What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-08 compared with 2024-11-12 · 80 added, 91 removed, 124 unchanged (58% of the section changed)

7 unchanged sentences

Specific forward-looking statements in this Quarterly Report on Form 10-Q include statements regarding:

• our belief that Evolve and Evolve Mouse are considered a minimum risk pesticides under the United States Environmental Protection Agency’s (the “EPA’s”) Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), Section 25(b);

• our expectation that we will continue to incur significant expenses and operating losses for the foreseeable future;

• our expectation that cash and cash equivalents at September 30, 2024, in combination with anticipated revenue and any additional sales of our equity securities, will be sufficient to fund our current operations for at least the next four months;

• our expectation that significant expenses and operating losses will continue for the near future;

• our belief that if we encounter continued issues or delays in the commercialization of fertility control products, our expected future losses could have an adverse effect on our financial condition and negatively impact our ability to fund continued operations, obtain additional financing in the future and continue as a growing concern;

• our expectation that if we are unable to generate additional funds in the future through additional financings, sales of our products, licensing fees, royalty payments or from other sources or transactions, we will exhaust our resources and will be unable to continue operations;

• our expectation that significant operating losses will continue for the near future;

• our ability to successfully commercialize our fertility control products and obtain and maintain regulatory approval for our products and product candidates;

• our ability to gain market acceptance, commercial viability and profitability of fertility control products and other products;

• our ability to market our products and establish an effective sales force and marketing infrastructure to generate sufficient revenue;

• our ability to retain and attract key personnel to develop, operate and grow our business;

• our ability to meet our working capital needs;

• our expectation that cash and cash equivalents will be sufficient to fund our current operations for at least the next four months;

• our belief that the use of our products can lead to sustained reductions of the rat or mice populations;

• our belief that additional financing will be needed before achieving anticipated revenue targets and margin targets;

• our belief that if we are unable to raise necessary capital through the sale of our securities, we may be required to take other measures that could impair our ability to be successful and operate as a going concern;

• our belief that we may require additional capital in order to fund our operating losses and research and development activities before we become profitable and may opportunistically raise capital;

• our belief that we may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise capital through equity or debt financing.

If such equity or debt financing is not available tat adequate levels or on acceptable terms, we may need to delay, limit or terminate commercialization and development efforts or discontinue operations;

• our belief that we will not pay dividends;

• our estimates of the fair value of warrants based on a Black-Scholes model;

• our belief that we have strong defenses against the claims by Liphatech;

• our belief that we may be subject to other legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business;

• our belief that Evolve qualifies for exemption from registration as a minimum risk pesticide under the EPA’s FIFRA, Section 25(b);

• our belief that additional financing will be needed before achieving anticipated revenue targets and margin targets;

• our ability to raise necessary capital through the sale of our securities;

• our ability to achieve profitability or generate positive cash flows;

• our estimates or expectations related to our revenue, cash flow, expenses, capital requirements and need for additional financing;

• our belief that if equity or debt financing is not available at adequate levels or on acceptable terms we may need to delay, limit or terminate commercialization and development efforts or discontinue operations;

• our anticipation that the cost of producing Evolve will continue to be lower that ContraPest based on the current costs of raw materials;

• our expectation that our expenses will continue or increase in connection with our ongoing activities, particularly as we focus on marketing and sales of fertility control products;

• our belief that the use of warrant inducements and the ATM Facility are the appropriate capital market structures of those available to us to balance the need for capital while minimizing stockholder dilution;

• our expectation that we will continue to incur costs associated with operating as a public company;

• our expectation that we will incur substantial and increased expenses;

• our ability to maximize market acceptance for, and generate sales of, our products, including by conducting field demonstrations for potential lead customers;

• our ability to explore into strategic partnerships to enable us to penetrate additional target markets and geographical locations;

• our ability to manage the infrastructure for sales, marketing and distribution of fertility control products and any other product candidates for which we may receive regulatory approval;

• our ability to further develop our product offerings and manufacturing processes to contain costs while being able to scale to meet future demand of fertility control products and any other product candidates for which we receive regulatory approval;

• our ability to continue product development of fertility control products and advance our research and development activities and, as our operating budget permits, advance the research and development programs for other product candidates;

• our ability to maintain and protect our intellectual property portfolio;

• our ability to add operational, financial and management information systems and personnel, including personnel to support our product development and commercialization efforts and operations as a public company;

• our successful commercialization of fertility control products in the United States and internationally;

• our ability to maintain and obtain regulatory approval of our product and product candidates;

• our ability to retain and attract key personnel to develop, operate, and grow our business;

• our ability to meet our working capital needs.

