Item 7. Management’s Discussion and Analysis
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Notice Regarding Forward-Looking Statements
The following discussion and analysis of our financial condition and results of operations for the years ended June 30, 2023 and 2022 should be read in conjunction with our consolidated financial statements and related notes to those financial statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under “Risk Factors” and elsewhere in this report.
We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements. All forward-looking statements included in this report are based on information available to us on the date hereof and, except as required by law, we assume no obligation to update any such forward-looking statements.
Overview
Research Solutions was incorporated in the State of Nevada on November 2, 2006, and is a publicly traded holding company with three wholly owned subsidiaries as of June 30, 2023: Reprints Desk, Inc., a Delaware corporation, Reprints Desk Latin America S. de R.L. de C.V, an entity organized under the laws of Mexico, and RESSOL LA, S. DE R.L. DE C.V., an entity organized under the laws of Mexico.
We provide two service offerings to our customers: a cloud-based software-as-a-service (“SaaS”) research platform (“Platforms”) typically sold via annual auto-renewing license agreements and the sale of published scientific, technical, and medical (“STM”) content sold as individual articles (“Transactions”) either stand alone or via the Platform. When customers utilize the Platform to purchase Transactions it is packaged as a single solution that enables life science and other research-intensive organizations to accelerate their research and development activities with faster, access and management of STM articles used throughout the intellectual property development lifecycle. The Platform typically delivers a ROI to the customer via more effectively managing Transaction costs and saving researchers time during the research process.
Platforms
Our cloud-based SaaS research Platform consists of proprietary software and Internet-based interfaces sold to customers for an annual subscription fee. Legacy functionality allows customers to initiate orders, route orders for the lowest cost acquisition, manage transactions, obtain spend and usage reporting, automate authentication, and connect seamlessly to in-house and third-party software systems. Customers can also enhance the information resources they already own or license and collaborate around bibliographic information.
Additional functionality has recently been added to our Platform in the form of interactive app-like components. An alternative to manual data filtering, identification and extraction, the apps are designed to gather, augment, and extract data across a variety of formats, including bibliographic citations, tables of contents, RSS feeds, PDF files, XML feeds, and web content. We continue to develop new apps in order to build an ecosystem of apps. Together, these apps will provide researchers with an “all in one” toolkit, delivering efficiencies in core research workflows and knowledge creation processes.
Our Platform is deployed as a single, multi-tenant system across our entire customer base. Customers securely access the Platform through online web interfaces and via web service APIs that enable customers to leverage Platform features and functionality from within in-house and third-party software systems. The Platform can also be configured to satisfy a customer’s individual preferences. We leverage our Platform’s efficiencies in scalability, stability and development costs to fuel rapid innovation and competitive advantage.
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Transactions
Our Platform provides our customers with a single source to the universe of published STM content that includes over 80 million existing STM articles and over one million newly published STM articles each year. STM content is sold to our customers on a transaction basis. Researchers and knowledge workers in life science and other research-intensive organizations generally require single copies of published STM journal articles for use in their research activities. These individuals are our primary users.
Our Platform allows customers to find and download digital versions of STM articles that are critical to their research. Customers submit orders for the articles they need which we source and electronically deliver to them generally in under an hour; in many cases under one minute. This service is generally known in the industry as single article delivery or document delivery. We also obtain the necessary permission licenses from the content publisher or other rights holder so that our customer’s use complies with applicable copyright laws. We have arrangements with hundreds of content publishers that allow us to distribute their content. The majority of these publishers provide us with electronic access to their content, which allows us to electronically deliver single articles to our customers often in a matter of minutes.
Inflation Risk
We do not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that our operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing our operating costs, and which would put additional stress on our working capital resources.
Critical Accounting Policies and Estimates
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States, or GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. When making these estimates and assumptions, we consider our historical experience, our knowledge of economic and market factors and various other factors that we believe to be reasonable under the circumstances. Actual results may differ under different estimates and assumptions.
The accounting estimates and assumptions discussed in this section are those that we consider to be the most critical to an understanding of our financial statements because they inherently involve significant judgments and uncertainties.
Revenue Recognition
We account for revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected.
Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We derive our revenues from two sources: annual licenses that allow customers to access and utilize certain premium features of our
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cloud-based SaaS research intelligence platform (“Platforms”) and the transactional sale of STM content managed, sourced and delivered through the Platform (“Transactions”).
