What changed in this filing

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Item 7. Management’s Discussion and Analysis

2023-03-16 compared with 2022-03-18 · 103 added, 66 removed, 114 unchanged (60% of the section changed)

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You should review the sections of this Annual Report captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” for a discussion of important factors that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Perpetua Resources (formerly Midas Gold Corp.) was incorporated on February 22, 2011 under the BCBCA.

Perpetua Resources (formerly Midas Gold Corp.) was incorporated on February 22, 2011 under the Business Corporations Act (British Columbia) (the “BCBCA”).

The Corporation was organized to hold shares in wholly owned subsidiaries that locate, acquire, develop and restore mineral properties located principally in the Stibnite – Yellow Pine mining district in Valley County, Idaho, USA.

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The Corporation currently operates in one segment, mineral exploration in the United States.

The registered office of the Perpetua Resources is 400-725 Granville St, Vancouver, BC, V7Y 1G5, Canada and the corporate head office is located at 201-405 S 8th St, Boise, ID 83702, USA.

COVID-19 Response

The Company has implemented policies at its offices in Boise and Donnelly designed to ensure the safety and well-being of all employees and the people associated with them.

In that regard, to reduce risk, our employees have been encouraged to get fully vaccinated against COVID-19, have been asked to work remotely, avoid all non-essential business travel, when possible, adhere to good hygiene practices, and engage in social distancing.

Continuation of COVID-19 in 2022 and beyond could impact employee health, workforce productivity, insurance premiums, ability to travel, the availability of industry experts, personnel and equipment, restrictions or delays to field work, studies, and assay results, and other factors that will depend on future developments that may be beyond our control.

The registered office of the Perpetua Resources is Suite 1008-550 Burrard St, Vancouver, BC, V6C 2B5, Canada and the corporate head office is located at 201-405 S 8th St, Boise, ID 83702, USA.

2022 Key Highlights

● Zero lost time incidents or reportable environmental spills

● Signed ASAOC agreement to begin legacy waste cleanup

● Agreed to stay of Clean Water Act litigation with the Nez Perce Tribe and began mediation

● Published 8 th Annual Sustainability Report

● Began trading on the NASDAQ stock exchange

● Signed independent community water quality monitoring program

● Entered into collaboration agreement with U.S.

Antimony Corporation

● Signed antimony supply agreement for Ambri battery production

● Completed $57.5 million equity financing

● Responded to more than 850 comments and numerous requests for additional information in support of the USFS’s preparation of the Supplemental DEIS, which the Company expects the USFS to publish in the early third quarter of 2022

● Significantly advanced several ancillary permits related to the Stibnite Gold Project

● Awarded Department of Defense funding to study antimony from Stibnite Gold Project

● Announced the United States Forest Service published the Supplemental Draft Environmental Impact Statement which identified Perpetua Resources’ proposed action as the Preferred Alternative (as defined below)

● Awarded a Technology Investment Agreement of up to $24.8 million under Title III of the Defense Production Act

● Completed summer field program including stream diversion activities and the removal of the Defense Minerals Exploration Administration legacy waste rock dump from within and along a tributary to the East Fork of the South Fork of the Salmon River

● Continued productive mediation discussions with the Nez Perce Tribe

● Received the Clean Air Act Permit to Construct from the Idaho Department of Environmental Quality

● Strengthened the Board of Directors (the “Board”) with appointment of Laura Dove who brings three decades of external affairs and stakeholder management experience to Perpetua

● Welcomed value-oriented Kopernik as a new shareholder

● Awarded contract for stream diversion work as part of Phase 1 early cleanup activities

● Published 2021 Sustainability Report, the Company’s ninth annual sustainability report

● Launched Sustainability Roadmap which outlines 13 goals to guide the Company as it advances the Stibnite Gold Project

● Promoted Jessica Largent to CFO and further strengthened team with hiring of Chris Fogg as Manager of Investor Relations

● Held 2022 Annual General Meeting and shareholders voted in favor of all proposals

2023 Outlook and Goals

Perpetua Resources’ vision is to provide the United States with a domestic source of the critical mineral antimony, operate one of the largest and highest-grade open pit gold mines in the country and restore and develop an abandoned brownfield site.

