BioAtla, Inc. 10-Q

Item 3 . Quantitative and Qualitative Disclosures About Market Risk. Interest Rate Risk We are exposed to market risks in the ordinary course of our business. We had cash, cash equivalents and short-term investments of $219.4 million and $245.0 million as of March 31, 2022 and December 31, 2021, respectively, which consisted of bank deposits and money market funds. Such interest-bearing instruments carry a degree of interest rate risk; however, historical fluctuations of interest income have not been significant. We do not enter into investments for trading or speculative purposes and we do not currently utilize derivative financial instruments to manage our interest rate exposure. We have not historically been exposed to material risks due to changes in interest rates. Foreign Currency Exchange Risk Our contracts with customers are primarily denominated in U.S. dollars, with a small amount denominated in foreign currencies. As such, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement of operations. To date, foreign currency transaction gains and losses have not been material to our condensed consolidated financial statements, and we have not engaged in any foreign currency hedging transactions.