What changed in this filing

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Item 1. Financial Statements

2021-02-04 compared with 2020-11-05 · 144 added, 111 removed, 367 unchanged (41% of the section changed)

3 unchanged sentences

(Unaudited, amounts in thousands except share data)

September 30,

Cash and equivalents

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Uncertain tax positions

Other long-term liabilities

Other liabilities

Total liabilities

14 unchanged sentences

Three Months Ended

September 30,

Six Months Ended

Revenue (Note 7)

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Income before income taxes

Income tax benefit

Income tax (expense) benefit

Net income and comprehensive income

Net loss and comprehensive loss attributable to non-controlling interests

Net (income) loss and comprehensive (income) loss attributable to non-controlling interests

Net income and comprehensive income attributable to Royal Gold common stockholders

8 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

Three months ended December 31, 2020 and 2019

(unaudited, amounts in thousands except share data)

3 unchanged sentences

(Losses) Earnings

Balance at September 30, 2020

Stock-based compensation and related share issuances

Distributions to non-controlling interests

Net income and comprehensive income

Dividends declared

Balance at December 31, 2020

Royal Gold Stockholders

Common Shares

Non-controlling

(Losses) Earnings

Balance at September 30, 2019

Stock-based compensation and related share issuances

Distributions from (to) non-controlling interests

Net income (loss) and comprehensive income (loss)

Dividends declared

Balance at December 31, 2019

ROYAL GOLD, INC.

Consolidated Statements of Changes in Stockholders’ Equity

Six months ended December 31, 2020 and 2019

(unaudited, amounts in thousands except share data)

Royal Gold Stockholders

Common Shares

Non-controlling

(Losses) Earnings

Balance at June 30, 2020

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Dividends declared

Balance at September 30, 2020

Balance at December 31, 2020

Royal Gold Stockholders

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Dividends declared

Balance at September 30, 2019

Balance at December 31, 2019

The accompanying notes are an integral part of these consolidated financial statements.

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(Unaudited, amounts in thousands)

Three Months Ended

September 30,

Six Months Ended

Cash flows from operating activities:

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Proceeds from sale of Contango shares

Net cash provided by investing activities

Net cash provided by (used in) investing activities

Cash flows from financing activities:

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Net cash used in financing activities

Net increase in cash and equivalents

Net increase (decrease) in cash and equivalents

Cash and equivalents at beginning of period

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In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q.

Operating results for the three months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021.

Operating results for the three and six months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021.

These interim unaudited financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the Securities and Exchange Commission on August 6, 2020 (“Fiscal 2020 10-K”).

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Current Expected Credit Loss

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No.

In June 2016, the Financial Accounting Standards Board issued ASU No.

2016-13, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses of Financial Instruments , which, together with subsequent amendments, changes how an entity will record credit losses from an “incurred loss” approach to an “expected loss” approach.

This update is effective for annual periods beginning after December 15, 2019 and interim financial statement periods within those years, with early adoption permitted.

Measurement of Credit Losses of Financial Instruments , which, together with subsequent amendments, changes how an entity records credit losses from an “incurred loss” approach to an “expected loss” approach.

This update was effective for annual periods beginning after December 15, 2019 and interim financial statement periods within those years, with early adoption permitted.

On July 1, 2020, we adopted the new guidance and, based on our assessment, the adoption of the new guidance did not have any impact on our consolidated financial statements.

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In addition to the total cash consideration of $ 61.3 million, we received the following royalty interests:

● An incremental 28 % net smelter royalty on silver produced from an area of interest which includes the current Peak Gold Project resource area, in respect of which Peak Gold, LLC retains the right to acquire 50 % of this royalty;

● An incremental 1 % net smelter return royalty on certain State of Alaska mining claims, increasing our royalty on this area from 2 % to 3 %.

The royalties are recorded as exploration stage royalty interests in Stream and royalty interests, net in our consolidated balance sheets at September 30, 2020 and have a combined value of approximately $ 4.4 million.

We recorded a gain of $ 33.9 million on the sale of our 40 % membership interest in the Peak Gold Project.

