5 unchanged sentences
It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on the Company’s business or on the overall financial markets.
−Removed: If interest rates had been fifty basis points higher, the net income during the three months ended March 31, 2022 and 2021 would have been lower by $76 and $81, respectively.
−Removed: This represents $76 and $81 in increased interest expense for the three months ended March 31, 2022 and 2021, respectively.
+Added: If interest rates had been fifty basis points higher, the net income during the three months ended June 30, 2022 and 2021 would have been lower by $75 and $81, respectively and net income during the six months ended June 30, 2022 and 2021 would have been lower by $149 and $161, respectively.
+Added: These net income effects represent increased (decreased) interest expense for the three and six months ended June 30, 2022 and 2021, respectively.
While we cannot predict our ability to refinance existing debt or the significance of the impact that interest rate movements will have on our existing debt, management evaluates our financial position on an ongoing basis.
Foreign Exchange Risk
−Removed: As of March 31, 2022 and 2021, the Canadian/U.S.
+Added: As of June 30, 2022 and 2021, the Canadian/U.S.
foreign exchange rate was C$1.00 = US$0.7756 and C$1.00 = US$0.8066, respectively.
−Removed: Assuming that all other variables remain constant, an increase of $0.10 in the Canadian dollar would have the following impact on the ending balances of certain statements of financial position items at March 31, 2022 and 2021 with the net foreign exchange gain or loss directly impacting net income (loss).
−Removed: March 31, 2022
−Removed: March 31, 2021
+Added: Assuming that all other variables remain constant, an increase of $0.10 in the Canadian dollar would have the following impact on the ending balances of certain statements of financial position items at June 30, 2022 and 2021 with the net foreign exchange gain or loss directly impacting net income (loss).
+Added: June 30, 2022
+Added: June 30, 2021
Financial assets
7 unchanged sentences
Our exposure to foreign exchange risk and the impact of foreign exchange rates are monitored by the Company’s management but generally the Company tries to match its sales (trade receivables) and vendor payments (trade payables) such that the net impact is not material.
+Added: Other than the interest rate risk and foreign exchange risk discussed above, there have been no material changes to our market risks from those disclosed in Part II, Item 7A of our Annual Report on Form 10-K.
Controls and Procedures
4 unchanged sentences
As required by Rule 13a-15(b) under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q.
−Removed: Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2022, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described in Management’s Report on Internal Control over Financial Reporting in our Annual Report on Form 10-K for the year ended December 31, 2021.
+Added: Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2022, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described in Management’s Report on Internal Control over Financial Reporting in our Annual Report on Form 10-K for the year ended December 31, 2021.
Material Weakness in Internal Controls Over Financial Reporting
5 unchanged sentences
Remediation Plan and Status
−Removed: In the first quarter of 2022, the Company implemented remediation measures improving the review of the calculation of its debt covenants by applying additional independent review of the calculations.
+Added: In the six months ended June 30, 2022, the Company implemented remediation measures improving the review of the calculation of its debt covenants by applying additional independent review of the calculations.
+Added: The Company hired a Corporate Treasurer in the second quarter of 2022 in order to manage the Company’s treasury functions and implement improvements to the Company’s cash management.
In addition, the Company is working with its lender group to modify and synchronize its loan covenants such that definitions of loan covenants are aligned going forward to avoid conflicting covenants between the Company and one of its subsidiaries.
The Company will continue to review, optimize and enhance its financial reporting controls and procedures to ensure the remediation measures are effective and controls are operating effectively.
−Removed: The Company expects implementation of its remediation plan by the end of the second quarter of 2022.
Changes in Internal Control over Financial Reporting
The Company’s management, including the Chief Executive Officer and Principal Financial and Accounting Officer, has reviewed the Company’s internal control over financial reporting.
−Removed: There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act), other than to address the material weakness described in management's report on internal control over financial reporting, during our fiscal quarter ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
−Removed: – OTHER INFORMATION
+Added: There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act), other than to address the material weakness described in management's report on internal control over financial reporting, during our fiscal quarter ended June 30, 2022 (as described above) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: – OTHE R INFORMATION
Legal Proceedings
2 unchanged sentences
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.