Two companies met our criteria from the two 10-K annual reports filed with the SEC on 13 July 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.
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
- Royale Energy, Inc. (High) — Royale’s most important new risk is that California drilling restrictions are no longer delayed, which could directly constrain future growth even as reserve estimates improved.
- APEX 11 INC. (Low) — This filing is essentially a status quo update: APEX 11 remains a shell with no operations and no new strategic catalyst.
Ranking Table
| Rank | Company | CIK | Full Filing Similarity | Business Similarity | Risk Factors Similarity | MD&A Similarity | Most Changed Section | Assessment |
|---|---|---|---|---|---|---|---|---|
| 1 | Royale Energy, Inc. | 1694617 | 0.992 | n/a | 0.992 | 0.991 | MD&A | high |
| 2 | APEX 11 INC. | 1578329 | 0.944 | 0.999 | 0.999 | 0.999 | MD&A | low |
Royale Energy, Inc.
| Rank | 1 |
|---|---|
| Lowest similarity section | MD&A |
| Assessment | high |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Royale’s biggest disclosure update is that California’s SB 1137 is now active, and the company says it is already restricting some undeveloped drilling locations and making future participation in those zones much harder. At the same time, Royale reported a sharp increase in estimated oil and gas reserves for 2025, but the gains were tied mainly to revised estimates and previously identified drilling locations. The filing still points to ongoing funding needs and regulatory pressure in California.
Main Changes
- The filing now says California’s SB 1137 is in force after the oil industry withdrew its referendum on June 27, 2024, replacing the prior disclosure that the law’s implementation was stayed pending the November 2024 vote.
- Royale adds that the law now "restricts" certain undeveloped drilling locations and "significantly deter[s]" future drilling participation with RMX Resources within 3,200-foot health protection zones.
- The company also adds that it "cannot predict" further state or third-party actions that could further limit drilling in California, and notes additional 2024 laws increasing the regulatory burden near neighborhoods.
- MD&A reserve commentary was updated to 2025, showing oil reserves up 171.1% and gas reserves up 362.3%, with upward revisions tied to previously estimated drilling locations; 2024 financing cash inflow also fell to $488,387 from $1.39 million.
Watch Items
- California regulatory risk is now immediate rather than hypothetical, which could reduce Royale’s future drilling inventory and slow development in a key operating area.
- The reserve increase is positive, but it appears driven by revised estimates and undeveloped locations rather than a broad operational step-up, so investors should watch whether those reserves can be converted into production.
- Lower financing inflows in 2025 versus 2024 suggest continued reliance on external funding, keeping liquidity and capital access important.
Important Filing Changes
It contains forward-looking statements including, without limitation, statements relating to the Company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements should be read in conjunction with the Company’s disclosures under the heading: “Cautionary Statement about Forward-Looking Statements” in this Annual Report. Overview Royale is an independent oil and natural gas producer.
It contains forward-looking statements including, without limitation, statements relating to the Company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements should be read in conjunction with the Company’s disclosures under the heading: “Cautionary Statement about Forward-Looking Statements” included elsewhere in this Annual Report. Overview Royale is an independent oil and natural gas producer.
Included in restricted cash are amounts for use in completion of turnkey drilling programs in progress. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates pertain to proved oil, plant products and gas reserve volumes and the future development costs.
The most significant factors affecting the results of operations are (i) changes in oil and natural gas prices, production levels and reserves, (ii) turnkey drilling activities, and (iii) the increase in future cost associated with abandonment of wells. Critical Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.
APEX 11 INC.
| Rank | 2 |
|---|---|
| Lowest similarity section | MD&A |
| Assessment | low |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
APEX 11’s latest 10-K does not show a meaningful shift in strategy or risk profile. The company still describes itself as a development-stage shell looking for a merger or acquisition target, with no operations and no new business line added. The only notable factual update is the year-end employee count, which remains one part-time worker.
Main Changes
- The filing mostly updates the table of contents and page references, with no substantive rewrite of the company’s shell-business description.
- The core business language is unchanged: Apex 11 still says it has "no operations to date" and intends to seek an acquisition or merger with a revenue-generating business.
- The same cautionary language remains that the company will not limit its search by industry or geography and that finding a suitable target is "complex and extremely risky."
- The personnel disclosure is updated from one part-time employee as of December 31, 2024 to one part-time employee as of December 31, 2025.
Watch Items
- The unchanged shell-company model means investors still face execution risk until a transaction is announced and closed.
- No new operating business, financing plan, or target criteria were added, so there is no sign of a strategic pivot.
- The employee count staying flat suggests the company remains essentially a minimal-cost public vehicle.
Important Filing Changes
Management ’ s Discussion and Analysis Of Financial Condition And Results Of Operations The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing in this Form 10-K and are hereby referenced. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing in this Form 10-K and are hereby referenced.
Management ’ s Discussion and Analysis Of Financial Condition And Results Of Operations The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing in this Form 10-K and are hereby referenced. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing in this Form 10-K and are hereby referenced. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.
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.
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