QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are exposed to market risks in the ordinary course of our business, which primarily relate to fluctuations in the value of our investments, interest rates, foreign exchange, and inflation.
−Removed: As of September 30, 2022, we had outstanding investments in marketable securities valued at $57.3 million.
−Removed: We have sold, and may continue to sell, some or all of our existing Investments.
−Removed: These Investments are often in early- or growth-stage companies that have minimal public trading history;
−Removed: as such the fair value of these Investments may fluctuate depending on the financial outcome and prospects of the Investees, as well as global market conditions including recent and ongoing volatility related to the impacts of COVID-19, the Russian invasion of Ukraine, and rising interest rates.
−Removed: Additionally, investing in early- or growth-stage companies carries inherent risks because, among other things, the technologies or products that are being developed by these companies are typically in the early phases and may never materialize or they may not achieve their growth or other business objectives, and they may experience a decline in financial condition, which could result in a loss of all or a substantial part of our investment in these companies.
+Added: We are exposed to market risks in the ordinary course of our business, which primarily relate to fluctuations in the value of our investments, interest rates, foreign currency exchange, and inflation.
+Added: As of March 31, 2023, we had outstanding shares of publicly-traded equity securities valued at $16.6 million.
+Added: We have sold, and may continue to sell, some or all of our existing equity securities.
+Added: These equity securities are often in early- or growth-stage companies that have minimal public trading history;
+Added: as such the fair value of these equity securities may fluctuate depending on the financial outcome and prospects of the investees, as well as global market conditions including recent and ongoing volatility related to the impacts of the ongoing COVID-19 pandemic, the ongoing Russia-Ukraine conflict, rising interest rates, and
+Added: financial services sector instability.
+Added: Additionally, investing in, or holding securities of, early- or growth- stage companies carries inherent risks because, among other things, the technologies or products that are being developed by these companies are typically in the early phases and may never materialize or they may not achieve their growth or other business objectives, and they have and may continue to experience a decline in financial condition or file for bankruptcy, which could result in a loss of all or a substantial part of our equity holdings in these companies.
We record gains or losses as the fair value of these investments change and as we sell them.
−Removed: We anticipate additional volatility to our condensed consolidated statements of operations due to changes in market prices, and as such gains and losses are realized.
−Removed: During the nine months ended September 30, 2022, net unrealized losses of $192.8 million related to marketable securities were recorded in other income (expense), net on our condensed consolidated statements of operations.
−Removed: We do not currently anticipate entering into new Investment Agreements to purchase, or commit to purchase, securities of special purpose acquisition companies.
+Added: We anticipate additional volatility to our condensed consolidated statements of operations due to changes in market prices and declines in financial conditions of applicable investees, and as such gains and losses are realized.
+Added: For the three months ended March 31, 2023, net unrealized losses related to publicly-traded equity securities held at the end of such period of $8.2 million were recorded in other income (expense), net on our condensed consolidated statements of operations.
+Added: We do not currently anticipate entering into new Investment Agreements, as defined in Note 4.
+Added: Investments and Fair Value Measurements in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, to purchase, or commit to purchase, securities of special purpose acquisition companies.
+Added: However, we have and may continue to accept securities as compensation or invest in securities, which may contribute to additional volatility to our condensed consolidated statements of operations.
Interest Rate Risk
−Removed: Our cash, cash equivalents, and restricted cash consist of cash, certificates of deposit, and money market funds.
+Added: Our cash, cash equivalents, restricted cash, and available-for-sale debt securities consist of cash, certificates of deposit, money market funds, and U.S.
+Added: treasury securities.
Our primary investment policy and strategies are focused on the preservation of capital and supporting our liquidity requirements;
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Our expenses are generally denominated in the currencies of the jurisdictions in which we conduct our operations, which are primarily in the United States, United Kingdom, and other European countries.
−Removed: Our results of current and future operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Euro and GBP.
−Removed: Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our statement of operations.
+Added: Our results of current and future operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in JPY, the Euro, and GBP.
+Added: We have experienced, and may continue to experience, fluctuations in net income (loss) as a result of transaction gains or losses related to remeasuring certain assets and liability balances that are denominated in foreign currencies.
+Added: These exposures may change over time as business practices evolve and economic conditions change.
To date, foreign currency transaction gains and losses have not been material to our condensed consolidated financial statements, and we have not engaged in any foreign currency hedging transactions.
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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.