In 2022, Perpetua Resources continues to focus on advancing the permitting process for the Stibnite Gold Project through NEPA.

Perpetua Resources’ vision is to provide the United States with a domestic source of the critical mineral antimony, develop one of the largest and highest-grade open pit gold mines in the country and restore an abandoned brownfield site.

In 2023, Perpetua Resources continues to focus on advancing the permitting for the Stibnite Gold Project through the National Environmental Policy Act process.

The NEPA process is intended to ensure that federal agencies and the public are informed of a proposed action’s potential environmental impacts before a final decision is made by the agency regarding the action.

In response to public comments received on the Draft Environmental Impact Statement (“DEIS”), Perpetua Resources submitted a refined proposed action to the USFS in December 2020.

To ensure a full analysis of the improved Project, the USFS will issue a Supplemental Draft Environmental Impact Statement (“SDEIS”) followed by an opportunity for public comment.

On February 22, 2022, Perpetua Resources announced that it expects a preliminary SDEIS to be circulated for cooperating agency review in the second quarter of 2022.

The publication of the SDEIS for public review and comment is expected in early third quarter 2022.

The USFS is expected to provide a formal schedule later this year regarding the remaining steps in the NEPA review process.

Supplemental Draft Environmental Impact Statement (“SDEIS”)

In response to public and agency feedback on the Draft Environmental Impact Statement released by the USFS in August 2020, Perpetua Resources proposed modifications to the mine plan analyzed in Alternative 2 in the DEIS and submitted a refined proposed action to the USFS in December 2020 (the “Modified Mine Plan”).

The Modified Mine Plan included refinements to reduce the project footprint, improve water quality, and lower water temperature.

The USFS decided to prepare a Supplemental Draft Environmental Impact Statement to further evaluate the project refinements and compare the Company’s proposed site access via Burntlog Route to an alternative option using current roads.

After nearly two years of review of the Modified Mine Plan by the USFS and other agencies, the SDEIS was published on October 28, 2022 for a 75-day public comment period.

In the SDEIS, the USFS highlights the net positive environmental outcomes that the Stibnite Gold Project can provide to the abandoned mine site based on the results of comprehensive scientific analysis conducted over the last six years.

The USFS identified Perpetua Resources’ proposed action, the “Modified Mine Plan,” as the Preferred Alternative because the Modified Mine Plan:

● incorporates water management and closure activities to reduce the duration of long-term water treatment requirements,

● includes measures to manage stream temperatures, and

● reduces potential impacts associated with access, transportation and hazardous materials on alternative access routes to the project site.

The USFS also concluded the Preferred Alternative would reasonably accomplish the purpose and need for consideration of approval of the Stibnite Gold Project, while giving consideration to environmental, economic, and technical factors.

Under NEPA, a “Preferred Alternative” is identified by a Federal agency in a DEIS to let the public know which action the agency is leaning toward selecting as final.

However, identification of a “Preferred Alternative” does not represent a final decision and the USFS may still choose various actions based on the Modified Mine Plan or each of the alternatives analyzed in the SDEIS when developing the Final Environmental Impact Statement.

The SDEIS public review period closed on January 10, 2023.

Following completion of the comment period and analysis, the Company expects the USFS to provide a schedule update including the expected timing to the FEIS, draft Record of Decision and to final Record of Decision.

Department of Defense Funding

In September 2022, Perpetua Resources was awarded two funding grants from the U.S.

Department of Defense (“DOD”) Defense Logistics Agency to study the domestic production of military-grade antimony trisulfide, an essential component in ammunition and dozens of other defense materials.

Perpetua Resources expects to receive up to $200,000 in total to evaluate whether antimony from the Stibnite Gold Project can meet military specifications (“Mil-Spec”) to help secure America’s defense and commercial ammunition supply chain while also evaluating alternate methods for purifying antimony trisulfide.

Perpetua Resources submitted two proposals to DLA’s “Production of Energetic Materials and Associated Precursors” Small Business Innovation Research (“SBIR”) grant solicitation.

As described in the grant’s objective, the program is focused on reducing “foreign reliance and single points of failure for the domestic manufacturing of energetic materials” through the development of a domestic source.

