What changed in this filing

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Item 1. Business

2024-02-28 compared with 2023-02-28 · 66 added, 68 removed, 268 unchanged (33% of the section changed)

We are a premier life science technology company that is designing, developing, and manufacturing advanced sequencing solutions that enable scientists and clinical researchers to improve their understanding of the genome and ultimately, resolve genetically complex problems.

Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality, and completeness, which include our existing HiFi long-read sequencing technology and our emerging Sequencing by Binding (SBB ® ) short-read sequencing technology.

Our products address solutions across a broad set of applications including human genomics sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications.

Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality, and completeness, which include our HiFi long-read sequencing technology and our Sequencing by Binding (SBB ® ) short-read sequencing technology.

Our products address solutions across a broad set of applications including human genetics, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications.

Long-read sequencing was recognized by the journal Nature Methods as its “method of the year” for 2022 for its contributions to biological understanding and future potential.

Our focus is on providing our customers with advanced sequencing technologies with higher throughput and improved workflows that we believe will enable dramatic advancements in routine healthcare.

Our focus is on creating some of the world`s most advanced sequencing systems to provide our customers the most complete and accurate view of genomes, transcriptomes, and epigenomes.

Our customers include academic and governmental research institutions, commercial testing and service laboratories, genome centers, public health labs, hospitals and clinical research institutes, contract research organizations (CROs), pharmaceutical companies, and agricultural companies.

Recent Developments

On October 25, 2022, we announced two new sequencing platforms, Revio TM and Onso TM .

In 2023, we commercially released two new sequencing platforms, Revio TM and Onso TM .

Revio is a new long-read sequencing system designed to enable the use of HiFi sequencing for large studies in human genetics, cancer research, and agricultural genomics.

We began taking orders for Revio in the fourth quarter of 2022 and expect to commence commercial Revio shipments in March 2023.

Commercial shipments for Revio commenced in the first quarter of 2023, and 173 systems have since been shipped to more than twenty countries as of December 31, 2023.

We released SMRT Link 13.0 software on the Revio system which includes the adaptive loading feature for consistent run performance, run preview for improved lab efficiency, and expanded application support with functionality to sequence shorter and longer fragments of DNA.

Onso, a short-read DNA sequencing system, is designed to deliver industry-leading sensitivity and specificity for novel insights in oncology, disease research, and other applications.

We commenced the beta program for Onso in the fourth quarter of 2022.

We began taking orders for Onso during the first quarter of 2023 and remain on track for commercial shipment in the second quarter of 2023.

We commenced customer shipments of Onso in the third quarter of 2023.

In August 2023, we acquired Apton Biosystems to accelerate the development of a high-throughput platform based on the SBB chemistry utilized by Onso.

Through acquiring Apton, we obtained expertise in state-of-the-art optics and image processing and a novel clustering method and chemistry designed to enable the sequencing of billions of clusters of DNA on one flow cell.

We also develop products used to prepare molecules for sequencing on our platforms.

In the fourth quarter of 2023, we commenced commercial shipments for a new Kinnex TM line of products used to concatenate small molecules into larger fragments to optimize the output on HiFi sequencing systems like Revio.

The Kinnex products are designed for various applications in RNA and amplicon sequencing.

As of December 31, 2023, we received orders from over 70 customers.

Our Mission and Impact

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Genomics is core to all biological processes, and our advanced genomics tools provide scientists and clinical researchers with the insights to better understand biology and health.

The “promise of genomics” postulates that medicine, agriculture, public health, drug development, and other disciplines will be fundamentally transformed with the incorporation of routine genomic information over the coming decades .

The “promise of genomics” postulates that medicine, agriculture, public health, drug development, and other disciplines will be transformed by incorporating routine genomic information over the coming decades.

We see early progress toward this transformation in the applied use of genomics in areas such as genetic disease, oncology, and sustainable food production.

However, legacy genomics technologies have fundamental limitations in progressing these fields toward the promise of genomics.

We believe that unleashing the full potential of genomics will require a level of accuracy and completeness that is inaccessible to legacy technologies.

Accuracy and completeness are central to our product development strategy, and thus we have created some of the most innovative and high-quality genomics solutions on the market.

