What changed in this filing

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Item 1. Business

2023-03-31 compared with 2022-03-31 · 125 added, 169 removed, 74 unchanged (80% of the section changed)

The following discussion, as well as other portions of this Form 10-K contains forward-looking statements that reflect

our plans, estimates and beliefs.

Any such forward-looking statements (including, but not limited to, statements to the effect that Tandy Leather Factory, Inc.

(“TLFA”) or its management “anticipates,” “plans,” “estimates,” “expects,”

“believes,” “intends,” and other similar expressions) that are not statements of historical fact should be considered forward-looking statements and should be read in conjunction with our Consolidated Financial Statements and related notes

contained elsewhere in this report.

These forward-looking statements are made based upon management ’ s current plans, expectations, estimates, assumptions and

beliefs concerning future events impacting us and should be read carefully because they involve risks and uncertainties.

We assume no obligation to update or otherwise revise these forward-looking statements, except as required by law.

Specific examples of forward-looking statements include, but are not limited to, statements regarding our forecasts of financial performance, share repurchases, store openings or store closings, capital expenditures and working capital

requirements.

The following discussion, as well as other portions of this Form 10-K, contains forward-looking statements that reflect our plans, estimates and beliefs.

Any such forward-looking statements

(including, but not limited to, statements to the effect that Tandy Leather Factory, Inc.

(“TLF”) or its management “anticipates,” “plans,” “estimates,” “expects,” “believes,” “intends,” and other similar expressions) that are not statements of

historical fact should be considered forward-looking statements and should be read in conjunction with our Consolidated Financial Statements and related notes contained elsewhere in this report.

These forward-looking statements are made based

upon management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and should be read carefully because they involve risks and uncertainties.

We assume no obligation to update or otherwise

revise these forward-looking statements, except as required by law.

Specific examples of forward-looking statements include, but are not limited to, statements regarding our forecasts of financial performance, share repurchases, store openings

or store closings, capital expenditures and working capital requirements.

Our actual results could materially differ from those discussed in such forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere

in this Form 10-K and particularly in “Item 1A.

Factors that could cause or contribute to such differences include,

but are not limited to, those discussed below and elsewhere in this Form 10-K and particularly in “Item 1A.

Risk Factors” and “Item 7.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations.” Unless the context otherwise indicates,

references in this Form 10-K to “TLFA,” “we,” “our,” “us,” the “Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Unless the context

otherwise indicates, references in this Form 10-K to “TLF,” “we,” “our,” “us,” the “Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries.

Tandy Leather Factory, Inc.

(“TLFA,” “we,” “our,” “us,” the” Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries) is one of

the world’s largest specialty retailers of leather and leathercraft-related items.

Founded in 1919 in Fort Worth, Texas, the Company introduced leathercrafting to millions of American and later Canadian and other international customers and has

built a track record as the trusted source of quality leather, tools, hardware, supplies, kits and teaching materials for leatherworkers everywhere.

Today, our mission remains to build on our legacy of inspiring the timeless art and trade of

leatherworking.

What differentiates Tandy from the competition is our high brand awareness and strong brand equity and loyalty, our network of retail stores that provides convenience, a high-touch customer service experience, and a

hub for the local leathercrafting community, and our 100-year heritage.

(“TLF,” “we,” “our,” “us,” the” Company,” “Tandy,” or “Tandy Leather” mean Tandy Leather Factory, Inc., together with its subsidiaries) is one of the world’s largest specialty retailers

of leather and leathercraft-related items.

Founded in 1919 in Fort Worth, Texas, the Company introduced leathercrafting to millions of American and later Canadian and other international customers and has built a track record as the trusted

source of quality leather, tools, hardware, supplies, kits and teaching materials for leatherworkers everywhere.

Today, our mission remains to build on our legacy of inspiring the timeless art and trade of leatherworking.

a hub for the local leathercrafting community, and our 100-year heritage.

We believe that this combination of qualities is unique to Tandy and gives the brand competitive advantages that are difficult for others to replicate.

We sell our products primarily through company-owned stores and through orders generated from our four websites:

tandyleather.com, tandyleather.ca, tandyleather.eu and tandyleather.com.au.

