What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-05 compared with 2022-05-05 · 259 added, 94 removed, 99 unchanged (78% of the section changed)

44 unchanged sentences

IN FINANCIAL CONDITION

the period ended March 31, 2022 vs.

the period ended June 30, 2022 vs.

December 31, 2021

Company’s cash balance of $28,971,000 on March 31, 2022 decreased $3,942,000 (12.0%) from a $32,913,000 balance at December 31,

Company’s cash balance of $30,272,000 on June 30, 2022 decreased $2,641,000 (8.0%) from a $32,913,000 balance at December 31, 2021.

Consistent with prior years, the Company paid a significant amount of cash during the first quarter for obligations that were accrued

2 unchanged sentences

Those cash outflows were partially offset

by income generated from operations, net cash collections from accounts receivables, and an increase in taxes payable.

See the Company’s

Condensed Consolidated Cash Flow Statements for further details regarding the change in cash.

Receivable was $18,760,000 and $20,726,000 as of March 31, 2022 and December 31, 2021, respectively, decreasing $1,966,000 or 9.5%.

is mostly timing related, associated with greater cash collections resulting from higher sales during the fourth quarter of the year

versus the first quarter.

was $17,820,000 and $15,565,000 as of March 31, 2022 and December 31, 2021, respectively, increasing $2,255,000 or 14.5%.

by income generated from operations and net cash collections from accounts receivables.

See the Company’s Condensed Consolidated

Cash Flow Statements for further details regarding the change in cash.

Receivable was $17,403,000 and $20,726,000 as of June 30, 2022 and December 31, 2021, respectively, decreasing $3,323,000 or 16.0%.

is mostly timing related, associated with greater cash collections resulting from higher sales during the fourth quarter of the previous

year versus the current quarter.

was $21,542,000 and $15,565,000 as of June 30, 2022 and December 31, 2021, respectively, increasing $5,977,000 or 38.4%.

is mainly the result of the purchase of inventory to ensure enough materials on hand because of the challenging supply chain environment

Compensation was $1,791,000 on March 31, 2022, compared to $7,008,000 on December 31, 2021, decreasing $5,217,000 or 74.4%.

and significantly increased costs.

Compensation was $3,178,000 on June 30, 2022, compared to $7,008,000 on December 31, 2021, decreasing $3,830,000 or 54.7%.

A significant

4 unchanged sentences

amounts earned during the current year.

Commissions and Sales Incentives were $3,589,000 and $7,183,000 as of March 31, 2022 and December 31, 2021, respectively, decreasing

$3,594,000 or 50.0%.

A portion of the decrease relates to a customary trend of a lower level of sales during first quarter of the year

in comparison to the fourth quarter, and the resulting commissions and sales incentives that are earned.

Additionally, a portion of the

sales incentives have an annual component which accumulates during the year and are then paid during the first quarter of the following

Payable were $1,873,000 on March 31, 2022, compared to $1,000 on December 31, 2021, increasing $1,872,000.

The increase is mainly the

result of the timing of the payment of taxes in April 2022 for taxable income recognized for the quarter ending March 31, 2022.

earnings were $52,476,000 and $50,053,000 as of March 31, 2022 and December 31, 2021, respectively, increasing $2,423,000 or 4.8%.

increase was primarily due to net income during the quarter, as provided on the Company’s Condensed Consolidated Statements of

Income, partially offset by dividends declared during 2022, as discussed in detail in Note 8, Shareholders’ Equity, to the condensed

consolidated financial statements included in this report.

Commissions and Sales Incentives were $3,944,000 and $7,183,000 as of June 30, 2022 and December 31, 2021, respectively, decreasing $3,239,000

A portion of the decrease relates to a lower level of sales during the current quarter in comparison to the fourth quarter

of the previous year, and the resulting commissions and sales incentives that are earned.