Our products also have enhanced multi-omic capabilities to look beyond the genome to the transcriptome and epigenome, which we believe is key to deep understanding.

We believe that unleashing the full potential of genomics will require a level of accuracy and completeness inaccessible to legacy technologies.

Accuracy and completeness are central to our product development strategy;

thus, we have created some of the most innovative and high-quality genomics solutions on the market.

Our products also have enhanced multi-omic capabilities to look beyond the genome to the transcriptome and epigenome, which we believe is key to understanding a full picture of biology.

The Underlying Science

Genetic inheritance in living systems is conveyed through a naturally occurring information storage system known as deoxyribonucleic acid, or DNA.

Genetic inheritance in living organisms is conveyed through a naturally occurring information storage system known as deoxyribonucleic acid, or DNA.

DNA stores information in linear chains of the chemical bases adenine, cytosine, guanine, and thymine, represented by the symbols A, C, G, and T respectively.

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A human carries two copies of the chromosomes, one inherited from each parent.

There are approximately 23,000 smaller regions within these chromosomes, called genes, which contain the blueprints for protein production.

Approximately 23,000 smaller regions within these chromosomes, called genes, contain the blueprints for protein production.

The proteins synthesized from these blueprints essentially underlie the operation of all biological systems.

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Initial genome sequencing studies have shown that mutations in these DNA base pairs play a critical role in human disease, contributing to the burgeoning field of genomics.

Since then, recent discoveries have highlighted additional complexities of DNA and ribonucleic acid, or RNA.

Since then, recent discoveries have highlighted additional complexities of DNA and RNA.

These discoveries include the presence of chemical modifications to the bases, such as methylation, and post-translational modification, or the processing of RNA molecules after they are transcribed from the genome, both of which can affect protein synthesis.

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Enable the discoveries of underlying causes of cancer, progression, and relapse

Understanding the cellular and molecular complexity of tumor cells is critical in developing more effective targeted cancer therapies.

Understanding tumor cells` cellular and molecular complexity is critical in developing more effective targeted cancer therapies.

Single-cell transcriptomics is particularly impactful in defining cellular identity and function;

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We believe scIso-Seq is uniquely positioned to enable discoveries by researchers of the underlying causes of cancer initiation, progression, and relapse, as well as the discovery by researchers of novel diagnostic, prognostic, and predictive biomarkers that may inform future clinical tests.

As novel discoveries continue to be made using our long-read sequencing technology, we believe our SBB short-read sequencing technology will enable us to meet the demands of customers in the expanding non-invasive testing market in oncology.

As novel discoveries continue to be made using our long-read sequencing technology, we believe our SBB short-read sequencing technology will enable us to meet customers` demands in the expanding non-invasive testing market in oncology.

Due to the small amounts of circulating tumor DNA (ctDNA) present in the blood of early-stage cancer patients and those with minimal residual disease (MRD), the presence of cancer often goes undetected, and a more sensitive assay will be required.

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Plant and Animal Sciences:

Helping scientists answer biological questions across a broad range of plant and animal sciences

There are hundreds of thousands of distinct plant and animal species.

Our technology is used to build de novo reference genomes for these organisms across several global initiatives which are dedicated to preserving, monitoring, and cataloging biodiversity with actionable and accurate genomic data.

Helping scientists answer biological questions for a healthier world

In Plant and Animal Sciences, academic, government and corporate researchers are using our technology to explore and catalog the genetic and biological diversity of organisms for the breeding, propagation, and production of crops and livestock while conserving the planet’s natural resources.

PacBio HiFi sequencing enables researchers to build high quality de novo reference genomes and transcriptomes to study variations across species enabling improvements to global conservation initiatives and support the breeding and production of resilient and higher yielding crops to meet the world's growing population and demand.

Our Technology, Products, and Solutions

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We are also expanding our genomic solutions with our short-read SBB chemistry, which offers sensitive sequencing for short-read applications.

Upon launch of the SBB platform, we believe we will be the only company offering both native long-read and native short-read technologies into the market.

Our sales consist of sequencing instruments, nanofluidic chips (SMRT Cells), and reagents for preparing DNA and performing sequencing based on our SMRT technology;

reagents for DNA extraction based on our nanobind technology;

flow cells and reagents for preparing DNA and performing sequencing based on our SBB technology, reagents for DNA extraction based on our Nanobind technology;

and the services we perform for customers.