We sell our products primarily through company-owned stores and through orders generated from our global websites, and through direct account representatives in our commercial division.

We also manufacture leather

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We also offer production services to our business customers such as cutting (“clicking”), splitting, and some assembly.

We maintain our

principal offices at 1900 Southeast Loop 820, Fort Worth, Texas 76140.

The Company’s common shares currently trade on the OTC Pink Market operated by OTC Markets Group under the symbol “TLFA.”

our principal offices at 1900 Southeast Loop 820, Fort Worth, Texas 76140.

The Company’s common shares currently trade on the Nasdaq Capital Market under the symbol “TLF.”

The Company currently operates a total of 103 retail stores.

There are 95 stores in the U.S., ten stores in Canada and one store in Spain.

There are 92 stores in the United States (“U.S.”), ten stores in Canada and one store in Spain.

All Tandy locations, other than our corporate headquarters (which includes our flagship store, corporate offices, distribution center, and manufacturing facility) are leased.

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Our stores have been, and continue to be, our competitive advantage:

where our consumers learn the craft in classes, open table, and from

the expertise of our store staff, where they can touch, feel and test the product, and where they can connect and commune with others passionate about leather.

Our website provides inspiration, detailed product descriptions and specifications,

educational information and videos, and a convenient place to also purchase product – especially for those who are far from our retail stores, including a growing international customer base.

For many of our retail and web customers,

leatherworking evolves from a passion to a trade.

where our consumers learn the craft in classes, open table, and

from the expertise of our store staff, where they can touch, feel, and test the product, and where they can connect and commune with others passionate about leather.

Our websites provide inspiration, detailed product descriptions and

specifications, educational information and videos, and a convenient place to also purchase product – especially for those who are far from our retail stores, including a growing international customer base.

For many of our retail and web

customers, leatherworking evolves from a passion to a trade.

Our commercial division is tailored to the needs of those customers who build businesses around leather.

With dedicated direct account representatives, a direct-from-our-warehouse shipping model,

bulk and volume-based competitive pricing, customized product development, and production and pre-production services, we are building long-term, strategic relationships with our largest customers.

Our focus over the last three years has been on three broad strategic initiative areas:

Improving our brand proposition, with both Retail and Commercial customers

Rebuilding our foundation – the talent, processes, tools and systems needed to serve these customers

Position us for long-term growth – creating the vision and roadmap for the future

Despite the unforeseen obstacles of the financial restatement and the COVID-19 pandemic, we have made significant progress against these initiatives.

Some key accomplishments include:

Significantly improving the product quality, breadth of assortment and value

Reinventing the pricing architecture/strategy to simplify it, provide great everyday value and also the excitement of sale

Improving the quality, clarity and efficiency of the marketing collateral and mix

Relaunching and dramatically improving the website;

centralizing web fulfillment

Significantly improving the Retail organization and skills:

new team, training, career paths, incentives

Launching the Commercial Division:

a completely new business model tailored to the needs of the largest customers

Recruiting, developing and retaining the right team for the work ahead;

creating a collaborative, performance-based culture

Building people management infrastructure:

performance evaluations, benefits, communications, recognition, incentives, training

Replacing and significantly upgrading general ledger, warehouse management and point-of-sale systems

Developing a robust counter-sourcing program for product and supplies

Reorganizing and improving factory and warehouse capabilities

Creating a roadmap for future growth

COVID-19 and Outlook

The onset of the COVID-19 pandemic in March 2020 temporarily shifted our strategic focus to company survival and cash preservation.

We began closing stores on March 18, 2020, and

by April 2, 2020, we temporarily closed all stores to the public.

While we pivoted to serve customers only online, the Company experienced significant decreases in demand for its products in the second and third quarters of 2020,

negatively impacting net sales.

In response, w e took immediate action to mitigate the impact of temporary store closures on our cash flows by:

(i) furloughing 406 Tandy employees, comprising two-thirds of the

Tandy work force, (ii) temporarily cutting corporate salaries, with deeper cuts for the Executive Leadership Team, (iii) negotiating abatements, deferrals and other favorable lease terms with landlords, and (iv) negotiating longer payment terms

with our key product vendors.