Additionally, a portion of the sales incentives

have an annual component which accumulates during the year and are then paid during the first quarter of the following year.

earnings were $54,696,000 and $50,053,000 as of June 30, 2022 and December 31, 2021, respectively, increasing $4,643,000 or 9.3%.

increase was primarily due to net income during the year, as provided on the Company’s Condensed Consolidated Statements of Income,

partially offset by dividends declared during 2022, as discussed in detail in Note 8, Shareholders’ Equity, to the Condensed Consolidated

Financial Statements included in this report.

OF OPERATIONS

months ended March 31, 2022 vs.

March 31, 2021

Company reported comparative results from operations for the three-month periods ended March 31, 2022 and 2021 as follows:

ended March 31,

months ended June 30, 2022 vs.

June 30, 2021

Company reported comparative results from operations for the three months ended June 30, 2022 and 2021 as follows:

months ended June 30,

(in thousands)

Operating Profit

The Company’s 2022 first quarter sales of $31,293,000 increased $430,000 or 1.4% compared to the first quarter of 2021,

The Company’s 2022 second quarter sales of $31,748,000 decreased $218,000 or 0.7% compared to the second quarter of

2021, which generated sales of $31,966,000.

The increase in sales resulted primarily from an increase in pricing actions which the Company

took to offset material cost pressure and to protect margins.

The Company’s gross profit margins were 61.1% and 63.4% for the three-months ended March 31, 2022 and 2021, respectively.

The Company experienced higher material prices which largely have been offset by the pricing actions noted above.

The decrease in sales resulted primarily from a decrease in volume which was mainly offset

by pricing actions which the Company took to offset material cost pressure and to protect margins.

The Company’s gross profit margins were 65.5% and 61.6% for the three months ended June 30, 2022 and 2021, respectively.

The increase mainly relates to pricing actions which the Company took to offset material cost pressure and to protect margins.

Selling expenses consist primarily of employee salaries and associated overhead costs, commissions, and the cost of marketing

1 unchanged sentence

Selling expense was $5,501,000 and $4,928,000

for the three-months ended March 31, 2022 and 2021, respectively, representing an increase of $962,000 or 20.0%.

for the three months ended June 30, 2022 and 2021, respectively, representing an increase of $573,000 or 11.6%.

The increases mostly

related to commissions, freight, travel, trade shows, and sales meeting expenses.

Commissions increased partly because of a shift of

shipments from third party warehouses, whose shipments are subject to commission, compared to those directly from the manufacturing facilities,

whose shipments are not subject to commission.

Freight costs increased because of higher fuel costs and constrained availability.

trade shows, and sales meeting expenses were much lower in the previous year because of COVID-19 pandemic restrictions.

Selling expenses

increased as a percent of net sales compared to last year, being 18.5% for the three-months ended March 31, 2022, and 15.6% for the three-months

ended March 31, 2021.

related to costs for resumption of travel and other marketing efforts, which were lower in the 2021 period due to the pandemic, commissions,

and staffing related expenses.

Commissions increased partly because of a shift of shipments from third party warehouses, whose shipments

are subject to commission, compared to those directly from the manufacturing facilities, whose shipments are not subject to commission.

Selling expenses increased as a percent of net sales compared to last year, being 17.3% for the three months ended June 30, 2022, and

15.4% for the three months ended June 30, 2021.

and Administrative Expenses .

2 unchanged sentences

General and administrative

expenses were $4,750,000 and $5,418,000 for the three-months ended March 31, 2022 and 2021, respectively, thus decreasing by $668,000

Lower items include legal and product liability related defense costs, incentive compensation, and director fees.

compensation is derived from two notable components.

There was a decrease in the incentive compensation component which is aligned with

profitability;

and there was a reduction in stock based compensation expense which moves in relation to the Company’s stock price,

as detailed in Note 6, Stock Based Compensation Plans, to the condensed consolidated financial statements included in this report.

fees were also lower due to a revised arrangement resulting from an independent study performed to align board compensation with comparable

peers in the previous year.

As a percentage of sales, general and administrative expenses decreased to 15.2% for the three months ended

March 31, 2022 from 17.6% for the three-months ended March 31, 2021.

expenses were $6,753,000 and $5,139,000 for the three months ended June 30, 2022 and 2021, respectively, thus increasing by $1,614,000

Higher items include higher product liability reserves and expenses of $1,918,000 associated primarily with one pending case,

which the Company continues to vigorously defend, and staffing related expenses which are partially offset by lower incentive compensation

and professional fees.

