What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-10 compared with 2022-08-10 · 96 added, 80 removed, 96 unchanged (65% of the section changed)

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Over the course of 2021 based on client feedback, business results and expanded team capabilities our primary focus is now on in-store solutions, resulting in our decision to exit digital solutions in addition to right-sizing our in-store signage portfolio.

With our diversification of business, we recognized over 75% of our revenue from these recently developed solutions in 2021 as well as for the six months ended June 30, 2022.

With our diversification of business, we now recognized over 90% of our revenue from these recently developed solutions in the nine months ended September 30, 2022.

Over the last two years we have significantly reduced operating costs and retailer commitments.

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In 2021 we relocated our headquarters and operations, both to smaller, more efficient leased spaces, and also restructured operations in December 2021.

These changes contributed to reduced expenses in the six months ended June 30, 2022 and are expected to continue to drive savings for the remainder of 2022 compared to 2021.

Subsequent to the end of the quarter, on July 1, 2022, the Company entered into a $20 million settlement agreement with News America.

These changes contributed to reduced expenses in the nine months ended September 30, 2022 and are expected to continue to drive savings for the remainder of 2022 compared to 2021.

On July 1, 2022, the Company entered into a $20 million settlement agreement with News America.

The agreement memorializes the amicable settlement of the Company’s outstanding lawsuit against News America.

The agreement is expected to result in net proceeds before income tax of between $11,500,000 and $12,000,000 for the Company, which will be recorded as pretax income in the quarter ending September 30, 2022.

The agreement resulted in net proceeds before income tax of $12,000,000 for the Company, which was recorded as a net pretax gain from litigation settlement in operations in the three months ended September 30, 2022.

We are also continuing to explore strategic options to maximize shareholder value.

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Summary of Financial Results

For the quarter ended June 30, 2022, the Company generated net sales of $3,254,000, as compared with net sales of $6,096,000 for the quarter ended June 30, 2021.

For the six months ended June 30, 2022, the Company generated net sales of $9,402,000, as compared with net sales of $11,482,000 in the six months ended June 30, 2021.

Net loss for the quarter ended June 30, 2022 was $1,084,000, as compared to a net loss of $894,000 for the quarter ended June 30, 2021.

Net loss for the six months ended June 30, 2022 was $1,022,000, as compared to a net loss of $1,631,000 for the six months ended June 30, 2021.

For the three months ended June 30, 2022 net sales was significantly impacted due to two programs from the three months ended June 30, 2021 that were not repeated in the three months ended June 30, 2022.

That, combined with continued declines in our signage business due to competitive pressures, resulted in $2,080,000 lower net sales for the six months ended June 30, 2022.

For the quarter ended September 30, 2022, the Company generated net sales of $4,869,000, as compared with revenues of $3,493,000 for the quarter ended September 30, 2021.

For the nine months ended September 30, 2022, the Company generated revenues of $14,271,000, as compared with revenues of $14,975,000 in the nine months ended September 30, 2021.

Income before taxes for the quarter ended September 30, 2022 was $11,611,000, which included $12,000,000 from the net gain on litigation settlement, as compared to net loss before taxes of $912,000 for the quarter ended September 30, 2021.

Income before tax for the nine months ended September 30, 2022 was $10,611,000, which included $12,000,000 from the net gain on litigation settlement, as compared to net loss before taxes of $2,520,000 for the nine months ended September 30, 2021.

Revenue from our non-POPS solutions increased significantly for the three months ended September 30, 2022 compared to the three months ended September 30, 2021, partially offset by continued declines in our signage business due to competitive pressures.

For the nine months ended September 30, 2022 net sales have declined $704,000, primarily due to continued declines in our signage business, partially offset by increases in non-POPS solutions revenue.

During the first nine months of 2021, litigation expenses increased significantly compared to prior quarters.

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We also recognized a gain of $1,062,000 on the forgiveness of our Paycheck Protection Program (“PPP”) loan during the first quarter of 2021.

During the six months ended June 30, 2022, cash and cash equivalents and restricted cash decreased by $1,464,000 from $3,851,000 at December 31, 2021, to $2,387,000 at June 30, 2022.

The decrease was primarily driven by the net loss for the six months ended June 30, 2022.

