Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk of loss arising from adverse changes in interest rates, foreign currency exchange rates and commodity prices. Our current primary market risk exposure is interest rate risk relating to the impact of interest rate movements under our Amended Credit Facility.
As of June 30, 2022, we had $65 million of outstanding balance under our Amended Credit Facility. A hypothetical 1% increase in the interest rate on the balance outstanding under the Amended Credit Facility at June 30, 2022 would have resulted in a change in our annual interest cost of approximately $0.7 million. See “Liquidity and Capital Resources” for further discussion of our Amended Credit Facility and capital structure.
We have not entered into derivative financial instruments for trading or speculative purposes.
We do not have any cash or cash equivalents as of June 30, 2022 that are subject to market risk.
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