What changed in this filing

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Item 1. Financial Statements

2025-08-13 compared with 2025-05-13 · 139 added, 72 removed, 446 unchanged (32% of the section changed)

27 unchanged sentences

Preferred stock, $ 0.01 par value:

1,000 shares authorized, 200 shares of Series A Convertible Preferred Stock issued and outstanding at both March 31, 2025 and December 31, 2024 ( $ 5.0 million liquidation preference)

1,000 shares authorized, 200 shares of Series A Convertible Preferred Stock issued and outstanding at both June 30, 2025 and December 31, 2024 ( $ 5.0 million liquidation preference)

Common stock, $ 0.001 par value:

30,000 shares authorized, 9,864 shares issued and outstanding at both March 31, 2025 and December 31, 2024

30,000 shares authorized, 9,864 shares issued and outstanding at both June 30, 2025 and December 31, 2024

Additional paid-in-capital

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share data)

4 unchanged sentences

Total operating expenses

(Loss) from operations

Income (loss) from operations

Other income (expense), net

(Loss) before income taxes

Income (loss) before income taxes

Income tax expense (benefit)

Net (loss) applicable to common stockholders

Net income (loss)

Net income (loss) applicable to common stockholders

Earnings (loss) per common share – basic and diluted

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Net income (loss)

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments

Comprehensive (loss)

Comprehensive income (loss)

See accompanying notes to these unaudited condensed consolidated financial statements.

4 unchanged sentences

Stockholders’

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Income (Loss)

(in thousands)

Balance at March 31, 2025

Stock-based compensation expense

Preferred stock dividends

Foreign currency translation adjustment

Balance at June 30, 2025

Preferred Stock

Comprehensive

Stockholders’

Six Months Ended June 30, 2025

Income (Loss)

(in thousands)

Balance at December 31, 2024

2 unchanged sentences

Foreign currency translation adjustment

Balance at June 30, 2025

Preferred Stock

Comprehensive

Stockholders’

Three Months Ended June 30, 2024

Income (Loss)

(in thousands)

Balance at March 31, 2024

Stock-based compensation expense

Preferred stock dividends

Foreign currency translation adjustment

Balance at June 30, 2024

Preferred Stock

1 unchanged sentence

Stockholders’

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Income (Loss)

1 unchanged sentence

Balance at December 31, 2023

Stock-based compensation expense

Preferred stock dividends

Foreign currency translation adjustment

Balance at March 31, 2024

Balance at June 30, 2024

See accompanying notes to these unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

Cash flows from operating activities:

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

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

Depreciation and amortization

8 unchanged sentences

Accrued income taxes

Net cash provided by (used in) operating activities

Net cash (used in) operating activities

Cash flows from investing activities:

5 unchanged sentences

Effect of exchange rate changes on cash

Net increase (decrease) in cash and cash equivalents

Net (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

1 unchanged sentence

Supplemental disclosure of cash flow information:

Income taxes paid (refunded), net

Income taxes paid

Interest paid

Supplemental disclosure of non-cash investing and financing activities:

Lease liabilities arising from obtaining right-of-use assets

See accompanying notes to these unaudited condensed consolidated financial statements.

6 unchanged sentences

Our broad product and technology portfolio encompasses force, piezo-electric, rugged HMI, wearable sensors for textiles and fabrics, gas sensors, instruments, and systems.

Our blue-chip customers trust our products and solutions which span various markets, including industrial, medical, automotive, consumer, wearables, and IoT.

Our customers, including global blue-chip companies, trust our products and solutions which span various markets, including medical, industrial, automotive, wearables, IoT, and other specialty markets.

Our technical and engineering expertise in materials science, manufacturing, embedded electronics, firmware, and software enables us to create and deliver high-quality, cost-effective custom solutions tailored to our customers’ unique requirements.

48 unchanged sentences

This method reflects the pattern of transfer of control, as it aligns revenue recognition with the extent of work performed.

