QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our exposure to market risk is primarily confined to our investment securities.
+Added: Our exposure to market risk is primarily confined to our investment securities, debt instruments and embedded derivatives.
+Added: Cash, Cash Equivalents and Short-Term Investments
The primary objective of our investment activities is to preserve our capital to fund operations, and we do not enter into financial instruments for trading or speculative purposes.
We also seek to maximize income from our investments without assuming significant risk.
−Removed: To achieve our objectives, we maintain a portfolio of investments in high-credit-quality securities.
−Removed: As of March 31, 2025, we had cash, cash equivalents and short-term investments of $52.4 million.
−Removed: In accordance with our investment policy, we invest funds in highly liquid, investment-grade securities.
+Added: As of June 30, 2025, we had cash, cash equivalents, and short-term investments of $28.7 million.
+Added: In accordance with our investment policy, we invest funds in high credit quality securities such as money market funds, certificates of deposit and U.S.
+Added: treasury bills to limit credit risk.
The money market funds in our investment portfolio are not leveraged and are classified as available-for-sale.
2 unchanged sentences
We actively monitor changes in interest rates and, with our current portfolio of short-term investments, we are not exposed to potential loss due to changes in interest rates.
+Added: Convertible Notes, Term Debt and Embedded Derivatives
+Added: As of June 30, 2025 and December 31, 2024, we had total fixed-rate borrowings from our 2026 Notes and 2029 Notes of $87.9 million and $97.9 million, respectively.
+Added: We record all of our fixed-rate borrowings at amortized cost and, therefore, do not experience any risk for changes in interest rates.
+Added: However, we include embedded derivatives along with our debt in our reporting of our 2029 Notes in our condensed consolidated balance sheet.
+Added: The derivatives on our 2029 Notes are marked to fair value every reporting period.
+Added: The fair value inputs to the derivative valuation include stock price, unsecuritized discount rate, risk-free rate, volatility, and term.
+Added: Consequently, we may incur gains and losses on the derivative as changes occur in any of these inputs at each reporting period.
+Added: For further details see “Note 4 — Fair Value Measurements” and “Note 6 — Debt” in the Notes to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.
+Added: As of each of June 30, 2025 and December 31, 2024, our term debt borrowings were $67.1 million.
+Added: We record our term debt at amortized cost.
+Added: However, interest is calculated based on adjusted SOFR, subject to a 3.00% floor, plus 8.75% per annum.
+Added: Therefore, we experience exposure to any adjustments in the adjusted SOFR.
+Added: Our term debt includes embedded derivatives that do not have a significant impact to our financial statements.
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.