2 unchanged sentences
These risks primarily relate to interest rates and foreign currency exchange risks.
−Removed: We maintain an investment portfolio in accordance with our written investment policy.
−Removed: The primary objectives of our investment policy are to preserve principal, maintain proper liquidity to meet operating needs and maximize yields.
−Removed: Our investment policy specifies credit quality standards for our investments and limits the amount of credit exposure to any single issue, issuer or type of investment.
−Removed: Our investments consist of debt securities of various types and maturities of five years or less, with an average maturity of 2.1 years.
−Removed: These securities are classified as available-for-sale.
−Removed: Available-for-sale securities are recorded on the balance sheet at fair market value with unrealized gains or losses reported as part of Accumulated other comprehensive loss.
−Removed: Realized gains and losses on investment security transactions are reported on the specific-identification method.
−Removed: Dividend and interest income are recognized when earned.
−Removed: A decline in the market value of any available-for-sale security below cost that is deemed other-than-temporary results in a charge to earnings and establishes a new cost basis for the security.
−Removed: Although our investment policy guidelines are intended to ensure the preservation of principal, market conditions can result in high levels of uncertainty.
−Removed: Our ability to trade or redeem the securities in which we invest, including certain corporate bonds, may become difficult.
−Removed: Valuation and pricing of these securities can also become variable and subject to uncertainty.
−Removed: As of December 31, 2022, we had $2.7 million in unrealized losses in our investment portfolio.
−Removed: We do not utilize derivative financial instruments to manage our interest rate risks.
−Removed: We may be exposed to fluctuations in foreign currencies with regard to certain agreements with service providers.
+Added: We are exposed to interest rate risk primarily through borrowings under our ABL Facility.
+Added: Our ABL Facility has a variable interest rate based on either the Prime Rate, the NYFRB Rate, or the Secured Overnight Financing Rate ("SOFR").
+Added: An incremental change in the borrowing rate of 100 basis points would increase or decrease our annual interest expense by $0.4 million based on our $40.0 million debt outstanding on our ABL Facility as of December 31, 2023.
+Added: We have been and may continue to be exposed to fluctuations in foreign currencies with regard to certain agreements with service providers.
While our expenses are predominantly denominated in U.S.
3 unchanged sentences
Although we also have certain operations denominated in Euros, Swiss francs, and British pounds, among other currencies, those operations are subject to less overall market risk due to the revenue and expenses being denominated in the same currency.
−Removed: During the year ended December 31, 2022, our revenues were negatively impacted by approximately $10.4 million due to foreign currency fluctuations.
+Added: During the year ended December 31, 2023, our revenues were not materially impacted by foreign currency fluctuations but may be in the future.
We do not currently utilize hedging strategies to mitigate foreign currency risk.
+Added: We maintain an investment portfolio in accordance with our written investment policy.
+Added: Our investment policy specifies credit quality standards for our investments and limits the amount of credit exposure to any single issue, issuer or type of investment.
+Added: Our investments consist of debt securities of various types and maturities of one year or less and are classified as available-for-sale.
+Added: Although our investment policy guidelines are intended to ensure the preservation of principal, market conditions can result in high levels of uncertainty.
+Added: Our ability to trade or redeem the securities in which we invest, including certain corporate bonds, may become difficult.
+Added: Valuation and pricing of these securities can also become variable and subject to uncertainty.
+Added: As of December 31, 2023, the unrealized losses in our investment portfolio were determined to be immaterial.
+Added: We do not utilize derivative financial instruments to manage our interest rate risks.
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.