What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-05-17 compared with 2020-11-09 · 47 added, 82 removed, 94 unchanged (58% of the section changed)

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We have developed our WattUp® wireless power technology, consisting of proprietary semiconductor chipsets, software controls, hardware designs and antennas, that enables radio frequency (“RF”) based charging for electronic devices.

The WattUp technology has a broad spectrum of capabilities, including contact-based wireless charging and wireless charging at various distances.

We have demonstrated that, for non-contact applications, our transmitter technology is able to mesh into a wire-free charging network that is expected to allow users to charge their devices even as the devices are moved about in three-dimensional space (“mobility charging”).

The WattUp technology has a broad spectrum of capabilities, including near field wireless charging and at-a-distance wireless charging at various distances.

In November 2016 we entered into a Strategic Alliance Agreement with Dialog Semiconductor plc (“Dialog”), an industry leader in Bluetooth low energy semiconductors and power management semiconductors.

In conjunction with the Strategic Alliance Agreement, Dialog manufactures and is the exclusive distributor of integrated circuit (“IC”) products that incorporate our designs and provides sales and logistic support to customers on a global basis.

We believe our proprietary WattUp technology can be utilized in consumer electronics such as wearables, hearing aids, earbuds, Bluetooth headsets, Internet of Things (“IoT”) devices, smartphones, tablets, smartwatches, fitness bands, keyboards, mice, remote controls, rechargeable lights, batteries, medical devices, and other devices with charging requirements that would otherwise require battery replacement or a wired power connection.

We believe our technology is innovative in its approach, in that we are developing solutions that charge electronic devices by surrounding them with a focused RF energy pocket.

We are engineering solutions that deliver wire-free energy for contact-based charging applications and are also developing non-contact charging at distances up to approximately three feet, as well as low-power charging for distances up to 15 feet and in some use cases mobility charging.

We believe our proprietary WattUp technologies are well suited for many applications, including home automation, surface and implanted medical devices, electronic shelf labels, industrial IoT sensors, tracking devices, hearables, wearables, consumer electronics, public safety and military applications.

Potential future applications include smartphones, commercial and industrial robotics, as well as automotive solutions and other devices with charging requirements that would otherwise require battery replacement or a wired power connection.

We believe our technology is innovative in its approach, in that we are developing solutions that charge electronic devices with an RF energy zone.

We are developing solutions that deliver wire-free energy for near field charging applications and are also developing at-a-distance charging at distances up to approximately three feet, as well as low-power charging for distances up to 15 feet and beyond, some of which involve mobility charging.

To-date, we have developed multiple transmitters and receivers, including prototypes as well as partner production designs.

The transmitters vary based on form factor, power specifications and frequencies, while the receivers are designed for applications including hearing aids, fitness bands, smartwatches, smartphones, smartglasses, sensors, industrial applications, keyboards, mice, headsets, earbuds, headphones, Bluetooth tracking tags and more.

We are engaged with several consumer electronics (CE) and medical device companies that are in the pre-production stage of WattUp-based product development.

In 2019, our first end customer product entered the market and we expect additional partner products to be announced and launched in 2020.

We are also in discussion with potential customers in the consumer and industrial spaces that are considering our solutions to supply low power distance charging for products that could enter the market in 2021.

When the company was founded in 2012, we recognized the need to design and build an enterprise-class network management and control software (“NMS”) system that would be integral to supporting our customers’ rapid and cost-effective deployment of our wire-free charging technology.

Our NMS system is robust and flexible enough to both scale up to control thousands of devices across an enterprise, or scale down to meet the needs of a home or IoT environment.

The transmitters vary based on form factor, power specifications and frequencies, while the receivers are designed for applications including Bluetooth tracking tags, IoT sensors, hearing aids, electronic shelf labels, fitness bands, health sensors and devices, smartwatches, smartphones, smartglasses, industrial applications, keyboards, mice, headsets, earbuds, headphones, and more.

We have engagements with companies in the consumer electronics (CE), industrial, military and medical device markets that are in the both evaluation and product cycle pre-production stages of integrating WattUp-technology into devices being developed for the end-user.

The first end product featuring our technology entered the market in 2019 and we expect additional WattUp enabled products to be announced and launched in 2021.

