Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest
Rate Risk
Our
cash and cash equivalent primarily consists of deposits managed by commercial banks as of December 31, 2020. The goals of our
investment policy are preservation of capital, fulfillment of liquidity needs and fiduciary control of cash and investments. Our
primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of interest
rates, particularly because our investments are in deposits as of December 31, 2020. Due to the short-term duration of
our investment portfolio and the relatively low risk profile of our investments, a sudden change in interest rates would not have
a material effect on the fair market value of our portfolio, nor our operating results or cash flows.
We
do not believe our cash and cash equivalents have significant risk of default issues; however, we maintain significant amounts
of cash and cash equivalents at one or more financial institutions that are in excess of federally insured limits. Given the current
stability of financial institutions, we believe that we will not experience losses on these deposits.
Foreign
Currency Risk
We
face the foreign currency risk as a result of entering into transactions denominated in currencies other than U.S. dollars. Changes
in foreign currency exchange rates can create foreign exchange gains or losses to us. We did not incur significant foreign currency
gains or losses for the years ended December 31, 2020 and December 31, 2019.
Effects
of Inflation
We
do not believe that inflation and changing prices during the years ended December 31, 2020 and 2019 had a significant impact on
our results of operations.
ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
All
financial information required by this Item is attached hereto at the end of this report beginning on page F-1 and is hereby incorporated
by reference.
ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.