The mark-to-market increase of $ 3.6 million on the sale of our 809,744 common shares in Contango is included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income.

● An incremental 28 % net smelter return royalty on silver produced from an area of interest which includes the current Peak Gold Project resource area.

Peak Gold, LLC retains the right to acquire 50 % of this royalty for consideration of $ 4.0 million;

● An incremental 1 % net smelter return royalty on certain State of Alaska mining claims acquired by a wholly owned subsidiary of Contango in the transaction, increasing our royalty on this area from 2 % to 3 %.

The royalties were recorded as exploration stage royalty interests in Stream and royalty interests, net in our consolidated balance sheet as of December 31, 2020 and were assigned a combined value of approximately $ 4.4 million on the date of the transaction.

We recorded a gain of $ 33.9 million on the sale of our 40 % membership interest in the Peak Gold Project during the three months ended September 30, 2020.

ROYAL GOLD, INC.

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STREAM AND ROYALTY INTERESTS, NET

The following tables summarize our stream and royalty interests, net as of September 30, 2020 and June 30, 2020.

As of September 30, 2020 (Amounts in thousands):

The following tables summarize our stream and royalty interests, net as of December 31, 2020 and June 30, 2020.

As of December 31, 2020 (Amounts in thousands):

Accumulated Depletion

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( 1,233,696 )

Separation of the Wassa and Prestea and Bogoso Stream Agreement

On October 1, 2020, we announced the separation of the Wassa, and Prestea and Bogoso gold stream agreements into separate stream agreements effective September 30, 2020.

Separation of the Wassa and Prestea/Bogoso Stream Agreement

On October 1, 2020, we announced the separation of the Wassa and Prestea/Bogoso gold stream agreement into separate stream agreements effective September 30, 2020.

This separation was completed to facilitate the sale by Golden Star Resources Ltd.

(“Golden Star”) of the Prestea and Bogoso mines to Future Global Resources (“FGR”).

The Wassa stream agreement, which remains with Golden Star, provides us the right to purchase 10.5 % of the gold produced from the Wassa mine until the delivery of 240,000 ounces, after which the stream percentage will decrease to 5.5 %.

The cash purchase price for gold is 20 % of the spot price per ounce delivered until the delivery of 240,000 ounces, and 30 % of the spot price per ounce delivered thereafter.

The Prestea and Bogoso stream agreement with FGR provides us the right to purchase 5.5 % of the gold produced from the Prestea and Bogoso mines in return for a cash purchase price of 30 % of the spot price per ounce delivered.

(“Golden Star”) of the Prestea/Bogoso mines to Future Global Resources (“FGR”).

The Wassa stream agreement, which remains with Golden Star, continues to provide us the right to purchase 10.5 % of the gold produced from the Wassa mine until the delivery of 240,000 ounces, after which the stream percentage will decrease to 5.5 %.

The cash purchase price for gold remains at 20 % of the spot price per ounce delivered until the delivery of 240,000 ounces, and 30 % of the spot price per ounce delivered thereafter.

As of December 31, 2020, approximately 110,200 ounces remain to be delivered from the Wassa mine until the 240,000 ounce delivery threshold is reached.

The Prestea/Bogoso stream agreement with FGR provides us the right to purchase 5.5 % of the gold produced from the Prestea/Bogoso mines in return for a cash purchase price of 30 % of the spot price per ounce delivered.

The material terms of both the Wassa stream agreement and the Prestea/Bogoso stream agreement, including security and the rights and obligations of both Royal Gold and Golden Star, remain substantially consistent with those terms in the original agreement.

The Wassa, and Prestea and Bogoso streams are recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets and have a carrying value of $ 75.9 million as of September 30, 2020.

The Wassa stream is recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets and has a carrying value of $ 73.6 million as of December 31, 2020.

ROYAL GOLD, INC.

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COVID-19 and current economic environment

Earlier in calendar 2020, several of our operating counterparties announced temporary operational curtailments or the withdrawal or review of disclosed guidance due to the ongoing COVID-19 pandemic.

