QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: The Company's principal financial instrument is long-term debt (consisting of a revolving credit facility) that provides for interest based on the prime rate or LIBOR as described in the agreement.
−Removed: The Company is affected by market risk exposure primarily through the effect of changes in interest rates on amounts payable by the Company under these credit facilities.
−Removed: All foreign sales transactions by the Company are denominated in U.S.
+Added: Interest Rate Risk
+Added: Our exposure to market rate risk for changes in interest rates primarily relates to our investment portfolio.
+Added: We internally manage our investment portfolios considering investment opportunities and risks, tax consequences, and overall financing strategies.
+Added: Our investment portfolio includes fixed-income securities with a fair value of approximately $5.4 million at June 30, 2024.
+Added: These securities are subject to interest rate risk and, based on our investment portfolio at June 30, 2024, a 100 basis point increase in interest rates would result in a decrease in the fair value of the portfolio of approximately $108,000.
+Added: While an increase in interest rates may reduce the fair value of the investment portfolio, we will not realize the losses in the Consolidated Statements of Income unless the individual fixed-income securities are sold prior to recovery or the loss is determined to be other-than-temporary.
+Added: Currency Exchange Risk
+Added: We conduct business with non-U.S.
+Added: customers, however all foreign sales transactions by the Company are denominated in U.S.
As such, the Company has shifted foreign currency exposure onto its foreign customers.
−Removed: As a result, if exchange rates move against foreign customers, the Company could experience difficulty collecting unsecured accounts receivable, the cancellation of existing orders or the loss of future orders.
+Added: If changes in exchange rates were to negatively effect these customers, the Company could have trouble collecting unsecured receivables, and or experience the cancellation of existing orders or the loss of future orders.
The foregoing could materially adversely affect the Company's business, financial condition and results of operations.
−Removed: We are also exposed to foreign currency risk relative to expenses incurred in Dominican Pesos ("RD$"), the local currency of the Company's production facility in the Dominican Republic.
+Added: We are also exposed to foreign currency risk relative to expenses incurred in Dominican Pesos ("RD$"), the local currency of the Company's production facility in the Dominican Republic.
The result of a 10% strengthening or weakening in the U.S.
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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.