We have no debt other than our lease obligations at June 30, 2022.

Working capital decreased $887,000 from $3,716,000 at December 31, 2021 to $2,829,000 at June 30, 2022.

Primarily as a result of the net proceeds from the Litigation Settlement after the end of the quarter cash and cash equivalents plus restricted cash at July 31, 2022 were $14.9 million.

Income tax benefit for the three and nine months ended September 30, 2022 included a benefit from a reduction in unrecognized tax benefits of $679,000, partially offset by income tax on income before tax.

During the nine months ended September 30, 2022, cash and cash equivalents and restricted cash increased $10,402,000 from $3,851,000 at December 31, 2021, to $14,253,000 at September 30, 2022, due to the proceeds from the litigation settlement.

The Company had no debt other than its lease obligations at September 30, 2022.

Working capital increased $10,284,000 from $3,716,000 at December 31, 2021 to $14,000,000 at September 30, 2022.

Results of Operations

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Three Months Ended

Six Months Ended

Nine Months Ended

Cost of sales

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Total operating expenses

Operating loss

Other income (expense)

Loss before taxes

Income tax expense

Three and Six Months Ended June 30, 2022 Compared to Three and Six Months Ended June 30, 2021

Net sales for the three months ended June 30, 2022 decreased 46.6% to $3,254,000 compared to $6,096,000 for the three months ended June 30, 2021.

Net sales for the six months ended June 30, 2022 decreased 18.1% to $9,402,000 compared to $11,482,000 for the six months ended June 30, 2021.

The decrease was due to lapping two programs from the three months ending June 30, 2021 that were not repeated in the three months ending June 30, 2022.

As a result, our non-POPS revenue decreased 36.9% for the three months ended June 30, 2022, in addition to a 82.5% decrease in POPS solutions revenue for the three months ended June 30, 2022.

For the six months ended June 30, 2022, non-POPS revenue has increased 2.0%.

Gain from litigation settlement, net

Operating income (loss)

Income (loss) before taxes

Income tax expense (benefit)

Net income (loss)

Three and Nine months Ended September 30, 2022 Compared to Three and Nine months Ended September 30, 2021

Net sales for the three months ended September 30, 2022 increased 39.4% to $4,869,000 compared to $3,493,000 for the three months ended September 30, 2021.

Net sales for the nine months ended September 30, 2022 decreased 4.7% to $14,271,000 compared to $14,975,000 for the nine months ended September 30, 2021.

For the three months ended September 30, 2022 non-POPS revenue increased 100.7%, partially offset by a 81.4% decrease in POPS solutions revenue.

For the nine months ended September 30, 2022, non-POPS revenue has increased 22.0%, partially offset by a 82.3% decrease in POPS solutions revenue.

The increase in non-POPS revenue is due to both new client acquisition as well as repeat business from existing clients.

Due to sales cycles within the retailers that our non-POPS solutions execute we anticipate seasonality in sales, with those sales being relatively stronger in the first quarter of the year.

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As a result, our revenue may be prone to variances on a year over year basis.

Competitive pressures, including the expiration in April 2021 of our 10-year selling agreement with News America have resulted in decreased POPS solutions revenue for three and six months ended June 30, 2022 versus the three and six months ended June 30, 2021.

Competitive pressures, including the expiration in April 2021 of our 10-year selling agreement with News America have resulted in decreased POPS solutions revenue for three and nine months ended September 30, 2022 versus the three and nine months ended September 30, 2021.

We expect POPS revenue will continue to decline in 2022 in comparison to 2021 as we have reduced the number of stores in our network.

Gross Profit.

Gross profit for the three months ended June 30, 2022 decreased 65.6% to $416,000 compared to $1,208,000 for the three months ended June 30, 2021.

The decrease in gross profit was primarily due to the decline in net sales.

Gross profit as a percentage of total net sales decreased to 12.8% for the three months ended June 30, 2022 compared to 19.8% for the three months ended June 30, 2021.

The decrease was primarily due to the mix of net sales as our non-POPS solutions typically have lower margins, as well as the impact fixed costs have on the gross profit percentage when sales decline.

