Item 1A. Risk Factors
Item 1A. RISK FACTORS
During the three months ended March 31, 2023, there were no material changes to the information contained in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The following addition amends our risk factors previously included within the Company’s Annual Report on Form 10-K for the year-ended December 31, 2022:
Sudden changes in market conditions or other macroeconomic factors may adversely impact our business, financial condition and operating results
Economic and market conditions will continue to have an impact on our financial condition and results of operations since the Company’s financial performance is largely correlated with the overall health of our economy and financial market activity. The unexpected failure of two commercial banks (Silicon Valley Bank and Signature Bank) during the quarter-ended March 31, 2023 raised concerns about institutions with concentrated exposure to certain types of depositors in the same industry as well as those with large unrealized losses in their investment security holdings. While the Company does not have any direct exposure to Silicon Valley Bank or Signature Bank, our cash is held with various third-party financial institutions. In particular, a substantial majority of our cash is held with a large, global systemically important bank, often in balances that exceed the current FDIC insurance limits. If the banks that we hold our deposits with enter receivership or become insolvent, we may be prevented from accessing our cash and cash equivalents in excess of FDIC insured limits. While such an event would be harmful to our financial condition, it is highly unlikely, given the normal size of such deposits, that such an event would be harmful to our overall financial condition.
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