What the changes say
- Absci faces escalating financial losses, accumulating $624.8M by late 2025 while expanding its proprietary and partnered therapeutic drug pipelines.
What changed since the prior 10-K
New
- NewRisks Related to Our Financial Condition and Need for Additional Capital
Our short operating history may make it difficult for you to evaluate the success of our business to date and to assess our future viability
Our short operating history as a clinical-stage company developing preclinical and early clinical programs makes predicting our future viability difficult.
- NewRisks Related to Our Financial Condition and Need for Additional Capital
We do not anticipate generating any revenue from commercial product sales, if ever, until we successfully complete the clinical development of, and achieve regulatory approval for, any of our internally developed programs, all of which are still in clinical and preclinical development
We have not generated commercial product revenue and do not expect to until our internally developed programs achieve regulatory approval.
- NewRisks Related to Biologic Drug Development
programs are still in the research or preclinical stage of development. Thus, we have limited experience as a company in conducting clinical trials
We have limited clinical trial experience, which led us to seek a partner for ABS-101 following Phase 1 results rather than advance it alone.
- NewRisks Related to Biologic Drug Development
We are currently conducting and may in the future conduct clinical trials for our product candidates outside the United States, and the FDA may not accept data from such trials
Evaluating ABS-201 in Australian clinical trials exposes us to foreign regulatory interpretations, and the FDA may not accept foreign clinical data.
- NewRisks Related to Biologic Drug Development
Conducting clinical trials in Australia may expose us to operational and logistical challenges that could delay our development programs
Conducting clinical trials in Australia introduces operational, logistical, and supply chain challenges that could delay our development programs.
- NewRisks Related to Biologic Drug Development
Changes in Australian regulatory requirements or ethics committee processes could delay our clinical trials
Changes in Australian regulatory requirements or ethics committee review procedures could delay the initiation or continuation of our clinical trials.
- NewRisks Related to Biologic Drug Development
Internally developed programs
Our internally developed program ABS-201 for androgenetic alopecia faces competition from established treatments and clinical candidates like HMI-115 and PP405.
- NewRisks Related to Biologic Drug Development
Integrated Drug Creation platform
Our generative AI Integrated Drug Creation platform faces competition from AI drug design companies such as Generate Biomedicines and Xaira Therapeutics.
- NewRisks Related to Biologic Drug Development
We also face competition from entities that have made substantial investments in developing treatments for the therapeutic indications which our internal programs and partnered programs target. These competitors may include large and specialty pharmaceutical and biotechnology companies
Partners may develop processes in-house rather than using our technologies, and large established life science companies have greater financial resources than us.
- NewRisks Related to Biologic Drug Development
future products and services could limit our partners’ ability to successfully commercialize product candidates, which would decrease our ability to generate revenue
Uncertain government and private payor reimbursement for novel antibody-based therapeutics could limit our partners' ability to successfully commercialize our drug candidates.
- NewRisks Related to Biologic Drug Development
If we or third parties with whom we do business fail to comply with applicable healthcare laws and regulations, we could be subject to enforcement actions and other consequences
Failure by us or our business partners to comply with broad U.S. and foreign healthcare fraud and transparency laws could result in enforcement actions.
- NewRisks Related to Our Operations
We have in the past and may in the future need to reduce our workforce, which may not achieve our intended outcomes and could result in unintended consequences
Past and future workforce reductions and restructuring activities may cause loss of institutional knowledge, decreased employee morale, and operational inefficiencies.
