What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-07-05 compared with 2023-05-30 · 250 added, 219 removed, 23 unchanged (95% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

of Operations for the Years February 28, 2023 and 2022

of Operations for the Years February 29, 2024 and February 28, 2023

The Consolidated Medinotec

Group of Companies’ revenue for the year ended February 28, 2023 was $999,579 compared to $1,215,905 (Pro-forma Full Year FY

2022)_ in revenue being recorded in the year ended February 28, 2022.

The revenue was down in comparison

to the prior year with $216,326 for the year..

The sales presented includes the following economic and internal issues:

Medinotec trades out of South Africa and its functional currency is the South African Rand, The Rand weakened from an average conversion

14.9 (2022) to 1$:

17.37( for the last three quarters of 2023) against the US Dollar.

This translated to a decrease of

17% due to dollar strength when the Rand was converted for reporting purposes, which means a decrease of approx.

$69,928 for the

year in sales when converted to dollars from Rands.

The Rand was very volatile against the US Dollar especially in the year ended

February 28, 2023.

Most of the year-to-date differences discussed here are attributable to the second,third and fourth quarters during

which the Rand experienced the most volatility.

was a machine breakdown that occurred in the last week of April and the repair process lasted three weeks,

therefore leaving a back log in production and invoicing of products volume losses in this period accounted

for an estimated $62,983 for the year ended 2023 and all of this can be attributed to the first quarter, since

the breakdown lasted from April to May.

An increased number of sales were made in the third quarter due to

most of the backlogs being addressed, therefore a significant increase in sales volumes were experienced over

and above the negative impact of the Rand conversion rate on sales.

was a once off sale of $483,381 from DISA Medinotec Proprietary Limited to Minoan Medical

Proprietary Limited in the Feb 2022 financial year this is not to be repeated and is because Minoan Medical found a buyer for short

dated expiring stock for DISA Medinotec, the raw materials aged due to the slower sales during covid.

This is therefore an

extraordinary event which is not to be repeated.

ignoring this extraordinary revenue event, the actual sales growth for the period was $250,695 which represents a 36.5% growth in

normal sales figures excluding extraordinary events.

This table indicates the

sales per prod uct as a breakdown of the total revenue balance:

Inc Group Consolidated Years Ended

Medinotec Inc Group

the period April 26, 2021 to February 28 2022

Cross NC Catheter

Cross PTCA Catheter

Revenue generated by affiliations

to related parties were as follows:

to Minoan Medical stopped during Q1 of the 2023 financial year due to the fact that DISA Medinotec now employs its own international

sales and marketing manager, which was outsourced in the past.

Minoan primarily

facilitated export business on behalf of DISA Medinotec the total sales for the financial year ending February 2022 was $483,381.

For the year ended February

28, 2023, we generated revenue through sales to DISA Lifesciences Proprietary Limited of $335,786 and $525,558 for the year ended February

Pieter van Niekerk ceased to be a director on DISA Lifesciences on October 14, 2022 after which the business will not be a related

party to the Medinotec Group anymore, but due to the extensive sales reach of DISA Lifesiences it will remain a material distributor for

the Medinotec Group in South Africa which generates 68% of the sales for the Medinotec Inc Group of Companies.

The profit percentage on

these related party transactions was determined by a benchmark study that was completed by an external firm who compared the profit margins

of a distribution/wholesale business.

The allowed profit margin was concluded as being within the appropriate benchmark and therefore

arm’s length.

The data base used to determine the market related margin is the Worldwide Private Company Data Base from Thomson

Therefore, this agreement is deemed to be market related and at arm’s length and compliant with.

ASC 850-10-50-6 and ASC

Group of Companies’ revenue for the year ended February 29, 2024 was $5,020,391 compared to $999,579 in revenue being

recorded in the year ended February 28, 2023, an increase of $4,020,812.

The reason for the higher

sales growth was due to various new distribution agreements in the surgical specialty of cardiology the Company entered into.

These agreements

are short term in nature and can be cancelled on non-performance clauses by either party.

It has a strong geographical country specific

risk which is mainly concentrated to South Africa.

This led to increased revenues in South Africa.

The rapid sales growth is attributable

to the fact that these distributors already have existing business as well as a reputation for quality product in South Africa.

