Our business faces significant risks and uncertainties, which may have a material adverse effect on our business prospects, financial condition and results of operations, and you should carefully consider them.
−Removed: There have been no material changes in the nine months ended September 30, 2021 to the risk factors described in Part I, Item 1A.
−Removed: of our Annual Report on Form 10-K for the year ended December 31, 2021, with the exception of the risk factor below.
−Removed: Risks Related to Our Indebtedness and Accounting Matters
−Removed: The value of the securities received in connection with the sale of our cloud-based enterprise communications service is based on the ongoing operations of the acquiring company and is volatile.
−Removed: Quarterly fluctuations in price could significantly impact our financial results.
−Removed: In connection with our sale of the Kandy Communications Business to AVCT, we received 43,778 AVCT Units, with each AVCT Unit consisting of (i) $1,000 in principal amount of Debentures;
−Removed: and (ii) one Warrant.
−Removed: In the third quarter of 2021, the Debentures were converted, pursuant to their terms, into shares of AVCT common stock (the "AVCT Shares").
−Removed: Since AVCT's common stock is publicly traded on NASDAQ, under U.S.
−Removed: GAAP ("GAAP"), we elected the fair value option to record our investment in AVCT, under which we value the AVCT Shares on our balance sheet based on the trading price of the AVCT common stock.
−Removed: Such trading price is also used to value the Warrants on an if-converted basis.
−Removed: We are also required under GAAP to revalue and mark to market the value of the AVCT Shares and Warrants on a quarterly basis, with any changes in value reflected on our statements of operations and, therefore, impacting our earnings.
−Removed: AVCT's stock price on NASDAQ has been volatile with the closing price ranging from $2.66 to $9.26 during the nine months ended September 30, 2021.
−Removed: As a result, our financial statements may reflect significant swings in the value of the AVCT Shares and Warrants held on our balance sheet, which could have a material impact on our financial results, even though such changes in value would not reflect our current operating business.
−Removed: We continue to rely on AVCT for the provision of products and services to a number of customers we jointly share.
−Removed: AVCT reported that as of June 30, 2021 (the last period for which AVCT has reported financial results as of the date of this Quarterly Report on Form 10-Q), AVCT's current liabilities exceeded its current assets by approximately $16 million.
−Removed: AVCT has announced a number of initiatives designed to increase its liquidity, including a $5 million loan entered into in September 2021, a proposed public offering of its common stock, and the proposed divestiture of its Computer Technology Group.
−Removed: AVCT believes that cash from continuing operations, taken together with these initiatives, will be sufficient to continue to fund its operations.
−Removed: However, if such activities are not successful, AVCT may be required to take other actions that could materially negatively affect the value of our investment in AVCT.
−Removed: Disruptions in AVCT's operations could also result in claims by our customers for failure to satisfy contractual service requirements and/or require us to find alternative solutions in order to satisfy our customer obligations.
+Added: There have been no material changes in the three months ended March 31, 2022 to the risk factors described in Part I, Item 1A.
+Added: of our Annual Report on Form 10-K for the year ended December 31, 2021.
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.