We apply the following five steps in order to determine the appropriate amount of revenue to be recognized as we fulfill our obligations under each of our agreements:
● identify the contract with a customer;
● identify the performance obligations in the contract;
● determine the transaction price;
● allocate the transaction price to performance obligations in the contract; and
● recognize revenue as the performance obligation is satisfied.
Platforms
We charge a subscription fee that allows customers to access and utilize certain premium features of our Platform. Revenue is recognized ratably over the term of the subscription agreement, which is typically one year, provided all other revenue recognition criteria have been met. Billings or payments received in advance of revenue recognition are recorded as deferred revenue.
Transactions
We charge a transactional service fee for the electronic delivery of single articles, and a corresponding copyright fee for the permitted use of the content. We recognize revenue from single article delivery services upon delivery to the customer provided all other revenue recognition criteria have been met.
Stock-Based Compensation
We periodically issue stock options, warrants and restricted stock to employees and non-employees for services, in capital raising transactions, and for financing costs. We account for share-based payments under the guidance as set forth in the Share-Based Payment Topic 718 of the FASB Accounting Standards Codification, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee stock options, based on estimated fair values. We estimate the fair value of stock option and warrant awards to employees and directors on the date of grant using an option-pricing model, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in our Statements of Operations. We estimate the fair value of restricted stock awards to employees and directors using the market price of our common stock on the date of grant, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in our Statements of Operations.
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Under ASC 718, Repurchase or Cancellation of equity awards, the amount of cash or other assets transferred (or liabilities incurred) to repurchase an equity award shall be charged to equity, to the extent that the amount paid does not exceed the fair value of the equity instruments repurchased at the repurchase date. Any excess of the repurchase price over the fair value of the instruments repurchased shall be recognized as additional compensation cost.
Allowance for doubtful accounts
We evaluate the collectability of our trade accounts receivable based on a number of factors. In circumstances where we become aware of a specific customer’s inability to meet its financial obligations to us, we estimate and record a specific reserve for bad debts, which reduces the recognized receivable to the estimated amount we believe will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on our historical losses and an overall assessment of past due trade accounts receivable outstanding. We established an allowance for doubtful accounts of $85,015 and $94,144 as of June 30, 2023 and 2022, respectively.
Foreign Currency
The accompanying consolidated financial statements are presented in United States dollars, the functional currency of our company. Capital accounts of foreign subsidiaries are translated into US dollars from foreign currencies at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange rate of the period. Although the majority of our revenue and costs are in US dollars, the costs of Reprints Desk Latin America and ResSol LA are in Mexican Pesos. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We currently do not engage in any currency hedging activities.
The following table summarizes the exchange rates used:
Year Ended
June 30,
2023
2022
Period end Euro : US Dollar exchange rate
1.09
1.05
Average period Euro : US Dollar exchange rate
1.05
1.13
Period end GBP : US Dollar exchange rate
1.27
1.21
Average period GBP : US Dollar exchange rate
1.20
1.34
Period end Mexican Peso : US Dollar exchange rate
0.06
0.05
Average period Mexican Peso : US Dollar exchange rate
0.05
0.05
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Quarterly Information (Unaudited)
The following table sets forth unaudited and quarterly financial data for the four quarters of fiscal years 2023 and 2022:
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec 31,
Sept. 30,
2023
2023
2022
2022
2022
2022
2021
2021
Revenue:
Platforms
$
2,303,375
$
2,249,632
$
2,110,272
$
2,019,967
$
1,886,845
$
1,786,224
$
1,604,829
$
1,509,874
Transactions
7,656,342
8,092,794
6,606,394
6,664,676
6,675,164
6,971,128
6,267,458
6,232,630
Total revenue
9,959,717
10,342,426
8,716,666
8,684,643
8,562,009
8,757,352
7,872,287
7,742,504
Cost of revenue:
Platforms
275,110
268,630
253,073
230,473
240,214
219,051
231,668
245,656
Transactions
5,764,064
6,046,523
5,059,766
5,104,922
5,038,653
5,299,804
4,802,959
4,836,473
Total cost of revenue
6,039,174
6,315,153
5,312,839
5,335,395
5,278,867
5,518,855
5,034,627
5,082,129
Gross profit:
Platforms
2,028,265
1,981,002
1,857,199
1,789,494
1,646,631
1,567,173
1,373,161
1,264,218
Transactions
1,892,278
2,046,271
1,546,628
1,559,754
1,636,511
1,671,324
1,464,499
1,396,157
Total gross profit
3,920,543
4,027,273
3,403,827
3,349,248
3,283,142
3,238,497
2,837,660
2,660,375
Operating expenses:
Sales and marketing
455,030
642,624
666,608
521,216
691,368
543,496
518,357
522,951
Technology and product dev.
