2 unchanged sentences
We are exposed to market risk from changes in currency exchange rates and investments that could impact our results of operations and financial position.
−Removed: There have been no material changes to our market risks as disclosed in our Annual Report on Form 10-K, for the fiscal year ended May 31, 2024.
We transact sales in currencies other than the U.S.
Dollar, particularly the Euro, British Pound and Canadian Dollar.
−Removed: For the nine months ended February 28, 2025, approximately 3.5% of our sales were denominated in foreign currencies.
+Added: For the three months ended August 31, 2025, approximately 3.2% of our sales were denominated in foreign currencies.
We do not have expenses denominated in foreign currencies at the level of our sales and as a result, our profitability is exposed to currency fluctuations.
When the U.S.
−Removed: Dollar strengthens, our sales and gross profit will be negatively impacted.
+Added: Dollar strengthens, our sales and gross margin will be negatively impacted.
In addition, we have assets and liabilities denominated in non-functional currencies which are remeasured at each reporting period, with the offset to changes presented as a component of Other (Expenses) Income.
Significant non-functional balances include accounts receivable due from a sub-section of our international customers.
+Added: Interest Rate Risk
+Added: The risk associated with fluctuating interest rates is primarily limited to indebtedness.
+Added: As of August 31, 2025, the Company did not have any outstanding debt (see Note 6, "Long-Term Debt" set forth in the Notes in the consolidated financial statements included in this Annual Report on Form 10-K).
+Added: The Credit Agreement provides for a $25.0 million secured revolving credit facility.
+Added: Interest on the Revolving Facility will be based, at the Company's option, on a rate equal to (i) the Secured Overnight Financing Rate ("SOFR") plus 0.1% (subject to a floor of 0%) ("Adjusted Term SOFR"), or (ii) the alternate base rate (subject to a floor of 0%) ("ABR"), and in each case with a margin for Adjusted Term SOFR loans of 2.0% and for ABR loans of 1.0%.
+Added: The Revolving Facility will also carry a commitment fee of 0.2% per annum.
+Added: As of August 31, 2025 there were no amounts outstanding on the Revolving Facility.
Concentration of Credit Risk
8 unchanged sentences
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.