Disa Medinotec

got awarded these contracts due to years of good relationships between the external third party distributors and the current executive

management of Disa Medinotec.

In addition, the Company realized sales for its Trachealator in the United States with no such sales inside

the United States for the prior year period.

The increase for the sales

of the Trachealator product, is substantiated by the roll out of this product as our lead product in the non-occlusive tracheal dilation

market and the increase in its popularity and use within these territories.

The Company recently embarked

on obtaining various distribution contracts from principals to ensure a full sales basket and cash generation to sustain growth and product

development in the near future.

No revenue was generated

by affiliations to related parties during the year ending February 29, 2024.

This table indicates the sales per revenue

stream as a breakdown of the total revenue balance:

Medinotec Inc Group Consolidated Years Ended

Outside of United States of America

Internally Designed/Manufactured Sales

Distribution Agreement Sales

Sales Generated inside the United States of America

Internally Designed/Manufactured Sales

The following table sets

forth financial information by reportable segment for the years ending February 29, 2024 and February 28, 2023:

Income/(loss) from operations

Inside the United States

Outside the United States

Cost of goods sold

Selling expenses

Depreciation expense

General and administrative expenses

Research and development expenses

Income/(loss) from operations

Provision for impairment of note receivable

Inside the United States

Outside the United States

The major component of

total assets is "Cash" of $2,808,910 for the year ending February 29, 2024 and $2,827,457 for the year ending February 28,

A significant portion of this is maintained Inside the United States in USD of $2,478,434 for the year ending February 29, 2024

and $2,582,272 for the year ending February 28, 2023

Cost of Goods

1 unchanged sentence

Group of Companies recorded cost of goods of $2,577,922 constituting a gross profit percentage of 49% for the year ending February 29,

2023 down from $668,832 (Pro-forma Full Year FY 2022) constituting a constituting a gross profit percentage of 44.9% for the year ending

February 28, 2022.

The most material change

in the increase of cost of goods is the function that it is directly relatable to sales and therefore the cost of goods followed the same

upward trend as sales.

This increase in Cost of

sales over time follows the sales trend but also indicates a shift in production to include the sale of more complex products into the

product mix, therefore the production facility is approaching its fuller capacity and the allocations of labor and machine time to product

costing per unit manufactured is expected to decrease the average cost of these items allocated to cost of goods due to the production

facility becoming more productive .

The Rand weakened from an average conversion rate of 1$:

14.9 (2022) to 1$:

17.37( for the last three

quarters of 2023) a 17% decline against the US Dollar.

Therefore, this contributed positively to the balance of the costs when converted

from Rands to dollars.

The Rand was very volatile against the US Dollar especially second, third and fourth quarters.

Most of the differences

discussed here are attributable to these three quarters the portion of the movement that can be allocated to the exchange difference is

estimated at $ 71,018.

Due to the once off sales

transaction of $483,381 in Q4 for the prior fiscal for DISA Medinotec Proprietary Limited there is no obsolete stock for the period ending

February 28, 2023.

This transaction was concluded to sell components that was close to expiration date due to sales declining during the

covid pandemic.

No other related party transactions

are recorded in cost of sales for both years in 2023 and 2022.

2024 down from $417,757 for the year ending February 28, 2023 with a gross profit percentage of 58%.

The most material

change in the increase in the cost of goods is that it functions in a direct correlation to sales and therefore the cost of goods followed

the same upward trend as sales.

Due to the fact

that distribution revenues are distributed at lower gross profit margins than internally designed products, there has been a substantial

increase in the cost of goods, which has a direct correlation to the amount of distribution sales generated.

No related party

transactions are recorded in cost of sales for the year ending February 29, 2024.

Operating Expenses

The Consolidated Medinotec

Group of Companies operating expenses were $1,047,216 for the year ended February 28, 2023, up from $759,394 (Pro-forma Full Year FY 2022)

for the year ended February 28, 2022.

The Rand weakened from an

average conversion rate of 1$:

14.9 (2022) to 1$:

17.37( for the last three quarters of 2023) against the US Dollar.

Therefore, this will

cause an expense decrease/improvement of 17% on the operating expenses due to dollar strength within the conversion rate applied.

currency effect is a decrease in operating expenses of $136,138related to the year ended February 28, 2023.

