What changed in this filing

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Item 7. Management’s Discussion and Analysis

2021-03-31 compared with 2020-03-30 · 68 added, 99 removed, 152 unchanged (52% of the section changed)

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We are in the process of introductory meetings with medical device distributors within the United States and Europe.

There have been ten medical instruments sold in the United States through December 2019, and limited amounts sold internationally as of the reporting date.

There have been 27 medical instruments sold in the United States through December 2020, and limited amounts sold internationally as of the reporting date.

Certain of our medical instruments have obtained European CE mark approval and can be marketed and sold in most European countries.

In November 20, 2018, Milestone Scientific Inc.

received a letter from NYSE American LLC (the “Exchange”) stating that the Company was not in compliance with the continued listing standards as set forth in Section(s) 1003(a)(i), (ii), and (iii) of the NYSE American Company Guide (the “Company Guide”).On December 20, 2018, the Company submitted a plan of compliance (the “Plan”) to the Exchange addressing how it intends to regain compliance with Section(s) 1003(a)(i), (ii) and (iii) of the Company Guide by May 20, 2020.

On January 24, 2019, the Company received a letter from the Exchange stating that the Company’s Plan has been accepted by the Exchange.

The Company is still not in compliance with Section(s) 1003(a)(i), (ii) and (iii) of the Company Guide and its listing on the Exchange is being continued pursuant to an extension granted by the Exchange.

If the Company is not in compliance with the continued listing standards by May 20, 2020, or if the Company does not make progress consistent with the Plan, the Exchange will initiate delisting procedures as appropriate.

The Company may appeal a staff delisting determination in accordance with Section 10 and Part 12 of the Company Guide.

In 2019, we remained focused on advancing efforts to achieve our three primary objectives;

in our Medical sector;

Identify distributors in the United States for the Epidural instruments, now that FDA clearance has been received;

Worldwide distribution of the CompuFlo Epidural System;

Complete the Cosmetic device and obtain European Regulatory Approve (CE market clearance).

Milestone Scientific remains focused on advancing efforts to achieve the following four primary objectives:

Establishing Milestone DPS Dynamic pressure sensing technology platform as the standard -of -care in painless and precise drug delivery, providing for the first time objective visual and audible in-tissue pressure feedback and continuing to expand platform application;

Following obtaining successful FDA clearance of our first medical device in June 2017, Milestone Scientific is transitioning from a research and development organization to a commercially focused medical device company.

Expanding the global footprint of our CompuFlo Epidural device by partnering with distribution companies worldwide’ and

Continuing the development of our proprietary cosmetic injection device or delivery of botulinum toxin (such as Botox® and Dysport®)

Wand STA Dental Instrument Growth

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Under this arrangement we have a semi-dedicated independent sales force visiting dentists.

To date, Henry Schein has endeavored to accomplish the goals set forth in the exclusive distribution agreement for The Wand/ STA device and handpieces, including training of its exclusive products sale’s specialists.

Specifically, up to 25 exclusive product sales specialists have now been fully trained as experts in the features, advantages and benefits of The Wand/ STA device and handpieces and all are currently in the field selling the device.

Henry Schein also increased the number of exclusive product specialist in late 2019 and has agreed to possibly increase the customer service representatives to support dentists across North America through its exclusive product sales customer call center as business volume increases.

In December 2020, the Henry Schein Exclusive Distribution Agreement was replaced with a non-exclusive distribution agreement in the USA and Canada.

Beginning in January 2021, the Company began enrollment of new dental non-exclusive regional distributors throughout the USA and Canada.

As of this report date the Company has signed non-exclusive distributor agreements with eight regional dental distributors.

On the global front, we have granted exclusive marketing and distribution rights for the Wand/STA Instrument to select dental suppliers in various international regions in Asia, Africa, South America, and Europe.

They include FM Produkty Dla Stomatologii in Poland and Unident AB in the countries of Denmark, Sweden, Norway, and Iceland.