- NewRisks Related to Our Operations
management, regulatory compliance and other infrastructure operations. These implementations were expensive and required significant time and effort
- NewRisks Related to Our Intellectual Property
cannot be certain that we or our licensors were the first to either (i) file any patent application related to our technology or (ii) invent any of the inventions claimed in our or our licensor’s patents or patent applications
- NewRisks Related to Our Intellectual Property
We are or may become subject to U.S. and foreign laws regarding privacy, data protection, and data security that could require substantial compliance costs, and any failure or perceived failure to comply with them could subject us to significant liability
- NewRisks Related to Our Intellectual Property
the payment of monetary damages (including treble damages, attorneys’ fees, costs, and expenses) or royalty payments
- NewRisks Related to Our Intellectual Property
governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements
- NewRisks Related to Our Common Stock
we have or are positioned to negotiate royalty- and milestone-bearing licenses. Accordingly, we do not presently have sufficient information to make accurate predictions regarding our potential revenue and future financial performance
- NewRisks Related to Our Common Stock
actions under federal securities laws, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees
Dropped
- DroppedRisks Related to Our Financial Condition and Need for Additional Capital
Our current business has a limited operating history, which may make it difficult to evaluate our business and predict our future performance
Limited operating history since commercial operations began in 2018.
- DroppedRisks Related to Our Financial Condition and Need for Additional Capital
We will need to raise additional capital to fund our operations and improve our Integrated Drug Creation platform. If we are unable to raise additional capital on terms acceptable to us or at all, we may not be able to compete successfully, which would harm our business, operations, and financial condition
- DroppedRisks Related to Biologic Drug Development
regulatory milestones, including marketing approval, or become viable commercial technologies, on a timely basis or at all, which would harm our ability to generate revenue
Need to raise additional capital, with $112.4M in cash as of December 2024.
- DroppedRisks Related to Biologic Drug Development
The biopharmaceutical platform technology market is highly competitive, and if we cannot compete successfully with our competitors, we may be unable to increase or sustain our revenue, or achieve and sustain profitability
Uncertainty of achieving regulatory milestones or viable commercial technologies.
- DroppedRisks Related to Biologic Drug Development
However, in some cases, we may wish to collaborate with such companies if synergies with our Integrated Drug Creation platform are identified
- DroppedRisks Related to Biologic Drug Development
competitors that involve upfront payments rather than downstream revenues. We may not be able to compete effectively against these organizations
- DroppedRisks Related to Biologic Drug Development
of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any marketing approval that we may have obtained, and we may not achieve or sustain profitability
- DroppedRisks Related to Our Partnership Business Strategy
We are substantially dependent on the successful application of our Integrated Drug Creation platform to initiate and advance partnered programs and to develop our internally developed programs that can be further developed by our current or future partners
Competition in the biopharmaceutical platform technology market.
- DroppedRisks Related to Our Partnership Business Strategy
If we cannot maintain our current relationships with partners, fail to expand our relationships with our current partners, or if we fail to enter into new relationships, our future operating results would be adversely affected as a general matter
Potential collaborations with competitors targeting TL1A for inflammatory bowel disease.
- DroppedRisks Related to Our Operations
any one of these areas could make it difficult for us to meet market expectations for our technologies, and could damage our reputation and the prospects for our business
Competitor advantages regarding upfront payments, vendor inputs, and marketing.
- DroppedRisks Related to Our Operations
We may be subject to laws that generally govern the biopharmaceutical industry
- DroppedRisks Related to Our Intellectual Property
technologies; in some countries, it may not be possible to rectify an incorrect translation, which may result in patent protection that does not adequately cover our technologies in those countries
- DroppedRisks Related to Our Intellectual Property
Obtaining and maintaining our patent protection depends on compliance with various required procedures, document submissions, fee payments and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements
- DroppedRisks Related to Our Intellectual Property
a preference for U.S.-based companies, and compliance with such regulations may limit our exclusive rights and our ability to contract with non-U.S. manufacturers
- DroppedRisks Related to Our Common Stock
voting stock from merging or combining with us for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is approved in a prescribed manner
- DroppedRisks Related to Our Common Stock
will not be required to implement the more stringent requirements sooner than budgeted or planned and thereby incur unexpected expenses
Reworded
- 91% rewrittenRisks Related to Our Business Strategy
Our commercial success depends on the technological capabilities of our Integrated Drug Creation platform and the advancement of our Internally Developed Programs
Updated to clarify that our platform is utilized for commercialization opportunities by both us and our partners, distinguishing internal versus partnered programs.