The Rand was very volatile

against the US Dollar especially in the second to fourth quarter ended February 28, 2023.

Most of the differences discussed here are attributable

to this period and is estimated at an amount of $121,783.

After taking into account

the effects of the foreign currency exchange, the remaining changes are mainly attributable to the Sales and Marketing expenses that,

together with the Compliance cost, showed a step cost increase to support the higher sales figure.

Due to the amount of territories entered

during the year, there was also an increase in general compliance costs to list products in these countries and to provide initial training

and marketing into these countries.

Group of Companies operating expenses were $1,841,891 for the year ended February 29, 2024, up from $820,409 for the year ended February

Due to the consistent growth

of the company and the popularity of the product, there was also an increase in general compliance costs.

One of the major components

that affects the operating expenses is the costs of compliance for the business.

These costs increased significantly as we started to

grow our product portfolio in FY2022 and is expected to rise as we enter new sales territories.

Certain costs are once off in nature and

others will be recurring this will be determined after the markets were entered and all regulatory requirements met.

Consolidated Medinotec Group of Companies for the Years Ended February

Medinotec Inc Group Consolidated

For the period

April 26, 2021 to February 28, 2022

months ending Feb 22

For the period ending February,

28 2022, consolidated figures are presented from April, 26.

Proforma figures are presented from March, 1 to February, 28.

This was done

to demonstrate a full comparative period compared to the same period in the current reporting period.

Once off costs of obtaining

a quotation resulted in non recurring expenses of $70,000 in 2023.

Sales and Marketing expenses

was insignificant due to Covid restrictions stopping travel and conferences, this started to normalize in FY 2022 and is expected to grow

significantly in the later end of FY 2023 since most trade shows and conferences happen in the final two quarters of our financial year,

the dedicated sales force will continue to grow as new territories pass the compliance hurdles.

Inc Group Consolidated Years Ended (Audited)

Medinotec Group Consolidated

For the period

April 26, 2021 to February 28, 2022

and Marketing

For the period ending February,

28 2022, consolidated figures are presented from April, 26.

Proforma figures are presented from March, 1 to February, 28.

This was done

to demonstrate a full comparative period compared to the same period in the current reporting period.

Related party expenses

included in operating expenses include Minoan Capital Proprietary Limited for Rental expenses in the twelve months ending February 28,

2023 was $39,984.

The related party rental expenses in the same twelve months in the preceding year ending February 28, 2022 amounted

The rent charge is comparable to rent charged for similar properties in the same relative area.

The company does

market research of a Minimum and a Maximum rental value within the area at every renewal of the rental agreement to ensure this is market

related, this exercise is undertaken together with a registered property agent who has the appropriate knowledge of the area.

ASC 850-10-50-6.

Certain costs are once off in nature and others will

be recurring.

This will be determined after the markets were entered and all regulatory requirements met.

The Consolidated Medinotec Group of Companies for the Years Ended

Medinotec Inc Group Consolidated Years Ended

and amortization expense

General and administrative

Research and development

Selling expenses

Total operating expenses

R&D activities were conducted in 2024 due to the focus on rolling out the Trachealator in the United States which consumed all production

and testing resources.

R&D activities have resumed and are expected to increase in the next financial year.

and administrative expenses showed significant growth mainly due to increases in independent contractor fees in

the United States and more staff for the new Cardiology distribution Revenues.

included but not as material:

indemnity insurance and payments made to service providers as part of obtaining our quotation on the OTCQX

markets and costs relating to the quotation on the OTC markets that will not be non-recurring in the future are estimated at $30,000 and

all other costs will be repeated in the future.

Non-operating income

Note Receivable

The Company decided to provide

full impairment against Innovative Outcomes note receivable on November 30, 2023 which totaled S642,012.

This decision was made in prudence

due to the fact that the receivable is not backed by any Trachealator revenue streams anymore and does not change that Innovative Outcomes

will still be liable for payment of this in the future Interest will accrue as normal until maturity date.

No impairment was recorded

during fiscal 2023.

Interest expense

Interest expense relates

mostly to interest on the related party loan.

Another component of interest expense relates to interest paid to our logistics service

Interest income

Interest income relates to

interest earned on notes receivable for the year as well as interest earned on a tax refund receivable during the year.