We are also in discussions with potential customers in the consumer and industrial spaces that are considering our solutions to supply low power distance charging for products that could enter the market in 2022.

In December 2017, we announced Federal Communications Commission (“FCC”) certification of our first-generation WattUp Mid Field transmitter, which simultaneously powers multiple devices at a distance of up to three feet.

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We believe this was the first certification of a Part 18 FCC-approved non-contact wireless charging transmitter, and that it establishes engineering design precedents that can streamline future regulatory approvals for our technology and for our customers’ end-products that employ our technology.

In April 2020, we announced an FCC certification for a new over-the-air charging transmitter technology which we believe will offer our partners a lower-cost, smaller size transmitter technology for lower power applications.

Our technology solution consists principally of transmitter controller ICs, power amplifier ICs and receiver ICs, as well as novel antenna designs, application prototypes and proprietary software algorithms.

We submitted our first IC design for wafer fabrication in 2013 and have developed many generations of transmitter and receiver ICs, antenna designs, and software algorithms.

We submitted our first IC design for wafer fabrication in 2013 and since then have developed subsequent generations of transmitter and receiver ICs, antenna designs, and software algorithms.

We have endeavored to optimize our technology by reducing size and cost, while at the same time increasing performance which enables our designs to be integrated into a broad range of devices.

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We intend to continue to invest in research and development with high power capabilities of 20 watts and beyond at high levels of efficiency.

We also intend to continue to invest in improving product performance, efficiency, cost-performance and miniaturization as required to reach multiple markets and expand the power-at-a-distance ecosystem, while maintaining a technology lead on potential competitors.

We deliver evaluation kits to potential licensees of our technology, to allow their respective engineering and product management departments to test and evaluate the technology.

Our customers’ product development, technology integration and product introduction cycles occur over multiple quarters and generally more than a year can elapse before first evaluation and final shipment of the customer’s product.

We also intend to continue to invest in improving product performance, efficiency, cost-performance, integration and miniaturization as required to reach multiple markets and expand the power-at-a-distance ecosystem, while maintaining a technology lead on potential competitors.

We sell evaluation kits to potential customers of our technology, to allow their respective engineering and product management departments to test and evaluate the technology.

Our customers’ product development, technology integration and product introduction cycles occur over multiple quarters and generally span a period of more than a year to two years and can elapse before first evaluation and final shipment of the customer’s product.

Once our customers begin to sell products to end customers that incorporate our technology, we would expect the commercialization cycle to shorten over time as the technology matures and market acceptance grows.

We generally maintain exclusive rights to all intellectual property in our technology.

We maintain exclusive rights to all intellectual property in our technology.

We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations.

As of October 29, 2020, we had more than 122 pending patent applications in the U.S.

Additionally, the U.S.

Patent and Trademark Office and international patent offices have issued 227 patents to us.

As of May 10, 2021, the Energous IP portfolio contained 236 awarded patents in the United States, which are organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize WPT technology.

The paths are:

Processing Algorithms, Antenna Designs, Transmitter and Receiver ASICs, Other Software Controls (e.g., Bluetooth â Management and Hardware (e.g., Board Layout).

In addition to the inventions covered by these patents, we have also identified specific inventions that we believe are novel and patentable.

In addition to the inventions covered by these patents and patent applications, we have also identified specific inventions that we believe are novel and patentable.

We intend to file for patent protection for the most valuable of these, and for other inventions that we expect to develop.

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In addition, we have identified and hired key engineering resources in the areas of IC development, antenna development, hardware, software and firmware engineering as well as integration and testing, which will allow us to continue to expand our technology and intellectual property and to meet our customers’ support requirements.

The market for products using our technology is nascent and unproven, so our success is sensitive to many factors, including technological feasibility, regulatory approval, customer acceptance, competition and global market fluctuations.

Impact of COVID-19 on Our Business

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The pandemic continues to affect the United States and the world.

We are monitoring the ongoing effects of COVID-19 (including

continued outbreaks) and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on our operations, financial position, cash flows, inventory, supply chains, global regulatory approvals, purchasing trends, customer payments, and the industry in general, in addition to the impact on our employees.