991,093
953,677
922,132
875,290
1,049,430
971,959
868,236
821,460
General and administrative
1,649,333
1,871,590
1,613,664
1,519,424
1,663,671
1,629,371
1,616,135
1,497,223
Depreciation and amortization
22,163
18,332
6,342
5,812
5,507
4,988
4,260
2,896
Stock-based comp. expense
585,384
480,458
608,703
175,361
225,501
399,234
300,539
171,110
Foreign currency transaction loss (gain)
(37,743)
(72,547)
(84,179)
72,516
91,279
29,394
11,982
11,243
Total operating expenses
3,665,260
3,894,134
3,733,270
3,169,619
3,726,756
3,578,442
3,319,509
3,026,883
Other income (expenses and income taxes)
120,463
103,703
73,913
34,936
5,347
(585)
264
(5,494)
Net income (loss)
375,746
236,842
(255,530)
214,565
(438,267)
(340,530)
(481,585)
(372,002)
Basic income (loss) per common share:
Net income (loss) per share
$
0.01
$
0.01
$
(0.01)
$
0.01
$
(0.02)
$
(0.01)
$
(0.02)
$
(0.01)
Basic weighted average common shares outstanding
26,981,813
26,929,314
26,816,550
26,718,171
26,576,054
26,512,195
26,351,947
26,277,116
Diluted income (loss) per common share:
Net income (loss) per share
$
0.01
$
0.01
$
(0.01)
$
0.01
$
(0.02)
$
(0.01)
$
(0.02)
$
(0.01)
Diluted weighted average common shares outstanding
30,058,791
29,791,719
26,815,550
27,779,841
26,576,054
26,512,195
26,351,947
26,277,116
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Comparison of the Years Ended June 30, 2023 and 2022
Results of Operations
Year Ended June 30,
2023
2022
$ Change
% Change
Revenue:
Platforms
$
8,683,246
$
6,787,772
$
1,895,474
27.9
%
Transactions
29,020,206
26,146,380
2,873,826
11.0
%
Total revenue
37,703,452
32,934,152
4,769,300
14.5
%
Cost of revenue:
Platforms
1,027,286
936,589
90,697
9.7
%
Transactions
21,975,275
19,977,889
1,997,386
10.0
%
Total cost of revenue
23,002,561
20,914,478
2,088,083
10.0
%
Gross profit:
Platforms
7,655,960
5,851,183
1,804,777
30.8
%
Transactions
7,044,931
6,168,491
876,440
14.2
%
Total gross profit
14,700,891
12,019,674
2,681,217
22.3
%
Operating expenses:
Sales and marketing
2,285,478
2,276,172
9,306
0.4
%
Technology and product development
3,742,192
3,711,085
31,107
0.8
%
General and administrative
6,654,011
6,406,400
247,611
3.9
%
Depreciation and amortization
52,649
17,651
34,998
198.3
%
Stock-based compensation expense
1,849,906
1,096,384
753,522
68.7
%
Foreign currency transaction loss (gain)
(121,953)
143,898
(265,851)
(184.7)
%
Total operating expenses
14,462,283
13,651,590
810,693
5.9
%
Income (loss) from operations
238,608
(1,631,916)
1,870,524
114.6
%
Other income
338,617
7,154
331,463
4,633.3
%
Income (loss) from operations before provision for income taxes
577,225
(1,624,762)
2,201,987
135.5
%
Provision for income taxes
(5,602)
(7,622)
2,020
26.5
%
Net income (loss)
571,623
(1,632,384)
2,204,007
135.0
%
Revenue
Years Ended June 30,
2023
2022
$ Change
% Change
Revenue:
Platforms
$
8,683,246
$
6,787,772
$
1,895,474
27.9
%
Transactions
29,020,206
26,146,380
2,873,826
11.0
%
Total revenue
$
37,703,452
$
32,934,152
$
4,769,300
14.5
%
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Total revenue increased $4,769,300, or 14.5%, for the year ended June 30, 2023 compared to the prior year, due to the following:
Category
Impact
Key Drivers
Platforms
↑
$
1,895,474
Increased due to additional deployments to new and existing customers, and expansion from existing customers. Revenue is recognized ratably over the term of the subscription agreement, which is typically one year, provided all other revenue recognition criteria have been met. Billings or payments received in advance of revenue recognition are recorded as deferred revenue.