• our belief that we will need additional financing to fund our continuing and additional expenses.

These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and situations that are difficult to predict and that may cause our own, or our industry’s, actual results to be materially different from the future results that are expressed or implied by these statements.

Accordingly, actual results may differ materially from those anticipated or expressed in such statements as a result of a variety of factors, including those discussed in Item 1A-“Risk Factors” of Part I of our Annual Report on Form 10-K, for the year ended December 31, 2023, filed with the SEC on February 21, 2024, and those contained from time to time in our other filings with the SEC.

Accordingly, actual results may differ materially from those anticipated or expressed in such statements as a result of a variety of factors, including those discussed in Item 1A-“Risk Factors” of Part I of our Annual Report on Form 10-K, for the year ended December 31, 2024, filed with the SEC on March 13, 2025, and those contained from time to time in our other filings with the SEC.

A number of factors could cause our actual results to differ materially from those indicated by the forward-looking statements.

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• our financial performance, including our ability to fund operations;

• our ability to maintain compliance with Nasdaq’s continued listing requirements;

• our ability to maintain compliance with Nasdaq Capital Market’s continued listing requirements;

• regulatory approval and regulation of our products;

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We have also generated limited revenue from research grants and licensing fees received under former license agreements.

Through September 30, 2024, we received net proceeds of $103.8 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $1.7 million from licensing fees and an aggregate of $5.0 million in net product sales.

As of September 30, 2024, we had an accumulated deficit of $134.8 million and cash and cash equivalents of $2.5 million.

We have incurred significant operating losses every year since our inception, with a net loss of $4.9 million for the nine months ended September 30, 2024, with $1.5 million for the three months ended September 30, 2024.

Through March 31, 2025, we received net proceeds of $105.8 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $6.0 million in net product sales and an aggregate of $1.7 million from licensing fees.

As of March 31, 2025, we had an accumulated deficit of $137.8 million and cash and cash equivalents of $1.7 million.

We have incurred significant operating losses every year since our inception, with a net loss of $1.7 million for the three months ended March 31, 2025.

We expect to continue to incur significant expenses and generate operating losses for at least the next six months.

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and (vi) our ability to meet our working capital needs.

Based upon our current operating plan, we expect that cash and cash equivalents at September 30, 2024, in combination with anticipated revenue and any additional sales of our equity securities, will be sufficient to fund our current operations for at least the next four months.

Based upon our current operating plan, we expect that cash and cash equivalents at March 31, 2025, in combination with anticipated revenue and any additional sales of our equity securities, will be sufficient to fund our current operations for at least the next four months.

While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of fertility control products in the United States and internationally, additional financing will be needed before achieving anticipated revenue targets and margin targets.

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The following table summarizes our results of operations for the periods presented (in thousands):

Three Months Ended September 30, % Increase (Decrease) Nine Months Ended September 30, % Increase (Decrease)

2024 2023 2024 2023

Three Months Ended March 31, % Increase (Decrease)

Revenues, net $ 485 $ 415 17 %

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Loss from operations (1,663) (1,843) (10) %

Other income, net 34 4 750 % 63 19 232 %

Other income (expense), net (2) 11 (118) %

Net loss $ (1,665) $ (1,832) (9) %

Sales, net of sales discounts and promotions, were $482,000 for the third quarter of 2024, compared to $360,000 for the third quarter of 2023.

The $122,000 increase was driven by the launch of our latest Evolve product offerings, partially offset by a decrease in the number of units sold of our existing ContraPest product offerings.

Launched in January 2024, and expanded during 2024 with variations in product offerings, Evolve is a soft bait containing the active ingredient cottonseed oil and represented approximately 68%, or $330,000, of revenues for the third quarter of 2024.