For the three months ended March 31, 2025, the amount of revenue recognized at a point in time was approximately $ 2,502,000 , and the amount of revenue recognized over time was approximately $ 162,000 .

For the three months ended March 31, 2024, the amount of revenue recognized at a point in time was approximately $ 2,956,000 , and the amount of revenue recognized over time was approximately $ 168,000 .

Revenue recognized at a point in time primarily relates to product sales.

Revenue recognized over time primarily relates to engineering service contracts and other services agreements.

The following table presents revenue recognized at a point in time and revenue recognized over time:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Revenue recognized at a point in time

Revenue recognized over time

Total revenue

Shipping and Handling Fees and Costs

7 unchanged sentences

All of the costs related to advertising and marketing our products are expensed as incurred or at the time the marketing takes place.

Advertising and marketing costs incurred in the three months ended March 31, 2025 and 2024 were $ 43,000 and $ 40,000 , respectively.

Advertising and marketing costs incurred in the three months ended June 30, 2025 and 2024 were $ 3,000 and $ 4,000 , respectively.

Advertising and marketing costs incurred in the six months ended June 30, 2025 and 2024 were $ 46,000 and $ 44,000 , respectively.

Stock-Based Compensation

11 unchanged sentences

Other Income (Expense)

Other income (expense) consists of interest income, foreign currency exchange gains and losses, gains and losses on marketable securities, and other non-operating gains and losses.

Other income (expense) consists of interest income, foreign currency transaction gains and losses, gains and losses on marketable securities, and other non-operating gains and losses.

We account for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards.

45 unchanged sentences

Our operations and financial results may be adversely affected by outbreaks of viruses, widespread illness, infectious diseases, contagions and unforeseen epidemics (such as the COVID-19 coronavirus) in countries in which our products are manufactured and sold.

We experienced delays in the receipt of certain goods and the supply of our products from international and domestic shipping origins as a result of the COVID-19 pandemic and more general global supply chain constraints in fiscal 2021, and to a lesser extent in the years following.

We experienced delays in the receipt of certain goods and the supply of our products from international and domestic shipping origins as a result of the COVID-19 pandemic and more general global supply chain constraints in 2021, and to a lesser extent in the years following.

Depending on the continued extent and duration of these and similar constraints and disruptions, our supply chain, results of operations (including sales) or future business may be materially and adversely impacted.

10 unchanged sentences

Subsequent Events

We have evaluated subsequent events through May 13, 2025, being the date these condensed consolidated financial statements were issued.

We have evaluated subsequent events through August 13, 2025, being the date these condensed consolidated financial statements were issued.

Note 2 – Details of Certain Financial Statement Components

12 unchanged sentences

Total property, plant and equipment, net

Depreciation expense totaled $ 47,000 and $ 40,000 for the three months ended March 31, 2025 and 2024, respectively.

Depreciation expense totaled $ 48,000 and $ 37,000 for the three months ended June 30, 2025 and 2024, respectively.

Depreciation expense totaled $ 95,000 and $ 77,000 for the six months ended June 30, 2025 and 2024, respectively.

Intangible assets, net, consisted of the following:

9 unchanged sentences

Total intangible assets, net

Amortization expense totaled $ 172,000 and $ 189,000 for the three months ended March 31, 2025 and 2024, respectively.

Amortization expense totaled $ 184,000 and $ 189,000 for the three months ended June 30, 2025 and 2024, respectively.

Amortization expense totaled $ 356,000 and $ 378,000 for the six months ended June 30, 2025 and 2024, respectively.

