Candel Therapeutics, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk. We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate sensitivities. Our interest-earning assets consist of cash, cash equivalents and short-term marketable securities, which are denominated in U.S. dollars. We had cash, cash equivalents and short-term marketable securities of $24.3 million, or 79.1% of our total assets, as of June 30, 2021. Interest, dividend, and investment income earned on these assets was $12,000 and $177,000 for the six months ended June 30, 2021 and the year ended December 31, 2021, respectively. Our interest income is sensitive to changes in the general level of interest rates, primarily U.S. interest rates. Such interest-earning instruments carry a degree of interest rate risk; however, a change by 10% in interest rates would not have a material impact on our financial position or results of operations during the six months ended June 30, 2021 and the year ended December 31, 2020. We are not currently exposed to significant market risk related to changes in foreign currency exchange rates. Inflation generally affects us by increasing our costs. We do not believe that inflation had a material effect on our business, financial condition or results of operations during the six months ended June 30, 2021 and 2020.