The outbreak of COVID-19 has delayed adoption of our technology by potential customers who temporarily shut down their workforce and supply chain based in China, and who continue to evaluate their future prospects and business models, including partnerships with us.

For example, in one case, the outbreak delayed the spring launch of a new product that incorporates our technology.

We are monitoring the ongoing effects of COVID-19 (including continued outbreaks) and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on our operations, financial position, cash flows, inventory, supply chains, global regulatory approvals, purchasing trends, customer payments, and the industry in general, in addition to the impact on our employees.

The pandemic of COVID-19 has delayed adoption of our technology by potential customers who temporarily shut down their workforce and supply chain based in China, and who continue to evaluate their future prospects and business models, including partnerships with us.

For example, in one case, the pandemic delayed the spring launch of a new product that incorporates our technology.

Further delays in this or other products could result from the ongoing pandemic.

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Research and development expenses include costs associated with our efforts to develop our technology, including personnel compensation, consulting, engineering supplies and components, intellectual property costs, regulatory expense and general office expenses specifically related to the research and development department.

Sales and marketing expenses include costs associated with selling and marketing our technology to our customers, including

personnel compensation, public relations, graphic design, tradeshow, engineering supplies utilized by the sales team and general office expenses specifically related to the sale and marketing department.

Sales and marketing expenses include costs associated with selling and marketing our technology to our customers, including personnel compensation, public relations, graphic design, tradeshow, engineering supplies utilized by the sales team and general office expenses specifically related to the sale and marketing department.

General and administrative expenses include costs for general and corporate functions, including personnel compensation, facility fees, travel, telecommunications, insurance, professional fees, consulting fees, general office expenses, and other overhead.

Three Months Ended September 30, 2020 and 2019

During the three months ended September 30, 2020 and 2019, we recorded revenue of $61,500 and $40,500, respectively.

Operating Expenses and Loss from Operations.

Operating expenses are made up of research and development, sales and marketing, general and administrative expenses and cost of services revenue.

Losses from operations for the three months ended September 30, 2020 and 2019 were $7,560,058 and $8,302,069, respectively.

Research and Development Costs.

Research and development costs were $4,003,642 and $5,190,056, respectively, for the three months ended September 30, 2020 and 2019.

The decrease of $1,186,414 is primarily due to an $444,185 decrease in compensation, consisting of a $212,364 decrease in payroll costs and a $231,822 decrease in stock-based compensation from a lower headcount within the department, a $357,521 decrease in legal costs pertaining to patent and intellectual property management, a $243,629 decrease in engineering supplies, components and chip development costs due to project timing, an $83,995 decrease in depreciation and a $71,655 decrease in regulatory testing expense.

Sales and Marketing Costs.

Sales and marketing costs for the three months ended September 30, 2020 and 2019 were $1,500,068 and $1,242,105, respectively.

The increase of $257,963 is primarily due to a $238,945 increase in payroll costs from a higher headcount within the department, a $111,938 increase in consulting and third party services, partially offset by an $93,185 decrease in travel, meals and entertainment as a result of COVID-19 restrictions.

General and Administrative Expenses.

General and administrative costs for the three months ended September 30, 2020 and 2019 were $2,117,848 and $1,910,408, respectively.

The increase of $207,440 is primarily due to a $109,910 increase in stock-based compensation due to the issuance of equity awards to newly appointed board members during the preceding 12 months, a $346,683 increase in legal expense and an $89,357 increase in insurance premiums, partially offset by a $150,670 decrease in recruiting costs, a $70,581 decrease in accounting and auditing fees, a $54,496 decrease in travel, meals and entertainment as a result of COVID-19 restrictions, a $32,393 decrease in payroll costs and a $22,048 decrease in depreciation.

In t e r e s t Income .

In t e r e s t income fo r t h e three m on t h s e nd e d September 30, 2020 w a s $3,221 a s c o m p a r e d t o interest income of $117,842 fo r t h e three m on t h s e nd e d September 30, 2019 .

The decrease of $114,621 is primarily due to lower savings interest rates and a lower average cash balance.

N e t L o ss .

A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e three m on t h s e nd e d September 30, 2020 was $7,556,837 a s c o m p a r e d t o $8,184,227 fo r t h e three m on t h s e nd e d September 30, 2019 .

