1 unchanged sentence
We are exposed to market risk related to changes in interest rates.
−Removed: As of December 31, 2022, we had cash and cash equivalents of $102.3 million, which includes cash in operating bank accounts, investments in money market accounts, and money market funds.
+Added: As of December 31, 2023, we had cash and cash equivalents of $195.8 million, which includes cash in operating bank accounts, and investments in money market funds.
We have policies requiring us to invest in high-quality issuers, limit our exposure to any individual issuer, and ensure adequate liquidity.
−Removed: Our primary exposure to market risk is interest rate sensitivity, which is
−Removed: affected by changes in the general level of U.S.
+Added: Our primary exposure to market risk related to our cash and cash equivalents is interest rate sensitivity, which is affected by changes in the general level of U.S.
interest rates, particularly because our investments are in short-term securities.
1 unchanged sentence
We do not enter into financial instruments for trading or speculative purposes.
−Removed: We account for the conversion option embedded in our 2026 Convertible Notes as a separate financial instrument, measured at fair value, using a binomial lattice model, which we refer to as the Derivative Liability.
−Removed: As of December 31, 2022, the Derivative Liability was valued at $6.4 million.
−Removed: As of December 31, 2022, a 10% increase or decrease of the
−Removed: main inputs to the valuation model would not have a material effect on the fair value of the Derivative Liability.
−Removed: Changes of the fair value of the Derivative Liability have no impact on anticipated cash outflows.
−Removed: As of December 31, 2022, we had a variable interest rate-based note payable with a principal amount of $25.0
−Removed: Expected cash outflows from this financial instrument fluctuate based on changes in the U.S.
−Removed: dollar-denominated LIBOR index which is, among other factors, affected by the general level of U.S.
+Added: As of December 31, 2023, we had a secured term loan facility with a principal amount of $82.5 million under a credit and security agreement with Barings Finance LLC and the lenders party thereto, or the Barings Credit Agreement.
+Added: Expected cash outflows from this financial instrument fluctuate based on changes in the Secured Overnight Financing Rate, or SOFR, which is, among other factors, affected by the general level of U.S.
and international central bank interest rates.
−Removed: As of December 31, 2022, an immediate 100 basis point increase or decrease in the U.S.
−Removed: dollar-denominated LIBOR index would not have a material effect on the anticipated cash outflows from this instrument.
+Added: As of December 31, 2023, an immediate 100 basis point increase or decrease in the SOFR would not have a material effect on the anticipated cash outflows from this instrument.
+Added: We account for the obligation to pay royalty fees embedded in the Barings Credit Agreement as a separate financial instrument, measured at fair value, using a Monte Carlo simulation, which we refer to as the Royalty Fee
+Added: Derivative Liability.
+Added: As of December 31, 2023, the Royalty Fee Derivative Liability was valued at $12.4 million.
+Added: As of December 31, 2023, a 10% increase or decrease of the interest rate used in the valuation model would not have a material effect on the fair value of the Royalty Fee Derivative Liability.
+Added: Changes of the fair value of the Royalty Fee Derivative Liability have no impact on anticipated cash outflows.
+Added: We account for the conversion option embedded in our unsecured senior subordinated convertible notes, or the Convertible Notes, as a separate financial instrument, measured at fair value, using a binomial lattice model, which we refer to as the Conversion Option Derivative Liability.
+Added: As of December 31, 2023, the Conversion Option Derivative Liability was valued at $17.6 million.
+Added: As of December 31, 2023, a 10% increase or decrease of the main inputs to the valuation model would not have a material effect on the fair value of the Conversion Option Derivative Liability.
+Added: Changes of the fair value of the Conversion Option Derivative Liability have no impact on anticipated cash outflows.
Financial Statements and Supplementary Data
2 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.