Partially offsetting this increase, was a decline in revenue related to our ContraPest product offerings in the third quarter of 2024 when compared with the third quarter of 2023.

Limited erosion of demand for ContraPest products is expected as Evolve products are accepted in the marketplace.

For the nine months ended September 30, 2024, sales were $1,356,000, compared to $898,000 for the nine months ended September 30, 2023.

The $458,000 increase was driven by our latest Evolve product offerings through 2024, which represented approximately 63%, or $849,000, of revenues for the nine months ended September 30, 2024.

This increase was offset by a decrease related to a lower number of units sold of our existing ContraPest product offering the Elevate Bait System in the nine months ended September 30, 2024 when compared with the nine months ended September 30, 2023.

Three Months Ended March 31, % Increase (Decrease)

$ 303 62 % $ 250 60 % 21 %

81 17 % — — % 100 %

101 21 % 165 40 % (39) %

Revenues , net

$ 485 100 % $ 415 100 % 17 %

Sales, net of sales discounts and promotions, were $485,000 for the first quarter of 2025, compared to $415,000 for the first quarter of 2024.

The $70,000 increase was driven by the launch of our Evolve product offerings, Evolve Rat and Evolve Mouse, partially offset by a decrease in the number of units sold of our existing ContraPest product offerings.

Launched in January 2024, and expanded during 2024 with variations in product offerings, Evolve is a soft bait containing the active ingredient cottonseed oil and represented approximately 79%, or $384,000, of revenues for the first quarter of 2025, compared with 60%, or $250,000, of revenues for the first quarter of 2024.

Partially offsetting this increase, was a decline in revenue related to our ContraPest product offerings in the first quarter of 2025 when compared with the first quarter of 2024.

Continued erosion of demand for ContraPest products is expected as Evolve products are accepted in the marketplace.

Cost of Sales

Cost of sales consists of costs related to products sold, including scrap and reserves for obsolescence, as well as shipping costs when charged to the customer.

Cost of sales was $167,000, or 34.6% of net sales, for the third quarter of 2024, compared to $184,000, or 51.2% of net sales, for the third quarter of 2023.

The lower cost of net sales is largely due to a shift in the mix of products sold, and declined largely driven by our latest product offering, Evolve, which launched in January 2024.

Shipping costs, which impacts gross profit margin, was 13% and 12% of cost of sales in the third quarter of 2024 and 2023, respectively.

For the nine months ended September 30, 2024, cost of sales was $657,000, or 48.5% of net sales, compared to $488,000, or 54.4% of net sales, for the nine months ended September 30, 2023.

Cost of sales in 2024 was impacted during the first few months of 2024 from the higher cost of a key ingredient for our new Evolve product as we transitioned from development-stage raw materials pricing to production-level raw materials pricing.

Cost of sales in 2023 was impacted by the scrapping of defective trays no longer used in our products in the first quarter of 2023.

Gross profit for the third quarter of 2024 was $315,000, for a gross profit margin of 65.4%, compared to a gross profit of $176,000, or a gross profit margin of 48.8%, for the third quarter of 2023.

Higher gross profit margin was driven by a shift

in the mix of products sold, and increased due to our latest product offering Evolve, which launched in January 2024.

This increase was partially offset by lower gross profit margin related to a shift in the mix of sales through our sales channels, with higher sales to distributors in the third quarter of 2024 when compared with the third quarter of 2023.

For the nine months ended September 30, 2024, gross profit was $699,000, for a gross profit margin of 51.5%, compared to $410,000, gross profit margin of 45.6%, for the nine months ended September 30, 2023.

The gross profit margin in 2024 was impacted by both the higher-than-expected cost of a key ingredient in our new Evolve product during the first quarter, combined with an increased proportion of our sales coming from distributors, who are offered a lower price due to the quantities purchased.

The gross profit margin in 2023 was impacted by the higher cost of sales related to the scrapping of defective tanks no longer used in our products.

Cost of sales was $172,000, or 35.5% of net sales, for the first quarter of 2025, compared to $280,000, or 67.5% of net sales, for the first quarter of 2024.

The lower cost of net sales is largely due to a shift in the mix of products sold, and declined largely driven by our latest product line, Evolve, having a lower cost of sales relative to ContraPest.