Transactions
↑
$
2,873,826
Increased due to higher paid order volume and pricing initiatives, including additional paid order volume due to the FIZ asset acquisition which was effective January 1, 2023.
Cost of Revenue
Years Ended June 30,
2023
2022
$ Change
% Change
Cost of Revenue:
Platforms
$
1,027,286
$
936,589
$
90,697
9.7
%
Transactions
21,975,275
19,977,889
1,997,386
10.0
%
Total cost of revenue
$
23,002,561
$
20,914,478
$
2,088,083
10.0
%
Years Ended June 30,
2023
2022
% Change *
As a percentage of revenue:
Platforms
11.8
%
13.8
%
(2.0)
%
Transactions
75.7
%
76.4
%
(0.7)
%
Total
61.0
%
63.5
%
(2.5)
%
*
The difference between current and prior period cost of revenue as a percentage of revenue
Total cost of revenue as a percentage of revenue decreased 2.5%, from 63.5% for the previous year to 61.0%, for the year ended June 30, 2023.
Impact as percentage
Category
of revenue
Key Drivers
Platforms
↓
2.0
%
Decreased primarily due to lower software expense and proportionally lower personnel costs.
Transactions
↓
0.7
%
Decreased primarily due to lower personnel costs and expansion in copyright margins.
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Gross Profit
Years Ended June 30,
2023
2022
$ Change
% Change
Gross Profit:
Platforms
$
7,655,960
$
5,851,183
$
1,804,777
30.8
%
Transactions
7,044,931
6,168,491
876,440
14.2
%
Total gross profit
$
14,700,891
$
12,019,674
$
2,681,217
22.3
%
Years Ended June 30,
2023
2022
% Change*
As a percentage of revenue:
Platforms
88.2
%
86.2
%
2.0
%
Transactions
24.3
%
23.6
%
0.7
%
Total
39.0
%
36.5
%
2.5
%
*
The difference between current and prior period gross profit as a percentage of revenue
Operating Expenses
Years Ended June 30,
2023
2022
$ Change
% Change
Operating Expenses:
Sales and marketing
$
2,285,478
$
2,276,172
$
9,306
0.4
%
Technology and product development
3,742,192
3,711,085
31,107
0.8
%
General and administrative
6,654,011
6,406,400
247,611
3.9
%
Depreciation and amortization
52,649
17,651
34,998
198.3
%
Stock-based compensation expense
1,849,906
1,096,384
753,522
68.7
%
Foreign currency transaction loss (gain)
(121,953)
143,898
(265,851)
(184.7)
%
Total operating expenses
$
14,462,283
$
13,651,590
$
810,693
5.9
%
Category
Impact
Key Drivers
Sales and marketing
↑
$
9,306
Increased primarily due to greater personnel costs and marketing discretionary spend mostly offset by lower consulting expenses.
Technology and product development
↑
$
31,107
Increased due to greater software development personnel costs partially offset by lower consulting and recruiting expenses.
General and administrative
↑
$
247,611
Increased due to greater recruiting, legal and travel expenses and personnel costs partially offset by lower accounting and consulting expenses.
Provision for Income Taxes
During the years ended June 30, 2023 and 2022 we recorded a provision for income taxes of $5,602 and $7,622, respectively, a decrease of $2,020.
Net Income (Loss)
Year Ended June 30,
2023
2022
$ Change
% Change
Net Income (Loss):
Net income (loss):
$
571,623
$
(1,632,384)
$
2,204,007
135.0
%
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Net loss decreased $2,204,007 or 135%, for the year ended June 30, 2023 compared to the prior year, primarily due to increased gross profit, partially offset by increased operating expenses as described above.
