Smart Sand Inc

Previous wording

We incorporated in Delaware in July 2011 and began operations at our Oakdale, Wisconsin facility with 1.1 million tons of annual processing capacity in July 2012. After several expansions, our current annual processing capacity at our Oakdale facility, which has access to both the Canadian Pacific and Union Pacific rail networks, is approximately 5.5 million tons. In 2020, we acquired our Utica, Illinois mine and processing facility, which has an annual processing capacity of approximately 1.6 million tons and access to the Burlington Northern Santa Fe rail network. In March 2022, we acquired our Blair, Wisconsin facility, which has approximately 2.9 million tons of total annual processing capacity and contains an onsite, unit train capable rail terminal with access to the Class 1 Canadian National rail network. We commenced operations at the Blair facility in the second quarter of 2023. Our total annual processing capacity of our operating facilities is approximately 10.0 million tons.

Current wording

We incorporated in Delaware in July 2011 and began operations at our Oakdale, Wisconsin facility with 1.1 million tons of annual processing capacity in July 2012. After several expansions, our current annual processing capacity at our Oakdale facility, which has access to both the Canadian Pacific and Union Pacific rail networks, is approximately 5.5 million tons. In 2020, we acquired our Ottawa, Illinois mine and processing facility, which has an annual processing capacity of approximately 1.6 million tons and access to the Burlington Northern Santa Fe rail network. In March 2022, we acquired our Blair, Wisconsin facility, which has approximately 2.9 million tons of total annual processing capacity and contains an onsite, unit train capable rail terminal with access to the Class 1 Canadian National rail network. We commenced operations at the Blair facility in the second quarter of 2023. Our total annual processing capacity of our operating facilities is approximately 10.0 million tons.

Previous wording

We have expanded our product line to offer industrial sand through IPS. In 2023, we completed the installation of blending and cooling assets at our Utica, Illinois facility that we believe will provide new opportunities to increase our customer base in the IPS business. While sales of IPS to customers were a small portion of our overall sand sales in 2022 and 2023, going forward, we expect to continue to expand and diversify to serve the major industrial markets throughout North America, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscape, retail, recreation and more.

Current wording

We have expanded our product line to offer industrial sand through IPS. In 2023, we completed the installation of blending and cooling assets at our Ottawa, Illinois facility that we believe will provide new opportunities to increase our customer base in the IPS business. While sales of IPS to customers were a small portion of our overall sand sales in 2022 and 2023, going forward, we expect to continue to expand and diversify to serve the major industrial markets throughout North America, including glass, foundry, building products, filtration, geothermal, renewables, ceramics, turf & landscape, retail, recreation and more.

Previous wording

During 2023 and through the second quarter of 2024, supply and demand for Northern White Sand has been in relative balance. We saw an increase in the volume of sand sold in the first half of 2023 followed by a slowdown in activity later in the year due to customers having frontloaded their budgeted spending earlier in the year. Activity has improved in the first half of 2024 as customers ramped up activity based on 2024 budget plans. Pricing for sand has trended downward since the second half

Current wording

During 2023 and through the third quarter of 2024, supply and demand for Northern White Sand has been in relative balance. We saw an increase in the volume of sand sold in the first half of 2023 followed by a slowdown in activity later in the year due to customers having frontloaded their budgeted spending earlier in the year. Activity also improved in the first half of 2024 as customers ramped up activity based on 2024 budget plans followed by a decline in the third quarter of 2024. Pricing for

Previous wording

of 2023 due to stabilized supply and demand. High levels of inflation led to increasing operating expenses in 2023, which have continued at increased levels through the first half of 2024. Softening economic activities in certain countries, the continuation of the war in Ukraine, the conflict in the Middle East, along with President Biden’s pause on liquified natural gas permits could impact oil and natural gas prices and overall oil and gas activity thereby leading to substantial volatility in demand and pricing in the future. The continued volatility in oil and natural gas demand and the current availability of sufficient supply of sand has led to continued reluctance by some customers to enter into long-term contracts. As such, some customers have instead trended toward purchasing their frac sand supply in the spot market or under short term supply agreements at current market prices. We cannot predict macroeconomic events or if pricing trends for our products will continue, increase, decrease or stabilize.