Nine Months Ended September 30, 2020 and 2019

During the nine months ended September 30, 2020 and 2019, we recorded revenue of $237,350 and $154,500, respectively.

Three Months Ended March 31, 2021 and 2020

During the three months ended March 31, 2021 and 2020, we recorded revenue of $145,065 and $61,475, respectively.

Operating Expenses and Loss from Operations.

Operating expenses are made up of research and development, sales and marketing, general and administrative expenses and cost of services revenue.

Losses from operations for the nine months ended September 30, 2020 and 2019 were $24,426,373 and $29,344,266, respectively.

Losses from operations for the three months ended March 31, 2021 and 2020 were $8,527,787 and $8,653,675, respectively.

Research and Development Costs.

Research and development costs were $12,909,378 and $17,505,571, respectively, for the nine months ended September 30, 2020 and 2019.

The decrease of $4,596,373 is primarily due to a $2,966,006 decrease in compensation, consisting of a $1,849,434 decrease in payroll costs and an $1,116,573 decrease in stock-based compensation from a lower headcount within the department, an $875,473 decrease in engineering supplies, components and chip development costs due to project timing, a $295,869 decrease in depreciation, a $156,123 decrease in regulatory testing fees, a $144,808 decrease in legal fees pertaining to patents and intellectual property and a $136,101 decrease in consulting fees.

Research and development costs were $4,591,244 and $4,575,303, respectively, for the three months ended March 31, 2021 and 2020.

The increase of $15,941 is primarily due to a $182,294 increase in compensation, consisting of a $133,995 increase in payroll costs and a $48,299 increase in stock-based compensation, a $40,368 increase in consulting and third party services expense, a $20,870 increase in regulatory testing and a $20,286 increase in regulatory legal costs, partially offset by a $64,807 decrease in legal costs pertaining to patent and intellectual property management, a $64,351 decrease in allocated rent, a $56,585 decrease in depreciation, a $36,917 decrease in engineering supplies, components and chip development costs due to project timing and a $31,150 decrease in travel expense due to a reduction in travel, meals and entertainment as a result of COVID-19 restrictions.

Sales and Marketing Costs.

Sales and marketing costs for the nine months ended September 30, 2020 and 2019 were $4,386,881 and $3,985,467, respectively.

The increase of $401,414 is primarily due to a $390,737 increase in compensation, consisting of a $311,958 increase in payroll costs and an $78,779 increase in stock-based

compensation from a higher headcount within the department , a $ 374 , 209 increase in consulting and third party services, a $64,126 increase in recruiting costs and a $47,553 increase in rent expense, partially offset by a $ 244 , 655 decrease in travel, meals and entertainment as a result of COVID-19 restrictions, a $124,394 decrease in engineering supplies and components used by the sales and marketing staff and a $113,522 decrease in tradeshow expenses,

Sales and marketing costs for the three months ended March 31, 2021 and 2020 were $1,794,212 and $1,447,909, respectively.

The increase of $346,303 is primarily due to a $379,486 increase in compensation, consisting of a $294,997 increase in payroll costs from a higher headcount within the department and an $84,489 increase in stock-based compensation, and a $54,514 increase in engineering supplies used by the sales and marketing staff for customer demonstrations, partially offset by a $54,505 decrease in tradeshow expense and a $20,238 decrease in consulting, public relations and third party services expense.

General and Administrative Expenses.

General and administrative costs for the nine months ended September 30, 2020 and 2019 were $7,240,925 and $8,007,548, respectively.

The decrease of $766,623 is primarily due to a $849,438 decrease in compensation, consisting of a $712,258 decrease in stock-based compensation due to certain equity awards reaching full expense amortization during the previous year and a $137,179 decrease in payroll costs, a $196,366 decrease in recruiting costs, a $129,147 decrease in travel, meals and entertainment as a result of COVID-19 restrictions and a $73,431 decrease in general office expenses, partially offset by a $245,011 increase in insurance premiums, a $149,385 increase in consulting fees and a $135,535 increase in accounting and auditing fees.

Cost of Services Revenue.

