Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. These risks include the following:
Interest Rate Risk
The Company is exposed to interest rate risk primarily through its cash held with financial institutions. These balances are maintained in interest-bearing accounts, and as a result, changes in market interest rates may affect the amount of interest income earned. As of December 31, 2025, the Company had no outstanding debt, with the exception of the fixed rate Note Payable - Related Party (noted in Note 8 , under Part II, Item 8, of this Form 10-K) or other interest-bearing obligations and, therefore, is not exposed to interest rate risk related to borrowings. Management believes that fluctuations in interest rates will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.
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