- 87% rewrittenRisks Related to Our Financial Condition and Need for Additional Capital
We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability
Updated net loss figures for fiscal year 2025 to $115.2 million and accumulated deficit to $624.8 million as of December 31, 2025.
- 83% rewrittenRisks Related to Biologic Drug Development
Existing regulatory policies may change, and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of our product candidates
Removed the specific reference to the June 2024 Supreme Court overruling of the Chevron doctrine in the risk title/lead-in context.
- 83% rewrittenRisks Related to Our Intellectual Property
If we become involved in patent litigation or other proceedings related to a determination of rights, we could incur substantial costs and expenses, substantial liability for damages or be required to stop our development and commercialization efforts of our technologies
Minor stylistic and phrasing adjustments made to patent litigation and third-party adversarial proceedings disclosures.
- 77% rewrittenRisks Related to Our Common Stock
We are an emerging growth company, and the reduced reporting requirements applicable to emerging growth companies could make our common stock less attractive to investors
Added specific quantitative thresholds for emerging growth company status expiration based on revenue, debt issuance, and public float.
- 76% rewrittenRisks Related to Our Common Stock
We have incurred and will continue to incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives
Maintained existing public company compliance cost disclosures under Sarbanes-Oxley and Dodd-Frank acts without material structural changes.
- 74% rewrittenRisks Related to Our Intellectual Property
Changes in patent law in the United States and other jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our technologies
Retained standard disclosure regarding potential changes in U.S. and foreign patent laws without substantive additions.
- 64% rewrittenRisks Related to Biologic Drug Development
If we do not achieve our projected development goals in the timeframes we announce and expect, the clinical development of our programs, commercialization of our programs, and validation of our Integrated Drug Creation platform may be delayed and our expenses may increase and, as a result, our stock price may decline
Retained standard milestone delay and stock price volatility risk factor text.
Was: If we do not achieve our projected development goals in the timeframes we announce and expect, the commercialization of our programs and validation of our Integrated Drug Creation platform may be delayed and our expenses may increase and, as a result, our stock price may decline
- 63% rewrittenRisks Related to Our Common Stock
Changes in tax law may adversely affect us or our investors
- 62% rewrittenRisks Related to Biologic Drug Development
Healthcare reform efforts aimed at lowering the price of biopharmaceutical products may impact our ability to maintain sufficient profits
- 61% rewrittenRisks Related to Our Intellectual Property
Patent terms may be inadequate to protect our competitive position with our technology for an adequate amount of time
- 55% rewrittenRisks Related to Our Operations
We may need to develop and expand our workforce, commercial infrastructure and laboratory operations to support anticipated growth in demand for our drug creation programs, and we may encounter difficulties in managing this development and expansion
Was: We will need to develop and expand our workforce, commercial infrastructure and laboratory operations to support anticipated growth in demand for our drug creation programs, and we may encounter difficulties in managing this development and expansion
- 54% rewrittenRisks Related to Our Operations
We depend on our information technology systems, and any significant disruptions to or failure of these systems could result in significant financial, legal, regulatory, business and reputational harm to our business
- 43% rewrittenRisks Related to Our Intellectual Property
We may not be able to protect our intellectual property rights throughout the world
- 42% rewrittenRisks Related to Our Common Stock
We are obligated to develop and maintain proper and effective internal control over financial reporting. These internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and, as a result, the value of our common stock
- 39% rewrittenRisks Related to Our Common Stock
Unfavorable U.S. or global economic conditions could adversely affect our business, financial condition or results of operations
- 37% rewrittenRisks Related to Our Operations
We rely on a limited number of suppliers for laboratory equipment and materials and may not be able to find replacements or transition to alternative suppliers on a timely basis, or at all
- 31% rewrittenRisks Related to Our Common Stock
Our ability to use our net operating losses and certain other tax attributes may be limited
- 31% rewrittenRisks Related to Our Operations
If our operating facility becomes damaged or inoperable or we are required to vacate our facility, our ability to conduct and pursue our drug creation and internal research and development efforts may be jeopardized
- 29% rewrittenRisks Related to Our Operations