Years ending December 31,

1 unchanged sentence

2025 (remainder of year)

The changes in the carrying amount of goodwill for the periods ended March 31, 2025 and 2024 are as follows:

The changes in the carrying amount of goodwill for the periods ended June 30, 2025 and 2024 are as follows:

(in thousands)

2 unchanged sentences

Adjustment to goodwill, foreign currency exchange rate changes

Balance as of March 31, 2025

Balance as of June 30, 2025

(in thousands)

1 unchanged sentence

Adjustment to goodwill, foreign currency exchange rate changes

Balance as of March 31, 2024

Balance as of June 30, 2024

Accrued liabilities consisted of the following:

6 unchanged sentences

Note 3 – Acquisition of Conductive Transfers

On December 20, 2024, we acquired substantially all of the operating assets of Conductive Transfers Limited and its affiliate Global Print Solutions Limited (collectively, “Conductive Transfers”), England-based designers and manufacturers of wearables and smart textiles, conductive ink, and other printed electronics, pursuant to an Asset Sale Agreement (the “Asset Purchase Agreement”) by and among the Company’s wholly owned United Kingdom subsidiary, Conductive Transfers International Limited, and Conductive Transfers.

This acquisition was effected pursuant to an Asset Sale Agreement (the “Asset Purchase Agreement”) by and among the Company’s wholly owned United Kingdom subsidiary, Conductive Transfers International Limited, and Conductive Transfers.

Under the terms of the Asset Purchase Agreement, the purchase price was GB£ 250,000 (approximately $ 314,000 ) which was paid to the sellers in cash on the acquisition date.

4 unchanged sentences

Net assets acquired

The following represents pro forma consolidated statement of operations information as if Conductive Transfers had been included in our consolidated results for the three-month periods ended March 31, 2025 and 2024 (unaudited):

Three Months Ended March 31,

The following represents pro forma consolidated statement of operations information as if Conductive Transfers had been included in our consolidated results for the three - and six - month periods ended June 30, 2025 and 2024 (unaudited):

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Net income (loss)

Note 4 – Earnings Per Share

3 unchanged sentences

Three Months Ended

Six Months Ended

(in thousands, except per share data)

Net income (loss)

Preferred stock dividends

Net (loss) applicable to common stockholders

Net income (loss) applicable to common stockholders

Weighted average common shares outstanding – basic

6 unchanged sentences

200,000 shares of Series A Convertible Preferred Stock convertible into 600,000 shares of common stock were outstanding but were not included in the computation of diluted earnings (loss) per share because the effect of their conversion would be anti-dilutive due to the net losses and/or due to the $ 8.33 conversion price being higher than the average market price of the common stock.

31,250 restricted stock units (relating to the same number of shares of common stock) were outstanding for 2025 but were not included in the computation of diluted earnings (loss) per share for those periods because their effect would be anti-dilutive due to the net loss.

31,250 restricted stock units (relating to the same number of shares of common stock) were outstanding but were not included in the computation of diluted earnings (loss) per share for those periods because their effect would be anti-dilutive due to the net loss applicable to common stockholders.

Note 5 – Restricted Stock Units

The $ 7,000 of stock - based compensation expense recorded in the three months ended March 31, 2025 is for restricted stock units.

During the three- and six-month periods ended June 30, 2025, the Company recorded $ 7,000 and $ 14,000 of stock - based compensation expense, all of which was for restricted stock units.

In May 2024, the Compensation Committee of the Company’s Board of Directors approved the Company’s grant of 31,250 restricted stock units to certain employees under the Interlink Electronics, Inc.

2016 Omnibus Incentive Plan.

A summary of the status of the Company’s nonvested restricted stock units as of and for the three – month period ended March 31, 2025, is as follows:

A summary of the status of the Company’s nonvested restricted stock units as of and for the six - month period ended June 30, 2025, is as follows:

Nonvested Restricted Stock Units

Nonvested at January 1, 2025

Nonvested at March 31, 2025

As of March 31, 2025, there was approximately $ 114,000 of total unrecognized compensation cost related to nonvested restricted stock units.

Nonvested at June 30, 2025

As of June 30, 2025, there was approximately $ 102,000 of total unrecognized compensation cost related to nonvested restricted stock units.

That cost is expected to be recognized over a weighted-average period of 3.6 years.

2 unchanged sentences

Revenues from customers equal to or greater than 10% of total revenues are as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

* Less than 10% of total revenues

Revenues by geographic area are as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

6 unchanged sentences

Accounts receivable balances are monitored on an ongoing basis, and accounts deemed to have credit risk are fully reserved.