In October 2012, the State Food and Drug Administration (CFDA) of the People’s Republic of China approved our Wand/STA Single Tooth Anesthesia System (STA System).

In May 2014, the CFDA also approved the Wand STA handpieces for sale in China.

In June 2014, Milestone Scientific invested $1 million in Milestone China Ltd.

(“Milestone China”) by contributing 772 STA Instruments to Milestone China for a 40% ownership interest.

Milestone Scientific recorded this investment under the equity method of accounting.

Milestone China became the Company exclusive distributor of dental products in China.

As of December 31, 2019 and 2018, Milestone Scientific's investment in Milestone China was $0.

As of December 31, 2019 and 2018, Milestone Scientific’s share of cumulative suspended losses of Milestone China were $4,574,125 and $3,380,388, respectively.

In September 2014, Milestone Medical received CE clearance to distribute their epidural and intra-articular instruments in the European Community (EU).

Milestone Medical signed a distribution agreement in March 2015 with a medical distributor in Poland for the distribution of the epidural instrument.

This distribution agreement was terminated in late 2016 due to the distributor’s inadequate performance under the distribution agreement.

Milestone Medical is continuing to pursue distributors for the instrument in the EU community.

The following table shows a breakdown of Milestone Scientific’s product sales (net), domestically and internationally, by business segment product category:

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Milestone Scientific's discussion and analysis of the financial condition and results of operations is based upon its consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of its wholly-owned and majority-owned subsidiaries including, Wand Dental, Milestone Advanced Cosmetic and Milestone Medical.

Milestone Education was a variable interest entity of which Milestone Scientific was the primary beneficiary and is consolidated into Milestone Scientific's financial statements.

Milestone Scientific purchased the remaining 50% of Milestone Education in September 2018 for $1.00 increasing its ownership of Milestone Education to 100%.

All significant, intra-entity transactions and balances are eliminated in the consolidation.

Milestone Scientific invested $1 million in Milestone China Ltd.

(“Milestone China”) by contributing 772 STA Instruments to Milestone China for a 40% ownership interest.

Milestone Scientific recorded this investment under the equity method of accounting.

Milestone Scientific has a variable interest in Milestone China, it considered the guidance in ASC 810, “Consolidation” as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary.

Variable Interest Entities

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest.

A VIE is consolidated by its primary beneficiary.

The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

Because Milestone Scientific has a variable interest in Milestone China it considered the guidance in ASC 810, “Consolidation” as it relates to determining whether Milestone China is a VIE and, if so, identifying the primary beneficiary.

Milestone Scientific would be considered the primary beneficiary of the VIE if it has both of the following characteristics:

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The obligation to absorb losses that could potentially be significant or the right to receive benefits that could potentially be significant to the VIE.

In first quarter 2020, Milestone China and certain marketing affiliates entered into a plan to merge (the Transaction) into an affiliated manufacturing company, Anhui Maishida Medical Technology, Co.

Anhui will be the surviving entity after the merger and will have complete responsibility for sales, marketing, and distribution for the Company’s dental products in China.

However, as of the filing date of this Quarterly Report, due to the COVID-19 Pandemic, the regulatory documentation for the planned merger has been placed in suspense since applicable government offices are still closed in China and Hong Kong.

After completion of the Transaction, Milestone Scientific is expected to have an approximate 28.4% direct ownership in Anhui.

Milestone China and certain marketing affiliates are expected to be dissolved upon completion of the merger and upon the required regulatory filings in China and Hong Kong.

Milestone Scientific does not have the ability to control the activities that most significantly impact Milestone China's economics and, therefore, the power criterion has not been met.

Management placed the most weight on the relationship and significance of activities of Milestone China to the CEO and a group of significant shareholders, including the Milestone China CEO, of Milestone China which have the power to direct the activities that most significantly impact the economic performance of Milestone China.

Management placed the most weight on the relationship and significance of activities of Milestone China to the CEO and a group of significant shareholders, including the Milestone China CEO, who has the power to direct the activities that most significantly impact the economic performance of Milestone China.

