Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A—QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
The Company is exposed to changing interest rates
on its investments, which consist primarily of United States Treasury instruments with short-term (less than one year) maturities and
cash. The interest rate market risk implicit in the Company's investments at any given time is low, as the investments mature within short
periods and the Company does not have significant exposure to changing interest rates on invested cash.
The Company has not undertaken any actions to
cover interest rate market risk and is not a party to any interest rate market risk management activities.
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A hypothetical 100 basis point change in market
interest rates over the next year would not materially impact the Company’s earnings or cash flows. A hypothetical 100 basis point
change in market interest rates would not have a material effect on the fair value of the Company’s investments.
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