At March 31, 2025, two customers accounted for 36 % and 11 % of total accounts receivable.

At June 30, 2025, three customers accounted for 22 %, 21 %, and 10 % of total accounts receivable.

At December 31, 2024, one customer accounted for 41 % of total accounts receivable.

Our allowance for credit losses was approximately $ 40,000 and $ 34,000 at March 31, 2025 and December 31, 2024, respectively.

Our allowance for credit losses was approximately $ 46,000 and $ 34,000 at June 30, 2025 and December 31, 2024, respectively.

Our long-lived assets were geographically located as follows:

13 unchanged sentences

Transactions with Qualstar and its subsidiaries are as follows:

Three months ended March 31,

Three Months Ended June 30,

(in thousands)

Balance at April 1,

Billed (or accrued) to Qualstar by Interlink

Paid by Qualstar to Interlink

Billed (or accrued) to Interlink by Qualstar

Paid by Interlink to Qualstar

Balance at June 30,

Six Months Ended June 30,

(in thousands)

Balance at January 1,

1 unchanged sentence

Paid by Qualstar to Interlink

Billed (or accrued) to Interlink by BKF Capital

Paid by Interlink to BKF Capital

Balance at March 31,

Billed (or accrued) to Interlink by Qualstar

Paid by Interlink to Qualstar

Balance at June 30,

BKF Capital Group, Inc.

10 unchanged sentences

Transactions with BKF Capital and its subsidiaries are as follows:

Three months ended March 31,

Three Months Ended June 30,

(in thousands)

Balance at April 1,

Billed (or accrued) to BKF Capital by Interlink

Paid by BKF Capital to Interlink

Billed (or accrued) to Interlink by BKF Capital

Paid by Interlink to BKF Capital

Balance at June 30,

Six Months Ended June 30,

(in thousands)

Balance at January 1,

3 unchanged sentences

Paid by Interlink to BKF Capital

Balance at March 31,

Balance at June 30,

Note 8 – Income Taxes

Income taxes as a percentage of pre-tax loss was 4.6 % for the three months ended March 31, 2025 versus 3.1 % for the same quarter in the prior year.

Income taxes were 9.9 % of pre-tax income for the three months ended June 30, 2025 versus 3.4 % of pre - tax loss for the same quarter in the prior year.

Income taxes were 6.4 % of pre - tax loss for the six months ended June 30, 2025 versus 3.1 % for the first half of the prior year.

Our income tax expense is impacted by the mix of domestic and foreign pre-tax earnings and losses, permanent differences between book income/loss and taxable income/loss, and our ability to utilize net operating loss carryforwards (“NOLs”).

1 unchanged sentence

statutory tax rate of 21 % from quarter to quarter.

The effective tax rates for the three-month periods ended March 31, 2025 and 2024 were impacted by the amount of our foreign pre-tax income/loss and the tax expense/benefit thereon while not realizing a benefit on our domestic pre-tax loss and certain foreign losses due to the valuation allowances thereon.

The effective tax rates for the three- and six-month periods ended June 30, 2025 and 2024 were impacted by the amount of our foreign pre-tax income/loss and the tax expense/benefit thereon while not realizing a benefit on our domestic pre-tax loss and certain foreign losses due to the valuation allowances thereon.

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets.

We analyzed our need to record a valuation allowance against our otherwise recognizable net deferred tax assets in the federal, state and foreign jurisdictions, and we determined that a valuation allowance on federal, state, and certain foreign deferred tax assets was necessary at both March 31, 2025 and December 31, 2024.

The amount of deferred tax assets considered realizable could be adjusted in future periods if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for future profitability.

1 unchanged sentence

We have elected to account for GILTI as a period cost if and when incurred, rather than recognizing deferred taxes for basis differences expected to reverse.

Of our $ 2.6 million of cash at March 31, 2025, $ 1.9 million was held by our foreign subsidiaries.