The Consolidated Medinotec

Group of Companies for the year ending February 28, 2023 showed total net loss of $352,728 up from a loss of $254,005\(Pro-forma Full

Year FY 2022) for the year ended February 28, 2022.

Group of Companies for the year ending February 29, 2024 showed total net loss of $404,688 compared to a loss of $352,735 for the year

ended February 28, 2023.

The change is mainly attributable

to the currency fluctuations, general and Admin expenses and sales and marketing expenses which showed a step cost increase to support

the higher sales figure, which includes the compliance costs discussed in operating expenses above which is expected to continue to rise

as new planned roll territories become active.

Interest charged on the

loan account for the twelve months ended in favor of related party Minoan Medical Proprietary Limited was $178,584 for the period ended

February 28, 2023, up from $0 (2022:

interest free) in the year ending February 28, 2022.

This change is attributable to the fact that

there was an interest waiver in place from the main shareholder at the time to support the company through Covid 19 the interest charges

resumed in 2022 at the prime lending rate of South Africa.

Interest charged on the loan account for the twelve months ended in favor

of related party Minoan Medical Proprietary Limited was $125,966 for the twelve months ended February 28, 2023, up from $0 in the same

nine months ending November 30, 2021.

This change is attributable to the fact that there was an interest waiver in place from the main

shareholder at the time to support the company through Covid 19 the interest charges resumed in 2022 at the prime lending rate of South

The interest rate chargeable is a guideline determined by the South African Reserve Bank and gets utilized by financial institutions

to determine the financial gain they may derive from a loan.

The Prime rate is therefore an arm’s length transaction and justifiable

rate that can be applied to a loan within the borders of the Republic of South Africa and therefore complies with the arm’s length

definitions in ASC 850-10-50-6

to the higher sales of the new cardiology distribution business in South Africa and increased sales of the Trachealator, an internally

designed and manufactured product sold in the United States.

The increased sales positioned

the Company in a net profit, however, due to the impairment made on the note receivable, the Company showed an increase in net loss for

the year ended February 29, 2024.

Liquidity and Capital

The Consolidated

Medinotec Group of Companies as of February 28, 2023, had total current assets of $3,369,478 and total assets in the amount of $4,490,432.

current liabilities as of February 28, 2023 were $71,311.

Consolidated we had working capital of $3,298,167 as of February 28, 2023 as

compared with $512,683 as of February 28 , 2022.

activities used $529,723 during the year ended February 28, 2023 and $90,556 for the prior year ended February 28, 2022.

The investment

into property, plant and equipment peaked in the 2021 Fiscal period as the plant reached maximum potential production its current form.

The new focus will be on sales and compliance activities as described in the operating expenses section during the third quarter ending

February 28, 2023.

$585,000 was invested into a revolving credit facility with a company called Innovative Outcomes Inc.

Innovative outcomes will utilize this facility to build a sales and infrastructure for Medinotec Inc Group in the United States.

maximum draw down allowed for this facility is $750,000 and this facility constitutes the only planned major capital commitments that

existed at February 28, 3023.

Operating activities used

cash of $(490,549) during the quarter ended February 28, 2023 compared to $130,201 for the year ended February 28, 2022.

This is mainly

due to the net loss and operating expenses described above and an increase in investment for accounts receivables, and a decrease of

accounts payable.

As the business continues to grow the terms of customers will continue to affect the growth in accounts receivables.

Financing activities provided

cash of $3,577,194 during the period ended February 28, 2023 and $277,149 for the year ended February 28, 2022.

The increase in the current

year is mainly due to the private placement being concluded during which $3,467,500 was raised and capital raising fees of $ 169,375 was

incurred, the remaining balance is due to additional draw down on the related party borrowing from Minoan Medical Proprietary Limited.

The loan account in favor of Minoan Medical Proprietary Limited increased by $279,069 during the year ending February 28, 2023.

prior year the loan account increased by $267,149 in the year ending February 28, 2022.

The loan account is used to fund operational requirements.

We expect to incur future

additional losses as the Medinotec Group of Companies builds out the territory of the United States and expects to return to profitability

once this territory establishes a sales force.