Incentive compensation is derived from two notable components.

There was a decrease in the incentive compensation

component which is aligned with profitability;

and there was a reduction in stock based compensation expense which moves in relation

to the Company’s stock price, as detailed in Note 6, Stock Based Compensation Plans, to the Condensed Consolidated Financial Statements

included in this report.

As a percentage of sales, general and administrative expenses increased to 21.3% for the three months ended

June 30, 2022 from 16.1% for the three months ended June 30, 2021.

Engineering expenses consist of development expenses associated with the development of new products and enhancements to

1 unchanged sentence

Engineering expenses were $1,197,000 and $1,212,000 for the three months ended

March 31, 2022 and 2021, respectively, increasing by $215,000 or 21.5%, mainly associated with increases in experimental materials, travel,

and staffing related costs.

Engineering expenses increased as a percentage of sales, being 3.9% for the three-months ended March 31,

2022, and 3.2% for the same period in 2021.

Reflecting all of the factors mentioned above, operating profits were $7,366,000 and $8,319,000 for the quarters ending

March 31, 2022 and 2021, respectively, decreasing by $953,000 or 11.5%.

June 30, 2022 and 2021, respectively, decreasing by $15,000 or 1.2%.

Engineering expenses as a percentage of sales were 3.8% for the

three months ended June 30, 2022 and 2021.

Reflecting all of the factors mentioned above, operating profits were $7,342,000 and $8,419,000 for the three months ended

June 30, 2022 and 2021, respectively, decreasing by $1,077,000 or 12.8%.

Interest income is recorded on cash investments, and interest expense is recorded at times when the Company has debt amounts

outstanding on its line of credit.

The Company recorded $9,000 of interest income each during the first quarters of 2022 and 2021.

(Loss) Income .

Other (loss) income primarily consists of foreign currency exchange gains (losses) on transactions settled in currencies

other than the Company’s local currency, typically related to the Company’s foreign U.K.

The Company recorded $11,000 of interest income for the three months ended June 30, 2022 and $8,000

for the three months ended June 30, 2021.

Income (Expense) .

Other income (expense) primarily consists of foreign currency exchange gains (losses) on transactions settled in

currencies other than the Company’s local currency, typically related to the Company’s foreign U.K.

subsidiaries.

There was a loss of

$26,000 recorded during the first quarter 2022, but income of $18,000 during the first quarter of 2021.

The British Pound had weakened

during the first quarter of 2022.

a loss of $138,000 recorded during the three months ended June 30, 2022, but income of $7,000 during the three months ended June 30,

The British Pound had weakened during the three months ended June 30, 2022.

Tax Expense .

Income tax expense was $1,879,000 for the first three months of 2022, compared to $2,049,000 for the same period in

Income tax expense was $1,755,000 for the three months ended June 30, 2022, compared to $2,232,000 for the same period

in 2021, decreasing $477,000 or 21.4%, mostly the result of the decrease in income before taxes.

months ended June 30, 2022 vs.

June 30, 2021

Company reported comparative results from operations for the six months ended June 30, 2022 and 2021 as follows:

months ended June 30,

(in thousands)

Operating Profit

The Company’s sales for the first six months of 2022 of $63,041,000 increased $212,000 or 0.3% compared to the first

six months of 2021, which generated sales of $62,829,000.

The increase in sales was two-fold, resulting primarily from pricing actions

which the Company took to offset material cost pressure and to protect margins and, to a lesser extent, by a decrease in unit volume.

The Company’s gross profit margins were 63.3% and 62.5% for the six months ended June 30, 2022 and 2021, respectively.

Selling expenses consist primarily of employee salaries and associated overhead costs, commissions, and the cost of marketing

programs such as advertising, trade shows and related communication costs, and freight.

Selling expense was $11,284,000 and $9,749,000

for the six months ended June 30, 2022 and 2021, respectively, representing an increase of $1,535,000 or 15.7%.

