Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to a variety
of market and other risks, including the effects of changes in interest rates and inflation, as well as risks to the availability of
funding sources, hazard events and specific asset risks.
Interest Rate Risk
We
hold cash and cash equivalents for working capital purposes. As of December 31, 2020, we had a cash balance of $389.7 million, consisting
of operating and money market accounts which, are not affected by changes in the general level of U.S. interest rates. We do not have
material exposure to interest rate risk with respect to cash and cash equivalents as these are all highly liquid investments with a maturity
date of 90 days or less at the time of purchase.
Inflation Risk
We do not believe that inflation
currently has a material effect on its business. Inflation may become a greater risk in the event of changes in current economic and
governmental fiscal policy.
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