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Our HiFi long-read sequencing protocol was built upon our SMRT sequencing systems, including consumables and software, and offers customized end-to-end workflows for different sequencing applications.

Highly accurate, long sequence reads simplify and accelerate data analysis algorithms, reducing the needs for error correction steps and/or assembly aspects, depending on the application.

Highly accurate, long sequence reads simplify and accelerate data analysis algorithms, reducing the need for error correction steps and/or assembly aspects, depending on the application.

Customers use our HiFi long-read sequencing platforms in a wide range of sequencing applications, including whole genome sequencing and de novo genome assembly, long-range phasing, targeted sequencing, full-length RNA and single-cell sequencing, characterization of metagenomic communities and other mixed DNA samples, viral genome sequencing, and others.

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A library preparation kit is used to convert DNA into SMRTbell double-stranded DNA library formats and includes typical molecular biology reagents, such as ligase, buffers, and exonucleases.

Our binding kits include our modified DNA polymerase and are used to bind SMRTbell libraries to the polymerase in preparation for sequencing.

Our binding/polymerase kits include our modified DNA polymerase and are used to bind SMRTbell libraries to the polymerase in preparation for sequencing.

Our core sequencing kits contain reagents required for on-instrument, real-time sequencing, including phospholinked nucleotides.

We have also developed and offer the Multiplexed Arrays Sequencing (MAS-Seq) 3’ kit to enable cost-effective long-read single-cell RNA sequencing for a more complete interrogation of the transcriptome.

The MAS-Seq kit takes single-cell cDNA as an input and outputs a sequencing-ready library, which enables researchers to move beyond gene counting to get full-length isoform information, characterize the full diversity of transcript isoforms at the single-cell level and ultimately reveal cell type-specific spliced isoforms and expressed variants.

In addition, we offer HiFiViral for SARS-CoV-2, our first fit-for-purpose, end-to-end solution for COVID-19 genome sequencing.

This solution uses a differentiated molecular inversion probe (MIPs) design that is robust to the emergence of new variants in the COVID-19 genome and allows for detection of all known classes of variation across the entire viral genome.

Both characteristics are required for efficient and effective public health surveillance programs battling the COVID-19 pandemic.

The solution also includes fit-for-purpose software that enables automated variant calling and preparation of files for submission into public databases tracking the evolution of the COVID-19 genome.

We have developed and offered a new line of Kinnex kits with companion SMRT Link software to enable high-throughput, scalable, cost-effective RNA applications including bulk RNA, single-cell RNA, and 16S rRNA sequencing.

The Kinnex kits are built upon the Multiplexed Array Sequencing (MAS-Seq) method for concatenating smaller amplicons into larger fragments to sequence on PacBio's long read sequencers, increasing the molecular yield by up to 16-fold.

Throughput increase in these key RNA applications where the dynamic range of different RNA isoforms (bulk and single-cell) or microbial species (16S) can vary by orders of magnitude, enables characterization of these complex RNA samples while drastically reducing sequencing need.

S BB Short-Read Sequencing

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SBB Short-Read Sequencing Instrument:

Our Onso instrument, currently under development, conducts, monitors, and analyzes SBB biochemical reactions.

Our Onso instrument conducts, monitors, and analyzes SBB biochemical reactions.

The instrument uses extremely sensitive imaging systems to collect the light emitted by fluorescent reagents allowing the observation of biological processes.

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SBB Consumables

After Onso’s anticipated launch in the second quarter of 2023, our SBB consumable products will be available for purchase, including flow cells, clustering, and sequencing reagent kits.

To complement our Onso instrument, we also sell a range of SBB consumable products including flow cells, clustering, and sequencing reagent kits.

One flow cell and associated sequencing reagent pack is consumed per sequencing reaction.

Each flow cell contains two lanes and scientists can choose to sequence different samples in each lane while additionally combining any number of flow cells needed per experiment.

We intend to offer several reagent kits, each designed to address a specific step in the core sequencing workflow.

We offer several reagent kits, each designed to address a specific step in the core sequencing workflow.

A library preparation kit is used to convert DNA into SBB compatible, double-stranded DNA library formats and includes typical molecular biology reagents, such as ligase, buffers, and exonucleases.