After a competitive review process, Perpetua Resources was awarded SBIR Phase 1 funding of $100,000 for both programs.

Each study is expected to be completed within the next six to 12 months.

After the completion of the proposed programs, Phase 2 funding could be made available for more advanced stage pilot-scale testing within the next year.

Together, the Phase 1 and Phase 2 programs could confirm the Project’s ability to provide the domestic antimony source needed to meet the defense procurement demand and support commercial markets.

In December 2022, Perpetua Resources was awarded a TIA of up to $24.8 million under Title III of the DPA.

The funding objective of the TIA, issued by the Air Force Research Laboratory, is to complete environmental and engineering studies necessary to obtain a FEIS, a Final Record of Decision, and other ancillary permits to sustain the domestic production of antimony trisulfide capability for defense energetic materials.

The DPA funding allows the Company to advance the construction readiness of the Stibnite Gold Project while the Company continues through the ongoing permitting process, led by the USFS.

Under the funding agreement, Perpetua Resources may request reimbursement for certain costs incurred over 24 months related to environmental baseline data monitoring, environmental and technical studies and other activities related to advancing Perpetua’s construction readiness and permitting process for the Stibnite Gold Project.

The DPA funding does not interrupt the ongoing NEPA review process.

The TIA is subject to negotiation of a definitized agreement with the DOD.

Until the agreement is definitized, the maximum funding available under the TIA is capped at $18,600,000, 75% of the not-to-exceed amount.

Perpetua Resources expects to enter into a definitized agreement in the first half of 2023.

However, there is no assurance that Perpetua Resources will be able to finalize the definitized agreement on the expected timeline or at all.

The TIA contains customary terms and conditions for technology investment agreements, including ongoing reporting

Perpetua Resources is evaluating other U.S.

government funding opportunities, including programs available through the DOD.

inflation rate has been steadily increasing since 2021 and throughout 2022.

These inflationary pressures have resulted in and may result in additional increases to the costs of our goods, services and personnel, which in turn cause our capital expenditures and labor costs to rise, including the estimated costs to complete the ASAOC environmental reclamation work.

Sustained levels of high inflation have likewise caused the U.S.

Federal Reserve and other central banks to increase interest rates, which could have the effects of raising the cost of capital and depressing economic growth, either of which—or the combination thereof—could adversely affect our business.

The forward‐looking information contained in this section is subject to the risk factors and assumptions contained in the “ Cautionary Note Regarding Forward-Looking Statements ” and “ Risks Factors ” sections.

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Environmental liability expense

Gain on sale of equipment

Office and administrative

General and administration

Gain on disposal of buildings and equipment

Professional fees

Shareholder and regulatory

Travel and related costs

OPERATING LOSS

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Net loss for the year ended December 31, 2022, was $28.7 million compared with a net loss of $36.0 million for 2021.

This $184.6 million decrease for the year was primarily attributable to a $184.8 million decrease in non-cash losses related to the change in fair value of the convertible note derivative, a $7.0 million decrease in foreign exchange loss, a $3.7 million decrease in exploration costs, a $3.0 million decrease in finance costs, and a $1.4 million decrease in non-cash losses related to the change in fair value of the warrant derivative.

These reductions were partially offset by a $12.2 million increase in environmental costs, a $1.1 million increase in office and administrative, a $0.6 million increase in corporate salaries and benefits, a $0.4 million increase in directors’ fees, a $0.4 million increase in professional fees, a $0.2 million increase in shareholder and regulatory expenses, a $0.2 million decrease in interest income, and a $0.1 million increase in consulting.

This $7.2 million decrease for the year was primarily attributable to a $7.6 million decrease in environmental liability expense, a $3.6 million decrease in exploration costs, a $0.8 million decrease in foreign exchange loss, and a $0.7 million decrease in general and administration expense.

These reductions were partially offset by a $5.7 million decrease in the gain recognized on the change in fair value of convertible note derivative as all notes were converted in 2021 and a $0.7 million decrease in the gain on the change in fair value of warrant derivative.

