Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Except as described elsewhere in this report, the Company has not engaged in trading practices in securities or other financial instruments and therefore does not have any material exposure to interest rate risk, foreign currency exchange rate risk, commodity price risk or other similar risks, which might otherwise result from such practices. The Company has limited foreign operations and therefore is not materially subject to fluctuations in foreign exchange rates, commodity prices or other market rates or prices from market sensitive instruments. The Company had a floating-to-fixed interest rate swap with a notional amount of $74.0 million, which matured on January 31, 2026. As of June 30, 2026, no interest rate swaps were outstanding and all debt is subject to floating interest rates.
We have determined that a 1.0% increase to SOFR would impact our interest expense by approximately $1.3 million per year. As of June 30, 2026, the interest rate on the floating interest rate debt was 7.8%.
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