Management has concluded that Milestone Scientific is not the primary beneficiary under ASC 810.

Accordingly, Milestone China has not been consolidated into the financial statements of Milestone Scientific and continues to be accounted for under the equity method.

The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an on-going basis, Milestone Scientific evaluates its estimates, including those related to accounts receivable, inventories, stock-based compensation and contingencies.

Milestone Scientific bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not clear from other sources.

Actual results may differ from those estimates under different assumptions or conditions.While significant accounting policies are more fully described in Note C to the consolidated financial statements included elsewhere in this report, Milestone Scientific believes that the following accounting policies and significant judgment and estimates are most critical in understanding and evaluating the reported financial results.

Assessment of our Ability to Continue as a Going Concern

In accordance with Accounting Standard Codification (“ASC”) 205-40, “Presentation of Financial Statements – Going Concern”, the Company has evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

In accordance with Accounting Standard Codification (“ASC”) 205-40, “Presentation of Financial Statements – Going Concern”, the Company continually evaluates whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

Milestone Scientific has incurred operating losses and negative cash flows from operating activities in virtually each year since its inception.

Based on the expected cash needed for operating activities, the Company’s current cash and liquidity is not sufficient to finance the operating requirements for at least the next 12 months from the filing date of this annual report.

These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, the generation of revenue from its medical devices and disposables business in the United States and worldwide, and a reduction in operating expenses.

The Company’s continued operations will depend on its ability to raise additional capital through various potential sources until it achieves profitability, if ever.

Milestone Scientific raised capital in February 2019 in a public and private offering in the aggregate gross proceeds of approximately $2.45 million.

Management is actively pursuing financing or other strategic plans but can provide no assurances that such financing or other strategic plans will be available on acceptable terms, or at all.

The consolidated financial statements have been prepared with the assumption that the Company will continue as a going concern and will be able to realize its assets and discharge its liabilities in the normal course of business and do not include any adjustments to reflect the possible future effects on the recover ability and classification of assets or the amounts and classification of liabilities that may result from the inability of the Company to continue as a going concern.

In the second quarter of 2020, the Company was successful in raising approximately $19.7 million in public offerings.

Based on the expected cash needed for operating activities, the Company’s current cash and liquidity is sufficient to finance the operating requirements for at least the next 12 months from the filing date of this annual report.

Other Uncertainties

As a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of Covid-19, we anticipate that our revenue for the second quarter, and possibly the third quarter, will be materially and adversely affected.

At this point in time, it is too early to determine an estimate of what the second or third quarter impact will be or the effect Covid-19 may have on our fourth quarter revenue.

In addition, it is too early to determine what the effect will be on the anticipated commercialization of our Compuflow Epidural system as a medical device.

The coronavirus (COVID-19) that was reported to have surfaced in Wuhan, China in December 2019 and that has now spread to other countries throughout the world has adversely impact our operations and those of our third-party partners.

As a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of COVID-19, revenues for the year ended December 31, 2020 was adversely affected.

There has been a slow pick up in dental instrument and disposable sell through to dentists beginning in the third quarter.

In addition, it is uncertain as to what the effect will be on the anticipated commercialization of our CompuFlo Epidural and CathCheck system as a medical device .

The extent to which the coronavirus impacts our operations, our third-party partners, the dental offices and hospital operations and demand depends on future developments which are still highly uncertain.

Such future developments could have a material adverse effect on our financial results and our ability to conduct business as expected.

Accounts Receivable

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significant changes in the manner of our use of the acquired assets or the strategy for our overall business,

significant negative industry or economic trends

significant negative industry or economic trends, and

significant technological changes, which would render the technology obsolete

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Future undiscounted cash flows include estimates of future revenues, driven by market growth rates, and estimated future costs.

At December 31, 2018 , Milestone Scientific identified certain patents purchased in 2017 that will not be further developed and commercialized before the estimated useful life expires and, as such, an impairment charge was recorded.