The loss of any member of our senior leadership team or our inability to attract and retain highly skilled scientists and business development professionals could adversely affect our business
- 28% rewrittenRisks Related to Biologic Drug Development
The market for our platform, including potential partners and potential investors, may be skeptical of the viability and benefits of our Integrated Drug Creation platform because it is based on novel and complex synthetic biology and AI technologies
- 24% rewrittenRisks Related to Our Common Stock
Future sales of our common stock in the public market could cause our share price to fall
- 24% rewrittenRisks Related to Our Operations
Our Integrated Drug Creation platform may not meet the expectations of our partners, which means our business, financial condition, results of operations and prospects could suffer
All 83 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Financial Condition and Need for Additional Capital
- 01Our short operating history may make it difficult for you to evaluate the success of our business to date and to assess our future viabilityNew
- 02We do not anticipate generating any revenue from commercial product sales, if ever, until we successfully complete the clinical development of, and achieve regulatory approval for, any of our internally developed programs, all of which are still in clinical and preclinical developmentNew
- 03We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability87% rewritten
Risks Related to Biologic Drug Development
- 04programs are still in the research or preclinical stage of development. Thus, we have limited experience as a company in conducting clinical trialsNew
- 05opportunity for that program, and/or have broader deleterious effects on our reputation and future partnership prospects
- 06The clinical development of our product candidates could be substantially delayed if we are required to conduct unanticipated studies, including preclinical studies or clinical trials, or if the FDA imposes other requirements or restrictions including on the manufacture, of our product candidates
- 07We are currently conducting and may in the future conduct clinical trials for our product candidates outside the United States, and the FDA may not accept data from such trialsNew
- 08Conducting clinical trials in Australia may expose us to operational and logistical challenges that could delay our development programsNew
- 09Changes in Australian regulatory requirements or ethics committee processes could delay our clinical trialsNew
- 10If we or our partners encounter difficulties enrolling patients in clinical trials of product candidates developed using our Integrated Drug Creation platform, our and our partners’ clinical development activities could be delayed or otherwise adversely affected
- 11Internally developed programsNew
- 12Integrated Drug Creation platformNew
- 13We also face competition from entities that have made substantial investments in developing treatments for the therapeutic indications which our internal programs and partnered programs target. These competitors may include large and specialty pharmaceutical and biotechnology companiesNew
- 14We face competition from entities that have made substantial investments into the rapid development of novel treatments for the therapeutic indications in which we are engaged in internally developed programs and partnered programs, including large and specialty pharmaceutical and biotechnology companies
- 15The market for our platform, including potential partners and potential investors, may be skeptical of the viability and benefits of our Integrated Drug Creation platform because it is based on novel and complex synthetic biology and AI technologies28% rewritten
- 16We could experience clinical supply and manufacturing problems that result in delays in the development, approval or commercialization of our product candidates or otherwise harm our business
- 17If we do not achieve our projected development goals in the timeframes we announce and expect, the clinical development of our programs, commercialization of our programs, and validation of our Integrated Drug Creation platform may be delayed and our expenses may increase and, as a result, our stock price may decline64% rewritten
- 18future products and services could limit our partners’ ability to successfully commercialize product candidates, which would decrease our ability to generate revenueNew
- 19If we or third parties with whom we do business fail to comply with applicable healthcare laws and regulations, we could be subject to enforcement actions and other consequencesNew
- 20Healthcare reform efforts aimed at lowering the price of biopharmaceutical products may impact our ability to maintain sufficient profits62% rewritten
- 21Existing regulatory policies may change, and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of our product candidates83% rewritten
- 22We expect to make significant investments in our continued research and development of new technology, which may not be successful
Risks Related to Our Business Strategy
- 23Our commercial success depends on the technological capabilities of our Integrated Drug Creation platform and the advancement of our Internally Developed Programs91% rewritten