We have cash available on hand and believe that this cash will be sufficient to fund operations

and meet our obligations as they come due within one year from the date these financial statements are issued.

In the event that we do

not achieve the revenue anticipated in its current operating plan, management has the ability and commitment to reduce operating expenses

as necessary.

Our long-term success is dependent upon our ability to successfully raise additional capital, market our existing services,

increase revenues, and, ultimately, to achieve profitable operations.

Our financial statements

have been prepared on a going-concern basis, which contemplate s the realization of assets and the satisfaction of

As of February

29, 2024, the Company had total current assets of $4,379,297 and total assets in the amount of $4,804,279.

Total current liabilities

as of February 29, 2024, were $827,453.

The Company had working capital of $3,551,844 as at February 29, 2024.

In comparison, as of February

28, 2023, the Company had total current assets of $3,369,478 and total assets in the amount of $4,490,432.

Total current liabilities

as of February 28, 2023, was $71,311.

Consolidated, we had working capital of $3,298,167 as of February 28, 2023.

The research and

development phase of the internally designed product lines have largely concluded.

Therefore, we expect to see an increase in sales and

marketing expenses, to build out of the territory of the United States.

Combined with the Cardiology distribution contract business in

South Africa.

A private placement

was completed in the wake of the successful research and development and subsequent regulatory approval in the prior financial year for

$3,467,500 and therefore the Company has enough cash reserves and working capital to fund the roll out in the market of the United States

including new research and development activities and Marketing and Sales functions.

We have cash available

on hand and believe that this cash will be sufficient to fund operations and meet our obligations as they come due within one year from

the date these Condensed Consolidated financial statements are issued.

In the event that we do not achieve the revenue anticipated in

its current operating plan, management has the ability and commitment to reduce operating expenses as necessary.

Our long-term success

is dependent upon our ability to successfully raise additional capital, market our existing services, increase revenues, and, ultimately,

to achieve profitable operations.

Our audited Consolidated

Financial Statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of

liabilities in the normal course of business.

We received FDA 510(k) approval through the substantially equivalence process for Class

II medical devices for our main product being the Trachealator in November 2021.

As the research and development phase of this product

has been completed, we expect to see an increase in sales being realized against expenditure incurred.

A private placement was done in

the wake of the successful research and development and subsequent regulatory approval.

II medical devices for our main product being the Trachealator.

During the quarter ending November 30, 2023, the Company also obtained

cardiology distribution revenues in South Africa, which significantly contributed to the overall profitability of the Company.

research and development phase of most products completed, we expect to see an increase in sales being realized against the sales expenditure

following table summarizes our cash flows from continuing operations for the periods indicated:

Net cash provided by (used in):

Investing Activities

Financing Activities

Cash flows from

Operating Activities

The increase in net

cash provided by operating activities from continuing operations for year ended February 29, 2024 over the prior year comparable period

was due to a $51,953 increase in net loss, as well as changes in assets and liabilities that had a current period cash flow impact, such

as $500,912 of changes in working capital.

The change in non-cash charges compared to the change in the prior year comparable period was

primarily driven by a $642,012 impairment provision on notes receivable and a $34,672 increase in depreciation, a $120,598 variance in

deferred income taxes, a $139,712 change in provisions and a bad debt write of amounting to $52,133 that was not present in the previous

financial year.

Cash flows from

Investing Activities

The increase in net

cash provided by investing activities was due to a decrease in the issuance of long-term debt relating to the Innovative Outcomes note

receivable in 2023.

Cash flow from

Financing Activities

Cash flow used in

financing activities in 2024 consisted of the repayment of the related party loan.

Cash flow provided by financing activities in 2023

consisted of a $3,577,194 private placement.

Off Balance Sheet Arrangements

2 unchanged sentences

Critical Accounting Policies

In December 2001, the SEC

requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis.

SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial

condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need

to make estimates about the effect of matters that are inherently uncertain.

Our critical accounting policies

are set forth in Note 3 to the financial statements.

While our significant accounting

policies are described in the notes to our consolidated financial statements, we believe that the accounting policies below are most critical

to understanding our financial condition and historical and future results of operations.

Company generates revenues through two distinct revenue sources:

From the sale of high-quality medical devices which are self-manufactured through in-depth research and development;

Through the distribution of finished products on behalf of other principals around the world into pre-agreed territories which are

usually exclusive territories granted by such principal.

Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its

obligations under each of its arrangements:

the contract with a customer,

the performance obligations in the contract,

the transaction price,

the transaction price to performance obligations in the contract, and

revenue as the performance obligation is satisfied.

Revenue from the sale of self-manufactured

These products are developed in-house.

The Company’s clients are

billed based on a pricelist that is agreed on in each customer’s contract.

Orders are shipped on a per order basis from the Company’s

warehouse with Free-On-Board Inco terms.

Revenues relating to the self-manufactured

products are recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration

that the Company expects to receive in exchange for those products.

Revenue from the distribution

The distribution products are sold

via a network, which consists of a mixture of sub-distributors and in some instances a direct sales force.

The Company’s clients

are billed based on a pricelist that are agreed upon in each customer contract, orders are shipped on a per order basis from the Company’s

warehouse with Free-on-Board Inco terms.

The Company’s sub-distributors order from the Company on the same basis as its customers

and have no preferential return rights on their inventory orders, therefore the client assumes the risk of the sale at point of invoice.

Revenues relating to the distribution

of products are recognized when control of the promised goods or services are transferred to a customer in an amount that reflects the

consideration that the Company expects to receive in exchange for those products.

Goods delivered to a consignee pursuant

to a consignment arrangement are not considered sales, and do not qualify for revenue recognition.

Once it is determined that substantial

risk of loss, rewards of ownership, as well as control of the asset have transferred to the consignee, revenue recognition would then

be appropriate, assuming all other criteria for revenue recognition have been satisfied.

For both revenue streams

The Company has two operating segments,

inside the United States and outside the United States.

These sales are split by these territories and further segregated into the specific

revenue streams sold into these territories.

The Company has no contract assets

or liabilities representing accrued revenues that have not yet been billed to the customers due to certain contractual terms, because

of the fact that orders are placed, invoiced, and shipped on a per order basis as and when the clients require additional inventory.

revenue is recognized at a specific point and time.

Under ASC Topic 606, the Company

estimates the transaction price, including variable consideration, at the commencement of the contract and recognizes revenue at point

of sale when risks and rewards are transferred to the customer.

There are no contract revenue agreements that would need to be recognized

over time and the point of risks and rewards being transferred is very clear.

Payment Terms

Our payment terms vary per segments;

export sales made from within South Africa are subject to prepayment, where accounts are granted.

They generally have payment terms of

30 days from statement and sales made inside the United States are 45 to 60 days.

Terms can be extended by the Company when it deems

the business case and credit worthiness of the customer is strong enough.

The time between a customer’s payment and the receipt

of funds is not significant.

The Company’s contracts with customers do not result in significant obligations associated with returns,

refunds, or warranties.

Payment terms are generally fixed and do not include variable revenues.

Allowance for note receivable impairment

The Company records allowances for

loan impairment when it is determined that the Company will be unable to collect all amounts due according to the terms of the underlying

Interest income on impaired loans is recognized only when interest payments are received.

Valuation, costing and obsolescence

Inventories are stated at the lower of cost (weighted average)

or net realizable value and consist of raw materials, work-in process and finished goods and include purchased materials, machine time,

direct labor and manufacturing overhead.

Management evaluates the need to record adjustments to write

down inventory to the lower of cost or net realizable value on an annual basis.

The Company’s policy is to assess the valuation

of all inventories, including raw materials, work-in-process and finished goods and it writes down its inventory for estimated obsolescence

based upon the age of inventory and assumptions about future demand and usage.

The provision for stock obsolescence is assessed at the

end of every reporting period.

Due to the long shelf life of our products as well as the ability the resterilize products to reset the

shelf life, this provision, in managements opinion, will never increase significantly.

Recently Issued Accounting

Pronouncements

The Company does not expect

the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operation, financial

position or cash flow.

See Note 2 to our Consolidated

Financial Statements included in Part II, Item 15 of this Annual Report on Form 10-K for more information about recent accounting pronouncements,

the timing of their adoption, and our assessment, to the extent we have made one, of their potential impact on our financial condition

and results of operations.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

2 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-K

Item 7. Management’s Discussion and Analysis