QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s investment portfolio and debt instruments, which primarily consist of the Revolving Credit Facility.
+Added: The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s investment portfolio and debt instruments, which primarily consist of the Revolving Credit Facility.
The Company does not have any derivative financial instruments in its portfolio.
1 unchanged sentence
The Company is adverse to principal loss and ensures the safety and preservation of its invested funds by limiting default risk, market risk and reinvestment risk.
−Removed: As of December 31, 2022, the Company’s investments consisted of cash and money market funds.
+Added: As of December 30, 2023, the Company’s investments consisted of cash and money market funds.
The Company does not use interest rate derivative instruments to manage its exposure to interest rate changes.
−Removed: Based on the Company’s variable-rate line of credit balances during the fiscal year ended December 31, 2022, if the interest rate on the Company’s variable-rate line of credit (using an incremental borrowing rate) during the period had been 1.0% higher, the Company’s interest expense on an annualized basis would have increased by $0.1 million.
+Added: Based on the Company’s variable-rate line of credit balances during the fiscal year ended December 30, 2023, if the interest rate on the Company’s variable-rate line of credit (using an incremental borrowing rate) during the period had been 1.0% higher, the Company’s interest expense on an annualized basis would have increased by $0.2 million.
The Company does not expect any material loss with respect to its investment portfolio.
+Added: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
+Added: The financial statements, together with the report of the Company’s Independent Registered Public Accounting Firm, begins on page F-1.
+Added: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
+Added: FINANCIAL DISCLOSURE
+Added: CONTROLS AND PROCEDURES
+Added: Disclosure Controls and Procedures
+Added: Our management, with the participation of our principal executive officer and principal financial officer, evaluated, as of the end of the period covered by this Annual Report on Form 10-K, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")).
+Added: Based on our evaluation, our principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures (as such term is defined in Rule(s) 13a-15(e) and 15d-15(e) under the Exchange Act) were not effective as of December 31, 2023, because of the material weaknesses in our internal control over financial reporting described below.
+Added: Material Weaknesses in Internal Control Over Financial Reporting
+Added: A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
+Added: The Company previously disclosed, in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, a material weakness in our internal control over financial reporting.
+Added: As previously stated in such annual report, the Company did not design and maintain information technology controls relevant to preparing its financial statements, specifically concerning (i) separation of duties to the SAP ERP and General Ledger.
+Added: (ii) adequate restriction of administrator-type access to SAP (iii) program change management controls, and (iv) user access controls that ensure appropriate segregation of duties and adequately restrict user access to financial applications, programs, and data.
+Added: As a result, the Company's related process-level IT-dependent manual and automated controls that rely upon the affected ITGCs, or information coming from IT systems with affected ITGCs, were also deemed ineffective.
+Added: As part of the December 31, 2022, assessment, management designed a remediation action plan to address the deficiencies described above.
+Added: This plan included:
+Added: (i) investments to upgrade or replace existing systems that do not support an appropriate internal control framework;
+Added: (ii) expand company resources to address identified issues;
+Added: (iii) assess segregation of duties and implement an annual user access review, including role design and process transformation to appropriately mitigate significant risks associated with conflicting responsibilities in financial systems;
+Added: (iv) install an IT Change Management process and (v) internal training of key employees and third-party providers.
+Added: Although significant progress has been made in addressing the material weakness noted above, as of December 31, 2023, the Company has still not designed and maintained information technology controls relevant to preparing its financial statements, specifically concerning (i) separation of duties to the SAP ERP and General Ledger and (ii) user access controls that ensure appropriate segregation of duties and adequately restrict user access to financial applications, programs, and data.
+Added: As a result, there continues to be a material weakness in our internal control over financial reporting as of December 31, 2023.
+Added: This material weakness did not result in a misstatement of our annual or interim consolidated financial statements.
+Added: However, the material weakness could result in a misstatement of substantially all account balances or disclosures that would result in a material misstatement to our annual or interim consolidated financial statements that would not be prevented or detected.
+Added: Notwithstanding the above-identified material weaknesses, management believes the consolidated financial statements, as included in Part II, Item 8 of this Annual Report on Form 10-K, present the Company's financial condition and results of operations fairly, in all material respects.
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.