Current wording

sand has trended downward since the second half of 2023 due to stabilized supply and demand. High levels of inflation led to increasing operating expenses in 2023, which have continued at increased levels through the third quarter of 2024. Softening economic activities in certain countries, the continuation of the war in Ukraine, the conflicts in the Middle East, along with President Biden’s pause on liquified natural gas export permits could impact oil and natural gas prices and overall oil and gas activity thereby leading to substantial volatility in demand and pricing in the future. The continued volatility in oil and natural gas demand and the current availability of sufficient supply of sand has led to continued reluctance by some customers to enter into long-term contracts. As such, some customers have instead trended toward purchasing their frac sand supply in the spot market or under short term supply agreements at current market prices. We cannot predict macroeconomic events or if pricing trends for our products will continue, increase, decrease or stabilize.

Previous wording

Supplies of high-quality Northern White frac sand are limited to select areas, predominantly in western Wisconsin and limited areas of Minnesota and Illinois. We believe the ability to obtain large contiguous reserves in these areas is a key constraint and can be an important supply consideration when assessing the economic viability of a potential frac sand processing facility. Further constraining the supply and throughput of Northern White frac sand is that not all of the large reserve mines have on-site excavation, processing or logistics capabilities, which impact the long-term competitiveness of these mines due to lower efficiency and higher cost structures. Historically, much of the capital investment in Northern White frac sand mines was used for the development of coarser deposits in western Wisconsin, which is inconsistent with the increasing demand for finer mesh frac sand in recent years. As such, competitors in the Northern White frac sand market have shuttered or idled operations at certain facilities due to the higher demand for finer sands and due to lower cost regional sand sources that has eroded the ongoing economic viability of mines with coarser reserve deposits and inefficient mining and logistics facilities.

Current wording

Supplies of high-quality Northern White frac sand are limited to select areas, predominantly in western Wisconsin and limited areas of Minnesota and Illinois. We believe the ability to obtain large contiguous reserves in these areas is a key constraint and can be an important supply consideration when assessing the economic viability of a potential frac sand processing facility. Further constraining the supply and throughput of Northern White frac sand is that not all of the large reserve mines have on-site excavation, processing or logistics capabilities, which impact the long-term competitiveness of these mines due to lower efficiency and higher cost structures. Historically, much of the capital investment in Northern White frac sand mines was used for the development of coarser deposits in western Wisconsin, which is inconsistent with the increasing demand for finer mesh frac sand in recent years. As such, competitors in the Northern White frac sand market have shuttered or idled operations at certain facilities due to the higher demand for finer sands and due to lower cost regional sand sources that have eroded the ongoing economic viability of mines with coarser reserve deposits and inefficient mining and logistics facilities.

Previous wording

Revenues were $73.8 million and tons sold were approximately 1,274,000 for the three months ended June 30, 2024. Revenues for the three months ended June 30, 2023 were $74.8 million, during which time we sold approximately 1,084,000 tons of sand. The key factors contributing to the revenues for the three months ended June 30, 2024 being relatively flat, as compared to the three months ended June 30, 2023 were as follows:

Current wording

Revenues were $63.2 million and tons sold were approximately 1,189,000 for the three months ended September 30, 2024. Revenues for the three months ended September 30, 2023 were $76.9 million, during which time we sold approximately 1,219,000 tons of sand. The key factors contributing to the revenues for the three months ended September 30, 2024 being lower, as compared to the three months ended September 30, 2023 were as follows:

Previous wording

•SmartSystems revenue was approximately $2.8 million for the three months ended June 30, 2024 compared to $2.3 million for the three months ended June 30, 2023. The increase in SmartSystems revenue was due to higher utilization of our SmartSystems fleet and expanded use of our SmartBelt technology.