As noted above, for the year ended December 31, 2022, the Corporation’s main focus was the continued evaluation and advancement of the Stibnite Gold Project.

This expense relates to consulting services provided to the Corporation that do not relate to the exploration and evaluation of the Stibnite Gold Project.

Consulting fees for the year ended December 31, 2021 are 77% higher than the previous year due to consulting work to support various corporate activities advanced in the first quarter of 2021, including the share consolidation and listing on the NASDAQ.

Corporate Salaries and Benefits

This expense results from salaries and benefits of the employees that are not directly related to the exploration and evaluation of the Stibnite Gold Project, primarily corporate employees.

Salaries and benefits for the year ended December 31, 2021 were $0.6 million, or 45%, higher than the previous year due to severance payments made to corporate employees in 2021.

Salaries and benefits for the year ended December 31, 2022 were $1.9 million, or 7.0%, lower than the previous year due to severance payments made to corporate employees in 2021 and lower share-based compensation expense in 2022.

Directors’ Fees

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Directors’ fees are inclusive of cash fees and share-based compensation (deferred share units and stock options).

This expense for the year ended December 31, 2021, is $433,524, or 130%, higher than the previous year primarily due to the increase in the number of stock options vesting in 2021 compared to 2020.

This expense for the year ended December 31, 2022, is $0.5 million, or 31%, lower than the previous year primarily due to lower share-based compensation expense.

This expense relates to all exploration and evaluation expenditures related to the Stibnite Gold Project, including labor, drilling, field office costs, engineering, permitting, environmental and legal and sustainability costs.

The Corporation’s exploration expenses of $22.7 million during the year ended December 31, 2021 are $3.7 million, or 14%, lower than the previous year primarily due to a $3.9 million decrease in permitting, a $0.7 million decrease in legal and sustainability and a $0.5 million decrease in engineering partially offset by a $1.5 million increase in consulting and labor cost.

The Corporation’s exploration expenses of $19.1 million during the year ended December 31, 2022 are $3.6 million, or 16%, lower than the previous year primarily due to a $1.7 million decrease in permitting, a $1.7 million decrease in consulting and labor costs, and a $0.6 million decrease in environmental and reclamation partially offset by a $0.8 million increase in legal and sustainability.

Permitting expenses for the year ended December 31, 2022 were lower than the previous year due to a decrease in technical support and analysis required as requests for additional information to support the preparation of the SDEIS was substantially complete by the second quarter of 2022.

Additional details of expenditures incurred are as follows:

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This expense relates to the ASAOC signed in January 2021 to voluntarily address environmental conditions at the abandoned mine site.

Upon signing of the ASAOC, the Company recorded an immediate expense of $7,473,805 and a corresponding environmental reclamation liability.

Cost estimates were developed with the use of engineering consultants, independent contractor quotes and the Company’s internal development team, and is recognized at the present value of such costs.

In 2021, the total cost estimate to voluntarily address environmental conditions increased to $12,198,651.

As of December 31, 2021, the cost estimate for the environmental liability was $9,888,200.

Office and Administrative

Upon signing of the ASAOC, the Company recorded an immediate expense of $7.5 million and a corresponding environmental reclamation liability.

Cost estimates were developed with the use of engineering consultants, independent contractor quotes and the Company’s internal development team, and the timing of cash flows is based on the current schedule for early action items.

In the year ended December 31, 2022, the total cost estimate to complete Phase 1 early cleanup actions increased $4.6 million driven by scope changes, inflation and higher fuel costs.

As of December 31, 2022, the estimate for the remaining environmental liability was $10.8 million.

General and Administration

This expense is predominantly insurance policies for the U.S.

offices and is $1.1 million, or 271%, higher for the year ended December 31, 2021, than the previous year primarily due to insurance related to the NASDAQ listing which commenced in February 2021.

offices and is $0.7 million, or 49%, lower for the year ended December 31, 2022, than the previous year primarily due to lower insurance premiums and the previous year included consulting work to support various corporate activities including the share consolidation and listing on the NASDAQ.

Gain on Disposal of Buildings and Equipment

This item relates to the gain on the sale of buildings and equipment and is $40,215 for the year ended December 31, 2022, compared to nil for the previous year primarily due selling equipment with no carrying value for gross proceeds of $49,173 offset by writing off the carrying value of equipment no longer owned in 2022.