- 24Our partnership strategy significantly depends on the eventual approval and commercialization of product candidates developed under our partnerships for which we may have no control over the clinical development plan, regulatory strategy or commercialization efforts
- 25Our revenue under our partnered programs for any particular period, or on an absolute basis, can be difficult to forecast
- 26The failure of our drug creation partners to meet their contractual obligations to us could adversely affect our business
- 27Our partners may not achieve projected discovery and development milestones and other anticipated key events in the expected timelines or at all, which could have an adverse impact on our business and our anticipated revenue
Risks Related to Our Operations
- 28We rely on a limited number of suppliers for laboratory equipment and materials and may not be able to find replacements or transition to alternative suppliers on a timely basis, or at all37% rewritten
- 29Our Integrated Drug Creation platform may not meet the expectations of our partners, which means our business, financial condition, results of operations and prospects could suffer24% rewritten
- 30We may need to develop and expand our workforce, commercial infrastructure and laboratory operations to support anticipated growth in demand for our drug creation programs, and we may encounter difficulties in managing this development and expansion55% rewritten
- 31We have in the past and may in the future need to reduce our workforce, which may not achieve our intended outcomes and could result in unintended consequencesNew
- 32The loss of any member of our senior leadership team or our inability to attract and retain highly skilled scientists and business development professionals could adversely affect our business29% rewritten
- 33We in the past have, and in the future may, make technology acquisitions, acquire businesses or assets, or make investments in other companies or technologies that could negatively affect our operating results, dilute our stockholders’ ownership, increase our debt or cause us to incur significant expense
- 34Our equipment financing agreements may contain covenants that restrict our operating activities, and we may be required to repay the outstanding indebtedness in an event of default, which could have a material adverse effect on our business, financial condition, results of operations and prospects
- 35Our inability to collect on our accounts receivable by a significant number of partners may have an adverse effect on our business, financial condition and results of operations
- 36If our operating facility becomes damaged or inoperable or we are required to vacate our facility, our ability to conduct and pursue our drug creation and internal research and development efforts may be jeopardized31% rewritten
- 37We depend on our information technology systems, and any significant disruptions to or failure of these systems could result in significant financial, legal, regulatory, business and reputational harm to our business54% rewritten
- 38management, regulatory compliance and other infrastructure operations. These implementations were expensive and required significant time and effortNew
- 39International expansion of our business exposes us to business, regulatory, political, operational, financial and economic risks associated with doing business outside of the United States
- 40Any of these factors could significantly harm our future international expansion and operations and, consequently, our revenue and results of operations
- 41We use biological and hazardous materials that require considerable expertise and expense for handling, storage and disposal and may result in claims against us
- 42Public health crises such as pandemics or similar outbreaks could cause a disruption of the development of our platform technologies, and adversely impact our business
Risks Related to Our Intellectual Property
- 43Changes in patent law in the United States and other jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our technologies74% rewritten
- 44cannot be certain that we or our licensors were the first to either (i) file any patent application related to our technology or (ii) invent any of the inventions claimed in our or our licensor’s patents or patent applicationsNew
- 45Issued patents covering our Integrated Drug Creation platform and other technologies could be found invalid or unenforceable if challenged
- 46If we cannot acquire or license rights to use technologies on reasonable terms or if we fail to comply with our obligations under such agreements, we may not be able to commercialize new technologies or services in the future and our business could be harmed
- 47While we still face all of the risks described herein with respect to those agreements, we cannot prevent third parties from also accessing those technologies. In addition, our licenses may place restrictions on our future business opportunities
- 48We may not be able to protect our intellectual property rights throughout the world43% rewritten
- 49Intellectual property rights do not necessarily address all potential threats to our competitive advantage
- 50If we are unable to protect the confidentiality of our information and our trade secrets, the value of our technologies could be materially adversely affected, and our business could be harmed