Of our $ 2.3 million of cash at June 30, 2025, $ 1.5 million was held by our foreign subsidiaries.

If these funds are needed for our operations in the U.S.

5 unchanged sentences

We lease facilities under non-cancellable operating leases.

Our current leases expire at various dates through fiscal 2029 and frequently include renewal provisions for varying periods of time, provisions for taxes, insurance and maintenance costs, and provisions for minimum rent increases.

Our current leases expire at various dates through 2029 and frequently include renewal provisions for varying periods of time, provisions for taxes, insurance and maintenance costs, and provisions for minimum rent increases.

Minimum leases payments, including scheduled rent increases are recognized as rent expenses on a straight-line basis over the term of the lease.

The rate implicit in each lease is not readily determinable, and we therefore use our incremental borrowing rate to determine the present value of the lease payments.

No new right-of-use (“ROU”) assets were capitalized during the three months ended March 31, 2025 or 2024.

The weighted average incremental borrowing rate used to determine the initial value of right-of-use (“ROU”) assets and lease liabilities capitalized during the each of the six months ended June 30, 2025 and 2024 was 9.5 %.

ROU assets for operating leases are periodically reduced by impairment losses.

As of March 31, 2025, we have not recognized any impairment losses for our ROU assets.

As of June 30, 2025, we have not recognized any impairment losses for our ROU assets.

We monitor for events or changes in circumstances that require a reassessment of our leases.

1 unchanged sentence

In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss.

We lease a 10,635 square - foot manufacturing facility and administrative offices in Newark, California.

In February 2024, we renewed this lease for the period March 2024 through February 2025 for approximately $ 19,000 per month.

In March 2024, we entered into a new lease for a 5,183 square - foot facility in Fremont, California for a five - year and three - month period commencing May 1, 2024 for $ 10,625 per month, escalating 3.5 % annually, plus a share of common area operating expenses.

In June 2023, we entered into a lease agreement to lease 1,560 square feet of office space in Irvine, California for approximately $ 4,000 per month for a term commencing June 2023 and ending May 2024.

In May 2024, we entered into a lease agreement for a 5,183 square-foot manufacturing facility and administrative offices located in Fremont, California.

The lease term is five years and three months , with monthly base rent of approximately $ 11,000 , subject to annual increases of 3.5 %.

In addition to base rent, we are responsible for our proportionate share of common area operating expenses.

We previously leased a 10,635 square - foot manufacturing facility located in Newark, California, which had a monthly rent of approximately $ 19,000 .

We vacated the Newark facility in December 2024.

In June 2023, we entered into a lease agreement for a 1,560 square - foot office space in Irvine, California for approximately $ 4,000 per month for a term commencing June 2023 and ending May 2024.

The term of this lease has been extended through December 31, 2025 for the same rental amount.

Our Irvine, California office is used for executive offices, sales, finance and administration.

In April 2024, we entered into a lease agreement for approximately 2,480 square feet of office space in Bellevue, Washington, at a monthly rent of approximately $ 9,000 .

In April 2024, we entered into a lease agreement for a 2,480 square - foot office space in Bellevue, Washington, at a monthly rent of approximately $ 9,000 .

This lease term begins in July 2024 and ends in October 2027.

Subsequently, in March 2025, we entered into a sublease agreement with a third party for the same space at a monthly rate of approximately $ 10,000 .

The sublease term begins in March 2025 and also ends in October 2027.

In March 2025, we entered into a sublease agreement with a third party for the same office space at a monthly rate of approximately $ 10,000 .

In accordance with the terms of our lease agreement, a portion of the premium of the sublease rent over our base rent is shared with the landlord.

The sublease term began in March 2025 and also ends in October 2027.

We lease a 14,476 square-foot manufacturing facility and administrative office in Shenzhen, China.

In May 2024, we renewed this lease for the period June 2024 through May 2026 for approximately $ 8,000 per month.