Due to our size, we were not eligible for the Paycheck Protection Program administered through the Small Business

Administration.

Also, due to our not being current on financial filings with the SEC, we were not able to obtain loans under the Coronavirus Aid, Relief, and Economic Security Act, also known

as the CARES Act.

However, under the CARES Act we were eligible to participate in the payroll tax deferral program, and we deferred $0.6 million in payroll tax with $0.3 million to be paid by December 31, 2021, and the remaining $0.3 million to

be paid by December 31, 2022.

During the second quarter of 2020, the Company borrowed $0.4 million through the Spanish government’s Institute of Official Credit Guarantee for Small and Medium-sized Enterprises, a COVID-19 relief program.

Canada, we participated in the Canada Emergency Commercial Rent Assistance (“CECRA”) program for rent relief, receiving total rent abatements under the program of $0.05 million.

Nine stores were permanently closed during 2020 as leases expired or early terminations were negotiated, including at locations where we believe we can retain a majority of customers through geographically proximate

stores and/or our enhanced website platform.

After these permanent closures, Tandy operates 106 stores, including ten in Canada and one in Spain.

On May 22, 2020, our Fort Worth flagship store reopened to the public, the beginning of a phased approach to

reopening our stores with limited hours, new protocols for sanitizing, social distancing, wearing masks and taking daily temperatures of employees.

During the third quarter of 2020, all 106

of Tandy’s stores had reopened to the public .

Since then, various spikes in local infection rates have forced us to sporadically move stores to short-term “curbside only” operations or closures due to

local conditions or staffing issues.

We expect that at least some further infections and temporary store shutdowns will continue for the foreseeable future.

While we previously fulfilled our web orders out of our retail stores, during the second quarter of 2020, we built a centralized web fulfillment capability in our Fort Worth distribution center

and have been and expect to continue to fulfill web orders primarily through Fort Worth going forward.

Both our e-commerce business and stores have seen strong sales performance, but the future remains uncertain, and more store closures and/or

other ongoing effects of the pandemic on the economy or employment market could cause a material negative impact on future sales.

With dedicated direct account representatives, a direct-from-our-warehouse

shipping model, bulk and volume-based competitive pricing, customized product development, and production and pre-production services, we are building long-term, strategic relationships with our largest customers.

In 2019, with the arrival of a new management team, we began the process of assessing and reinvigorating the business.

We focused in three broad strategic initiative areas:

1) improving our brand proposition, 2)

rebuilding our foundation:

the talent, processes, tools and systems needed to modernize and efficiently operate the business, and 3) creating a vision and road map for long-term growth.

We had significant achievements in all of these areas

including significantly improving the product quality, breadth of assortment and value, dramatically improving the website and web operations, rebuilding the team, people policies and culture, and replacing all of the key systems, among many

other accomplishments.

We made this steady progress to transform and reinvigorate our business even in the face of two very significant obstacles.

In 2019, as part of the assessment of the business, we discovered errors in accounting

that required a restatement of our financials.

This work was costly and time-consuming, but we successfully completed the restatement in 2021 along with implementation of new accounting systems, redesign of processes and controls, and a

significant upgrade in the team.

In 2020, while making progress against our transformation and still working through our restatement, we temporarily closed all of our retail stores as a result of the COVID-19 pandemic.

With COVID-19-related impacts and the restatement behind us and with many of our initiatives taking hold, we are now focused on improving our financial

sustainability and profitability.

In the short term, we are managing operating expenses and gross margin to deliver cash from operations and operating income even in the face of possible continued economic headwinds.

We will also continue to

selectively invest in profitable sales growth where it makes sense, but rebuilding a durable, profitable business model is the highest priority.

COVID-19 and Economic Conditions

At the time of filing this Form 10-K, the American and world economies continue to be acutely affected by a combination of factors arising from both the COVID-19 pandemic and the war resulting

from the invasion of Ukraine by Russian military forces.

The current impacts of these events include (but are not limited to) levels of inflation that are the highest in the U.S.

in more than 40 years, highly volatile fuel prices, an extremely

tight labor market with rising wages and competition to attract qualified workers, supply chain disruption, rising rent and other occupancy costs and increases in interest rates.

