million due to ongoing PFAS litigation and $0.6 million of costs associated with the Monterrey facility.

The remaining increase was related to additional selling expenses including travel and trade shows, increased outbound freight, professional fees and administrative expenses of $1.1 million.

During the quarter ended April 30, 2024, the Company evaluated the earnout consideration accrual related to the Eagle and Pacific acquisitions and reduced the accrual by $0.7 million, which was recorded as a reduction in operating expense.

Operating expenses as a percentage of net sales were 43.4% for the three months ended April 30, 2025, up from 38.5% for the three months ended April 30, 2024, primarily due to the factors noted above.

Operating Loss .

Operating loss was ($4.6) million for the three months ended April 30, 2025 compared to an operating profit of $2.2 million for the three months ended April 30, 2024, due to the impacts detailed above.

Operating margins were (9.9%) for the three months ended April 30, 2025, as compared to 6.1% for the three months ended April 30, 2024.

Income Tax Expense (Benefit) .

Income tax expense consists of federal, state and foreign income taxes.

Income tax benefit was $1.2 million for the three months ended April 30, 2025, compared to income tax expense of $0.4 million for the three months ended April 30, 2024.

The income tax benefit is a result of the pre-tax operating loss in the three months ended April 30, 2025.

The Company’s effective tax rate for the first quarter of FY26 was 23.4% which differs from the U.S.

federal statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions.

The Company’s effective tax rate for the first quarter of FY24 was 19.0%, which differs from the U.S.

federal statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions and the GILTI provision, and the earn-out adjustments related to the Pacific and Eagle acquisitions.

Gross profit for the three months ended July 31, 2025 was $18.8 million, an increase of $3.6 million, or 23.7%, compared to $15.2 million for the three months ended July 31, 2024.

Gross profit as a percentage of net sales decreased to 35.8% for the three-month period ended July 31, 2025, from 39.6% for the three months ended July 31, 2024.

The gross profit percentage decreased in the second quarter of fiscal year 2026 due to increased material costs and tariffs, higher inbound freight expenses, and amortization of the step-up in the basis of acquired inventory.

Operating Expenses .

Operating expenses increased by $2.5 million, or 14.6%, from $16.8 million for the three months ended July 31, 2024 to $19.3 million for the three months ended July 31, 2025.

This increase is attributable to the acquisitions of Veridian in December 2024 and LHD in July 2024, which resulted in an increase of $1.6 million in operating expenses.

Equity compensation expense increased $1.0 million as a number of board members, executives and senior managers voluntarily elected to receive equity compensation in lieu of a portion of their cash compensation pursuant to a program approved by the Compensation Committee and the Board under the Lakeland Industries, Inc.

2017 Equity Incentive Plan.

Depreciation and amortization expenses increased $0.4 million due to the acquisitions of LHD and Veridian.

These increases were offset by reductions in acquisition, restructuring expenses and legal fees.

Operating expenses as a percentage of net sales were 36.7% for the three months ended July 31, 2025, down from 43.7% for the three months ended July 31, 2024, primarily due to the factors noted above.

Lease Impairment .

The Company recorded a $3.6 million impairment primarily related to the right-of-use asset for the Monterrey, Mexico facility.

There were no lease impairment charges recorded for the three months ended July 31, 2024.

Operating (Loss) Income.

Operating loss was $(4.0) million for the three months ended July 31, 2025, compared to an operating loss of $(1.6) million for the three months ended July 31, 2024, due to the impacts detailed above.

Operating margins were (7.6%) for the three months ended July 31, 2025, as compared to (4.1%) for the three months ended July 31, 2024.

Income Tax (Benefit) Expense .

Income tax (benefit) expense consists of federal, state and foreign income taxes.

Income tax benefit was $5.2 million for the three months ended July 31, 2025, compared to a benefit of $0.4 million for the three months ended July 31, 2024.

The Company’s effective tax rate for the second quarter of FY26 was 117.2% which differs from the U.S.

federal statutory rate of 21% primarily due to the forecasted allocation of income for the current fiscal year and from the mix of jurisdictional income at differing statutory rates.

The Company’s effective tax rate for the second quarter of FY25 was 23.4%, which differs from the U.S.

federal statutory rate of 21% primarily due to the mix of income in various foreign tax jurisdictions, the impacts from GILTI and stock compensation vestings, offset by foreign withholding taxes accrued during the respective periods.

Net Income (Loss).

Net loss was ($3.9) million for the three months ended April 30, 2025 down from net income of $1.7 million for the three months ended April 30, 2024.

Net income was $0.8 million for the three months ended July 31, 2025, compared to net loss of $(1.4) million for the three months ended July 31, 2024.

Six Months ended July 31, 2025, Compared to the Six Months Ended July 31, 2024

Net sales were $99.2 million for the six months ended July 31, 2025 as compared to $74.8 million for the six months ended July 31, 2024, an increase of 32.6%.

Our Fire Service product line increased by $24.1 million in the period due to the impact of the acquisitions of Veridian, LHD, Jolly and Pacific, which contributed $22.8 million in sales growth coupled with organic growth of $1.3 million.