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To enable the promise of genomics, our strategy includes the following key elements:

 drive rapid adoption of Revio by converting existing Sequel II/IIe customers and attracting new PacBio customers

 demonstrate Onso’s extraordinary level of accuracy in the field and show how it can transform research in needle-in-haystack applications

 progress development of ultra-high-throughput and bench top long-read sequencers and next generation SBB short-read sequencer

 leverage current infrastructure to drive toward positive cash flow

 expand partnerships across ecosystem and workflow to drive customer adoption of SBB short-read sequencing and HiFi long-read sequencing

• Increase technology adoption by increasing market share via new customer acquisition, continue Sequel II conversions to Revio, and scale Onso production;

• Leverage innovation to complete development of new sequencing platforms and launch on-market system improvements;

• Build upon clinical momentum by expanding HiFi usage in large-scale programs and translational research projects;

• Drive towards positive cash flow through gross margin expansion, disciplined operating expense management, and a focus on working capital.

Marketing, Sales, Service, and Support

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Our business is subject to seasonal trends.

See the Risk Fact ors section, specifically the risk factor titled Our operating results fluctuate from quarter to quarter and year over year, which makes our future results difficult to predict and could negatively impact the market price of our common stock for additional information.

See the Risk Factors section, specifically the risk factor titled Our operating results fluctuate from quarter to quarter and year over year, which makes our future results difficult to predict and could negatively impact the market price of our common stock , for additional information.

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For example, customers in academic research institutions may have bacteria, animal, or human DNA samples isolated from various sources while agricultural biology companies may have DNA samples isolated from different strains of rice, corn, or other crops.

For the year ended December 31, 2023, no single customer accounted for 10% or more of our total revenue.

For the years ended December 31, 2022, and 2021, one customer accounted for approximately 12% and 13% of our total revenue, respectively.

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In general, the broader adoption of new technologies by mainstream customers can take a number of years.

As of December 31, 2022, our instrument backlog was approximately $45.4 million, compared to $2.0 million as of December 31, 2021.

As of December 31, 2023, our product backlog was approximately $18.7 million, compared to $51.5 million as of December 31, 2022.

We define backlog as purchase orders or signed contracts from our customers, which we believe are firm and for which we have not yet recognized revenue.

We expect to convert this backlog to revenue during 2023;

We expect to convert the majority of this backlog to revenue during 2024;

however, our ability to do so is subject to customers who may seek to cancel or delay their orders even if we are prepared to fulfill them.

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We purchase both custom and off-the-shelf components from a large number of suppliers and subject them to significant quality specifications.

We periodically conduct quality audits of most of our critical suppliers and have established a supplier certification program.

We periodically conduct quality audits of most of our critical suppliers and have established a supplier qualification program.

Some of the components required in our products are currently either sole sourced or single sourced.

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Our research and development efforts focus on programs to develop new and existing platforms, as well as increasing throughput and decreasing costs on behalf of our customers.

We are currently developing higher throughput platforms that encompass our HiFi long-read sequencing.

Our mid-throughput short-read Sequencing by Binding platform, Onso, is currently under development.

We are currently developing higher throughput platforms that utilize our HiFi long-read sequencing and SBB short-read sequencing technologies.

We also are developing a benchtop HiFi platform intended to improve accessibility for smaller laboratories, and we continue to extend our on-market platforms, Revio and Onso.

In addition to platform development, we also innovate across end-to-end workflows to improve usability, as well as develop new applications for the advancement of human health.

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Developing and maintaining a strong intellectual property portfolio is an important element of our business.

We have sought, and will continue to seek, patent protection for our SMRT and SBB technology, for improvements to our SMRT and SBB technology, as well as for any of our other technologies where we believe such protection will be advantageous.

Our current patent portfolio, including patents exclusively licensed to us, is directed to various technologies, including SMRT nucleic acid sequencing and other methods for analyzing biological samples, ZMW arrays, surface treatments, phospholinked nucleotides and other reagents for use in nucleic acid sequencing, optical short-read nucleic acid sequencing, nucleic acid preparation, and purification components and systems, processes for identifying nucleotides within nucleic acid sequences, and processes for analysis and comparison of nucleic acid sequence data.

