1 unchanged sentence
We are exposed to market risks in the ordinary course of our business, which are principally limited to interest rate fluctuations and foreign currency exchange rate fluctuations.
−Removed: We maintain significant amounts of cash and cash equivalents
−Removed: that are in excess of federally insured limits in various currencies, placed with one or more financial institutions for varying periods according to expected liquidity requirements.
+Added: We maintain significant amounts of cash and cash equivalents that are in excess of federally insured limits in various currencies, placed with one or more financial institutions for varying periods according to expected liquidity requirements.
Interest Rate Risk
8 unchanged sentences
Foreign Currency Exchange Risk
−Removed: On January 1, 2023, Compass Pathways plc and its wholly owned subsidiary Compass Pathfinder Holdings Limited changed their functional currency to the U.S.
−Removed: Compass Pathways plc and Compass Pathfinder Holdings Limited have no operating activities and their primary functions are to serve as a financing vehicle to fund the operations of the Company’s operating entities, to serve as the listing company needed to access U.S.
−Removed: capital markets, and to hold investments.
−Removed: Therefore, its financing source is the primary indicator of its cash flows and its functional currency.
−Removed: The change in functional currency from the British Pound Sterling is due to a change in the source of the Company’s financing and cash flows going forward, which will now primarily be U.S.
−Removed: Dollars (“USD”).
+Added: The functional currency of Compass Pathways plc and its wholly owned subsidiary Compass Pathfinder Holdings Limited is the U.S.
+Added: Dollar, or USD.
The functional currency of Compass Pathfinder Holdings Limited’s wholly owned non-U.S.
5 unchanged sentences
The balance recorded in the cumulative translation adjustment account for prior periods is not reversed upon the change in functional currency.
−Removed: The Company translates the assets and liabilities of Compass Pathfinder Limited into USD at the exchange rate in effect on the balance sheet date.
+Added: We translate the assets and liabilities of Compass Pathfinder Limited into USD at the exchange rate in effect on the balance sheet date.
Income and expenses are translated at the average exchange rate in effect during the period.
Unrealized translation gains and losses are recorded as a cumulative translation adjustment, which is included in the consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income.
−Removed: For the year ended December 31, 2024, $1.0 million of unrealized loss on foreign currency translation was included in other comprehensive loss compared to an unrealized gain of $3.7 million for the year ended December 31, 2023.
+Added: For the year ended December 31, 2025, $3.5 million of unrealized gain on foreign currency translation was included in other comprehensive loss compared to an unrealized loss of $1.0 million for the year ended December 31, 2024.
We do not currently engage in synthetic currency hedging activities in order to reduce our currency exposure, but we maintain a spread of deposits in U.S.
4 unchanged sentences
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.