Current wording

•SmartSystems revenue was approximately $0.9 million for the three months ended September 30, 2024 compared to $2.0 million for the three months ended September 30, 2023. The decrease in SmartSystems revenue was due to lower utilization of our SmartSystems fleet.

Previous wording

Cost of goods sold was $60.7 million and $62.1 million for the three months ended June 30, 2024 and 2023, respectively. The decrease in cost of goods sold for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 was primarily due to reduced costs of production on higher volumes through management’s efforts to reduce operating costs, as well as lower freight costs driven by more minegate sales and a shift in the in-basin sales locations.

Current wording

Cost of goods sold was $56.7 million and $62.5 million for the three months ended September 30, 2024 and 2023, respectively. The decrease in cost of goods sold for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, was primarily due to reduced costs of production on lower volumes sold and cost initiatives to reduce labor and maintenance expenses.

Previous wording

We incurred $0.4 million and $0.2 million of net interest expense for the three months ended June 30, 2024 and 2023, respectively.

Current wording

We incurred $0.3 million and $0.3 million of net interest expense for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

For the three months ended June 30, 2024 and 2023, our effective tax rate was approximately 122.6% and (108.9)%, respectively, based on the annual effective tax rate net of discrete federal and state taxes. The computation of the effective tax rate includes modifications from the statutory rate such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items.

Current wording

For the three months ended September 30, 2024 and 2023, our effective tax rate was approximately 98.1% and (38.8)%, respectively. To estimate the interim period income tax expense (benefit), the company calculates the estimated effective tax rate for the full year and applies that rate to the net income for the period. The computation of the effective tax rate includes modifications from the statutory rate such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items that are specific to our Company.

Previous wording

Revenues were $156.9 million and tons sold were approximately 2,610,000 for the six months ended June 30, 2024. Revenues for the six months ended June 30, 2023 were $157.1 million, during which time we sold approximately 2,279,000 tons of sand. The key factors contributing to the change in revenues for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 were as follows:

Current wording

Revenues were $220.0 million and tons sold were approximately 3,799,000 for the nine months ended September 30, 2024. Revenues for the nine months ended September 30, 2023 were $234.0 million, during which time we sold approximately 3,498,000 tons of sand. The key factors contributing to the change in revenues for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 were as follows:

Previous wording

•Sand revenue was relatively constant at $150.7 million for the six months ended June 30, 2024 versus $152.5 million for the six months ended June 30, 2023. Total volumes increased by approximately 15%, however, average sand prices were lower in the first half of 2024 as supply and demand shifts have become more in balance compared to the same period in 2023. We also recognized higher contractual shortfall revenue in the prior year.

Current wording

•Sand revenue declined to $213.0 million for the nine months ended September 30, 2024 versus $227.3 million for the nine months ended September 30, 2023. Total volumes increased by approximately 9%, however, average sand prices were lower in 2024 as supply and demand shifts have become more in balance compared to the same period in 2023. We also recognized higher contractual shortfall revenue in the prior year.

Previous wording

•SmartSystems revenue, was approximately $6.1 million for the six months ended June 30, 2024 compared to $4.7 million for the six months ended June 30, 2023. The increase in SmartSystems revenue was due to higher utilization of our SmartSystems fleet and expanded use of our SmartBelt technology.

Current wording

•SmartSystems revenue, was approximately $7.0 million for the nine months ended September 30, 2024 compared to $6.7 million for the nine months ended September 30, 2023. The increase in SmartSystems revenue was due to slightly higher utilization our SmartSystems fleet in early 2024.

Previous wording

Cost of goods sold was $132.0 million and $132.8 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Cost of goods sold remained relatively flat with slightly lower cost of production and reduced freight on a per ton basis due to a shift in delivery location and more tons sold at the minegate.

Current wording

Cost of goods sold was $188.6 million and $195.3 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Cost of goods sold remained relatively flat with reduced freight on a per ton basis due to a shift in delivery location and more tons sold at the minegate, partially offset by higher total cost of production due to higher volumes sold.

