Two companies met our criteria from the six 10-K annual reports filed with the SEC on 17 August 2026. To qualify, a company must have filed an annual 10-K report on the target date and have a prior-year 10-K available for a direct year-over-year comparison. A prior-year filing was not available for EXTREME NETWORKS INC, Lumentum Holdings Inc., Calor Del Sol Inc. and Sandisk Corp, so they are excluded from the ranking.
SEC What Changed Methodology
Each company is scored on how similar its current annual filing text is to the prior year. Scores run from 0 to 1 — a score of 1 means the language is essentially unchanged; a lower score means more has changed. We flag three sections that carry the most disclosure signal: Business, Risk Factors, and MD&A. Recent research suggests that lower scores indicate that a company has made significant changes to their filings, these changes are often buried in the filings. If a company was to report positive news, they would likely do so in the form of a press release or statement on their website. The large changers have often underperformed in the market, while the stable-language filers have earned positive abnormal returns.
Key Takeaways
- GULF RESOURCES, INC. (Medium) — The key message is that Gulf Resources is signaling materially higher dependence on PRC policy and currency approvals for both operations and shareholder returns.
- BALTIC INTERNATIONAL USA INC (Medium) — Baltic is still a cash-starved shell, and the only meaningful catalyst remains finding a deal or new funding.
Ranking Table
| Rank | Company | CIK | Full Filing Similarity | Business Similarity | Risk Factors Similarity | MD&A Similarity | Most Changed Section | Assessment |
|---|---|---|---|---|---|---|---|---|
| 1 | GULF RESOURCES, INC. | 885462 | 0.986 | 0.959 | 0.995 | 0.996 | Business | medium |
| 2 | BALTIC INTERNATIONAL USA INC | 918545 | 1 | 1 | 1 | 1 | Business | medium |
GULF RESOURCES, INC.
| Rank | 1 |
|---|---|
| Lowest similarity section | Business |
| Assessment | medium |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Gulf Resources broadened and sharpened its China risk discussion in the Business section. Management now more directly warns that PRC authorities could interfere with operations, restrict foreign exchange, and limit the company’s ability to raise or move capital. The filing also emphasizes that U.S. regulators may have difficulty inspecting the company’s China-based operations.
Main Changes
- The Business section now more explicitly says the company faces "various legal and operational risks and uncertainties" from having all operations in China and from "complex and evolving PRC laws and regulations."
- It adds that the Chinese government "may intervene or influence our operations at any time," and that new oversight of overseas offerings and foreign investment could "significantly limit or completely hinder" the company’s ability to offer securities.
- The filing also expands the discussion of PRC foreign-exchange controls, saying the company relies on dividend payments from PRC subsidiaries and may need SAFE approval to convert RMB for debt repayment or other capital uses outside China.
- It further states that U.S. regulators may be limited in inspecting operations in China because disclosures and on-site inspections can be constrained by PRC jurisdiction and state secrecy laws.
Watch Items
- These additions reinforce that the company’s cash movement, financing flexibility, and dividend capacity remain exposed to PRC controls.
- The stronger language on overseas offerings and regulatory intervention raises the risk that future capital access or shareholder value could be impaired by policy changes in China.
- The inspection and enforcement language highlights ongoing cross-border legal friction that could complicate oversight and compliance.
Important Filing Changes
The results of these two subsidiaries were reported under SYCI in the fiscal year 2018. On January 27, 2020, we completed a 1-for-5 reverse stock split of our common stock, such that for each five shares outstanding prior to the stock split there was one share outstanding after the reverse stock split. All shares of common stock referenced in this report have been adjusted to reflect the stock split figures.
Ltd, our subsidiary, was incorporated in Shandong Province, China, for crude salt production and trading. On October 27, 2025, the Company completed a 1-for-10 reverse stock split of our common stock, such that for each ten shares outstanding prior to the stock split there was one share outstanding after the reverse stock split. All shares of common stock referenced in this report have been adjusted to reflect the stock split figures.
All shares of common stock referenced in this report have been adjusted to reflect the stock split figures. On January 28, 2020, our shares began trading on the NASDAQ Global Select Market under the new CUSIP # 40251W. In April 2022, Shouguang Hengde Salt Industry Co.
All shares of common stock referenced in this report have been adjusted to reflect the stock split figures. On October 27, 2025, our shares began trading on the NASDAQ Global Select Market under the new CUSIP # 40251W507. On May 6, 2025, the Company was notified by the Listing Qualifications Staff of The Nasdaq Stock Market LLC that the Staff granted the Company’s request to transfer the listing of its common stock, par value $0.0005 per share, from The Nasdaq Global Select Market tier to The Nasdaq Capital Market tier.
If our auditor is not permitted to provide requested audit work papers located in China to the PCAOB, investors would be deprived of the benefits of PCAOB’s oversight of our auditor through such inspections which could result in limitation or restriction to our access to the U.S. capital markets, and trading of our securities may be prohibited under the HFCAA, which would result in the delisting of our securities from the Nasdaq. Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and operations. Substantially all of our assets and operations are located in the PRC.
Risk Factors – Risks Related To Doing Business In China” 26 Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and operations. Substantially all of our assets and operations are located in the PRC.
BALTIC INTERNATIONAL USA INC
| Rank | 2 |
|---|---|
| Lowest similarity section | Business |
| Assessment | medium |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Baltic did not change its core business plan: it remains a shell company looking for a business combination. The main update is financial deterioration, with a slightly larger working capital deficit, higher shareholders’ deficit, and a bigger accumulated deficit, while cash stayed essentially unchanged and no financing was completed. That points to a company still waiting on external capital or a transaction to create value.
Main Changes
- The company updated its liquidity figures to show a larger working capital deficit of $5,177,991 at December 31, 2025, versus $4,994,685 a year earlier.
- Shareholders’ deficit also increased to $5,177,991 from $4,994,685, with the filing saying the increase was due primarily to higher accrued liabilities.
- Accumulated deficit rose to $19,139,239 from $18,955,933, while the company again reported no financings in 2025 and cash of $2,976.
- The business description still says Baltic is a shell company seeking to acquire a target business and may use stock or other securities to do so, with no definitive agreement in place.
Watch Items
- The widening deficit and unchanged cash balance suggest the company remains highly dependent on outside funding to pursue any acquisition.
- Management’s continued shell-company posture means the real investment case still hinges on whether it can find and close a reverse merger or similar transaction.
- The repeated statement that obligations are due and past due raises ongoing liquidity and going-concern-style concern for investors.
Important Filing Changes
No material section-level wording change was large enough to quote from the compared sections.
Why SEC Filing Changes Matter
Research by Cohen et al. (Lazy Prices, 2020) — using the complete history of SEC filings from 1995 to 2014 — shows that when firms make active changes to their annual disclosures, those changes convey an important signal about future operations and returns. A portfolio that shorted "changers" and bought "non-changers" earned over 22% per year in annual alpha historically. Changes to the Risk Factors section, Business description, and language referring to the executive team were especially informative. Critically, these returns accrued gradually as information was later revealed through news and earnings — not at the time of filing — suggesting many investors remain inattentive to these simple, public signals. This snapshot is a starting point for deeper investigation, not a buy or sell recommendation.
For more like this, see the full SEC What Changed archive, browse more equity research reports, or subscribe to Quantitative Research Notes for new filing-change alerts as soon as they publish.
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