Professional Fees

This expense relates to the legal and accounting costs of the Corporation.

The costs for the year ended December 31, 2021 were $447,575, or 55%, higher than the previous year primarily due to legal work on various organizational changes implemented in 2021, including the share consolidation and NASDAQ listing which commenced in February 2021, and the ASAOC.

This expense relates to the legal, accounting and consulting costs of the Corporation.

The expense for the year ended December 31, 2022 were $1.8 million, or 26%, higher than the previous year primarily due to legal and consulting work related to new filings required as a U.S.

domestic issuer and the associated costs.

Accounting expense for the year ended December 31, 2022 were higher due to accounting fees related to the change in the basis of accounting for the Company’s consolidated financial statements from international standards to U.S.

Shareholder and Regulatory

This expense relates to marketing, licenses and fees, and shareholder communications.

The expense for the year ended December 31, 2021 is $167,885, or 43%, higher than the previous year primarily due to fees related to the NASDAQ listing which commenced in February 2021.

The expense for the year ended December 31, 2022 is $0.6 million, or 16%, higher than the previous year primarily due to higher fees related to being listed on the NASDAQ and filing fees associated with being a U.S.

domestic issuer.

Change in Fair Value of Warrant Derivative

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There are no circumstances under which Perpetua Resources will be required to pay cash upon exercise or expiry of the warrants or finder’s options (see Note 6 in the Consolidated Financial Statements).

The gain on the change in fair value of warrants decreased $0.7 million or 87% in 2022 compared to 2021.

Change in Fair Value of Convertible Note Derivative

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The convertible note derivative is valued at fair value.

The decrease in fair value is due to the conversion of Convertible Notes during the year.

During the year, the remaining Convertible Notes in the aggregate principal amount of C$15,409,901 were converted for 4,351,850 common shares of Perpetua Resources at a conversion rate of C$3.541 per common share (see Note 7 in the Consolidated Financial Statements).

During the year ended December 31, 2021, the change in fair value related to this derivative was $5.7 million.

There was no similar amount during the year ended December 31, 2022 because all Convertible Notes were converted in 2021.

Finance Costs

Finance costs for the Corporation include accretion and interest expense related to the Convertible Notes described above, transaction costs related to the Convertible Notes issued in March 2020 and interest expense on lease liabilities.

These costs for the year ended December 31, 2021, are $2,990,816, or 89%, lower than the prior year due to notes converted in August 2020, the remainder of the Convertible Notes converted in 2021 and transaction costs on Convertible Notes upon issuance in 2020.

Finance costs for the Corporation include accretion and interest expense related to the Convertible Notes described above, and transaction costs related to the conversion of the Convertible Notes.

These costs for the year ended December 31, 2022, are $nil compared to $0.4 million recognized in 2021 because the remainder of the Convertible Notes converted in 2021.

Foreign Exchange Loss

Changes in foreign exchange are driven by the change in value of the Canadian Dollar compared to the U.S.

The $842,573 loss for the year ended December 31, 2021, is a result of the translation of the Corporation’s Canadian dollar denominated balances primarily on the Convertible Notes and the convertible note derivatives before their conversion in 2021.

In 2020 large increases in the value of the Convertible Note Derivatives during the year, as a result of a much higher stock price, drove a significant increase in foreign exchange losses as the value was converted from CAD to USD.

In 2021, large decreases in the value of the Convertible Note Derivatives, due to both the conversion of Convertible Notes during 2020 and 2021 and a much lower stock price, drove a significant decrease in foreign exchange losses as the value was converted from CAD to USD.

The $0.8 million loss for the year ended December 31, 2021 was a result of the translation of the Corporation’s Canadian dollar denominated balances primarily on the Convertible Notes and the convertible note derivatives before their conversion in 2021.

In 2022, the loss decreased to $41,179 as all of the Convertible Notes were converted in 2021.

This income is from the DOD funding to domestic production of military-grade antimony trisulfide.

Grant income increased $0.1 million in the year ended December 31, 2022, compared the previous year as the grants were awarded in September 2022.