Previous wording

Gross profit was $24.9 million and $24.3 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The gross profit for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 was relatively consistent with higher sales volumes partially offset by lower average sales prices of our sand relative to the cost to produce and deliver products to our customers. SmartSystems contributed more to gross profit as a result of higher utilization.

Current wording

Gross profit was $31.4 million and $38.7 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The gross profit for the nine months ended September 30, 2024 was lower, compared to the nine months ended September 30, 2023, due primarily to lower average sales prices of our sand relative to the cost to produce and deliver products to our customers.

Previous wording

Selling, general and administrative expenses decreased to $19.2 million for the six months ended June 30, 2024 compared to $19.7 million for the six months ended June 30, 2023, due to cost reduction measures put in place by management, which were partially offset by additional costs incurred related to financing activities. Additionally, in the first half of 2023, we recorded a $1.9 million net loss on disposal of fixed assets as we reconfigured one of our wet plants to increase the efficiency of its operations and upgraded some of our mining equipment.

Current wording

Selling, general and administrative expenses were consistent in total at $28.9 million for the nine months ended September 30, 2024 compared to $28.6 million for the nine months ended September 30, 2023. Cost reduction efforts in most SG&A accounts were largely offset by higher royalties on larger sales volumes and bank and legal fees associated with the refinancing of our Former ABL Credit Facility. Additionally, in September 2024, we closed our Saskatoon manufacturing facility and disposed of fixed assets there and recorded a net loss on the disposal of $1.1 million, compared to a $1.9 million net loss on disposal of fixed assets in 2023 as we reconfigured one of our wet plants to increase the efficiency of its operations and upgraded some of our mining equipment.

Previous wording

We incurred $0.9 million and $0.7 million of net interest expense for the six months ended June 30, 2024 and June 30, 2023, respectively.

Current wording

We incurred $1.2 million and $0.9 million of net interest expense for the nine months ended September 30, 2024 and September 30, 2023, respectively.

Previous wording

For the six months ended June 30, 2024 and June 30, 2023, our effective tax rate was approximately 128.2% and (166.0)%, respectively, based on the annual effective tax rate net of discrete federal and state taxes. The computation of the effective tax rate includes modifications from the statutory rate such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items.

Current wording

For the nine months ended September 30, 2024 and September 30, 2023, our effective tax rate was approximately 74.7% and (60.8)%, respectively. To estimate the interim period income tax expense (benefit), the company calculates the estimated effective tax rate for the full year and applies that rate to the net income for the period. The computation of the effective tax rate includes modifications from the statutory rate such as income tax credits, tax depletion deduction, carrybacks, and state apportionment changes, among other items that are specific to our Company.

Previous wording

Net loss was $(0.4) million for the three months ended June 30, 2024 as compared to net income of $6.3 million for the three months ended June 30, 2023. Gross profit and operating income were consistent in both periods. Income taxes were the primary driver for the change in net income.

Current wording

Net loss was $0.7 million for the nine months ended September 30, 2024 as compared to net income of $9.4 million for the nine months ended September 30, 2023. Gross profit was negatively affected in the current period by the decline in sales.

Previous wording

Contribution margin, EBITDA, adjusted EBITDA and free cash flow are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures will provide useful information to investors in assessing our financial condition and results of operations. Gross profit is the GAAP measure most directly comparable to contribution margin, net income is the GAAP measure most directly comparable to EBITDA and adjusted EBITDA and net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Each of these non-GAAP financial measures has important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measures. You should not consider contribution margin, EBITDA, adjusted EBITDA or free cash flow in isolation or as substitutes for an analysis of our results as reported under GAAP. Because contribution margin, EBITDA, adjusted EBITDA and free cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Current wording

EBITDA and net cash provided by operating activities is the GAAP measure most directly comparable to free cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measures. Each of these non-GAAP financial measures has important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measures. You should not consider contribution margin, EBITDA, adjusted EBITDA or free cash flow in isolation or as substitutes for an analysis of our results as reported under GAAP. Because contribution margin, EBITDA, adjusted EBITDA and free cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Previous wording

Contribution margin was $19.8 million and $19.0 million, or $15.53 and $17.57 per ton sold, for the three months ended June 30, 2024 and 2023, respectively. Contribution margin was $38.3 million and $36.8 million, or $14.67 and $16.17 per ton sold, for the six months ended June 30, 2024 and 2023, respectively. The increase in overall contribution margin for both the three and six month periods ended June 30, 2024, when compared to the same periods in 2023, was primarily due to higher tons sold and the increased utilization of our SmartSystems fleet, as well as our focus on cost reduction measures throughout the Company.