Cost of sales in the first quarter of 2024 was impacted by the higher cost of a key ingredient in Evolve, as we transitioned from development-stage raw material pricing to production-level raw material pricing.

We anticipate the cost of producing Evolve will continue to be lower than ContraPest based on the current costs of raw materials.

Gross profit for the first quarter of 2025 was $313,000, for a gross profit margin of 64.5%, compared to a gross profit of $135,000, or a gross profit margin of 32.5%, for the first quarter of 2024.

Higher gross profit margin was driven by a shift in the mix of products sold, and increased due to our latest product line, Evolve, which launched in January 2024.

increase was partially offset by lower gross profit margin related to a shift in the mix of sales through our sales channels, with higher sales to distributors in the first quarter of 2025 when compared with the first quarter of 2024.

Research and Development Expenses

Research and development expenses consisted of the following (in thousands):

Three Months Ended September 30, Increase

(Decrease) Nine Months Ended September 30, Increase

2024 2023 2024 2023

Three Months Ended March 31, Increase

Personnel (including stock-based compensation) $ 253 $ 212 $ 41

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Total $ 418 $ 370 $ 48

Research and development expenses were $451,000 for the third quarter of 2024, compared to $379,000 for the third quarter of 2023.

The $72,000 increase was primarily due to the realignment of the focus of our field development personnel to research and development activities, lower overhead allocation, and increased costs related to the expansion of facilities and supplies and maintenance related to research and development efforts.

These increases were partially offset by lower consulting and legal fees required for research and development purposes, combined with lower expenses overall related to field and product improvement studies in the third quarter of 2024 when compared with the third quarter of 2023.

For the nine months ended September 30, 2024, research and development expenses were $1,288,000, compared to $1,147,000 for the nine months ended September 30, 2023.

The $141,000 increase was primarily due to the realignment of the focus of our field development personnel to research and development activities, lower overhead allocation, and increased costs related to the expansion of facilities and supplies and maintenance related to research and development efforts.

Research and development expenses were $418,000 for the first quarter of 2025, compared to $370,000 for the first quarter of 2024.

The $48,000 increase was primarily due to the realignment of the focus of our field development personnel to research and development activities, lower overhead allocation, and increased costs related to the expansion of facilities.

These increases were partially offset by lower expenses overall related to field and product improvement studies as well as supplies and maintenance in the first quarter of 2025 when compared with the first quarter of 2024.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consisted of the following (in thousands):

Three Months Ended September 30, Increase

(Decrease) Nine Months Ended September 30, Increase

2024 2023 2024 2023

Three Months Ended March 31, Increase

Personnel (including stock-based compensation) $ 712 $ 862 $ (150)

Professional fees 423 314 109

Franchise fees 89 47 42

Marketing 64 73 (9)

Travel and entertainment 62 59 3

Licensed software 51 69 (18)

Insurance 50 61 (11)

Travel and entertainment 64 53 11 179 180 (1)

Facilities 39 39 — 119 116 3

Other 107 123 (16)

Total $ 1,558 $ 1,608 $ (50)

Selling, general and administrative expenses were $1.4 million for the third quarter of 2024, as compared to $1.7 million for the third quarter of 2023.

The decrease of $337,000 was primarily due to lower personnel-related expenses resulting from both lower headcount and stock-based compensation, combined with lower professional fees and insurance costs.

Consulting fees related to marketing efforts are lower in the third quarter of 2024 when compared with the third quarter of 2023 due to changes in our overall marketing program, combined with lower legal fees.

Additionally, our insurance cost is lower resulting from both policy and rate changes.

For the nine months ended September 30, 2024, selling, general and administrative expenses were $4.4 million, compared to $5.3 million for the nine months ended September 30, 2023.

The $856,000 decrease was primarily due to lower personnel-related expenses resulting from both lower headcount and stock-based compensation, combined with lower professional fees and insurance costs.

Consulting fees related to marketing efforts are lower for the nine months ended September 30, 2024 when compared with the nine months ended September 30, 2023 due to changes in our overall marketing program, combined with lower legal fees.

Additionally, our insurance cost is lower resulting from both policy and rate changes.

In the second quarter of 2023, personnel costs includes severance costs of $119,000 related to the termination of our former Chief Revenue Officer.