Sales of our Disposable product line increased $1.6 million, which was offset by declines in our Woven products of $2.3 million.

Our remaining product lines delivered growth of $1.2 million.

Gross Profit.

Gross profit was $34.5 million for the six months ended July 31, 2025, an increase of $3.1 million, or 9.9%, from $31.4 million for the six months ended July 31, 2024.

Gross profit as a percentage of net sales decreased to 34.7% for the six months ended July 31, 2025, from 42.0% for the six months ended July 31, 2024 primarily due to higher manufacturing costs, increased tariff and inbound freight costs and the impact of deferred profit in ending inventory and amortization of the step-up in basis of acquired inventory.

Operating Expenses .

Operating expenses increased $8.8 million, or 28.6%, to $39.6 million for the six months ended July 31, 2025 from $30.8 million for the six months ended July 31, 2024.

The acquisitions of Veridian and LHD accounted for $4.4 million of the increase in operating expenses.

Equity compensation expense increased $1.1 million as a number of board members, executives and senior managers voluntarily elected to receive equity compensation in lieu of a portion of their cash compensation pursuant to a program approved by the Compensation Committee and the Board under the Lakeland Industries, Inc.

2017 Equity Incentive Plan.

The impact of the adjustment to the earnout consideration accrual related to the Eagle acquisition was a reduction in operating expenses of $0.7 million for the six months ended July 31, 2024.

The remaining increase was related to additional selling expenses including travel and trade shows, professional fees and administrative expenses of $2.4 million.

Operating expenses as a percentage of net sales were 39.9% for the six months ended July 31, 2025, down from 41.1% for the six months ended July 31, 2024.

Lease Impairment .

The Company recorded a $3.6 million impairment primarily related to the right-of-use asset for the Monterrey, Mexico facility.

There were no lease impairment charges recorded for the six months ended July 31, 2024.

Operating (Loss) Income .

Operating loss was $(8.7) million for the six months ended July 31, 2025 compared to an operating income of $0.6 million for the six months ended July 31, 2024, due to the impacts detailed above.

Operating margins were (8.8%) for the six months ended July 31, 2025, as compared to 0.8% for the six months ended July 31, 2024.

Income Tax (Benefit) Expense .

Income tax expense consists of federal, state and foreign income taxes.

Income tax benefit was $6.4 million for the six months ended July 31, 2025, compared to a benefit of less than $0.1 million for the six months ended July 31, 2024.

The Company’s effective rate was (67.1%) for the six months ended July 31, 2025 and (13.1%) for the six months ended July 31, 2024.

Net (Loss) Income.

Net loss was $(3.1) million for the six months ended July 31, 2025 and net income was $0.3 million for the six months ended July 31, 2024.

Liquidity and Capital Resources

At April 30, 2025, cash and cash equivalents were approximately $18.6 million, and working capital was approximately $104.4 million.

At July 31, 2025, cash and cash equivalents were approximately $17.7 million, and working capital was approximately $106.9 million.

Cash and cash equivalents increased $0.3 million, and working capital increased $5.3 million from January 31, 2025 due to the balance sheet fluctuations described below.

Of the Company’s total cash and cash equivalents of $18.6 million as of April 30, 2025, cash held in Latin America of $2.2 million, cash held in the UK of $2.5 million, cash held in Russia and Kazakhstan of $1.9 million, cash held in the EEC of $4.8, cash held in India of $0.6 million, cash held in Vietnam of $0.2 million, and cash held in Hong Kong of $0.1 million would not be subject to additional US tax in the event such cash was repatriated due to the change in the US tax law as a result of the December 22, 2017 enactment of the 2017 Tax Cuts and Jobs Act (the “Tax Act”).

When the Company repatriates cash from China, of the $1.8 million balance at April 30, 2025, an additional 10% withholding tax may be incurred in that country.

The Company expects to repatriate cash from China during FY 26 and in anticipation of doing so, has accrued withholding tax expense of $0.3 million as of April 30, 2025.

Cash used in operations was $4.9 million due to net loss of ($3.9) million, and an increase in working capital of $3.0 million offset by non-cash charges of $2.1 million.

Net cash used in investing activities was $1.2 million for capital expenditures for our new ERP system and replacement of manufacturing equipment.

Net cash provided by financing activities was $8.5 million due to $6.6 million borrowed under our credit facility to fund working capital increases and the addition of a $2.2 million working capital loan for Jolly to support their operations offset by dividends of $0.3 million, repayment of short-term borrowings of $0.2 million and $0.1 million in shares returned to pay income taxes on shares vested under our equity compensation program.

Of the Company’s total cash and cash equivalents of $17.7 million as of July 31, 2025, cash held in Latin America of $1.6 million, cash held in the UK of $2.3 million, cash held in Russia and Kazakhstan of $1.6 million, cash held in the EEC of $4.5 million, cash held in India of $0.2 million, cash held in Vietnam of $0.2 million, and cash held in Hong Kong of $1.1 million would not be subject to additional U.S.

tax in the event such cash was repatriated due to the change in the U.S.

tax law as a result of the December 22, 2017 enactment of the 2017 Tax Cuts and Jobs Act (the “Tax Act”).

