What changed in this filing

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Item 1A. Risk Factors

2023-03-09 compared with 2022-03-09 · 27 added, 36 removed, 140 unchanged (31% of the section changed)

12 unchanged sentences

and Need for Capital.

of December 31, 2021, we had approximately $3.0 million in cash and cash equivalents and marketable securities.

of December 31, 2022, we had approximately $4.2 million in cash and cash equivalents.

we take steps in the commercialization and marketing of our technology or respond to potential opportunities and/or adverse events, our

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will be available when needed or, if available, on favorable terms.

of December 31, 2021, the Company had cash and cash equivalents and marketable securities of approximately $3.0 million, working capital

of $3.7 million and total shareholders’ equity of $3.8 million.

Our quarterly projected cash flow shortfall, based on our current

operations, adjusted for any non-recurring cash expenses for the next 12 months, is approximately $385,000 per quarter.

We may eliminate

some operating expenses in the future, which will further reduce our cash flow shortfall if needed.

We currently expect to have sufficient

working capital for the next 22 months of operations.

of December 31, 2022, the Company had cash and cash equivalents of approximately $4.2 million, working capital of $4.6 million and total

shareholders’ equity of $4.8 million.

Our quarterly projected cash flow shortfall, based on our current operations, adjusted for

any non-recurring cash expenses and adjusted for additional royalties expected to be received for use of our products in new production,

for the next 12 months, is approximately $200,000 per quarter.

We may eliminate some operating expenses in the future, which will further

reduce our cash flow shortfall if needed.

Based on these assumptions, we currently expect to have sufficient working capital for more

than the next 5 years of operations.

of Operating Losses.

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As of December 31, 2022, we had working capital of approximately $4.6 million, cash and cash equivalents

and marketable securities of approximately $3.0 million, shareholders’ equity of approximately $3.8 million and an accumulated

deficit of $120 million.

In the event that we are unable to generate sufficient cash from our operating activities or raise additional

funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which

could have a material adverse effect on our business, operating results, financial condition and long-term prospects.

of approximately $4.2 million, shareholders’ equity of approximately $4.8 million and an accumulated deficit of $122.4 million.

In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required

to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse

effect on our business, operating results, financial condition and long-term prospects.

have never declared a cash dividend and do not intend to declare a cash dividend in the foreseeable future.

28 unchanged sentences

2022, four licensees accounted for 28%, 23%, 13% and 11%, respectively, of fee income recognized for the year.

During 2020, five licensees

During 2021, four licensees

accounted for 20%, 18%, 18% and 12%, respectively, of fee income recognized for the year.

The loss of all or a substantial portion

of the fee income from any of these customers (or certain other significant customers) could have a material adverse effect on our business,

The loss of all or a substantial portion of

the fee income from any of these customers (or certain other significant customers) could have a material adverse effect on our business,

financial condition, and/or results of operations.

57 unchanged sentences

a competitive advantage from such rights could harm our ability to generate revenues and, as a result, our business and operations.

have identified a material weakness in our internal control over financial reporting.

If we fail to maintain an effective system of internal

control over financial reporting, the accuracy and timing of our financial reporting may be adversely affected.

February 18, 2022, our board of directors, following discussions with management, determined that our unaudited condensed consolidated

financial statements for the quarters ended June 30, 2021 and September 30, 2021 filed with the SEC on August 5, 2021 and November 4,

2021, respectively, required restatement to correct the classification of certain cash equivalents as marketable securities.

determination to restate such financial statements was identified by management during the course of preparing the Company’s financial

statements for the year ended December 31, 2021.

we fail to maintain an effective system of internal control over financial reporting, the accuracy and timing of our financial reporting

may be adversely affected.

management is responsible for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable

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on a timely basis.

have taken measures to remediate the material weakness described herein and believe that it has been remediated.

if we identify additional material weaknesses or significant deficiencies in our internal controls or disclosure controls, we

may be unable to provide required financial information in a timely and reliable manner and we may incorrectly report financial information.

If our financial statements are not filed on a timely basis, we could be subject to adverse action by shareholders, Nasdaq, the SEC or

other regulatory authorities.

The existence of material weaknesses or significant deficiencies in internal control over financial reporting

could adversely affect our reputation or investor perceptions of us, which could have a negative effect on the trading price of our stock.

In addition, we may incur additional costs to remediate material weaknesses or significant deficiencies in our internal control over

financial reporting.

cannot assure you that the measures we have taken will remediate the material weakness identified or that any additional material

weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal

we identify material weaknesses or significant deficiencies in our internal controls or disclosure controls, we may be unable to provide

required financial information in a timely and reliable manner and we may incorrectly report financial information.

If our financial

statements are not filed on a timely basis, we could be subject to adverse action by shareholders, Nasdaq, the SEC or other regulatory

The existence of material weaknesses or significant deficiencies in internal control over financial reporting could adversely

affect our reputation or investor perceptions of us, which could have a negative effect on the trading price of our stock.

we may incur additional costs to remediate material weaknesses or significant deficiencies in our internal control over financial reporting.

cannot assure you that a material weakness will not arise in the future due to a failure to implement and maintain adequate internal

control over financial reporting.

4 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-K

Item 1A. Risk Factors