- 51We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties or that our employees have wrongfully used or disclosed alleged trade secrets of their former employers
- 52We are or may become subject to U.S. and foreign laws regarding privacy, data protection, and data security that could require substantial compliance costs, and any failure or perceived failure to comply with them could subject us to significant liabilityNew
- 53We may not be able to protect and enforce our trademarks and trade names, or build name recognition in our markets of interest thereby harming our competitive position
- 54We may be subject to claims challenging the inventorship of our patents and other intellectual property
- 55If we become involved in patent litigation or other proceedings related to a determination of rights, we could incur substantial costs and expenses, substantial liability for damages or be required to stop our development and commercialization efforts of our technologies83% rewritten
- 56the payment of monetary damages (including treble damages, attorneys’ fees, costs, and expenses) or royalty paymentsNew
- 57governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirementsNew
- 58Patent terms may be inadequate to protect our competitive position with our technology for an adequate amount of time61% rewritten
Risks Related to Our Common Stock
- 59Our share price may be volatile, and you could lose all or part of your investment
- 60We in the past have had, and in the future may have, a material weakness in our internal control over our financial reporting process. If we are unable to remediate an identified material weakness, we may not be able to accurately or timely report our financial condition or results of operations
- 61We are obligated to develop and maintain proper and effective internal control over financial reporting. These internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and, as a result, the value of our common stock42% rewritten
- 62we have or are positioned to negotiate royalty- and milestone-bearing licenses. Accordingly, we do not presently have sufficient information to make accurate predictions regarding our potential revenue and future financial performanceNew
- 63Future sales and issuances of our common stock or rights to purchase common stock could result in additional dilution of the percentage ownership of our stockholders and could cause our share price to fall
- 64We do not intend to pay dividends on our common stock, so any returns will be limited to the value of our common stock
- 65Our principal stockholders and management own a significant percentage of our shares and will be able to exert significant influence over matters subject to stockholder approval
- 66Future sales of our common stock in the public market could cause our share price to fall24% rewritten
- 67An active trading market for our common stock may not continue to be maintained
- 68Provisions in our corporate charter documents and under Delaware law could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management
- 69actions under federal securities laws, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employeesNew
- 70Our ability to use our net operating losses and certain other tax attributes may be limited31% rewritten
- 71Changes in tax law may adversely affect us or our investors63% rewritten
- 72If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price and trading volume could decline
- 73Unfavorable U.S. or global economic conditions could adversely affect our business, financial condition or results of operations39% rewritten
- 74Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our technologies
- 75Our employees, consultants and commercial partners may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements, and insider trading
- 76We do not carry insurance for all categories of risk that our business may encounter and our policies have limits and significant deductibles. Some of the policies we currently maintain include general liability, property, umbrella and directors’ and officers’ insurance
- 77Cybersecurity incidents, data breaches, loss of data and other disruptions could compromise sensitive information related to our business or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation
- 78Social media platforms present new risks and challenges to our business
- 79We are an emerging growth company, and the reduced reporting requirements applicable to emerging growth companies could make our common stock less attractive to investors77% rewritten
- 80We have incurred and will continue to incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives76% rewritten
- 81Our results of operations and financial condition could be materially adversely affected by changes in accounting principles
- 82If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our results of operations could be adversely affected
- 83Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud
Other Absci 10-Ks
- FY2024 10-K risk factors80 risks
Absci faces heavy concentration risk with two partners driving 99% of its partner program revenue in 2024. The company has a limited operating history and an accumulated deficit of $509.6 million. Operations depend entirely on the success of its Integrated Drug Creation platform and synthetic biology technologies.
Filed Mar 18, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.