Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures about Market Risk
We have market risk exposure in the ordinary
course of business, including the effects of foreign currency exchange rates and inflation. We are subject to foreign currency exchange
rate risk because we have foreign subsidiaries that are cost centers and pay certain expenses in foreign currencies. To manage exchange
rate risk, we may enter into derivative contracts, however, historically, this risk has been insignificant and we have not entered into
any derivative contracts.
Our cash and cash equivalents and marketable
securities primarily consist of cash on hand and highly liquid investments in money market funds and U.S. government securities. As of
September 30, 2022, we had cash and cash equivalents of $41.3 million and marketable securities of $37.5 million. We do not enter into
investments for trading or speculative purposes. Our short-term investments, which we expect to hold to maturity, are recorded at amortized
cost and are composed of fixed rate government treasury bills.
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