Gross profit for the six months ended June 30, 2022 decreased 20.6% to $1,696,000 compared to $2,137,000 for the six months ended June 30, 2021.

Gross profit for the three months ended September 30, 2022 increased 53.8% to $838,000 compared to $545,000 for the three months ended September 30, 2021.

The increase in gross profit was primarily due to the increase in net sales.

Gross profit as a percentage of total net sales increased to 17.2% for the three months ended September 30, 2022 compared to 15.6% for the three months ended September 30, 2021.

The increase was primarily due to the impact fixed costs have on gross profit percentage when sales increase, partially offset by the mix of net sales as our non-POPS solutions typically have lower margins.

Gross profit for the nine months ended September 30, 2022 decreased 5.5% to $2,534,000 compared to $2,682,000 for the nine months ended September 30, 2021.

The decrease in gross profit was primarily due to the decline in net sales.

Gross profit as a percentage of total net sales decreased to 18.0% for the six months ended June 30, 2022 compared to 18.6% for the six months ended June 30, 2021.

The decrease was primarily due to mix of net sales as our non-POPS solutions typically have lower margins due to competitive pressures, as well as the impact fixed costs have on the gross profit percentage when sales decline.

This was partially offset in the six months ended June 30, 2022 by the Company’s decision in the prior year to make an investment in the execution of a large non-POPS program in the six months ended June 30, 2021.

Gross profit as a percentage of total net sales decreased to 17.8% for the nine months ended September 30, 2022 compared to 17.9% for the nine months ended September 30, 2021.

Operating Expenses

Selling expenses for the three months ended June 30, 2022 decreased 37.6% to $290,000 compared to $465,000 for the three months ended June 30, 2021.

Selling expenses for the six months ended June 30, 2022 decreased 35.6% to $632,000 compared to $981,000 for the six months ended June 30, 2021.

Selling expenses for the three months ended September 30, 2022 decreased 30.8% to $294,000 compared to $425,000 for the three months ended September 30, 2021.

Selling expenses for the nine months ended September 30, 2022 decreased 34.1% to $926,000 compared to $1,406,000 for the nine months ended September 30, 2021.

The decreases for both periods were primarily due to decreased staff and staff related expenses.

Selling expenses as a percentage of total net sales increased to 8.9% for the three months ended June 30, 2022 compared to 7.6% for the three months ended June 30, 2021.

The increase was primarily due to decreased sales.

Selling expenses as a percentage of net sales decreased to 6.7% for the six months ended June 30, 2022 compared to 8.5% for the six months ended June 30, 2021.

The decrease was primarily due to decreased staff and staff related expenses, partially offset by decreased sales.

Marketing expenses for the three months ended June 30, 2022 increased 7.3% to $279,000 compared to $260,000 for the three months ended June 30, 2021.

Marketing expense for the six months ended June 30, 2022 increased 8.7% to $538,000 compared to $495,000 for the six months ended June 30, 2021.

The increases for both periods were primarily the result of increased staff related expenses.

Marketing expenses as a percentage of total net sales increased to 8.6% for the three months ended June 30, 2022 compared to 4.3% for the three months ended June 30, 2021.

Marketing expenses as a percentage of net sales increased to 5.7% for the six months ended June 30, 2022 compared to 4.3% for the six months ended June 30, 2021.

The increases for both periods were due to increased staff related expenses, in addition to decreased sales.

Selling expenses as a percentage of total net sales decreased to 6.0% for the three months ended September 30, 2022 compared to 12.2% for the three months ended September 30, 2021.

The decrease was primarily due to decreased staff and staff related expenses, in addition to increased sales.

Selling expenses as a percentage of net sales decreased to 6.5% for the nine months ended September 30, 2022 compared to 9.4% for the nine months ended September 30, 2021.

The decreases were primarily due to decreased staff and staff related expenses, partially offset by decreased sales.

Marketing expenses for the three months ended September 30, 2022 decreased 6.4% to $249,000 compared to $266,000 for the three months ended September 30, 2021.

Marketing expense for the nine months ended September 30, 2022 increased 3.4% to $787,000 compared to $761,000 for the nine months ended September 30, 2021.

Marketing expenses as a percentage of total net sales decreased to 5.1% for the three months ended September 30, 2022 compared to 7.6% for the three months ended September 30, 2021.