Purchases of non-essential, discretionary products tend to decline

in periods of uncertainty regarding future economic prospects, such as the current one, as disposable income declines.

The Company believes that these events have continued to dampen its sales through December 2022.

The future remains

uncertain, and continued increased labor, freight, product, and other costs as well as weakening customer demand could have a negative impact on the Company’s future financial performance.

Our customers fall into 2 broad categories:

those who shop in retail stores and on our website (“Retail Customers”) and those whom we serve through our commercial division (“Commercial Customers”).

Retail Customers

range from hobbyists to institutions like schools, camps, and other groups to small businesses.

Affinity groups like Military and First Responders and smaller and larger businesses who purchase in our retail stores receive special pricing or

general discounts.

Customers range from hobbyists to institutions (schools, camps, and other groups) to small businesses.

Affinity groups like Military and First Responders and smaller and larger businesses who purchase in our retail stores receive special pricing

or general discounts.

To be served through our commercial division, customers generally need to spend more than $20,000 per year and receive pricing based on their purchasing levels.

We carry a wide assortment of products organized into a number of categories including leather, hand tools, hardware, kits, liquids, machinery and other supplies.

We carry a wide assortment of products organized into a number of categories including leather, hand tools, hardware, kits, liquids, machines, and other supplies.

We operate a manufacturing facility in Fort Worth,

Texas, where we manufacture kits, thread lace, belt strips and straps, and Craftaid ® s, and provide some custom manufacturing processes for commercial and business

Texas, where we manufacture kits, thread lace, belt strips and straps, and Craftaid®s, and provide some custom manufacturing processes for commercial and business customers.

The factory produces approximately 10% of our products.

We distribute product under the Tandy Leather TM , Eco-Flo TM , Craftool TM , CraftoolPro TM and Dr.

Jackson’s TM brands, along with our recently launched TandyPro ® products.

and invest in new products through the ideas and referrals of customers and store personnel as well as the analysis of trends in the market and sales performance at retail.

In addition, we have been focused on broadening our assortment through

strategic partnerships with key brands to drive category growth and better meet the needs of our customers.

We distribute

product under the Tandy LeatherTM, Eco-FloTM, CraftoolTM, CraftoolProTM and Dr.

Jackson’sTM brands, along with our premium TandyPro® line of products.

We develop and invest in new products through the ideas and referrals of customers and store

personnel as well as the analysis of trends in the market and sales performance at retail.

In addition, we have been focused on broadening our assortment through strategic partnerships with key brands to drive category growth and better meet the

needs of our customers.

Information regarding net sales, gross profit, operating income, and total assets is included within Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and within Item 8,

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Our stores offer a broad selection of products combined with leathercraft expertise in a one-stop shop.

Not only can customers purchase leather, related accessories and supplies necessary to complete their projects

from a single source, but many of our store associates are also leathercrafters themselves and can provide suggestions and advice on our customers’ projects.

Customers value the expertise and high level of customer service from our store

associates, the convenience of taking their purchases immediately, as well as the ability to touch, feel and choose their individual pieces of leather, an organic product in which each piece is unique.

Not only can customers purchase leather, related accessories and supplies necessary to complete their

projects from a single source, but many of our store associates are also leathercrafters themselves and can provide suggestions and advice on our customers’ projects.

Customers value the expertise and high level of customer service from our

store associates, the convenience of taking their purchases immediately, as well as the ability to touch, feel and choose their individual pieces of leather, an organic product in which each piece is unique.

We also offer open workbenches where

customers can work on projects, take classes, commune with the leathercrafting community, and test new tools and techniques.

Most of our stores range in size from 1,300 square feet to 9,000 square feet, with the average at approximately 3,500 square feet, and our Fort Worth flagship store is approximately 22,000 square feet.

Most of our stores range in size from 1,300 square feet to 9,000 square feet, with the average at approximately 3,500 square feet.

Our Fort Worth flagship store is approximately 22,000 square feet.

located in light industrial warehouse spaces or older strip shopping centers in proximity to major freeways or well-known crossroads.

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22-24% of annual sales each quarter.

Our stores receive the majority of their inventory from our central distribution center located in Fort Worth, Texas, in weekly or, increasingly, bi-monthly shipments, using third party logistics providers.