The increases primarily

related to costs for resumption of travel and other marketing efforts, which were lower in the 2021 period due to the pandemic.

freight and staffing related expenses were also higher.

Commissions increased partly because of a shift of shipments from third party

warehouses, whose shipments are subject to commission, compared to those directly from the manufacturing facilities, whose shipments

are not subject to commission.

Freight costs increased because of higher fuel costs and constrained availability.

Selling expenses increased

as a percent of net sales compared to last year, being 17.9% for the six months ended June 30, 2022, and 15.5% for the six months ended

June 30, 2021.

and Administrative Expenses .

General and administrative expenses consist primarily of employee salaries, benefits for administrative,

executive and finance personnel, legal and accounting, and corporate general and administrative services.

General and administrative

expenses were $11,503,000 and $10,557,000 for the six months ended June 30, 2022 and 2021, respectively, thus increasing by $946,000

Higher items higher product liability reserves and expenses of $1,520,000 associated primarily with one pending case, which

the Company continues to vigorously defend, and staffing related expenses which are partially offset by lower incentive compensation

and professional fees.

Incentive compensation is derived from two notable components.

There was a decrease in the incentive compensation

component which is aligned with profitability;

and there was a reduction in stock based compensation expense which moves in relation

to the Company’s stock price, as detailed in Note 6, Stock Based Compensation Plans, to the Condensed Consolidated Financial Statements

included in this report.

As a percentage of sales, general and administrative expenses increased to 18.2% for the six months ended June

30, 2022 from 16.8% for the six months ended June 30, 2021.

Engineering expenses consist of development expenses associated with the development of new products and enhancements to

existing products, and manufacturing engineering costs.

Engineering expenses were $2,413,000 and $2,213,000 for the six months ended

June 30, 2022 and 2021, respectively, increasing by $200,000 or 9.0%, mainly associated with increases in experimental materials and

Engineering expenses increased as a percentage of sales, being 3.8% for the six months ended June 30, 2022, and 3.5% for the

same period in 2021.

Reflecting all of the factors mentioned above, operating profits were $14,708,000 and $16,738,000 for the six months ended

June 30, 2022 and 2021, respectively, decreasing by $2,030,000 or 12.1%.

Interest income is recorded on cash investments, and interest expense is recorded at times when the Company has debt amounts

outstanding on its line of credit.

The Company recorded $20,000 and $17,000 of interest income during the first six months of 2022 and

2021, respectively.

Income (Expense) .

Other Income (Expense) primarily consists of foreign currency exchange gains (losses) on transactions settled in

currencies other than the Company’s local currency, typically related to the Company’s foreign U.K.

subsidiaries.

a loss of $164,000 recorded during the first six months of 2022, but a gain of $25,000 during the first six months of 2021.

Pound had weakened during the first six months of 2022.

Tax Expense .

Income Tax Expense was $3,634,000 for the first six months of 2022, compared to $4,281,000 for the same period in 2021,

decreasing $647,000 or 15.1%, mostly the result of the decrease in income before taxes.

ACCOUNTING POLICIES AND USE OF ESTIMATES

Reporting Release No.

60, released by the Securities and Exchange Commission, requires all companies to include a discussion of critical

accounting policies or methods and use of estimates used in the preparation of financial statements.

Note 2 of the Notes to the condensed

consolidated financial statements includes a summary of the significant accounting policies and methods used in the preparation of our

condensed consolidated financial statements.

The Company considers all of its significant accounting policies and estimates to be critical.

preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the

reported amounts of revenues and expenses during the reporting periods.

Management develops, and changes periodically, these estimates

and assumptions based on historical experience and on various other factors that are believed to be reasonable under the circumstances.

Actual amounts could differ significantly from these estimates.

ACCOUNTING POLICIES AND ESTIMATES

discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements,

which have been prepared in accordance with U.S.

generally accepted accounting principles.

The preparation of these 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.

We evaluate our estimates on an on-going basis.

