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 December 31, 2022, we had outstanding investments in marketable securities valued at $35.1 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 the ongoing COVID-19 pandemic, the ongoing Russia-Ukraine conflict, 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 have and may continue to experience a decline in financial condition, which could result in a loss of all or a substantial part of our investment in these companies.
−Removed: 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 consolidated statements of operations due to changes in market prices and declines in financial conditions of Investees, and as such gains and losses are realized.
−Removed: During the fiscal year ended December 31, 2022, net unrealized losses of $159.0 million and net realized losses of $113.1 million related to marketable securities were recorded in other income (expense), net on the 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 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 December 31, 2023, we held outstanding shares of publicly-traded equity securities valued at $18.3 million.
+Added: We have sold, and may continue to sell, some or all of such 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, and the value of our equity holdings, may fluctuate depending on the financial outcome and prospects of the issuers, as well as global market conditions, including recent and ongoing volatility related to the impacts of the ongoing Russia-Ukraine and Israel conflicts, and heightened interest rates.
+Added: As of December 31, 2023, we held outstanding shares of privately-held equity securities valued at $32.6 million.
+Added: Valuations of our privately-held equity securities are complex due to, among other things, the lack of liquidity and the lack of readily available market data.
+Added: Uncertainties in the global economic climate and financial markets, or in the business, financial results,
+Added: or conditions of companies we hold equity in, could adversely impact the valuations of such companies and, therefore, result in an impairment or downward adjustment in the value of our holdings.
+Added: We have and may continue to accept securities as consideration or invest in securities, which may contribute to additional volatility to our 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.
−Removed: Our primary investment policy and strategies are focused on the preservation of capital and supporting our liquidity requirements;
−Removed: however, to a lesser extent we have made and may continue to make investments in early- and growth-stage companies as disclosed in Note 4.
−Removed: Investments and Fair Value Measurements in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: We do not currently anticipate entering into new Investment Agreements to purchase, or commit to purchase, securities of special purpose acquisition companies.
+Added: Our cash, cash equivalents, restricted cash, and available-for-sale debt securities consist of cash, short-term U.S.
+Added: treasury securities, money market funds, and certificates of deposit.
+Added: The primary objective of our investment activities and strategies are focused on the preservation of capital and supporting our liquidity requirements.
Due to the short-term nature of the financial instruments, we have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates.
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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: We have experienced, and may continue to experience, fluctuations in net loss as a result of transaction gains or losses related to remeasuring certain assets and liability balances that are denominated in foreign currencies.
+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, 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 asset and liability balances that are denominated in foreign currencies.
These exposures may change over time as business practices evolve and economic conditions change.
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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.