The economic and societal impacts associated with COVID-19 remain fluid and continue to change rapidly.

We continue to monitor any developments that the COVID-19 pandemic may have on our stream or royalty interests as part of our regular asset impairment analysis.

Throughout 2020 and into 2021, several of our operating counterparties have instituted temporary operational curtailments due to the ongoing COVID-19 pandemic.

In addition, the pandemic and resulting economic and societal impacts have made it difficult for operators to forecast expected production amounts and, at times, operators have had to withdraw or revise previously disclosed guidance.

For the most part, our results of operations and financial condition have not been materially impacted by these measures to date.

However, the effects of the pandemic are fluid and changing rapidly, including with respect to vaccine and treatment developments and deployment and potential mutations of COVID-19.

As a result, we are currently unable to predict the nature or extent of any future impact on our results of operations and financial condition.

We continue to monitor the impact of developments associated with the pandemic on stream and royalty interests as part of our regular asset impairment analysis.

MARKETABLE EQUITY SECURITIES

As of September 30, 2020, our marketable equity securities include 3,949,575 common shares of Battle North Gold Corporation, and warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc.

As of December 31, 2020, our marketable equity securities include 3,949,575 common shares of Battle North Gold Corporation, and warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc.

Our marketable equity securities are measured at fair value (Note 12) each reporting period with any changes in fair value recognized in net income.

As discussed in Note 2, on September 30, 2020, we sold 809,744 common shares of Contango for total consideration of $ 12.1 million and recorded a mark-to-market increase of $ 3.6 million on the sale, which is included in Fair value changes in equity securities in our consolidated statement of operations and comprehensive income.

The fair value of our marketable equity securities increased $ 2.5 million and decreased $ 1.4 million for the three months ended September 30, 2020 and 2019, respectively, and are included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income.

The carrying value of our marketable equity securities as of September 30, 2020 and June 30, 2020 was $ 8.3 million and $ 17.9 million, respectively, and is included in Other assets on our consolidated balance sheets.

Our debt as of September 30, 2020 and June 30, 2020 consists of the following:

As of September 30, 2020

The fair value of our marketable equity securities decreased $ 0.4 million and increased $ 2.2 million for the three and six months ended December 31, 2020, respectively, and are included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income.

The carrying value of our marketable equity securities as of December 31, 2020 and June 30, 2020 was $ 7.9 million and $ 17.9 million, respectively, and is included in Other assets on our consolidated balance sheets.

Our debt as of December 31, 2020 and June 30, 2020 consists of the following:

As of December 31, 2020

As of June 30, 2020

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Revolving credit facility

As of September 30, 2020, we had $ 275 million outstanding and $ 725 million available under our revolving credit facility.

As of September 30, 2020, the interest rate on borrowings under our revolving credit facility was LIBOR plus 1.10 % for an all-in rate of 1.40 %.

Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $ 1.3 million and $ 2.2 million for the three months ended September 30, 2020, and 2019, respectively.

As of December 31, 2020, we had $ 200 million outstanding and $ 800 million available under our revolving credit facility.

The interest rate on borrowings under our revolving credit facility as of December 31, 2020 was LIBOR plus 1.10 % for an all-in rate of 1.33 %.

Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $ 1.0 million and $ 2.2 million for the three and six months ended December 31, 2020, respectively, and $ 1.6 million and $ 3.8 million for the three and six months ended December 31, 2019, respectively.

As discussed in Note 6 to the consolidated financial statements in our Fiscal 2020 10-K, we have financial covenants associated with our revolving credit facility.

As of September 30, 2020, we were in compliance with each financial covenant.

On October 2, 2020, we repaid $ 75 million of the outstanding borrowings under our revolving credit facility.

As of December 31, 2020, we were in compliance with each financial covenant.

On January 4, 2021, we repaid $ 50 million of the outstanding borrowings under our revolving credit facility.

This increased the amount available under our revolving credit facility to $ 850 million and decreased the amount outstanding to $ 150 million.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Royal Gold may repay any borrowings under our revolving credit facility at any time without premium or penalty.

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These arrangements are for leases of assets such as corporate office space and office equipment.