The decrease was due to increased sales.

Marketing expenses as a percentage of net sales increased to 5.5% for the nine months ended September 30, 2022 compared to 5.1% for the nine months ended September 30, 2021.

The increase was due to decreased sales.

General and administrative.

General and administrative expenses for the three months ended June 30, 2022 decreased 29.0% to $948,000 compared to $1,336,000 for the three months ended June 30, 2021.

General and administrative expenses for the six months ended June 30, 2022 decreased 52.5% to $1,554,000 compared to $3,273,000 for the six months ended June 30, 2021.

The decreases for both periods were primarily due to higher expenses incurred in the prior year period as a result of the litigation with News America.

Following the Litigation Settlement on July 1, 2022, the Company does not expect to incur further expense related to the legal proceedings with News America.

General and administrative expenses as a percentage of total net sales increased to 29.1% for the three months ended June 30, 2022 compared to 21.9% for the three months ended June 30, 2021 due to decreased sales, partially offset by the factors described above.

General and administrative expenses as a percentage of net sales decreased to 16.5% for the six months ended June 30, 2022 compared to 28.5% for the six months ended June 30, 2021.

The decrease was due to the factors described above, in addition to decreased sales.

Other Income (Expense).

Other income for the three months ended June 30, 2022 was $31,000 compared to other expense of $31,000 for the three months ended June 30, 2021.

Other income for the six months ended June 30, 2022 was $28,000 compared to $1,004,000 for the six months ended June 30, 2021.

General and administrative expenses for the three months ended September 30, 2022 decreased 3.0% to $756,000 compared to $779,000 for the three months ended September 30, 2021.

Increased expenses for the strategic alternatives process were substantially offset by decreased litigation expenses.

General and administrative expenses for the nine months ended September 30, 2022 decreased 43.0% to $2,310,000 compared to $4,052,000 for the nine months ended September 30, 2021.

The decreases for both periods were primarily due to higher expenses incurred in the prior year period as a result of litigation with News America.

Following the litigation settlement on July 1, 2022, the Company does not expect to incur further expenses related to the legal proceedings with News America.

General and administrative expenses as a percentage of total net sales decreased to 15.5% for the three months ended September 30, 2022 compared to 22.3% for the three months ended September 30, 2021.

The decrease was primarily due to increased sales.

General and administrative expenses as a percentage of net sales decreased to 16.2% for the nine months ended September 30, 2022 compared to 27.0% for the nine months ended September 30, 2021.

The decrease was due to the factors described above, partially offset by decreased sales.

Gain from litigation settlement.

On July 1, 2022, the Company entered into a $20,000,000 settlement agreement with News America, with net proceeds after expenses of $12,000,000.

The agreement memorializes the amicable settlement of the Company’s outstanding lawsuit against News America.

Other Income.

Other income for the three months ended September 30, 2022 was $72,000 compared to other income of $13,000 for the three months ended September 30, 2021, primarily due to interest income.

Other income for the nine months ended September 30, 2022 was $100,000 compared to other income of $1,017,000 for the nine months ended September 30, 2021.

The significantly higher income in the prior year period reflects the gain on forgiveness of debt and accrued interest of $1,062,000 from the SBA forgiving the Company’s loan pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act.

Income Taxes.

For the three and six months ended June 30, 2022 the Company recorded income tax expense of $14,000 and $22,000, respectively, or 1.3% and 2.2% of loss before taxes, respectively.

For the three and six months ended June 30, 2021, the Company recorded income tax expense of $10,000 and $23,000, respectively, or 1.1% and 1.4% of loss before taxes, respectively.

The income tax expense for the three and six months ended June 30, 2022 and 2021 comprises federal and state income taxes.

The primary differences between the Company’s June 30, 2022 and 2021 effective tax rates and the statutory federal rate are expenses related to stock-based compensation, nondeductible meals and entertainment, nondeductible penalties and an increase in the Company’s valuation allowance against its deferred tax assets;

and for June 30, 2021, nondeductible penalties and loan forgiveness from the PPP loan.

For the three and nine months ended September 30, 2022, the Company recorded income tax benefit of $190,000 and $168,000, or (1.6)% and (1.6)% of income before taxes, respectively.