We have sought, and will continue to seek, patent protection for our SMRT and SBB technology, for improvements to our SMRT kit and SBB technology, as well as for any of our other technologies where we believe such protection will be advantageous.

Our current patent portfolio, including patents exclusively licensed to us, is directed to various technologies, including SMRT nucleic acid sequencing and other methods for analyzing biological samples, zero-mode waveguide (ZMW) arrays, surface treatments, phospholinked nucleotides and other reagents for use in nucleic acid sequencing, optical short-read nucleic acid sequencing, nucleic acid preparation, and purification components and systems, processes for identifying nucleotides within nucleic acid sequences, and processes for analysis and comparison of nucleic acid sequence data.

Some of the patents and applications that we own, as well as some of the patents and applications that we have licensed from other parties, are subject to U.S.

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patents, 89 pending U.S.

patent applications, 396 granted foreign patents, and 158 pending foreign patent applications, including foreign counterparts of U.S.

patent and patent applications.

patent applications, 6 pending Patent Cooperation Treaty ("PCT") patent applications, 441 issued foreign patents, and 166 pending foreign patent applications.

The full term of the issued U.S.

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We also have non-exclusive patent licenses with various third parties to supplement our own large and robust patent portfolio.

Of our exclusively licensed patent applications, two issued U.S.

patents are licensed to us by the Cornell Research Foundation, which manages technology transfers on behalf of Cornell University.

Other Sequencing Solutions

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Food and Drug Administration (FDA) under the Federal Food, Drug, and Cosmetic Act (FDCA) and comparable state and foreign regulatory agencies.

FDA defines a medical device as an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including any component part or accessory, which is (i) intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease, in man or other animals, or (ii) intended to affect the structure or any function of the body of man or other animals and which does not achieve any of its primary intended purposes through chemical action within or on the body of man or other animals and which is not dependent upon being

metabolized for the achievement of any of its primary intended purposes.

Medical devices to be commercially distributed in the United States must receive from the FDA either clearance of a pre-market notification, known as 510(k), or pre-market approval pursuant to the FDC Act prior to marketing, unless subject to an exemption.

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If we wish to label and expand product lines to address the diagnosis of disease, regulation by governmental authorities in the United States and other countries will become an increasingly significant factor in development, testing, production, and marketing.

In the future, products that we may develop in the molecular diagnostic markets, depending on their intended use, may be regulated as medical devices or in vitro diagnostic products (“IVDs”) by the FDA and comparable agencies in other countries.

In the future, products that we may develop in the molecular

diagnostic markets, depending on their intended use, may be regulated as medical devices or in vitro diagnostic products (“IVDs”) by the FDA and comparable agencies in other countries.

In the U.S., if we market our products for use in performing clinical diagnostics, such products would be subject to regulation by the FDA under pre-market and post-market control as medical devices, unless an exemption applies, and we would be required to obtain either prior 510(k) clearance or prior pre-market approval from the FDA before commercializing the product.

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All clinical studies of investigational medical devices to determine safety and effectiveness must be conducted in accordance with FDA’s investigational device exemption (“IDE”) regulations, including the requirement for the study sponsor to submit an IDE application to FDA, unless exempt, which must become effective prior to commencing human clinical studies.

PMA reviews generally last between one and two years,

although they can take longer.

PMA reviews generally last between one and two years, although they can take longer.

Both the 510(k) and the PMA processes can be expensive and lengthy and may not result in clearance or approval.

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Obtaining the requisite regulatory approvals, including the FDA quality system inspections that are required for PMA approval, can be expensive and may involve considerable delay.

The regulatory approval process for such products may be significantly delayed, may be significantly more expensive than anticipated, and may conclude without such products being approved by the FDA.

The regulatory approval process for such products may be significantly delayed, may be significantly more expensive than anticipated,

and may conclude without such products being approved by the FDA.

Without timely regulatory approval, we will not be able to launch or successfully commercialize such diagnostic products.

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As laboratories and manufacturers develop more complex genetic tests and diagnostic software, the FDA may increase its regulation of LDTs.

Legislative and administrative proposals to amend the FDA's oversight of LDTs have been introduced in recent years, including the Verifying Accurate Leading-edge IVCT Development Act of 2021 (the “VALID Act”).

