10 unchanged sentences
We maintain our cash and cash equivalents in bank and other depository accounts, which frequently may exceed federally insured limits.
−Removed: Our cash and cash equivalents as of January 31, 2022 were $225.4 million, the vast majority of which was not covered by federal depository insurance.
−Removed: We have not experienced any material losses in such accounts and believe we are not exposed to any significant credit risk with respect to our cash and cash equivalents.
−Removed: Our accounts receivable balance as of January 31, 2022 was $87.4 million.
−Removed: We have not experienced any significant write-offs to our accounts receivable and believe that we are not exposed to significant
−Removed: credit risk with respect to our accounts receivable;
−Removed: however, the extent to which the ongoing COVID-19 pandemic will negatively impact our credit risk remains highly uncertain and cannot be accurately predicted.
+Added: Our cash and cash equivalents as of January 31, 2023 and 2022 were $254.3 million and $225.4 million, respectively, the vast majority of which was not covered by federal depository insurance.
+Added: We have not experienced any material losses in such accounts.
+Added: Our accounts receivable balance as of January 31, 2023 and 2022 was $96.8 million and $87.4 million, respectively.
+Added: We have not experienced any significant write-offs to our accounts receivable and believe that we are not exposed to significant credit risk with respect to our accounts receivable.
We continue to monitor our credit risk and place our cash and cash equivalents with reputable financial institutions.
2 unchanged sentences
HSA Assets consist of custodial HSA funds we hold in custody on behalf of our members.
−Removed: As of January 31, 2022, we held in custody HSA Assets of approximately $19.6 billion.
+Added: As of January 31, 2023 and 2022, we held in custody HSA Assets of $22.1 billion and $19.6 billion, respectively.
As a non-bank custodian, we contract with our Depository Partners and insurance company partners to hold custodial cash assets on behalf of our members, and we earn a significant portion of our total revenue from interest paid to us by these partners.
2 unchanged sentences
As HSA Assets increase and existing contracts with Depository Partners expire, we seek to enter into new contracts with Depository Partners, the terms of which are impacted by the then-prevailing interest rate environment.
−Removed: The diversification of HSA Assets placed among our Depository Partners and insurance company partners, and varied contract terms, substantially reduces our exposure to short-term fluctuations in prevailing interest rates and mitigates the short-term impact of a sustained increase or decline in prevailing interest rates on our custodial revenue.
+Added: The diversification of HSA Assets held by our Depository Partners and insurance company partners, and varied contract terms, substantially reduces our exposure to short-term fluctuations in prevailing interest rates and mitigates the short-term impact of a sustained increase or decline in prevailing interest rates on our custodial revenue.
A sustained decline in prevailing interest rates may negatively affect our business by reducing the size of the interest rate yield, or yield, available to us and thus the amount of the custodial revenue we can realize.
3 unchanged sentences
However, we may be required to increase the interest retained by our members in a rising prevailing interest rate environment.
−Removed: Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control, such as the interest rate cuts by the Federal Reserve associated with the ongoing COVID-19 pandemic.
+Added: Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control.
Client-held funds are interest earning deposits from which we generate custodial revenue.
−Removed: As of January 31, 2022, we held Client-held funds of $897 million.
+Added: As of January 31, 2023 and 2022, we held Client-held funds of $901 million and $897 million, respectively.
These deposits are amounts remitted by Clients and held by us on their behalf to pre-fund and facilitate administration of our other CDBs.
2 unchanged sentences
A sustained decline in prevailing interest rates may negatively affect our business by reducing the size of the yield available to us and thus the amount of the custodial revenue we can realize from Client-held funds.
+Added: Conversely, a sustained increase in prevailing interest rates may increase our yield.
Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control.
3 unchanged sentences
and include deposits in a money market account that is unrestricted as to withdrawal or use.
−Removed: As of January 31, 2022, we had unrestricted cash and cash equivalents of $225.4 million.
+Added: As of January 31, 2023 and 2022, we had unrestricted cash and cash equivalents of $254.3 million and $225.4 million, respectively.
Due to the short-term nature of these instruments, we believe that we do not have any material exposure to changes in the fair value of our cash and cash equivalents as a result of changes in interest rates.
Long-term debt.
−Removed: As of January 31, 2022, we had $350.0 million outstanding under our Term Loan Facility and no amounts drawn under our Revolving Credit Facility.
+Added: As of January 31, 2023 and 2022, we had $341.3 million and $350.0 million, respectively, outstanding under our Term Loan Facility and no amounts drawn under our Revolving Credit Facility.
Our overall interest rate sensitivity under these credit facilities is primarily influenced by any amounts borrowed and the prevailing interest rates on these instruments.
−Removed: The interest rate on our Term Loan Facility and Revolving Credit Facility is variable and was 1.88% at January 31, 2022.
−Removed: Accordingly, we may incur additional expense if interest rates increase in future periods.
+Added: The stated interest rate on our Term Loan Facility and Revolving Credit Facility is variable and was 6.31% and 1.88% at January 31, 2023 and 2022, respectively.
+Added: Accordingly, we
+Added: may incur additional expense if interest rates increase in future periods.
For example, a one percent increase in the interest rate on the amount outstanding under our credit facilities at January 31, 2023 would result in approximately $3.4 million of additional interest expense over the next 12 months.
1 unchanged sentence
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.