For the three and nine months ended September 30, 2021, the Company recorded income tax expense of $9,000 and $32,000, or 1.0% and 1.3% of loss before taxes, respectively.

The income tax expense or benefit for the three and nine months ended September 30, 2022 and 2021 is comprised of federal and state taxes.

The primary differences between the Company’s September 30, 2022 and 2021 effective tax rates and the statutory federal rate are expenses related to stock-based compensation, nondeductible penalties and for 2021 increases in the Company’s valuation allowance against its deferred tax assets and for 2022 decreases in the Company’s valuation allowance against its deferred tax assts and decreases in the Company’s reserve for unrecognized tax benefits.

The Company reassesses its effective tax rate each reporting period and adjusts the annual effective rate if deemed necessary, based on projected annual taxable income (loss).

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Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria.

As a result of the Company’s future outlook, management has reviewed its deferred tax assets and concluded that the uncertainties related to the realization of its deferred tax assets have become unfavorable.

Management has considered positive and negative evidence for the potential utilization of the deferred tax assets and has concluded, as of June 30, 2022, that it is more likely than not that Company will not realize the full amount of its net deferred tax assets.

As of June 30, 2022, and December 31, 2021, the Company had unrecognized tax benefits totaling $730,000 and $711,000, respectively, including interest, which relates to state nexus issues.

In the third quarter of 2022, the Company recognized an income tax benefit of approximately $2,128,000 due to the partial reversal of its valuation allowance on deferred tax assets.

This partial reversal of the valuation allowance is based on the Company’s expected ability to utilize a portion of its federal and state net operating losses carried forward against 2022 federal and state income tax liabilities.

The Company will continue to assess the potential realization of its remaining deferred tax assets in the future to determine if sufficient evidence exists to remove all or a portion of the Company’s valuation allowance on its deferred tax assets.

As a result of the Company’s future outlook, management has concluded that the uncertainties related to the realization of its deferred tax assets are unfavorable.

Management has considered positive and negative evidence for the potential utilization of the deferred tax assets and has concluded, as of September 30, 2022, that it is more likely than not that Company will not realize the full amount of its net deferred tax assets.

Therefore, the valuation allowance on deferred tax assets not recognized in 2022 will remain.

As of September 30, 2022, and December 31, 2021, the Company had unrecognized tax benefits totaling $52,000 and $711,000, respectively, including interest, which relates to state nexus exposure.

The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $52,000.

Due to the current statute of limitations regarding the unrecognized tax benefits, the Company expects to record a decrease of approximately $695,000 in unrecognized tax benefits related to state exposures in the third quarter of 2022, which will reduce accrued income taxes and increase income tax benefit.

For the reasons stated above, net loss for the three and six months ended June 30, 2022 was $1,084,000 and $1,022,000, respectively, compared to net loss of $894,000 and $1,631,000, respectively, for the three and six months ending June 30, 2021.

The Company has recorded a decrease of approximately $679,000 in unrecognized tax benefits related to state exposure in the third quarter of 2022, which will reduce accrued income taxes and increase the current income tax benefit.

The Company has determined it is no longer more likely than not that the Company will realize the tax expense.

A reconciliation of the beginning and ending amount of unrecognized income tax benefit is as follows:

Balance at December 31, 2021

Increase due to interest and state tax

Decrease in prior year interest and state tax

Balance at September 30, 2022

At December 31, 2021, the Company had Federal net operating loss (NOL) to carry forward of approximately $9,700,000.

As of September 30, 2022 the Company estimates remaining Federal NOL carryforwards to be approximately $2,000,000.

The federal NOL utilization was limited to 80% of estimated taxable income.

The estimated NOL carry-forward will be adjusted at year end for fourth quarter results.

Net Income (Loss).

For the reasons stated above, net income for the three and nine months ended September 30, 2022 was $11,801,000 and $10,779,000, respectively, compared to net loss of $921,000 and $2,552,000, respectively, for the three and nine months ending September 30, 2021.

Liquidity and Capital Resources

The Company has financed its operations with proceeds from stock sales and sales of its services and products.

At June 30, 2022, working capital was $2,829,000 (defined as current assets less current liabilities) compared to $3,716,000 at December 31, 2021.