No such charge was incurred during the year ended December 31, 2019.

Revenue Recognition

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services.

To perform revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps:

The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services.

To perform revenue recognition the Company performs the following five steps:

identification of the promised goods or services in the contract;

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Research and development expenses

Impairment to long lived assets

Loss from operations

Other income, and loss on earning net

Other income, and loss net

Change in fair value of derivative liability

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Dental revenue for the twelve months ended December 31, 2020 and 2019 were approximately $5.4 million and $8.4 million, respectively.

Dental revenues decreased by approximately $1.2 million, which was related to a decrease in sales to China of approximately $741,000, decreased devices and handpiece sales in the United States and Canada by approximately $256,000, and a decrease in international sales by approximately 118,000 in 2019 compared to 2018.

The reduction in shipments to Milestone China is due to Milestone China continuing cash flow issues and the modification to their business strategy to better serve the China dental market.

Domestic inventory purchases by Henry Schein have been reduce due to lower target inventory model within Henry Schein.

However, in the domestic market, our exclusive distribution agreement with Henry Schein continues to pay off as the sell through has been consistent.

Dental revenues decreased by approximately $2.9 million, which is related to COVID-19 pandemic affecting the Company’s customers and other business partners.

As a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of COVID-19, our revenue for the year ending December 31,2020 was materially and adversely affected.

In December 2020, the Exclusive Distribution Arrangement with Henry Schein was replaced with a non-exclusive distribution arrangement.

Under the non-exclusive arrangement, Henry Schein will purchase dental instruments and handpieces in the United States and Canada.

Beginning in January 2021, the Company began a process of signing non-exclusive dental distribution arrangements with dental distributors in specific geographical locations in the United States and Canada.

To date there are eight (8) new non-exclusive dental distributors engaged in the USA and Canada.

The goal is to add additional non-exclusive distributors in three main cities in the USA.

The goal of changing our marketing plan from a sole exclusive distributor in the USA and Canada, to a large number of non-exclusive distributors is to increase placement of our Wand/STA instrument and thus the expansion of our dental disposables.

Medical revenue for the twelve months ended December 31, 2020 and 2019, were approximately $16,000 and $38,000, respectively.

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Food and Drug Administration (FDA).

Milestone is in the process of attending medical device trade shows and attending introductory meetings with medical device distributors within the United States and European markets.

Milestone is in the process of attending virtual medical device trade shows and attending introductory meetings with medical facilities and medical device distributors within the United States and European markets.

The Company is focusing the marketing its Epidural devices principally in the United States.

In 2020, the Company began to build an internal sales force to market the Epidural devices to hospitals and medical center throughout the United States.

At this point in time, it is too early to determine an estimate of what the second or third quarter impact will be or the effect Covid-19 may have on our fourth quarter revenue.

In addition, it is too early to determine what the effect will be on the anticipated commercialization of our Compuflow Epidural system as a medical device in 2020

The 2020 COVID - 19 Pandemic has substantially reduced access to many medical facilities for further research projects and as such, trade shows were cancelled through 2020.

The Company is now in the process of re-energizing its direct sales efforts with select hospitals and end user meetings as the Pandemic surge has slowed in the USA.

The Company’s focus will be on marketing the Epidural medical instruments in the United States.

Gross Profit for 2020 and 2019 were as follows:

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Consolidated gross profit for the twelve months ended December 31, 2020 and 2019 were approximately 67% and 68%, respectively.

Dental gross profit for the twelve months ended December 31, 2019 and 2018 were approximately $5.7 million (68%) and $4.6 million (48%), respectively.

Dental gross margin for the twelve months ended December 31, 2019 increased due higher selling prices, de minims inventory reserves, and a credit for 2018 recovery of ($151,000) leaky handpieces.

During 2018 the Company recorded a reserve of approximately $1.2 million for the underlying inventory associated with deferred cost due to Milestone China’s market under performance and liquidity constraints.