When the Company repatriates cash from China, of the $3.0 million balance at July 31, 2025, an additional 10% withholding tax may be incurred in that country.

The Company expects to repatriate cash from China during FY 26 and in anticipation of doing so, has accrued withholding tax expense of $0.3 million as of July 31, 2025.

Cash used in operations was $9.7 million due to a net loss of $(3.1) million, an increase in working capital of $5.3 million and non-cash credits of $1.7 million.

Net cash used in investing activities was $2.1 million, primarily for capital expenditures related to ERP implementation costs and the replacement of manufacturing equipment.

Net cash provided by financing activities was $10.9 million due to $13.8 million borrowed under our credit facility to fund working capital increases and the addition of a $2.1 million working capital loan for Jolly to support their operations, offset by dividends of $0.6 million, repayment of debt facilities of $4.1 million and $0.3 million in shares returned to pay income taxes on shares vested under our equity compensation program.

We believe our current cash, cash equivalents, borrowing capacity under our Loan Agreement, and the cash to be generated from expected product sales will be sufficient to meet our projected operating and investing requirements (including planned capital expenditures) for at least the next twelve months.

8 unchanged sentences

3”), Amendment No.

4 to the Loan Agreement, dated March 28,

4 to the Loan Agreement, dated March 28, 2024 (“Amendment No.

4”), Amendment No.

4”), and Amendment No.

5 to the Loan Agreement, dated December 12, 2024 (“Amendment No.

5”) and Amendment No.

6 to the Loan Agreement, dated July 7, 2025 (“Amendment No.

6” and, collectively with Amendment No.

1 unchanged sentence

2, Amendment No.

3, Amendment No.

4, and Amendment No.

7 unchanged sentences

Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of (i) the greater of the daily Secured Overnight Financing Rate (“SOFR”) or an index floor of 1% plus (ii) the Applicable Rate (as defined in the Amended Loan Agreement).

The Applicable Rate is based on a funded debt-to-EBITDA ratio (discussed below) and includes four different levels constituting a SOFR margin range from 1.25% to 2.00%.

The Applicable Rate is based on a funded debt-to-EBITDA ratio (discussed below) and includes four different levels, constituting a SOFR margin range of 1.25% to 2.00%.

All outstanding principal and unpaid accrued interest under the revolving credit facility are due and payable on the maturity date.

4 unchanged sentences

The Company also agreed to maintain, as of the end of each fiscal quarter a minimum “basic fixed charge coverage ratio” (as defined in the Amended Loan Agreement) of at least 1.20x and a “funded debt to EBITDA ratio” (as defined in the Amended Loan Agreement) not to exceed 3.5x (with step-downs to 3.25x and 3.0x on February 1, 2026 and February 1, 2027, respectively), in each case for the trailing 12-month period ending with the applicable quarterly reporting period.

In addition, the Company has agreed to maintain a springing “asset coverage ratio” (as defined in the Amended Loan Agreement) of at least 1.10x, but only to the extent that the maximum funded debt to EBITDA ratio exceeds 3.25x at any reporting period.

The Company was in compliance with all of its debt covenants as of April 30, 2025.

In addition, the Company has agreed to maintain a springing “asset coverage ratio” (as defined in the Amended Loan Agreement) of at least 1.10x, provided that this ratio is only applicable to the extent that the maximum funded debt to EBITDA ratio exceeds 3.25x at any reporting period.

The Company was in compliance with all of its debt covenants as of July 31, 2025.

Stock Repurchase Program .

On April 7, 2022, the Board of Directors authorized a new stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program.

On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program.

On December 1, 2022, the Board of Directors authorized an increase in the Company’s stock repurchase program, under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.

No shares were repurchased in the three months ended April 30, 2025 leaving $5.0 million remaining under the share repurchase program at April 30, 2025.

No shares were repurchased in the six months ended July 31, 2025 leaving $5.0 million remaining under the share repurchase program at July 31, 2025.

The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

Quarterly Cash Dividend .

On February 1, 2025, the Board of Directors declared a quarterly cash dividend.

The quarterly dividend of $0.03 per share was paid on February 24, 2025, to stockholders of record as of February 17, 2025.

On May 1, 2025, the Board of Directors declared a quarterly cash dividend.

The quarterly dividend of $0.03 per share was paid on May 22, 2025, to stockholders of record as of May 15, 2025.

Capital Expenditures.

Our capital expenditures for the three months ended April 30, 2025 of $1.2 million principally relate to capital investment in our new ERP system and some replacement equipment for our manufacturing sites.

Our capital expenditures were $2.1 million for the six months ended July 31, 2025 which principally relate to capital investment in our new ERP system and some replacement equipment for our manufacturing sites.

We anticipate FY26 capital expenditures to be approximately $4.0 million to replace existing equipment in the normal course of operations, expand our fire services products manufacturing capabilities and invest in our new ERP system.

7 unchanged sentences

Such policies are summarized in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section in our 2025 Form 10-K.

There have been no significant changes in the application of our critical accounting policies during the three months ended April 30, 2025.

There have been no significant changes in the application of our critical accounting policies and estimates during the six months ended July 31, 2025.

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