We lease office space and office equipment under operating leases expiring at various

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

dates through the fiscal year ending June 30, 2030.

The following amounts were recorded in the consolidated balance sheets at September 30, 2020 (amounts in thousands):

We lease office space and office equipment under operating leases expiring at various dates through the fiscal year ending June 30, 2030.

The following amounts were recorded in the consolidated balance sheets at December 31, 2020 (amounts in thousands):

Classification

September 30, 2020

December 31, 2020

Operating Leases

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Total operating lease liabilities

Maturities of operating lease liabilities at September 30, 2020 were as follows (amounts in thousands):

Maturities of operating lease liabilities at December 31, 2020 were as follows (amounts in thousands):

Fiscal Years:

3 unchanged sentences

Other information pertaining to leases consist of the following:

September 30, 2020

December 31, 2020

Operating Lease Term and Discount Rate

1 unchanged sentence

Weighted average discount rate

We did not have any finance leases as of September 30, 2020.

We did not have any finance leases as of December 31, 2020.

Revenue Recognition

4 unchanged sentences

A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Stream Interests

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Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily using average spot rate gold, silver and copper forward contracts.

The sales price for these average spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time) commencing shortly after

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

receipt and purchase of the metal.

We settle our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract.

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Please also refer to our “Use of Estimates” accounting policy discussed in our Fiscal 2020 10-K.

For the three months ended September 30, 2020, royalty revenue that was estimated or was attributable to metal production for a period prior to September 30, 2020, was not material.

For the three and six months ended December 31, 2020, royalty revenue that was estimated or was attributable to metal production for a period prior to December 31, 2020, was not material.

Disaggregation of Revenue

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These identified revenue sources are consistent with our reportable segments as discussed in Note 11.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands):

Three Months Ended

September 30,

Six Months Ended

Stream revenue:

3 unchanged sentences

Total revenue

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):

Three Months Ended

September 30,

Six Months Ended

Stream revenue:

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Three Months Ended

September 30,

Six Months Ended

(Amounts in thousands)

Stock options

4 unchanged sentences

Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income.

During the three months ended September 30, 2020 and 2019, we granted the following stock-based compensation awards:

Three Months Ended

September 30,

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

During the six months ended December 31, 2020 and 2019, we granted the following stock-based compensation awards (note that no awards were granted during the three months ended December 31, 2020 and 2019):

Six Months Ended

(Number of shares)

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Total equity awards granted

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

As of September 30, 2020, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

As of December 31, 2020, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

average vesting

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EARNINGS PER SHARE (“EPS”)

Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities.

Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method.

Basic EPS were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities.

Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared.

Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends.

Under the two-class method, the earnings used to determine basic earnings per common share are reduced by an amount allocated to participating securities.

Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share.

Under the two-class method, the earnings used to determine basic EPS are reduced by an amount allocated to participating securities.

Use of the two-class method has an immaterial impact on the calculation of basic and diluted EPS.

The following tables summarize the effects of dilutive securities on diluted EPS for the period (amounts in thousands, except share data):

Three Months Ended

September 30,

Six Months Ended

Net income attributable to Royal Gold common stockholders

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Weighted-average shares for diluted EPS

Basic earnings per share

Diluted earnings per share

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Three Months Ended

September 30,

Six Months Ended

(Amounts in thousands, except rate)

Income tax benefit

(Amounts in thousands, except rate)

Income tax expense (benefit)

Effective tax rate

The effective tax rate for the three months ended September 30, 2020, included discrete tax benefits ($ 24.5 million) attributable to the settlement of an uncertain tax position with a foreign jurisdiction and the release of a valuation allowance related to deferred tax assets.

The effective tax rate for the three months September 30, 2019 included a discrete tax benefit ($ 32.3 million) primarily related to the remeasurement of certain deferred tax assets and a net step-up in the basis of tax assets due to the enactment of Swiss Tax Reform.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

The effective tax rate for the six months ended December 31, 2020, included discrete tax benefits ($ 24.5 million) attributable to the settlement of an uncertain tax position with a foreign jurisdiction and the release of a valuation allowance related to deferred tax assets, both of which were recorded during the three months ended September 30, 2020.