The Medical gross profit in 2018 was impacted by a reserve of $234,350 for slow moving intra-articular medical instruments due to the continued delay of the intra- articular regulatory approval.

Selling, general and administrative expenses for 2020 and 2019 were as follows:

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Consolidated selling, general and administrative expenses for the twelve months ended December 31, 2020 and 2019 were approximately $10.7 million and $9.5 million, respectively.

The decrease of approximately $1.1 million is related to a decrease stock based compensation, amortization, and professional fees of approximately $1.3 million offset by an increase in travel, marketing, executive compensation, and quality control expenses of approximately $190,000 for the twelve months ended December 31, 2019 compared to 2018.

This increase of approximately $1.2 million is categorized in several areas.

Employee salaries, and benefits expenses increased approximately $1.0 million for twelve months s ended December 31, 2020, as the Company hired additional employees to work on the commercialization of the CompuFl o® Epidural System.

During the twelve months ended December 31, 2020 D&O insurance increased approximately $169,000 due to the increase of premiums.

The Company expensed approximately $370,000 of bad debt related to a settlement with United Systems, see Note F.

Office expense increased approximately $143,000 for the relocation of the Company's office and other related costs.

Due to Covid-19 Pandemic, the Company's travel expenses, marketing, trade shows, quality control, and general expenses decreased approximately $560,000 while professional and consulting expense increased approximately $75,000.

Research and Development for 2020 and 2019 were as follows:

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Consolidated research and development expenses for the twelve months ended December 31, 2020 and 2019, were approximately $308,000 and $190,000, respectively.

The decrease is due to management discretion and curtailment in the development of several new projects that were being worked on during 2018.

In 2019, management decided to make modifications to some Epidural devices for the development of an Epidural trainer devices, the CompuFlo® Epidural Trainer (CompuFlo Trainer), an instructional instrument that uses pressure sensing technology to improve epidural placement success.

The CompuFlo Epidural Trainer is for training purposes only and not intended for clinical use.

The increase approximately $118,000 is associated with the Company developing software upgrades and enhancement for the CompuFlo ® Epidural System and handpieces.

Profit (Loss) from Operations for 2020 and 2019 were as follows:

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Total loss from operations

The loss from operations was approximately $3.9 million and $7.9 million or the twelve months ended December 31, 2019 and 2018, respectively, a decrease of $4.0 million.

2019 included an increase in gross profit dollars of approximately $1.3 million.

As noted above, in 2018, Milestone Scientific charged approximately $1.5 million to the corporate segment for an impairment of long-lived assets (Apad patents).

The Company also recorded a reserve for slow moving inventory of approximately $289,000 and a reserve of approximately $273,000 for certain dental handpieces during third quarter 2018.

The dental segment of the business continues to control expenses and provided a profit for the period.

Costs in the medical segment are increasing as personnel are hired in the U.S.

to focus on our domestic Epidural device business.

The loss from operations was approximately $7.4 million and $4.0 million for the twelve months ended December 31, 2020 and 2019, respectively, an increase of $3.4 million.

The increase is the result of decreased dental revenue, due to reduced hours and closings of dental and medical offices throughout the country and the rest of the world due to the continuing spread of COVID-19.

Change in Derivative Liability

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At December 31, 2019, all outstanding warrants, shares to be issued and options are not classified as a liability.

After the impact of the derivative liability, the Net Loss was approximately $7.5 million and $7.4 million for the twelve months ended December 31, 2019 and 2018, respectively, an increase in net loss of approximately $0.1 million.

Liquidity and Capital Resources

At December 31, 2019, Milestone Scientific had cash and cash equivalents of approximately $1.5 million and working capital of approximately $1.2 million versus working capital of $1 million in 2018.

For the twelve months ended December 31, 2019 and 2018, we had negative cash flows from operating activities of approximately $1.8 million and $1.6 million, respectively.

Based on current and expected cash to be used in operating activities substantial doubt exists about the Company’s ability to continue as a going concern for at least the next twelve months from the financial reporting date.

