Quantitative and Qualitative Disclosures about Market Risk
−Removed: We have exposure to equity risk with respect to the equity securities that we hold in Arcturus.
−Removed: In May 2020, we exercised our option to acquire 600,000 shares of Arcturus common stock.
−Removed: The carrying value of our investment in common stock and the option to purchase additional equity securities in Arcturus was $128.7 million and none, respectively, as of September 30, 2020, and $26.1 million and $1.7 million, respectively, as of December 31, 2019.
−Removed: If the Arcturus stock price had been lower at September 30, 2020 compared to December 31, 2019, we may have reported an even greater net loss for the nine months ended September 30, 2020.
−Removed: Given the historic volatility of the publicly traded stock price of Arcturus, the fair value of our investments in Arcturus may be subject to wide fluctuations which may have a significant impact on our earnings in future periods.
−Removed: "Risk Factors" for additional details.
+Added: We have exposure to equity risk with respect to the equity investments that we hold in Arcturus and Solid.
+Added: The carrying value of our equity investment held in Arcturus was $90.9 million and $95.4 million as of March 31, 2021 and December 31 , 2020, respectively, and the carrying value of our equity investment held in Solid was $43.3 million and $59.3 million as of March 31, 2021 and December 31 , 2020, respectively.
+Added: The fair value of our equity investments decreased by $20.6 million during the three months ended March 31, 2021 due to a decrease in the fair value of Arcturus and Solid common stock, resulting in unrealized losses on our investments in Arcturus and Solid common stock of $4.6 million and $16.0 million, respectively.
+Added: A hypothetical 10 percent decrease in the market price for our equity investments in Arcturus and Solid as of March 31, 2021 and December 31, 2020 would decrease the fair value by $13.4 million and $15.5 million, respectively.
+Added: Given the historic volatility of the publicly traded stock price of Arcturus and Solid, the fair value of our investments in Arcturus and Solid is subject to wide fluctuations which may have a significant impact on our net income (loss) in future periods.
Interest Rate Risk
−Removed: Our exposure to market risk for changes in interest rates relates primarily to interest earned on our cash equivalents and investments.
+Added: Our exposure to market risk for changes in interest rates relates primarily to interest earned on our cash equivalents and marketable debt securities .
The primary objective of our investment activities is to preserve our capital to fund operations.
1 unchanged sentence
Our investment policy provides for investments in low-risk, investment-grade debt instruments.
−Removed: As of September 30 , 2020, we had cash, cash equivalents, and investments totaling $765.5 million, compared to $760.4 million as of December 31, 2019, which include bank deposits, money market funds, U.S.
+Added: As of March 31, 2021, we had cash, cash equivalents, and marketable debt securities totaling $1,047.0 million, compared to $1,212.0 million as of December 31, 2020, which include bank deposits, money market funds, U.S.
government treasury and agency securities, and investment-grade corporate bond securities which are subject to default, changes in credit rating, and changes in market value.
The securities in our investment portfolio are classified as available for sale and are subject to interest rate risk and will decrease in value if market interest rates increase.
−Removed: Due to the COVID-19 pandemic and the reduction of rates by the U.S.
−Removed: Federal Reserve, we expect that the interest yield on our investments will decrease.
−Removed: A hypothetical 100 basis point change in interest rates during any of the periods presented would not have had a material impact on our consolidated financial statements.
−Removed: To date, we have not experienced a loss of principal on any of our investments and as of September 30, 2020, we did not record any allowance for credit loss from our investments.
+Added: A hypothetical 100 basis point change in interest rates during any of the periods presented would not have had a material impact on the fair market value of our cash equivalents and marketable debt securities as of March 31, 2021 or December 31, 2020.
+Added: To date, we have not experienced a loss of principal on any of these investments and as of March 31, 2021 , we did not record any allowance for credit loss from our investments.
Foreign Currency Risk
5 unchanged sentences
An adverse movement in foreign exchange rates could have a material effect on payments made to foreign suppliers and for license agreements.
−Removed: For the nine months ended September 30, 2020, a majority of our revenue and expense activities and capital expenditures were denominated in U.S.
+Added: For the three months ended March 31, 2021 , a majority of our revenue and expense activities and capital expenditures were denominated in U.S.
A hypothetical 10% change in foreign exchange rates during any of the periods presented would not have had a material impact on our consolidated financial statements.
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.