The effective tax rate for the six months ended December 31, 2019, included discrete benefits ($ 32.3 million) attributable to the remeasurement of certain deferred tax assets and a net step-up in the basis of tax assets due to the enactment of the Federal Act on Tax Reform and AHV Financing (Swiss Tax Reform).

SEGMENT INFORMATION

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Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands):

As of September 30, 2020

As of December 31, 2020

As of June 30, 2020

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Rest of world

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Our reportable segments for purposes of assessing performance are shown below (amounts in thousands):

Three Months Ended September 30, 2020

Three Months Ended December 31, 2020

Cost of sales (1)

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Royalty interests

Three Months Ended September 30, 2019

Three Months Ended December 31, 2019

Cost of sales (1)

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Royalty interests

Six Months Ended December 31, 2020

Cost of sales (1)

Production taxes

Depletion (2)

Segment gross profit

Stream interests

Royalty interests

Six Months Ended December 31, 2019

Cost of sales (1)

Production taxes

Depletion (2)

Segment gross profit

Stream interests

Royalty interests

(1) Excludes depreciation, depletion and amortization

(2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):

Three Months Ended

September 30,

Six Months Ended

Total segment gross profit

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Depreciation and amortization

Gain on sale of Peak Gold member interest

Gain on sale of Peak Gold JV interest

Operating income

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Income before income taxes

Our revenue by reportable segment for the three months ended September 30, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands):

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Our revenue by reportable segment for the three and six months ended December 31, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands):

Three Months Ended

September 30,

Six Months Ended

Stream interests:

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and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets;

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.

As of September 30, 2020

As of December 31, 2020

Carrying Amount

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Our marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets multiplied by the quantity of shares held.

The carrying value of our revolving credit facility (Note 5) approximates fair value as of September 30, 2020.

The TriStar Gold warrants classified within Level 2 of the fair value hierarchy are model-derived (Black-Scholes) valuations in which the significant inputs are observable in active markets.

As of September 30, 2020, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets.

The carrying value of our revolving credit facility (Note 5) approximates fair value as of December 31, 2020.

The TriStar Gold Inc.

warrants classified within Level 2 of the fair value hierarchy are model-derived (Black-Scholes) valuations in which the significant inputs are observable in active markets.

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

As of December 31, 2020, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets.

For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired.

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Khoemac a u Silver Stream Acquisition

Pursuant to our Khoemac a u silver stream transaction in February 2019, we made the following advance payments under our conditional funding schedule:

Pursuant to our Khoemac a u silver stream transaction closed in February 2019, we made the following advance payments under our conditional funding schedule:

● $ 65.8 million – November 5, 2019

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● $ 32.5 million – October 5, 2020

Including the fifth advance payment made on October 5, 2020, we have made total contributions of $ 179.3 million.

We expect to commit the remaining $ 32.7 million in calendar year 2021 for the Base Silver Stream and $ 85.7 million should Khoemacau Copper Mining (Pty.) Limited elect to fully exercise the Option Silver Stream.

Further payments are subject to certain conditions and are scheduled to be made on a quarterly basis using an agreed formula and certification process as project spending progresses.

● $ 32.6 million – January 6, 2021

Including the sixth advance payment made on January 6, 2021, we have made total contributions of $ 212 million which completes the advance payments for the Base Silver Stream.

We are further committed to up to $ 53.0 million in additional contributions should Khoemacau Copper Mining (Pty.) Limited elect to fully exercise the Option Silver Stream.

Any further payments under the Option Silver Stream are subject to certain conditions and are scheduled to be made using an agreed formula and certification process as project spending progresses.

Refer to our Fiscal 2020 10-K for further details on the Khoemac a u silver stream acquisition.

Ilovica Gold Stream Acquisition

As of September 30, 2020, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition in October 2014, remains subject to certain conditions.

As of December 31, 2020, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition in October 2014, remains subject to certain conditions.

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 1. Financial Statements