During the six months ended June 30, 2022, cash and cash equivalents and restricted cash decreased $1,464,000 from $3,851,000 at December 31, 2021 to $2,387,000 at June 30, 2022.

At September 30, 2022, working capital was $14,000,000 (defined as current assets less current liabilities) compared to $3,716,000 at December 31, 2021.

During the nine months ended September 30, 2022, cash and cash equivalents and restricted cash increased $10,402,000 from $3,851,000 at December 31, 2021, to $14,253,000 at September 30, 2022.

These increases were the result of the net proceeds of $12,000,000 from the litigation settlement.

Operating Activities .

Net cash used by operating activities during the six months ended June 30, 2022, was $1,475,000.

Net loss of $1,022,000, plus non-cash adjustments of $117,000, less changes in operating assets and liabilities of $570,000, resulted in the $1,475,000 of cash used in operating activities.

The non-cash adjustments consisted of depreciation expense, changes in allowance for doubtful accounts and stock-based compensation expense.

The largest components of the change in operating assets and liabilities were accounts payable which decreased $1,208,000 from December 31, 2021 and accounts receivable which decreased $1,096,000 from December 31, 2021.

These decreases were the result of decreased sales in the second quarter of 2022.

In the normal course of business, our accounts receivable, accounts payable, accrued liabilities, deferred revenue and prepaid production costs will fluctuate depending on the level of revenues and related business activity, as well as billing arrangements with customers and payment terms with retailers.

Net cash provided by operating activities during the nine months ended September 30, 2022, was $10,388,000.

Net income of $10,779,000, plus non-cash adjustments of $87,000, less changes in operating assets and liabilities of $478,000 resulted in the $10,388,000 of cash provided by operating activities.

The largest components of the change in operating assets and liabilities were accrued liabilities which decreased $740,000 from December 31, 2021 due to payment of payroll tax associated with vesting of RSUs on December 31, 2021 and a decrease to accrued director deferred compensation due to changes in our stock price from December 31, 2021, and accrued income taxes which decreased $659,000 from December 31, 2021 due to a reduction in uncertain tax positions.

In the normal course of business, our accounts receivable, accounts payable, accrued liabilities and deferred revenue will fluctuate depending on the level of revenues and related business activity, as well as billing arrangements with customers.

Investing Activities .

Net cash used in investing activities during the six months ended June 30, 2022 was $28,000, which related to purchases of property and equipment.

Net cash used in investing activities during the nine months ended September 30, 2022 was $25,000, which related to purchase of property and equipment.

Financing Activities .

Net cash provided by financing activities during the six months ended June 30, 2022 was $39,000, which related to proceeds received from issuance of common stock under the employee stock purchase plan and exercised stock options.

Primarily as a result of the net proceeds from the Litigation Settlement after the end of the period, cash and cash equivalents plus restricted cash at July 31, 2022 were $14.9 million.

The Company believes that based upon current business conditions and plans, its adjusted cash balance after the net proceeds from the Litigation Settlement will be sufficient for its cash requirements for at least the twelve month period subsequent to the filing of this Form 10-Q.

Net cash used in financing activities during the nine months ended September 30, 2022 was $39,000, which related to proceeds from the issuance of common stock under the employee stock purchase plan and exercised stock options.

Primarily as a result of the net proceeds from the litigation settlement of $12 million in the three months ended September 30, 2022, cash and cash equivalents plus restricted cash at September 30, 2022 were $14.3 million.

The Company believes that based upon current business conditions and plans, its cash balance will be sufficient for its cash requirements for at least the twelve-month period subsequent to the filing of this Form 10-Q.

Critical Accounting Estimates

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Actual results may differ from these estimates under different assumptions or conditions, and the impact of such differences may be material to our financial statements.

Our significant accounting policies and estimates are described in Note 1 to the annual financial statements included in Part II, Item 8 of our Annual Report on Form 10-K as of and for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 9, 2022.

Our significant accounting policies and estimates are described in Note 1 to the annual financial statements included in Part II, Item 8 and in Item 7 of our Annual Report on Form 10-K as of and for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 9, 2022.

We believe our most critical accounting estimates include the following:

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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