Selling, general and administrative expenses were approximately $1.6 million for both the first quarter of 2025 and 2024.

The decrease of $50,000 in the first quarter of 2025 was driven by lower personnel-related expenses resulting from lower headcount, which was partially offset by severance costs related to the termination of certain employees in the first quarter of 2025.

In addition, licensed software and insurance costs were lower in in the first quarter of 2025 when compared with the first quarter of 2024.

These decreases were partially offset by increased consulting fees as we added a social media program to our investor relations activities in the first quarter of 2025 to expand our reach to new investor bases, combined with higher board compensation resulting from changes in the compensation structure.

Other Income, Net

Other income, net for the third quarter of 2024 consisted of miscellaneous income of $29,000 and interest income of $11,000, partially offset by interest expense of $6,000.

Other income consisted of interest income of $4,000 for the third quarter of 2023.

During the third quarter of 2024, we realized a gain of $28,000 on the sale of equipment, which is included in miscellaneous income.

Interest income was higher due to a higher average balance of cash and cash equivalents, partially offset by declining interest rates during the third quarter of 2024 when compared with the third quarter of 2023.

Interest expense in the third quarter of 2024 relates to the notes payable entered into beginning in late 2023 for the purchase of certain equipment.

For the nine months ended September 30, 2024, other income, net, consisted of interest income of $48,000 and miscellaneous income of $30,000, partially offset by interest expense of $15,000, compared with the nine months ended September 30, 2023, which consisted of interest income of $19,000.

The higher interest income was due to a higher average balance of cash and cash equivalents, partially offset by declining interest rates for the nine months ended September 30, 2024 when compared to the nine months ended September 30, 2023.

For the nine months ended September 30, 2024, miscellaneous income largely consisted of a gain realized on the sale of equipment, while interest expense relates to the notes payable entered into beginning in late 2023 for purchases of certain equipment.

Other expense, net for the first quarter of 2025 consisted of interest expense of $5,000, partially offset by interest income of $3,000, while in the first quarter of 2024, other income, net consisted of interest income of $15,000, partially offset by interest expense of $4,000.

Interest income was lower due to a lower average balance of cash and cash equivalents combined with declining interest rates during the first quarter of 2025 when compared with the first quarter of 2024.

Liquidity and Capital Resources

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We have primarily funded our operations to date through the sale of equity securities, including convertible preferred stock, common stock and warrants to purchase common stock and debt financing, consisting primarily of convertible notes.

Through September 30, 2024, we have received net proceeds of $103.8 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $5.0 million in net product sales and an aggregate of $1.7 million from licensing fees.

As of September 30, 2024, we had an accumulated deficit of $134.8 million and cash and cash equivalents of $2.5 million.

Through March 31, 2025, we have received net proceeds of $105.8 million from our sales of common stock, preferred stock and warrant exercises and issuance of convertible and other promissory notes, an aggregate of $6.0 million in net product sales and an aggregate of $1.7 million from licensing fees.

As of March 31, 2025, we had an accumulated deficit of $137.8 million and cash and cash equivalents of $1.7 million.

Our ultimate success depends upon the outcome of a combination of factors, including the following:

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and (vi) our ability to meet our working capital needs.

We have evaluated and will continue to evaluate our operating expenses and will concentrate our resources toward the successful commercialization of our fertility control products in the United States and internationally.

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The following table summarizes our sources and uses of cash for each of the periods presented (in thousands):

Nine Months Ended September 30,

Three Months Ended March 31,

Cash and cash equivalents, beginning of period $ 1,307 $ 5,395

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Financing activities 1,941 (2)

Decrease in cash and cash equivalents (2,877) (2,630)

Increase (decrease) in cash and cash equivalents 348 (1,833)

Cash and cash equivalents, end of period $ 1,655 $ 3,562

Cash Flows from Operating Activities— Cash flows from operating activities are generally determined by the amount and timing of cash received from customers and payments made to vendors, as well as the nature and amount of non-cash items, including depreciation and amortization and stock-based compensation included in operating results during a given period.

During the nine months ended September 30, 2024, operating activities used $4.8 million of cash, resulting from our net loss of $4.9 million and net changes in our operating assets and liabilities of $221,000, partially offset by net non-cash charges of $335,000, consisting primarily of stock-based compensation and depreciation and amortization expense.

