Quantitative and Qualitative Disclosures About Market Risk.
−Removed: The Company is exposed to market risk in the ordinary course of our business.
+Added: We are exposed to market risk in the ordinary course of our business.
Our revenue, earnings, cash flows, receivables, and payables are subject to fluctuations due to changes in foreign currency exchange rates.
2 unchanged sentences
2025 Notes and Embedded Derivative
−Removed: Our total fixed-rate borrowings under the 2025 Notes as of both September 30, 2022 and December 31, 2021 were $161.9 million.
+Added: Our total fixed-rate borrowings under the 2025 Notes as of both March 31, 2023 and December 31, 2022 were $161.9 million.
We record all of our fixed-rate borrowings at amortized cost and therefore, any changes in interest rates do not impact the carrying values that we report for these senior notes on our consolidated financial statements.
−Removed: The 2025 Notes include an embedded derivative which was marked to fair value at September 30, 2022 and December 31, 2021 of $0.02 million and $0.9 million, respectively.
+Added: The 2025 Notes include an embedded derivative which was marked to fair value at both March 31, 2023 and December 31, 2022 of $0.
The fair value inputs to the derivative valuation include dividend yield, term, volatility, stock price, and risk-free rate.
Consequently, we may incur gains and losses on the derivative as changes occur in the stock price, volatility, and risk-free rate at each reporting period.
−Removed: Additional details regarding our 2025 Notes and the embedded derivative are included in Item I Part 1 Note 3.
+Added: Additional details regarding our 2025 Notes and the embedded derivative are included in Part 1 Item 1 Note 3.
Fair Value Measurement of Assets and Liabilities and Note 4.
2 unchanged sentences
We are exposed to interest rate risk associated with fluctuations in interest rates on our revolving credit facility.
−Removed: As of September 30, 2022, assuming our revolving credit facility was fully drawn up to the $19.1 million borrowing base, a 1% increase in interest rates would result in a $0.2 million change in annualized interest expense.
+Added: As of March 31, 2023, assuming our revolving credit facility was fully drawn up to the $16.3 million borrowing base, a 1% increase in interest rates would result in a $0.1 million change in annualized interest expense.
+Added: Inflation Risk
+Added: Inflation has increased during the period and is expected to continue to increase for the near future.
+Added: Inflationary factors, such as increases in the cost of our materials, supplies, and overhead costs may adversely affect our operating results.
+Added: Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect if inflation rates continue to rise.
+Added: Significant adverse changes in inflation and prices in the future could result in material losses.
Currency Risk
8 unchanged sentences
Such economic exposure to currency fluctuat ions is difficult to measure or predict because our sales are also influenced by many other factors.
−Removed: For the three and nine months ended September 30, 2022, sales denominated in foreign currencies were approximately 22.0% and 17.2% of total revenu e.
+Added: F or the three months ended March 31, 2023 and 2022, sales denominated in foreign currencies were approximately 14.9% and 14.2% of total revenue.
Our expenses are generally denominated in the currencies in which our operations are located, which are primarily in the U.S.
−Removed: and to a lesser extent in E urope.
+Added: and to a lesser extent in Europe.
Our results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates.
−Removed: These foreign functional currencies consist of the pound sterling, Euro, and Australian Dollar (collectively, the “Foreign Functional Cu rrencies”).
−Removed: For the three and nine months ended September 30, 2022, a hy pothetical 10% change in Foreign Functional Currency exchange rates would have increased or decreased our revenue by approxi mately $1.5 million and $3.3 million, respectively.
+Added: These foreign functional currencies consist of the South African Rand, British Pound Sterling, Euro, and Australian Dollar (collectively, the “Foreign Functional Cu rrencies”).
+Added: For the three months ended March 31, 2023, a hy pothetical 10% change in Foreign Functional Currency exchange rates would have increased or decreased our revenue by approxi mately $756,831.
Actual gains and losses in the future may differ materially from the hypothetical gains and losses discussed above based on changes in the timing and amount of foreign currency exchange rate movements.
6 unchanged sentences
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.