2 unchanged sentences
Our cash flows and earnings are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and other factors.
−Removed: These market risk exposures are disclosed in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020.
+Added: These market risk exposures are disclosed in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021.
Interest Rate Sensitivity
−Removed: In June 2017, we entered into a credit facility consisting of term loans up to $10.0 million, and advances under a revolving line of credit up to $5.0 million.
−Removed: Loans made under the Term Debt bear interest through maturity equal to the greater of (i) 3.75% and (ii) the sum of (A) Index Rate (prime rate published in the Money Rates section of the Western Edition of The Wall Street Journal plus (B) 0.50%.
−Removed: Advances made under the Revolving Line of Credit bear interest at a variable annual rate equal to the equal to the greater of (i) 4.25% and (ii) the sum of (A) the prime rate (B) 1.00%.
+Added: Our unrestricted cash and cash equivalents total $139.7 million at March 31, 2021.
+Added: We primarily invest these amounts in money market funds which are held for working capital purposes.
+Added: We do not enter into investments for trading or speculative purposes.
+Added: As of March 31, 2021, the effect of a hypothetical 10% decrease in market interest rates would have an immaterial impact on a potential loss in future interest income and cash flows.
+Added: In June 2017, we entered into a Credit Facility with Western Alliance Bank consisting of term loans up to $10.0 million, and advances under a revolving line of credit up to $5.0 million.
+Added: Term loans made under the Term Debt bear interest at variable rate through maturity at the greater of (i) 3.75% or (ii) the sum of (A) Index Rate (prime rate published in the Money Rates section of the Western Edition of The Wall Street Journal plus (B) 0.50%.
+Added: Advances made under the Revolving Line of Credit bear interest at a variable annual rate equal to the greater of (i) 4.25% or (ii) the sum of (A) the prime rate plus (B) 1.00%.
Increases in these variable interest rates will increase our future interest expense and decrease our results of operations and cash flows.
−Removed: No amounts were drawn down under the credit facility as of September 30, 2020.
+Added: No amounts were drawn under the Credit Facility as of March 31, 2021.
Our exposure to interest rates risk relates to our 2017 Credit Facility with variable interest rates, where an increase in interest rates may result in higher borrowing costs.
−Removed: Since we have no outstanding borrowings under our 2017 Credit Facility as of September 30, 2020, the effect of a hypothetical 10% change in interest rates would not have any impact on our interest expense.
+Added: Since we have no outstanding borrowings under our 2017 Credit Facility as of March 31, 2021, the effect of a hypothetical 10% change in interest rates would not have any impact on our interest expense.
Foreign Currency Risk
Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates.
−Removed: In periods when the United States dollar declines in value as compared to the foreign currencies in which we incur expenses, our foreign-currency based expenses increase when translated into United States dollars.
−Removed: Although substantially all of our sales are denominated in United States dollars, future fluctuations in the value of the United States dollar may affect the price competitiveness of our products outside the United States.
−Removed: Our most significant foreign currency exposure is due to non-functional currency denominated monetary assets, primarily currencies denominated in other than their functional currency.
−Removed: These non-functional currency denominated monetary assets are subject to re-measurement which may create fluctuations in other expense, net, a component in our consolidated statement of operations and in the fair value of the assets in the consolidated balance sheet.
−Removed: As of September 30, 2020, the effect of a hypothetical 10% unfavorable change in exchange rates on currencies denominated in other than their functional currency would result in a potential loss in future earnings in our consolidated statement of operations and a reduction in the fair value of the assets of approximately $0.1 million.
−Removed: We did not engage in hedging transactions in 2020 or 2019.
−Removed: Investment in Equity Securities
−Removed: We own an equity investment in Molecular Assemblies, Inc.
−Removed: (“MAI”) which is a privately held company.
−Removed: Concurrently with our initial equity investment, John Nicols, our chief executive officer, joined MAI’s board of directors, and we entered into the MAI Agreement pursuant to which we will provide technical services and expertise in exchange for compensation in the form of additional shares of voting preferred stock.
−Removed: We and MAI envision entering into an arrangement to commercialize products developed under the MAI Agreement.
−Removed: To analyze the fair value measurement of our equity investment in MAI, we perform a qualitative analysis using significant unobservable inputs.
+Added: Although substantially all of our sales are denominated in United States dollars, future fluctuations in the value of the USD may affect the price competitiveness of our products outside the United States.
+Added: The impact of changes in foreign currency exchange rates on our operations and cash flows may be difficult or impossible to quantify.
+Added: Investment in Non-Marketable Debt and Equity Securities
+Added: We own investments in non-marketable available-for-sale debt security and non-marketable equity securities without readily determinable fair values.
+Added: To analyze the fair value measurement of these debt securities, we perform a qualitative analysis using significant unobservable inputs.
Significant changes to the unobservable inputs may result in a significantly higher or lower fair value estimate.
−Removed: We may value our equity investment based on significant recent arms-length equity transactions with sophisticated non-strategic unrelated new investors, providing the terms of these equity transactions are substantially similar to the equity transactions terms between the company and us.
−Removed: The impact of any differences in equity transaction terms may be difficult or impossible to quantify on the market value of investment.
+Added: We may value these equity securities based on significant recent arms-length equity transactions with sophisticated non-strategic unrelated investors, providing the terms of these security transactions are substantially similar to the security transactions terms between the investors and us.
+Added: The impact of the difference in transaction terms on the market value of the portfolio company may be difficult or impossible to quantify.
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.