Liquidity and Capital Resources
Year Ended June 30,
2023
2022
Consolidated Statements of Cash Flow Data:
Net cash provided by (used in) operating activities
$
3,383,847
$
(417,200)
Net cash used in investing activities
(344,659)
(44,288)
Net cash provided by (used in) financing activities
(97,259)
63,270
Effect of exchange rate changes
229
(2,944)
Net increase (decrease) in cash and cash equivalents
2,942,158
(401,162)
Cash and cash equivalents, beginning of period
10,603,175
11,004,337
Cash and cash equivalents, end of period
$
13,545,333
$
10,603,175
Liquidity
As of June 30, 2023, we had cash and cash equivalents of $13,545,333, compared to $10,603,175 as of June 30, 2022, an increase of $2,942,158. This increase was primarily due to cash provided by operating activities.
Operating Activities
Net cash provided by operating activities was $3,383,847 for the year ended June 30, 2023 and resulted primarily from an increase in net income, the fair value of vested restricted common stock of $1,418,718, an increase in accounts payable and accrued expenses of $1,337,056 and an increase in deferred revenue of $886,198, partially offset by an increase in accounts receivable of $901,518.
Net cash used in operating activities was $417,200 for the year ended June 30, 2022 and resulted primarily from an increase in deferred revenue of $734,175 and a decrease in prepaid royalties of $58,269, partially offset by an increase in accounts receivable of $534,092.
Investing Activities
Net cash used in investing activities was $344,659 for the year ended June 30, 2023 and primarily from the payment for non-refundable deposit for asset acquisition of $297,450.
Net cash used in investing activities was $44,288 for the year ended June 30, 2022 and resulted from the purchase of property and equipment.
Financing Activities
Net cash used in financing activities was $97,259 for the year ended June 30, 2023 and resulted from the repurchase of common stock of $104,250 and the payment of contingent acquisition consideration of $50,509, partially offset by the proceeds from the exercise of options of $57,500.
Net cash provided by financing activities was $63,270 for the year ended June 30, 2022 and resulted from the proceeds from the exercise of options of $97,688 and the proceeds from the exercise of warrants of $59,500, partially offset by the repurchase of common stock of $93,918.
We entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which, as amended, provides for a revolving line of credit for the lesser of $2,500,000, or 80% of eligible accounts receivable. The line of credit matures on February 28, 2024, and is subject to certain financial and performance covenants with which we
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were in compliance as of June 30, 2023. Financial covenants include maintaining an adjusted quick ratio of unrestricted cash and net accounts receivable, divided by current liabilities plus debt less deferred revenue of at least 1.15 to 1.0. The line of credit bears interest at an annual rate equal to the greater of 1% above the prime rate and 5.0%. The interest rate on the line of credit was 9.25% as of June 30, 2023. The line of credit was secured by our consolidated assets.
There were no outstanding borrowings under the line as of June 30, 2023 and June 30, 2022, respectively. As of June 30, 2023, there was approximately $2,264,000 of available credit. On March 27, 2023, First Citizens BancShares, Inc entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase all of the assets and liabilities of SVB. We have confirmed that the Loan and Security Agreement remains in effect post this transaction and that, in addition to having access to all of our deposits with SVB, we continue to have access to the revolving line of credit.
On March 28, 2023, we announced that we are continuing to evaluate the Loan and Security Agreement and relationship with SVB and that we have opened accounts with two additional banks as part of exploring an overall banking diversification strategy as well as additional access to lending facilities.
Non-GAAP Measure – Adjusted EBITDA
In addition to our GAAP results, we present Adjusted EBITDA as a supplemental measure of our performance. However, Adjusted EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Adjusted EBITDA as net income (loss), plus interest expense, other income (expense), foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, income from discontinued operations and gain on sale of discontinued operations. Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Set forth below is a reconciliation of Adjusted EBITDA to net income (loss) for the year ended June 30, 2023 and 2022:
Years Ended June 30,
2023
2022
$ Change
Net income (loss)
$
571,623
$
(1,632,384)
$
2,204,007
Add (deduct):
Other (income) expense
(338,617)
(7,154)
(331,463)
Foreign currency transaction loss (gain)
(121,953)
143,898
(265,851)
Provision for income taxes
5,602
7,622
(2,020)
Depreciation and amortization
52,649
17,651
34,998
Stock-based compensation
1,849,906
1,096,384
753,522
Adjusted EBITDA
$
2,019,210
$
(373,983)
$
2,393,193
We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation
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decisions and in communications with our board of directors concerning our financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:
● Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
● Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
● Adjusted EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
● although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Recently Issued Accounting Pronouncements
For information about recently issued accounting standards, refer to Note 2 to our Consolidated Financial Statements appearing elsewhere in this report.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Not required.
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