Estimates are used for, but not limited

to, revenue recognition and related sales incentives, provisions for credit losses, inventory reserves, valuation of goodwill, product

liability reserves, valuation of phantom stock, and accounting for income taxes.

We base our 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 readily apparent from other sources.

We believe our judgments

related to these accounting estimates are appropriate.

Actual results may differ from these estimates under different assumptions or

Company’s accounting policy relating to revenue recognition reflects the impact of the adoption of Accounting Standards Codification

(“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), which is discussed further in the Notes

to the Condensed Consolidated Financial Statements.

As a result of the adoption of ASC 606, the Company records revenue based upon a

five-step approach.

The Company sells goods on typical, unmodified free on board (FOB) shipping point terms.

As the seller, it can be

determined that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g.

items, quantities,

and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86.

As a result, the Company

has a legal right to payment upon shipment of the goods.

Based upon the above, the Company has concluded that transfer of control substantively

transfers to the customer upon shipment.

Other than standard product warranty provisions, the sales arrangements provide for no other

post-shipment obligations.

The Company offers rebates and other sales incentives, promotional allowances, or discounts to certain customers,

typically related to purchase volume, and are classified as a reduction of revenue and recorded at the time of sale.

The Company periodically

evaluates whether an allowance for sales returns is necessary.

Historically, the Company has experienced minimal sales returns.

is believed there are to be material potential sales returns, the Company will provide the necessary provision against sales.

for Credit Losses

Company maintains allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of

its receivables considering current market conditions and estimates for supportable forecasts when appropriate.

The estimate is a result

of the Company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in

estimating credit losses in its receivable portfolio.

For accounts receivables, the Company uses historical loss experience rates and

applies them to a related aging analysis while also considering customer and/or economic risk where appropriate.

Determination of the

proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could

materially affect the provision for credit losses and, as a result, net earnings.

The allowances consider numerous quantitative and qualitative

factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions,

estimates for supportable forecasts, when appropriate, and credit risk characteristics.

Changes in allowances may occur in the future

as the above referenced quantitative and qualitative factors change.

are valued at the lower of cost or net realizable value.

The cost of inventories is determined by the first-in, first-out (FIFO) method.

The Company generally considers inventory quantities beyond two years of usage, measured on a historical usage basis, to be excess inventory

and reduces the carrying value of inventory accordingly.

These reductions to the inventory carrying values are estimates, which could

vary significantly, either favorably or unfavorably, from actual amounts if future economic conditions, sales levels, or competitive

conditions change.

accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 350, Intangibles – Goodwill and Other (ASU

2017-04) , using the simplified method as adopted, the Company performed an annual impairment test as of December 31, 2021.

did not indicate any impairment of goodwill as the Company’s estimated fair value of the reporting unit exceeded carrying value.

The test may be performed more frequently if we believe indicators of impairment might exist.

These indicators may include changes in

macroeconomic and industry conditions, overall financial performance, and other relevant entity-specific events.

Liability Reserves

liability reserves represent the estimated unpaid amounts under the Company’s insurance policies with respect to existing claims.

The Company uses the most current available data to estimate claims.

As explained more fully under Note 5, Commitments and Contingencies,

to the Condensed Consolidated Financial Statements included in this report for various product liability claims covered under the Company’s

general liability insurance policies, the Company must pay certain defense and settlement costs within its deductible or self-insured

retention limits, ranging primarily from $25,000 to $2,000,000 per claim, depending on the terms of the policy in the applicable policy

year, up to an aggregate amount.

The Company is vigorously defending against all known claims.

It is possible that the Company may incur

increased litigation costs in the future due to a variety of factors, including a higher number of claims, higher legal costs, and higher

insurance deductibles or retentions.

Litigation is subject to many uncertainties and management is unable to predict the outcome of the

pending suits and claims.

From time to time, depending upon the nature of a particular case, the Company may decide to spend more than

a deductible or retention to enable more discretion regarding the defense, although this is not common.

It is possible that the results

of operations or liquidity of the Company, as well as the Company’s ability to procure reasonably priced insurance, could be adversely

affected by the pending litigation, potentially materially.

