Quantitative and Qualitative Disclosures about Market Risk
−Removed: We had no material derivative financial instruments or derivative commodity instruments as of September 30, 2024.
+Added: We had no material derivative financial instruments or derivative commodity instruments as of March 31, 2025.
We maintain our cash and cash equivalents in bank deposit accounts, money market funds, and short-term U.S.
3 unchanged sentences
We believe we are not exposed to any significant credit risk on cash and cash equivalents.
−Removed: Due to the short-term duration of our investment portfolio, the low yield on the portfolio, and the low risk profile of our investments, a 10% increase or decrease in interest rates would not have a material impact on the fair value of our portfolio.
+Added: Due to the short-term duration of our investment
+Added: portfolio, the low yield on the portfolio, and the low risk profile of our investments, a 10% increase or decrease in interest rates would not have a material impact on the fair value of our portfolio.
Interest Rate Risk
3 unchanged sentences
In the normal course of business, we employ established policies and procedures to manage our exposure to changes in interest rates.
−Removed: For every 100 basis points increase in Term SOFR on our variable rate indebtedness, we would incur an incremental $1.0 million in interest expense per year, excluding any offset from the interest rate cap agreement.
−Removed: To reduce our exposure to market risks from increases in interest rates on our variable rate indebtedness we entered into a hedging arrangement in the form of an interest rate cap agreement.
−Removed: The new interest rate cap agreement, as further discussed in “Note 7.
−Removed: Long-Term Debt” included in the Notes to the Consolidated Financial Statements in this Quarterly Report, provides us with interest rate protection in the event the one-month Term SOFR rate increases above 1.78% and has a December 31, 2024, termination date.
−Removed: As of September 30, 2024, the interest rate cap agreement hedged $87.5 million of principal under our term loan.
+Added: For every 100 basis points increase in Term SOFR, we would incur an incremental $1.0 million in interest expense per year, excluding any impact offset from the interest rate cap agreement.
+Added: To reduce our exposure to market risks from increases in interest rates on our variable rate indebtedness we have entered into hedging arrangements in the form of interest rate cap agreements.
+Added: As further discussed in “Note 8.
+Added: Long-Term Debt” included in the Notes to the Consolidated Financial Statements in this Quarterly Report, prior to December 31, 2024, an interest rate cap agreement provided us with interest rate protection in the event the one-month Term SOFR rate increases above 1.78%.
+Added: In January 2025, upon the expiration of the prior agreement, we entered into a new interest rate cap agreement with a notional value of $50.0 million, which provides us with interest rate protection in the event that the Term SOFR rate exceeds 5.00%.
+Added: This interest rate cap agreement will expire in June 2026.
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.