During the three months ended March 31, 2025, operating activities used $1.6 million of cash, resulting from our net loss of $1.7 million and net changes in our operating assets and liabilities of $22,000, partially offset by net non-cash charges of $130,000, consisting primarily of stock-based compensation and depreciation and amortization expense.

Our net loss was driven by costs related to our selling, general and administrative activities resulting from our continued efforts to commercialize our products, combined with research and development costs related to our continued efforts on formulations of new products and improvements to existing products.

Net cash used by changes in our operating assets and liabilities consisted primarily of increases in accounts receivable of $121,000, inventory of $85,000, prepaid expenses of $28,000, and deposits of $41,000, combined with a net decrease in accounts payable and accrued expenses of $4,000.

During the nine months ended September 30, 2023, operating activities used $5.5 million of cash, resulting from our net loss of $6.0 million, partially offset by net changes in our operating assets and liabilities of $137,000 and by non-cash charges of $567,000, consisting primarily of stock-based compensation and depreciation and amortization expense.

Net cash used by changes in our operating assets and liabilities consisted of an increase in accounts receivable of $163,000 and a net decrease in accounts payable and accrued expenses of $19,000, partially offset by decreases in prepaid expenses of $119,000 and inventory of $41,000.

During the three months ended March 31, 2024, operating activities used $1.8 million of cash, resulting from our net loss of $1.8 million, partially offset by net changes in our operating assets and liabilities of $119,000 and by non-cash charges of $122,000, consisting primarily of stock-based compensation and depreciation and amortization expense.

Our net loss was driven by costs related to our selling, general and administrative activities resulting from our efforts to commercialize our products, combined with costs related to our research and development efforts.

Net cash used by changes in our operating assets and liabilities consisted of a net decrease in accounts payable and accrued expenses of $282,000 and deferred revenue of $29,000, partially offset by decreases in inventory of $150,000, and accounts receivable of $34,000.

Net cash used by changes in our operating assets and liabilities consisted of increases in inventory of $79,000, and accounts receivable of $66,000, partially offset by a decrease in prepaid expenses of $42,000.

Cash Flows from Investing Activities— Cash flows used in investing activities primarily consist of the purchase of property and equipment, offset by any proceeds received in connection with sales of property and equipment.

During the nine months ended September 30, 2024 and 2023, cash flows used in investing activities consisted of property and equipment

Additionally, during the nine months ended September 30, 2024, net cash used in investing activities was partially offset by proceeds received from the sale of equipment in the amount of $28,000.

During the three months ended March 31, 2025 and 2024, cash flows used in investing activities consisted of property and equipment

purchases and was higher in 2025 as we prepare to move into our new manufacturing facility with increased production capacity.

Cash Flows from Financing Activities— Financing activities provide cash for both day-to-day operations and capital requirements as needed.

During the nine months ended September 30, 2024, net cash provided by financing activities consisted of net proceeds received from the exercise of warrants of $2.0 million and proceeds received from notes payable of $25,000, partially offset by repayments on notes payable of $29,000.

During the nine months ended September 30, 2023, net cash provided by financing activities consisted of net proceeds of $3.0 million from the issuance of common stock and proceeds received from notes payable of $44,000, slightly offset by the payment of employee withholding taxes related to share-based awards of $11,000.

During the three months ended March 31, 2025, net cash provided by financing activities consisted of net proceeds received from the issuance of common stock under our ATM Facility of $1.1 million and from the exercise of warrants of $889,000, partially offset by repayments on notes payable of $14,000.

During the three months ended March 31, 2024, net cash used in financing activities consisted of the repayment of notes payable of $8,000, partially offset by net proceeds received from the exercise of warrants of $6,000.

We believe that the use of warrant inducements and the ATM Facility are the appropriate capital market structures of those available to us to balance the need for capital while minimizing stockholder dilution.

Critical Accounting Policies and Estimates

There have been no material changes to our critical accounting policies and estimates as previously disclosed in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024.

Quantitative and Qualitative Disclosures about Market Risk

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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-Q

Item 2. Management’s Discussion and Analysis