Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Interest Rate Risk
On February 19, 2021, in connection with the consummation of the Arcturus acquisition, we entered into the Credit Facilities, as amended February 4, 2022 and June 6, 2023. As of April 30, 2024, the current outstanding balance of the Credit Facilities is $28.0 million and bears a variable interest rate. If market interest rates increase significantly, interest due on the Credit Facilities would increase. The market interest rate has increased significantly, and if market interest rates continue to increase, interest due on the Credit Facilities would increase.
Foreign Currency Exchange Rate Risk
Since a significant part of our sales and expenses are denominated in U.S. dollars, we have not experienced significant foreign exchange gains or losses to date. We currently do not engage in forward contracts or other derivatives in foreign currencies to limit our exposure on non-U.S. dollar transactions. With the acquisition of Telerob, which does conduct sales denominated in Euros, we are exposed to future foreign exchange gains or losses, and we will consider methods to limit our exposure on non-U.S. dollar transactions in the future.
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