5 unchanged sentences
Inflation Risk
−Removed: General inflation in the U.S., Europe and other geographies has risen to levels not experienced in recent decades.
−Removed: General inflation, including rising prices for inputs and rising wages, as well as rising interest rates negatively impact our business by increasing our operating costs.
−Removed: General inflation also negatively impacts our business by decreasing the capital for our customers to deploy to purchase our products.
−Removed: Inflation may cause our customers to reduce or delay orders for our products thereby causing a decrease in sales.
−Removed: Increased instability relating to this higher inflation as well as rising interest rates may enhance volatility in currency exchange rates, limit our suppliers’ and customers’ access to credit and limit our ability to access debt and equity financing.
−Removed: These uncertainties may make it difficult for us and our suppliers and customers to accurately plan future business activities and materially adversely impact our operating results and financial condition.
−Removed: While we adjust our prices to try to offset rising operating costs, we may not be able to fully offset such higher costs or demand may decline.
−Removed: Our inability to offset costs or consequential decline in demand could harm our business, results of operations or financial condition.
−Removed: We do not believe that inflation has had a material effect on our business, financial condition, or results of operations, other than its impact on the general economy.
−Removed: We cannot assure you, however, that our results of operations and financial condition will not be materially impacted by inflation in the future.
+Added: General inflation in the U.S., Europe and other geographies has risen significantly in recent years.
+Added: To date, we do not believe that inflation has had a material effect on our business, financial condition, or results of operations, other than its impact on the general economy.
+Added: However, we are monitoring the current inflationary environment, particularly as it may be impacted by proposed and/or newly implemented tariffs.
+Added: If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases, and our inability or failure to do so could harm our business, financial condition and results of operations.
Interest Rate Risk
6 unchanged sentences
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.
−Removed: 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.
−Removed: Interest rate risk is the exposure to loss resulting from changes in the level of interest rates and the spread between different interest rates.
−Removed: Because our borrowings under our financing arrangements bear interest at variable rates, we are exposed to market risks relating to changes in interest rates.
−Removed: Interest rate risk is highly sensitive due to many factors, including U.S.
−Removed: monetary and tax policies, U.S.
−Removed: and international economic factors and other factors beyond our control.
−Removed: As of December 31, 2023, we had $44.0 million of variable rate debt outstanding under our UBS Agreement.
−Removed: 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.
−Removed: 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.
−Removed: Table of C ontents
+Added: On August 12, 2024, we repaid in full, with cash on hand, all outstanding indebtedness and terminated all commitments and obligations under the UBS Agreement.
+Added: As of December 31, 2024, we had no debt outstanding and therefore are not exposed to interest rate risk with respect to debt.
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.