During the nine months ended September 30, 2020 and 2019, we recorded cost of services revenue of $126,539 and $0, respectively.

These costs are related to our contract services performed for Dialog.

General and administrative costs for the three months ended March 31, 2021 and 2020 were $2,287,396 and $2,652,394, respectively.

The decrease of $364,998 is primarily due to a $177,284 decrease in compensation, consisting of a $262,861 decrease in stock-based compensation as a result of having fewer outstanding equity awards after the retirement of three board members during the previous year, offset by an $85,577 increase in payroll costs, a $193,825 decrease in accounting and auditing fees, a $40,682 decrease in travel, meals and entertainment as a result of COVID-19 restrictions and a $37,678 decrease in consulting expense, partially offset by an $83,894 increase in insurance premiums.

In t e r e s t Income .

In t e r e s t income fo r t h e nine m on t h s e nd e d September 30, 2020 w a s $67,134 a s c o m p a r e d t o interest income of $336,575 fo r t h e nine m on t h s e nd e d September 30, 2019 .

The decrease of $269,441 is primarily due to lower savings interest rates and a lower average cash balance.

In t e r e s t income fo r t h e three m on t h s e nd e d March 31, 2021 w a s $2,024 a s c o m p a r e d t o interest income of $55,939 fo r t h e three m on t h s e nd e d March 31, 2020 .

The decrease of $53,915 is primarily due to lower savings interest rates.

N e t L o ss .

A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e nine m on t h s e nd e d September 30, 2020 was $24,359,239 a s c o m p a r e d t o $29,007,691 fo r t h e nine m on t h s e nd e d September 30, 2019 .

A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e three m on t h s e nd e d March 31, 2021 was $8,525,763 a s c o m p a r e d t o $8,597,736 fo r t h e three m on t h s e nd e d March 31, 2020 .

L i q u i d it y a n d Cap it a l R e s o ur ces

During the nine months ended September 30, 2020 and 2019, we recorded revenue of $237,350 and $154,500, respectively.

We incurred net losses of $24,359,239 and $29,007,691 for the nine months ended September 30, 2020 and 2019, respectively.

Net cash used in operating activities was $19,435,940 and $20,968,817 for the nine months ended September 30, 2020 and 2019, respectively.

We are currently meeting our liquidity requirements through the proceeds from securities offerings that raised net proceeds of $23,319,156 in March 2019, $4,557,693 during the fourth quarter 2019, $5,506,880 during the first quarter 2020 and $9,216,611 during the second quarter 2020, along with payments received from customers.

We believe our current cash on hand, together with anticipated revenues and funds raised from the at-the-market (“ATM”) finance offering will be sufficient to fund our operations into November 2021.

During the three months ended March 31, 2021 and 2020, we recorded revenue of $145,065 and $61,475, respectively.

We incurred net losses of $8,525,763 and $8,597,736 for the three months ended March 31, 2021 and 2020, respectively.

Net cash used in operating activities was $5,976,550 and $7,340,111 for the three months ended March 31, 2021 and 2020, respectively.

We are currently meeting our liquidity requirements through the proceeds from securities offerings that raised net proceeds of $53,556,202 during 2020, along with payments received from customers.

We believe our current cash on hand, together with anticipated revenues and funds raised from the at-the-market (“ATM”) finance offering will be sufficient to fund our operations into May 2022.

Although we intend to continue our research and development activities, there can be no assurance that our available resources will be sufficient to enable us to generate revenues sufficient to sustain operations.

Accordingly, we will likely pursue additional financing, which could include offerings of equity or debt securities, bank financings, commercial agreements with customers or strategic partners, and other alternatives, depending upon market conditions.

Accordingly, we may pursue additional financing, which could include offerings of equity or debt securities, bank financings, commercial agreements with customers or strategic partners, and other alternatives, depending upon market conditions.

There is no assurance that such financing would be available on terms that we would find acceptable, or at all.

During the nine months ended September 30, 2020, cash flows used in operating activities were $19,435,940, consisting of a net loss of $24,359,239, less non-cash expenses aggregating $7,209,398 (principally stock-based compensation of $6,318,948, amortization of operating lease right-of-use assets of $570,460 and depreciation and amortization expense of $286,990), an $818,306 decrease in accrued expenses, a $626,053 decrease in accounts payable, $514,167 decrease in operating lease liabilities and a $331,367 increase in prepaid expenses and other current assets.