The Company is currently unable to estimate the ultimate liability, if any,

that may result from the pending litigation, or potential litigation from future claims or claims that have not yet come to our attention,

and accordingly, the liability in the Condensed Consolidated Financial Statements primarily represents an accrual for legal costs for

services previously rendered, and outstanding or anticipated settlements for claims, to the extent not expected to be covered by the

Company’s insurance policies.

Compensation Plans

2006, the Company adopted a Phantom Stock Plan (the “Plan”), which allows the Company to grant phantom stock units (“Units”)

to certain key employees, officers, or directors.

The Units each represent a contractual right to payment of compensation in the future

based upon the market value of the Company’s common stock and are accordingly recorded as liabilities.

The Units follow a vesting

schedule of three years from the grant date and are then paid upon maturity.

In accordance with FASB ASC Topic 718, Compensation -

Stock Compensation (“Topic 718”), the Company uses the Black-Scholes option pricing model as its method for determining

the fair value of the Units.

The liabilities for the Units are adjusted to market value over time from the grant dates to the related

maturity dates.

The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Units in

the period the Units are forfeited.

Further details of the Plan are provided in Note 6, Stock-Based Compensation Plans, to the Condensed

Consolidated Financial Statements included in this report.

Any significant changes in the Company’s stock price may have a material

impact upon the valuation of the Units.

Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes .

Under this method the Company recorded

tax expense and related deferred taxes and tax benefits.

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 bases.

Deferred tax assets and liabilities are measured

using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered

The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes

the enactment date.

A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either

expire before the Company is able to realize the benefit, or that future deductibility is uncertain.

The Company’s accounting for

deferred tax consequences represents the best estimate of those future events.

Changes in estimates, due to unanticipated events or otherwise,

could have a material effect on the financial condition and results of operations of the Company.

The Company continually evaluates its

deferred tax assets to determine if a valuation allowance is required.

AND CAPITAL RESOURCES

2 unchanged sentences

generated from operations.

of March 31, 2022, the Company had a cash balance of $28,971,000.

of June 30, 2022, the Company had a cash balance of $30,272,000.

Additionally, the Company has a $15,000,000 line of credit available,

as discussed in detail in Note 4, which had no borrowings outstanding upon it on March 31, 2022.

as discussed in detail in Note 4, which had no borrowings outstanding upon it on June 30, 2022.

On December 31, 2021, the Company had

2 unchanged sentences

such as those included in working capital.

the three months ended March 31, 2022, the Company’s operating activities used cash of $3,876,000, compared to the three months

ended March 31, 2021 which provided cash of $2,207,000, a difference of $6,083,000.

For details of the operating cash flows refer to

the Condensed Consolidated Statements of Cash Flows in Part I – Financial Information on page seven.

the six months ended June 30, 2022, the Company’s operating activities provided cash of $873,000, compared to the six months ended

June 30, 2021 which provided cash of $10,980,000, a difference of $10,107,000.

For details of the operating cash flows refer to the Condensed

Consolidated Statements of Cash Flows in Part I – Financial Information on page seven.

a general trend, the Company tends to deplete or generate lower amounts of cash early in the year, as significant payments are typically

2 unchanged sentences

during the latter portion of the year.

used in investing activities during the three months ended March 31, 2022 and 2021 was $79,000 and $362,000, respectively for capital

expenditures.

used in investing activities during the six months ended June 30, 2022 and 2021 was $504,000 and $517,000, respectively for capital expenditures.

financing activities relate to dividend payments, which are detailed in Note 8, Shareholders’ Equity.

A dividend was declared in

both December of 2021 and 2020, amounting to $3,029,000 and $2,826,000 each, with payment due and paid during December 2021 and January

2021, respectively.

There were no dividend payments during the quarter ending March 31, 2022.

Dividend payments through

the first six months of 2022 and 2021 amounted to $3,028,000 and $5,653,000, respectively.

believe our existing cash and cash equivalents, along with our borrowing capacity, will be sufficient to meet our anticipated cash needs

7 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 2. Management’s Discussion and Analysis