Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest
Rate Risk
Our
operating results are subject to risk from interest rate fluctuations on the outstanding borrowings under our 2020 Credit Agreement.
Our revolving line of credit bears interest at a variable rate, which exposes us to market risks relating to changes in interest rates.
Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic
factors and other factors beyond our control. As of March 31, 2023, we had no variable rate debt outstanding as our term loan was paid
in full during the first quarter of 2023 and we had no borrowings outstanding under our revolving line of credit. We do not use derivative
financial instruments for speculative or trading purposes, but this does not preclude our adoption of specific hedging strategies in
the future.
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