Occasionally, merchandise is shipped to stores directly from the vendor.

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and many of our international web orders from our Fort Worth distribution center.

Canada web orders are fulfilled out of our 10 Canada stores,

and European web orders are fulfilled out of our Spain store.

Canada web orders are fulfilled out of our 10 Canada

stores, and European web orders are fulfilled out of our Spain store.

We have a global customer service team that handles web order inquiries and phone orders.

Our goal is to optimize the tradeoff between the sales and market share we realize from having

a broad product line against the safety stock required to support those items .

Our goal is to optimize the tradeoff between the sales and market share we realize

from having a broad product line against the safety stock required to support those items.

We generally maintain higher inventories of imported or long-lead-time items to ensure a continuous supply.

Our inventory levels have grown as we have increased our

product assortment to improve conversion and retention of customers and to mitigate out-of-stocks, especially during the supply chain disruptions over the last 2 years.

We have also been executing a number of strategic initiatives to test smaller

quantities of new items online, buying into them only when we are certain of their success, tailor product assortments to the needs of local customers in each store, and to ship directly from vendors to customers.

We carry about 6,500

stock-keeping units (SKUs) in our current product line and continue to refine both the line, the lead times and safety stock levels required to meet customer demand, online vs.

in-store assortment, and overall total inventory levels needed to grow

sales and market share.

Our inventory levels have grown as we have

increased our product assortment to improve conversion and retention of customers and to mitigate out-of-stocks, especially during the supply chain disruptions over the last 2 years.

In the face of overall supply chain challenges, we have

opportunistically taken advantage of some vendor offers on key items, accounting for some increase in inventory.

And we have also been executing a number of strategic initiatives to test smaller quantities of new items online, buying into them

only when we are certain of their success, to tailor product assortments to the needs of local customers in each store, and to ship directly from vendors to customers.

We carry about 6,500 stock-keeping units (SKUs) in our current product line

and continue to refine both the line, the lead times and safety stock levels required to meet customer demand, online vs.

in-store assortment, and overall total inventory levels needed to grow sales and market share.

Our competitors are typically smaller, independently-owned brick-and-mortar retailers, internet-based retailers including those selling on platforms like Amazon and eBay, national craft chains like Michaels Stores,

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We purchase merchandise and raw materials from over 130 vendors from the United States and approximately 20 foreign countries.

In general, our 10 largest vendors account for

approximately 60-75% of our inventory purchases.

Because leather is sold internationally, market conditions abroad are likely to affect the price of leather in the United States.

Aside from increasing purchases when we anticipate price increases (or possibly

delaying purchases if we foresee price declines), we do not attempt to hedge our inventory costs.

In general, our 10 largest vendors account for approximately 30% of our inventory

Because leather is sold internationally, market conditions abroad are likely to affect the price of leather in the U.S.

Aside from increasing purchases when we anticipate price increases (or possibly delaying

purchases if we foresee price declines), we do not attempt to hedge our inventory costs.

Our supply chain and vendor relationships remain strong.

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of our existing consumers and attract new ones to the brand.

COVID-19 has had varying impacts on our supply chain, as the course of the disease has impacted countries differently over time.

We continue to see product price increases and longer

lead-times across most product categories due to container and/or raw material scarcity and labor shortages.

We are also beginning to see the impact of higher energy prices on both product and freight costs as well.

We invested heavily in

inventory of key items, especially in leather and hardware, over the last 12 months at 2020 prices.

We believe we will be well-positioned to wait out any short-term price hikes for some months.

The most acute supply chain shocks resulting from the pandemic have mostly moderated, with increases in lead times, product costs and ocean freight costs flattening and even declining

in some areas.

However, trucking costs and reliability remain volatile and tight labor markets continue to pressure costs across all areas.

Compliance with Environmental Laws

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Intellectual Property

The Company owns all of the material trademark rights used in connection with the production, marketing,

distribution and sale of all Tandy-branded products.

In addition, we license a limited number of our trademarks and copyrights used in connection with the production, marketing and distribution of certain categories of goods and limited edition

co-branded projects.

