3 unchanged sentences
Our market risk exposure is primarily the result of fluctuations in interest rates, foreign currency exchange rates and to a lesser extent, inflation risk.
−Removed: The following analysis provides quantitative information regarding these risks.
+Added: The following analysis provides quantitative and qualitative information regarding these risks.
Inflation Risk
10 unchanged sentences
Interest Rate Risk
+Added: As of December 31, 2023, we had cash, cash equivalents, restricted cash and short-term investments of approximately $191.8 million, of which $7.4 million consisted of institutional money market funds, $83.6 million consisted of commercial paper, and $58.5 million consisted of corporate debt and U.S.
+Added: government agency securities, all of which carries a degree of interest rate risk.
+Added: The primary goals of our investment policy are liquidity and capital preservation.
+Added: We do not enter into investments for trading or speculative purposes.
+Added: These investments are subject to interest rate risk, as sharp increases in market interest rates could have an adverse impact on their fair value.
+Added: Although the fair values of these instruments can fluctuate, we believe that the short-term, highly liquid nature of these investments, and our ability to hold these instruments to maturity, reduces our risk for potential material losses.
+Added: A hypothetical 100 basis point change in interest rates would not have a material impact on our financial condition or results of operations due to the short-term nature of our investment portfolio.
+Added: In addition, our operating results are subject to risk from interest rate fluctuations on borrowings under our debt financing arrangements, which carry variable interest rates.
+Added: Interest rate risk is the exposure to loss resulting from changes in the level of interest rates and the spread between different interest rates.
+Added: Because our borrowings under our financing arrangements bear interest at variable rates, we are exposed to market risks relating to changes in interest rates.
Interest rate risk is highly sensitive due to many factors, including U.S.
1 unchanged sentence
and international economic factors and other factors beyond our control.
−Removed: Our exposures to market risk for changes in interest rates relate
+Added: As of December 31, 2023, we had $44.0 million of variable rate debt outstanding under our UBS Agreement.
+Added: Based upon a sensitivity analysis of our debt levels on December 31, 2023, an increase or decrease of 1% point in the effective interest rate under our UBS Agreement would cause an increase or decrease in interest expense of approximately $0.4 million over the next 12 months.
+Added: We anticipate that interest payable on borrowings under the UBS Agreement will be substantially less than the interest payable on the term loan facility with Hercules Capital, Inc, and that the new Agreement will provide more operational flexibility.
Table of C ontents
−Removed: primarily to our cash and cash equivalents balances and our debt arrangements which bear floating interest rates.
−Removed: A rising interest rate environment will increase the amount of interest paid on our loans.
−Removed: Based upon a sensitivity analysis, a hypothetical 100 basis point increase in interest rates would have increased our interest expense by $0.4 million for the year ended December 31, 2022.
−Removed: As of December 31, 2022, we had cash and cash equivalents of approximately $122.9 million, out of which $121.1 million consisted of money market funds, which carries a degree of interest rate risk.
−Removed: Based upon a sensitivity analysis, a hypothetical 10% change in interest rates would not have a material impact on our financial condition or results of operations due to the short-term nature of our investment portfolio.
Foreign Currency Exchange Risk
10 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.