In September 2022, Congress passed the FDA user fee reauthorization legislation without substantive FDA policy riders, including the VALID Act, but Congress may revisit the policy riders and enact other FDA programmatic reforms in the future.

In October 2023, through rulemaking, the FDA proposed to amend the definition of “in vitro diagnostic products” in FDA regulations to include laboratories that manufacture such products and to phase out the FDA’s general enforcement discretion approach for LDTs so that IVDs manufactured by a laboratory would be regulated similarly to IVDs.

It is unclear when the FDA will finalize and begin enforcing such rule.

Any future legislative or administrative rule making or oversight of LDTs and LDT manufacturers, if and when finalized, may impact the sales of our products and how customers use our products, and may require us to change our business model in order to maintain compliance with these laws.

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In the future, to the extent we develop any clinical diagnostic assays, we may pursue payment for such products through a diverse and broad range of channels and seek coverage and reimbursement by government health insurance programs and commercial third-party payors for such products.

In the United States, there is no uniform coverage for clinical laboratory tests.

In the United States, there is no

uniform coverage for clinical laboratory tests.

The extent of coverage and rate of payment for covered services or items vary from payor to payor.

Obtaining coverage

and reimbursement for such products can be uncertain, time-consuming, and expensive, and, even if favorable coverage and reimbursement status were attained for our tests, to the extent applicable, less favorable coverage policies and reimbursement rates may be implemented in the future.

Obtaining coverage and reimbursement for such products can be uncertain, time-consuming, and expensive, and, even if favorable coverage and reimbursement status were attained for our tests, to the extent applicable, less favorable coverage policies and reimbursement rates may be implemented in the future.

Changes in healthcare regulatory policies could also increase our costs and subject us to additional regulatory requirements that may interrupt commercialization of our products, decrease our revenue and adversely impact sales of, and pricing of and reimbursement for, our products.

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We provide employees with compensation packages that include base salary, short-term incentives such as annual bonuses and commissions, and long-term equity awards.

We also offer comprehensive employee benefits, which vary by country and region, such as life, disability, and health insurance, health savings and flexible spending accounts, paid time off, paid parental leave, Employee Stock Purchase Program, and a 401(k) plan.

We also offer comprehensive employee benefits, which vary by country and region, such as life, disability, and health insurance, health savings and flexible spending accounts, time off benefits, paid parental leave, Employee Stock Purchase Program, and a 401(k) plan.

It is our expressed intent to be an employer of choice in our industry by providing market-competitive compensation and benefits packages.

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Program benefits are intended to provide protection and security, so employees can have peace of mind concerning events that may require time away from work or that may impact their financial well-being.

These programs are highlighted regularly in our monthly human resources newsletters.

We continue our investments in, and the prioritization of, employee health, safety, and wellness in light of the COVID-19 pandemic.

To protect and support our essential team members, we have implemented health and safety measures that included a mandatory vaccination policy for our U.S.-based employees, maximizing personal workspaces, changing shift schedules, and providing personal protective equipment (PPE).

We have also supported access to testing by holding on-site testing clinics available to employees and their family members.

We continue to monitor this evolving situation and will continue to seek programs to educate and assist employees whenever possible.

These programs are highlighted and updated regularly on our internal benefits platform.

Diversity, Equity, and Inclusion

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The address of the site is www.sec.gov.

Additionally, we use our website (including the blog section of our website) as well as our Twitter account ( @pacbio ) as a channel of distribution for important company information and to comply with our disclosure obligations under Regulation FD.

Additionally, we use our website (including the blog section of our website) as well as our X (formerly Twitter) account ( @pacbio ) as a channel of distribution for important company information and to comply with our disclosure obligations under Regulation FD.

Important information, including press releases, analyst presentations, and financial information regarding us, as well as corporate governance information, is routinely posted and accessible on the “Investor Relations” section of the website, which is accessible by clicking on the tab labeled “Company - Investors” on our website home page.

In addition, important information is routinely posted and accessible on the blog section of our website, which is accessible through our website at www.pacb.com/blog , as well as our Twitter account ( @pacbio ).

The contents of our website and our Twitter account are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website or Twitter account are intended to be inactive textual references only.

The contents of our website and our X account are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website or X account are intended to be inactive textual references only.

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 1. Business