Management believes that the current cash flow and support from the dental business will not be able to mitigate the expected selling expenditures for commercialization of the Epidural medical device, as well as other operating expenditures and planned new product development programs, over the next twelve months from the filing date of this quarterly report.

Further, as a result of the reduced hours and closings of dental offices throughout the country and the rest of the world due to the continuing spread of Covid-19, we anticipate that our revenue for the second quarter, and possibly the third quarter, will be materially and adversely affected.

At this point in time, it is too early to determine an estimate of what the second or third quarter impact will be or the effect Covid-19 may have on our fourth quarter revenue.

In addition, it is too early to determine what the effect will be on the anticipated commercialization of our Compuflow Epidural system as a medical device in 2020.

Without additional funding a delay, scale back or elimination of some or all of the Company’s medical commercial strategy or development programs could be required, all of which could have a material adverse impact on the Company.

As a result of the extreme volatility in the financial markets due to the continuing spread of Covid-19, we may not be able to raise capital when needed or in sufficient amounts or execute strategic initiatives or transactions.

Our inability to raise funds when and in the amounts required would have a material adverse effect on our business and financial condition.

Milestone Scientific has incurred annual operating losses and negative cash flows from operating activities since its inception.

The capital raised in February 2019 (a capital raise in a public and private offering) provided Milestone Scientific with working capital to continue marketing of the CompuFlo Epidural System and to market its dental devices.

Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business worldwide, and a reduction in operating expenses.

Now that the CompuFlo Epidural System has obtained FDA clearance in the United States (June 2017), the development costs will be reduced in 2020 but the selling costs are expected to increase significantly.

The FDA clearance has provided the Company with the opportunity to establish distribution in the USA.

At the same time, the Company is looking to establish additional financing to support the Epidural device commercialization process.

The intra-articular device 510(k) application has been deferred until funding becomes available.

Milestone Scientific believes that the FDA clearance of its 510(k) application with respect to the CompuFlo Epidural System will provide Milestone Scientific with the opportunity to enter the US medical device market and generate revenues in the future.

Milestone Scientific believes that it has sufficient inventory of the epidural devices to satisfy the near-term marketing opportunities.

Milestone Scientific is actively pursuing the generation of positive cash flows from operating activities through an increase in revenue from its dental business and the medical business worldwide, and a reduction in operating expenses.

In the second quarter of 2020 the Company completed two capital raises.

In April 2020, the Company completed a Common Stock Offering generating gross proceeds of approximately $5.1 million (5,420,000 common shares and 2,710,000 warrants).

The combined price of the shares and warrants was $0.95 per share.

The warrants are exercisable at a price of $1.20 per share and have an expiration of three years from the issue date.

In June 2020, the Company completed a second Common Stock Offering generating gross proceeds of approximately $14.6 million (6,770,000 common shares and 3,749,000 warrants).

The combined price of shares and warrants of was $2.15 per share.

The warrants are exercisable at a of $2.60 and expire three years from the issue date.

With the combination of these two Common Stock Offerings, the Company has sufficient liquidity to support operations for at least a year after the consolidated financial statements issue date.

Management believes that the Company has sufficient cash, along with the current cash flow and support from the dental business to mitigate the expected selling expenditures for commercialization of the Epidural medical device, as well as other operating expenditures and planned new product development programs, over the next twelve months from the filing date of this report.

Dental offices in the USA and world-wide are in the process of reopening to near pre Covid-19 volumes.

For the medical sector, hospitals in the USA are opening for elective procedures and as such we ae looking for new and innovative medical solutions.

The positive movement in the hospitals will be a benefit step to our sales efforts for the Epidural instrument.

Off-Balance Sheet Arrangements

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Purchase obligations (1)

(1) Purchase obligations include agreements for the purchase of dental and medical devices.

(1) Purchase obligations include agreements for the purchase of dental and medical devices, including purchase obligations entered into post year end, which will require payment in during the year ended 2021.

Recent Accounting Pronouncements

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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