Major trademarks include federal trade name registrations for “Tandy Leather Factory,” “Tandy Leather Company,” and “Tandy.” The

Company is not dependent on any one particular trademark or design patent, although it believes that the “Tandy” and “Tandy Leather” names are important for its business.

In addition, Tandy owns several patents for specific belt

buckles and leather-working equipment.

The Company owns all of the material trademark rights used in connection with the production, marketing, distribution and sale of all Tandy-branded products.

In addition, we license a limited number of our

trademarks and copyrights used in connection with the production, marketing and distribution of certain categories of goods and limited edition co-branded projects.

Major trademarks include federal trade name registrations for “Tandy Leather

Factory,” “Tandy Leather Company,” and “Tandy.” The Company is not dependent on any one particular trademark or design patent, although it believes that the “Tandy” and “Tandy Leather” names are important for its business.

In addition, Tandy

owns several patents for specific belt buckles and leather-working equipment.

Tandy polices its trademarks and trade dress and where appropriate pursues infringers.

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Information regarding our sales from the United States and abroad and our long-lived assets is found in Note 2, Significant Accounting Policies:

Revenue Recognition and Note 3, Balance Sheet Components, of the Notes

to the Consolidated Financial Statements.

Revenue Recognition and

Note 3, Balance Sheet Components , of the Notes to the Consolidated Financial Statements.

For a description of some of the risks attendant to our foreign operations, see Item 1A, Risk Factors .

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These reports include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to these filings.

These reports are available on the Securities and Exchange Commission’s website at www.sec.gov .

These reports are available on

the Securities and Exchange Commission’s website at www.sec.gov.

Our corporate website is located at www.tandyleather.com.

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In addition, certain other corporate governance documents are available on our website through the “Corporate Governance” link.

No information

contained on any of our websites is intended to be included as part of, or incorporated by reference into, this Form 10-K.

No information contained on any of our websites is

intended to be included as part of, or incorporated by reference into, this Form 10-K.

Information about our Executive Officers

The following table sets forth information concerning our executive officers as of December 31, 2022:

Served as Executive

Officer Since

Janet Carr, 60

Executive Since

Chief Executive Officer

Michael Galvan, 53

Chief Financial Officer

Janet Carr has served as our Chief Executive Officer and as a

member of our Board of Directors since October 2018.

Janet Carr has served as our Chief Executive Officer and as a member of our Board of Directors since October 2018.

Prior to her current role, Ms.

Carr served as the Senior Vice-President of Global Business Development for Caleres Inc.

Carr served as the Senior

Vice-President of Global Business Development for Caleres Inc.

(formerly Brown Shoe Company Inc.) from 2016 to 2017.

While there, she

was responsible for international wholesale and retail for all of their brands.

While there, she was responsible for international wholesale and retail for all of their brands.

Prior to Caleres, Ms.

Carr was the President of the Handbag Division of Nine West Group Inc.

from 2013 to 2014, where she was responsible for all aspects of design,

development and sales in both wholesale and retail.

Carr has deep experience in strategy and consumer insights in various roles at a number of prominent retailers, including Tapestry, Inc.

the President of the Handbag Division of Nine West Group Inc.

from 2013 to 2014, where she was responsible for all aspects of design, development and sales in both wholesale and retail.

Carr has deep experience in strategy and consumer

insights in various roles at a number of prominent retailers, including Tapestry, Inc.

(formerly Coach, Inc.), Gap Inc.

Michael Galvan has served as our Chief Financial Officer since

January 2021.

He first joined the Company in May 2020, initially serving as Interim Chief Financial Officer.

Galvan brings over 25 years of finance and accounting experience to the Company, including executive leadership roles serving as

Interim Chief Financial Officer, Chief Accounting Officer and Treasurer for a variety of publicly traded companies, including C&J Energy Services, Inc., Main Street Capital Corporation and Mattress Firm.

Prior to joining the Company, Mr.

Galvan served in various management roles including Senior Vice President, Chief Accounting Officer and Treasurer of NexTier Oilfield Solutions, Inc.

(formerly C&J Energy Services, Inc.), from June 2016 until April 2020, including serving as

Interim Chief Financial Officer from March through September 2018.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business