During the nine months ended September 30, 2019, cash flows used in operating activities were $20,968,817, consisting of a net loss of $29,007,691, less non-cash expenses aggregating $9,320,848 (principally stock-based compensation of $8,069,000, depreciation and amortization expense of $652,266 and amortization of operating lease right-of-use assets of $599,582), a $556,150 decrease in accounts payable, a $494,768 decrease in operating lease liabilities and a $174,603 decrease in accrued expenses.

During the nine months ended September 30, 2020 and 2019, cash flows used in investing activities were $7,302 and $183,935, respectively.

The cash used in investing activities for the nine months ended September 30, 2020 consisted of the purchase of new lab equipment.

The cash used in investing activities for the nine months ended September 30, 2019 primarily consisted of leasehold improvements related to the construction of a regulatory testing chamber.

During the nine months ended September 30, 2020, cash flows provided by financing activities were $15,062,387, which consisted of $14,723,491 in net proceeds from the sale of shares of our common stock to the public in an ATM offering and $338,896 in proceeds from contributions to the ESPP.

During the nine months ended September 30, 2019, cash flows provided by financing activities were $23,846,291, which consisted of $23,319,156 in net proceeds from a private offering

of shares and warrants pursuant to a shelf registration, $466,398 in proceeds from contributions to the ESPP and $400,103 in proceeds from the exercise of stock options, partially offset by $339,366 in shares withheld for the payment of payroll taxes for the delivery of RSUs and PSUs.

During the three months ended March 31, 2021, cash flows used in operating activities were $5,976,550, consisting of a net loss of $8,525,763, less non-cash expenses aggregating $2,406,914 (principally stock-based compensation of $2,146,226, decrease in amortization of operating lease right-of-use assets of $195,914 and depreciation and amortization expense of $64,774), a $210,212 decrease in operating lease liabilities, a $105,491 increase in prepaid expenses and other current assets and an $80,925 increase in accounts receivable, partially offset by a $353,928 increase in accounts payable and a $179,999 increase in accrued expenses.

During the three months ended March 31, 2020, cash flows used in operating activities were $7,340,111, consisting of a net loss of $8,597,736, less non-cash expenses aggregating $2,619,443 (principally stock-based compensation of $2,276,299, decrease in amortization of operating lease right-of-use assets of $188,445 and depreciation and amortization expense of $121,699), a $633,268 decrease in accounts payable, a $628,052 decrease in accrued expenses and a $169,681 decrease in operating lease liabilities, partially offset by a $98,212 decrease in prepaid expenses and other current assets.

During the three months ended March 31, 2021 and 2020, cash flows used in investing activities were $111,727 and $0, respectively.

The cash used in investing activities for the three months ended March 31, 2021 consisted of the purchase of new testing equipment and engineering software.

During the three months ended March 31, 2021, cash flows provided by financing activities were $117,013, which consisted of $117,013 in proceeds from contributions to the ESPP.

During the three months ended March 31, 2020, cash flows provided by financing activities were $5,619,939, which consisted of $5,506,880 in net proceeds from the sale of shares of our common stock to the public in an ATM offering and $113,059 in proceeds from contributions to the ESPP.

Research and development of new technologies is, by its nature, unpredictable.

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Off Balance Sheet Transactions

As of September 30, 2020, we did not have any off-balance sheet transactions.

Material Changes in Specified Contractual Obligations

A table of our specified contractual obligations was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operation of our most recent Annual Report on Form 10-K.

There were no material changes outside the ordinary course of our business in the specified contractual obligations during the three months ended September 30, 2020.

As of March 31, 2021, we did not have any off-balance sheet transactions.

Quantitative and Qualitative Disclosure About Market Risk

There has been no material change in our exposure to market risk during the three months ended September 30, 2020.

There has been no material change in our exposure to market risk during the three months ended March 31, 2021.

Please refer to "Quantitative and Qualitative Disclosures about Market Risk" contained in Part II, Item 7A of our Form 10-K for the year ended December 31, 2020 for a discussion of our exposure to market risk.

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