Interest Income

This income results from interest received on the Corporation’s cash balances.

Interest income decreased $219,510 in the year ended December 31, 2021, compared to the previous year as a result of lower interest rates throughout the year and lower average cash balances in the first half of 2021.

Interest income increased $0.4 million in the year ended December 31, 2022, compared to the previous year due to higher interest rates throughout the year and higher average cash balances in 2022.

Liquidity and Capital Resources

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In August 2021, the Corporation completed a public offering for total gross proceeds of $57.5 million to be used to continue permitting, early restoration and field operations, engineering and design and general corporate purposes.

With its current capital resources, Perpetua Resources believes that it has sufficient funds to continue to advance the regulatory process related to permitting for mine development beyond 2022.

In December 2022, the Corporation was awarded a TIA of up to $24.8 million under Title III of the DPA.

The TIA is subject to negotiation of a definitized agreement with the DOD.

Until the agreement is definitized, the maximum funding available under the TIA is capped at $18.6 million, 75% of the not-to-exceed amount.

Perpetua Resources expects to enter into a definitized agreement in the first half of 2023.

As a result of the DPA funding, we reduced our planned use of the proceeds from the public offering for permitting and engineering and design work and reallocated those funds to general corporate purposes and restoration work pursuant to the ASAOC.

Perpetua Resources expects that current cash resources, combined with the full $24.8 million of potential DPA funding under the TIA, is expected to provide the Company with sufficient liquidity to complete permitting and early restoration activities on the current timeline as well as additional liquidity to begin advancing construction readiness into 2024.

Perpetua Resources plans to:

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● Continue to advance the voluntary early cleanup actions under the ASAOC.

It is management’s opinion, based on the Corporation’s current capital resources and liquidity that the Corporation will have sufficient assets to discharge its liabilities as they become due, to continue to advance the Stibnite Gold Project beyond 2022, and to meet its administrative and overhead requirements for more than a year.

Future financings to fund construction are anticipated through debt, equity, project specific debt, and/or other means.

It is management’s opinion, based on the Corporation’s current capital resources and liquidity, combined with the full DPA funding under the TIA, that the Corporation will have sufficient assets to discharge its liabilities as they become due, to continue to advance the Stibnite Gold Project beyond 2023, and to meet its administrative and overhead requirements for more than a year.

Future financings to fund construction are anticipated through debt, equity, project specific debt, government funding and/or other means.

Our continued operations are dependent on our ability to obtain additional financing or to generate future cash flows.

However, there can be no assurance that we will be successful in our efforts to raise additional capital on terms favorable to us, or at all.

Our anticipated expenditures in fiscal year 2022 are approximately $27.5 million, which are expected to be funded from cash on hand.

These expenditures include an estimated $12.2 million to fund permitting of the Stibnite Gold Project, $10.5 million for general corporate purposes and administrative costs, $0.7 million for engineering and design work and $4.1 million to advance early restoration and continue field operations.

Our anticipated expenditures in fiscal year 2023 are approximately $33.6 million, which are expected to be funded from cash on hand and the DPA funding reimbursements.

These expenditures include an estimated $10.1 million to fund permitting of the Stibnite Gold Project, $9.1 million for general corporate purposes and administrative costs, $2.9 million for engineering and design work and $11.5 million to advance early restoration under the ASAOC and continue field operations.

These costs are subject to change due to cost over-runs, delays or other unbudgeted events.

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Once an asset subject to interest capitalization is completed and placed in service, the associated capitalized interest is expensed through depletion or impairment.

Derivative Instruments

We evaluate our financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815.

The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market at each balance sheet date and recorded as a liability and the change in fair value is recorded in the Consolidated Statements of Operations.

Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity.

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

Derivative instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date.

Derivative instrument liabilities are classified in the balance sheet as current as settlement of the derivative instruments are at the option of the holder.

We use the Black-Scholes option valuation model to value derivative liabilities.

This model uses Level 3 inputs in the fair value hierarchy established by ASC 820 Fair Value Measurement.

Share Based Compensation

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We account for income taxes under the asset and liability method.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities

and their respective tax 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 or settled.

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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