Quantitative and Qualitative Disclosures about Market Risk
−Removed: We had no material derivative financial instruments or derivative commodity instruments as of March 31, 2026.
−Removed: We maintain our cash and cash equivalents in bank deposit accounts, money market funds, and short-term U.S.
−Removed: Treasury bills.
+Added: We had no material derivative financial instruments or derivative commodity instruments as of June 30, 2026.
+Added: We maintain our cash and cash equivalents in bank deposit accounts, money market funds, and U.S.
+Added: Treasury bills, and investment grade commercial paper with original maturities of less than three months.
The bank deposits exceed federally insured limits.
We have historically not experienced any losses in such accounts.
−Removed: We believe we are not exposed to any significant credit risk on cash and cash equivalents.
+Added: Our short-term investment portfolio includes U.S.
+Added: treasuries and investment grade commercial paper with original maturities ranging from three months to one year.
+Added: We believe we are not exposed to any significant credit risk on cash and cash equivalents or our short-term investments.
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.
Interest Rate Risk
−Removed: We are subject to risk from changes in interest rates primarily relating to our investment of funds in short-term U.S.
−Removed: Treasury bills issued at a discount to their par value.
+Added: We are subject to risk from changes in interest rates primarily relating to our investment of funds in U.S.
+Added: Treasury securities and investment grade commercial paper issued at a discount to their par value.
Our future investment income will vary due to changes in interest rates.
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 Secured Overnight Financing Rate, we would incur an incremental $900,000 in interest expense per year, excluding any impact offset from the interest rate cap agreement.
+Added: For every 100 basis points increase in Term Secured Overnight Financing Rate, we would incur an incremental $0.9 million in interest expense per year, excluding any impact offset from the interest rate cap agreement.
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.