Current wording

Contribution margin was $13.2 million and $21.0 million, or $11.09 and $17.20 per ton sold, for the three months ended September 30, 2024 and 2023, respectively. Contribution margin was $51.5 million and $57.8 million, or $13.55 and $16.53 per ton sold, for the nine months ended September 30, 2024 and 2023, respectively. The decline in overall contribution margin for both the three and nine month periods ended September 30, 2024, when compared to the same periods in 2023, was primarily due to lower average selling price of our sand, partially mitigated by cost reduction measures throughout the Company.

Previous wording

Adjusted EBITDA was $11.9 million for the three months ended June 30, 2024 compared to $11.3 million for the three months ended June 30, 2023. Adjusted EBITDA was $21.2 million for the six months ended June 30, 2024 compared to $19.4 million for the six months ended June 30, 2023. The increase in adjusted EBITDA for the six months ended June 30, 2024, compared to the same period in 2023, was primarily due to higher sales volumes and higher utilization of our SmartSystems fleet.

Current wording

Adjusted EBITDA was $5.7 million for the three months ended September 30, 2024 compared to $13.2 million for the three months ended September 30, 2023. The lower Adjusted EBITDA for the three months ended September 30, 2024, compared to the three months ended September 30, 2023 was due to the combination of lower sales volumes and lower average sales prices of our sand. Adjusted EBITDA was $26.9 million for the nine months ended September 30, 2024 compared to $32.6 million for the nine months ended September 30, 2023. The decrease in adjusted EBITDA for the nine months ended September 30, 2024, compared to the same period in 2023, was primarily due to lower average sales prices of our sand.

Previous wording

Free cash flow was $13.5 million for the three months ended June 30, 2024 compared to $10.8 million for the three months ended June 30, 2023. Free cash flow was $8.0 million for the six months ended June 30, 2024 compared to $11.9 million for the six months ended June 30, 2023. The strong free cash flow for the three and six months ended June 30, 2024 was primarily due to management’s focus on reducing costs to operate and capital expenditures. Working capital pressure has also lessened as tons sold has remained consistently strong in the second quarter of 2024.

Current wording

Free cash flow was $3.7 million for the three months ended September 30, 2024 compared to $5.6 million for the three months ended September 30, 2023. Free cash flow was $11.7 million for the nine months ended September 30, 2024 compared to $17.5 million for the nine months ended September 30, 2023. The positive free cash flow for the three and nine months ended September 30, 2024 was primarily due to management’s focus on reducing operating expenses and focus on lower capital expenditures. The decline in average selling prices in 2024 has negatively affected free cash flow.

Previous wording

Our primary sources of liquidity are cash flow generated from operations and availability under our ABL Credit Facility and other equipment financing sources. As of June 30, 2024, cash on hand was $6.3 million and we had $18.0 million in undrawn availability on our ABL Credit Facility. We are in the process of refinancing this facility.

Current wording

In September 2024 we refinanced our former $20.0 million ABL facility to a new $30.0 million FCB ABL facility. Our primary sources of liquidity are cash flow generated from operations and availability under our FCB ABL Credit Facility and other equipment financing sources. As of September 30, 2024, cash on hand was $7.2 million and we had $30.0 million in undrawn availability on our FCB ABL Credit Facility.

Previous wording

We expect full year 2024 capital expenditures to be between $10.0 million and $13.0 million. Our expected capital expenditures for 2024 are primarily for process improvement and efficiency projects at our mine sites, upgrading mining equipment and the build out of our new Ohio terminals. We expect to fund these capital expenditures with cash from operations, equipment financing options available to us or borrowings under the ABL Credit Facility.

