BioXcel Therapeutics, Inc. 10-K

Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign Exchange Risk As of December 31, 2025 and March 26, 2026, we had $28,757 and $28,862 of cash, cash equivalents and restricted cash, respectively. Our cash and cash equivalents are primarily held in U.S. Government money market funds. We do not participate in any foreign currency hedging activities and have limited exposure to other derivative financial instruments, primarily resulting from the terms and conditions of the Credit Agreement. We did not recognize any significant exchange rate losses during the years ended December 31, 2025 and 2024, respectively. We do not believe that our cash and cash equivalents have significant risk of default or illiquidity. While we believe our cash and cash equivalents do not contain material market risk, we cannot provide absolute assurance that in the future our investments will not be subject to adverse changes in market value. In addition, we maintain significant amounts of cash at one or more financial institutions that exceed federally insured limits. In the event of a failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all. Interest Rate Risk The loans under the Credit Agreement bear interest at a fixed rate of 13% payable quarterly. Consequently, we have material interest rate exposure due to our indebtedness if market rates drop in the future. Capital Market Risk We currently do not have substantial product revenues and depend on funds raised through other sources. One source of funding includes future debt or equity offerings. Our ability to raise funds in this manner depends upon, among other things, capital market forces affecting our stock price, and on the state of the capital markets generally .