Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item
3. Quantitative and Qualitative Disclosures About Market Risk
Interest
Rate Risk
We
are exposed to market risk related to changes in interest rates on our cash and cash equivalents. The 2030 Notes issued in September
2025 are at a fixed coupon of 8.625% and do not expose us to interest rate risk. We do not utilize derivative financial instruments or
other market risk-sensitive instruments to manage our exposure to interest rate changes. Borrowings made through the 5/3 Revolver, which
is based on the SOFR plus an interest rate spread, will be exposed to interest rate risk; however, we currently have no borrowings against
it.
We
believe our interest rate risk related to our cash and cash equivalents is not material as our risk is that interest rates fall. Based
on the current interest rates, we do not have a significant downside risk of a drop in interest rates.
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