Edgewise Therapeutics, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Interest rate risk As of June 30, 2021, we had cash, cash equivalents and marketable securities of $299.2 million. Our primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of U.S. interest rates. However, because of the short-term maturities and the low-risk profile of our investments, an immediate one percentage point relative change in market interest rates would not have a material impact on the fair market value of our investment portfolio or on our financial position or results of operations. As of June 30, 2021, we had no debt outstanding and are therefore not exposed to interest rate risk with respect to debt. Foreign currency exchange risk Our primary operations are transacted in U.S. Dollars, but certain service agreements with third parties are denominated in currencies other than the U.S. Dollar, primarily the British Pound and the Euro. Accordingly, we are subject to foreign exchange risk and therefore, fluctuations in the value of the U.S. Dollar against the British Pound and the Euro may impact the amounts reported for expenses and obligations incurred under such agreements. We do not currently engage in any hedging activity to reduce our potential exposure to currency fluctuations, although we may choose to do so in the future. A hypothetical 10% relative change in foreign exchange rates during any of the periods presented would not have had a material impact on our financial condition or results of operations. There was no material foreign currency risk for the three and six months ended June 30, 2021.