In May 2024, we also leased an additional 7,287 square-foot manufacturing facility in Shenzhen, China for the same June 2024 through May 2026 period for approximately $ 3,000 per month.

In May 2024, we also leased an additional 7,287 square-foot facility in Shenzhen, China for a two - year term for approximately $ 3,000 per month.

In June 2025, we modified the lease on this additional facility, reducing the footprint to 1,292 square - feet, reducing the monthly rent to approximately $ 1,000 , and extending the term to June 2027.

We lease an approximately 9,800 square-foot manufacturing facility and administrative offices in Irvine, Scotland for approximately $ 5,000 per month.

This lease term ends February 2028.

We use a 10,786 square - foot manufacturing facility and administrative offices in Barnsley, England subject to a temporary premise license agreement for the period from January 2025 to June 2025 for approximately $ 8,000 per month.

We lease a 275 square-foot engineering and administrative office in Singapore for approximately $ 1,000 per month.

This lease term ends June 2025.

We lease a 3,000 square-foot logistics and distribution facility in Hong Kong for approximately $ 2,000 per month.

2 unchanged sentences

This lease term ends November 2026.

As of March 31, 2025, we had current and long-term lease liabilities of $ 357,000 and $ 688,000 , respectively, and right-of-use assets of $ 981,000 .

We previously leased a 275 square - foot engineering and administrative office in Singapore for approximately $ 1,000 per month through June 2025.

As of June 30, 2025, we had current and long-term lease liabilities of $ 353,000 and $ 641,000 , respectively, and right-of-use assets of $ 931,000 .

As of December 31, 2024, we had current and long-term lease liabilities of $ 352,000 and $ 777,000 , respectively, and right of use assets of $ 1,064,000 .

Future imputed interest as of March 31, 2025 totaled $ 174,000 (weighted average discount rate of 8.9 )%;

Future imputed interest as of June 30, 2025 totaled $ 156,000 (weighted average discount rate of 9.1 )%;

and future imputed interest as of December 31, 2024 totaled $ 199,000 (weighted average discount rate of 8.9 )%.

The weighted average remaining lease term of the Company’s leases as of March 31, 2025 is 2.0 years;

The weighted average remaining lease term of the Company’s leases as of June 30, 2025 is 2.0 years;

and as of December 31, 2024 was 2.2 years.

6 unchanged sentences

Present value of lease liabilities

During the three months ended March 31, 2025, we incurred approximately $ 133,000 in operating lease costs, of which 73,000 are included in cost of revenue and $ 60,000 are included in operating expenses in our condensed consolidated statements of operations.

During the three months ended March 31, 2024, we incurred approximately $ 124,000 in operating lease costs.

Operating lease costs of $ 67,000 are included in cost of revenue, and $ 57,000 are included in operating expenses in our condensed consolidated statements of operations for the three months ended March 31, 2024.

We are not party to any legal proceedings as of March 31, 2025.

During the three months ended June 30, 2025, we incurred approximately $ 136,000 in operating lease costs, of which $ 76,000 is included in cost of revenue and $ 60,000 is included in operating expenses in our condensed consolidated statements of operations.

During the three months ended June 30, 2024, we incurred approximately $ 156,000 in operating lease costs, of which $ 86,000 are included in cost of revenue and $ 71,000 are included in operating expenses in our condensed consolidated statements of operations.

During the six months ended June 30, 2025, we incurred approximately $ 269,000 in operating lease costs.

Operating lease costs of $ 150,000 is included in cost of revenue, and $ 119,000 is included in operating expenses in our condensed consolidated statements of operations.

During the six months ended June 30, 2024, we incurred approximately $ 280,000 in operating lease costs.

Operating lease costs of $ 155,000 are included in cost of revenue, and $ 125,000 are included in operating expenses in our condensed consolidated statements of operations.

We are not party to any legal proceedings as of June 30, 2025.

We are occasionally involved in legal proceedings in the ordinary course of business, including actions against us which assert or may assert claims or seek to impose fines and penalties in substantial amounts.

40 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 1. Financial Statements