Current wording

We expect full year 2024 capital expenditures to be between $8.0 million and $10.0 million. Our expected capital expenditures for 2024 are primarily for process improvement and efficiency projects at our mine sites, upgrading mining equipment and the build out of our new Ohio terminals. We expect to fund these capital expenditures with cash from operations, equipment financing options available to us or borrowings under the FCB ABL Credit Facility.

Previous wording

Our debt facilities include the VFI Equipment Financing, various notes payable and our ABL Credit Facility. Our VFI Equipment Financing is secured by the majority of the Company’s SmartSystems equipment. The outstanding balance under the VFI Equipment Financing as of June 30, 2024 was $9.1 million. Minimum cash payments on this facility for the remainder of 2024 are anticipated to be $1.5 million. Our various notes payable are primarily secured by heavy equipment. Total debt under these notes payable as of June 30, 2024 was $3.1 million. Minimum cash payments on these notes payable for the remainder of 2024 are anticipated to be $0.4 million. There was $2.0 million outstanding on our ABL Credit Facility as of June 30, 2024, which matures December 13, 2024. We are in the process of refinancing this facility.

Current wording

Our debt facilities include the VFI Equipment Financing, various notes payable and our FCB ABL Credit Facility. Our VFI Equipment Financing is secured by a substantial portion of the Company’s SmartSystems equipment. The outstanding balance under the VFI Equipment Financing as of September 30, 2024 was $9.2 million. Minimum cash payments on this facility for the remainder of 2024 are anticipated to be $0.7 million. Our various notes payable are primarily secured by heavy equipment. Total debt under these notes payable as of September 30, 2024 was $3.8 million. Minimum cash payments on these notes payable for the remainder of 2024 are anticipated to be $0.3 million. There were no outstanding borrowings on our FCB ABL Credit Facility as of September 30, 2024.

Previous wording

We use leases primarily to procure certain office space, railcars and heavy equipment as part of our operations. The majority of our lease payments are fixed and determinable. Our operating lease liabilities as of June 30, 2024 were $25.7 million. Minimum cash payments on operating leases for the remainder of 2024 are anticipated to be $6.4 million.

Current wording

We use leases primarily to procure certain office space, railcars and heavy equipment as part of our operations. The majority of our lease payments are fixed and determinable. Our operating lease liabilities as of September 30, 2024 were $23.5 million. Minimum cash payments on operating leases for the remainder of 2024 are anticipated to be $2.6 million.

Previous wording

As of June 30, 2024, we had contractual obligations for the ABL Credit Facility, VFI Equipment Financing, notes payable, operating and finance leases, delivery of sand, royalties and similar minimum payments for the rights to mine land, capital expenditures, asset retirement obligations, and other commitments to municipalities for maintenance.

Current wording

As of September 30, 2024, we had contractual obligations for the FCB ABL Credit Facility, VFI Equipment Financing, notes payable, operating and finance leases, delivery of sand, royalties and similar minimum payments for the rights to mine land, capital expenditures, asset retirement obligations, and other commitments to municipalities for maintenance.

Previous wording

For the six months ended June 30, 2024, revenue from Equitable Gas Corporation and Encino Energy accounted for 32.7% and 12.2%, respectively, of total revenue. For the six months ended June 30, 2023, EQT Production Corporation, Liberty Oilfield Services, and Enerplus Resources Corporation accounted for 30.6%, 10.2% and 8.7%, respectively, of total revenue.

Current wording

For the nine months ended September 30, 2024, EQT Corporation, Encino Energy and Liberty Oilfield Services accounted for 53.9% of total revenue. For the nine months ended September 30, 2023, revenue from EQT Corporation and Liberty Oilfield Services accounted for 27.6%, and 12.9% respectively, of total revenue.

Previous wording

There have been no material changes in our critical accounting policies and procedures during the six months ended June 30, 2024.

Current wording

There have been no material changes in our critical accounting policies and procedures during the nine months ended September 30, 2024.