Quantitative and Qualitative Disclosures About Market Risk.
−Removed: We are exposed to market risks in the ordinary course of our business.
−Removed: These risks primarily include interest rate sensitivities.
+Added: We are exposed to market risks in the ordinary course of our business primarily related to interest rate sensitivities and the volatility of our common stock price.
Interest rate risk
−Removed: We had cash, cash equivalents, and restricted cash of $126.9 million as of December 31, 2020, which consisted of bank deposits and
−Removed: money market funds.
−Removed: We also had marketable securities of $287.2 million as of December 31, 2020.
+Added: As of December 31, 2021, we had cash, cash equivalents, and restricted cash of $261.8 million, which consisted of bank deposits and money market funds, and also had marketable securities of $493.8 million.
The primary objective of our investment activities is to preserve capital to fund our operations while earning a low risk return.
−Removed: marketable securities are primarily short-term in duration, we believe that our exposure to interest rate risk is not significant, and a hypothetical 1% change in market interest rates during any of the periods presented would not have had a
−Removed: significant impact on the total value of our portfolio.
+Added: Because our marketable securities are primarily short-term in duration, we believe that our exposure to interest rate risk is not significant, and a hypothetical 10% change in market interest rates during any of the periods presented would not have had a significant impact on the total value of our portfolio.
We had no debt outstanding as of December 31, 2021.
−Removed: Index to Financial Statements
+Added: Market capitalization and common stock price sensitivity
+Added: We agreed to make a success payment to Cobalt based on our market capitalization payable in cash or stock, and success payments to Harvard based on increases in the per share fair market value of our common stock, payable in cash.
+Added: As of December 31, 2021, the estimated fair value of the success payment liabilities was $102.5 million.
+Added: For the twelve months ended December 31, 2021, we recorded an expense of $26.0 million related to the aggregate change in the estimated fair value of our success payment liabilities.
+Added: Changes in our market capitalization and the fair value of our common stock as of each balance date may have a relatively large change in the estimated valuation of the success payment liabilities and resulting expense or gain.
+Added: Risk Factors included in this Annual Report for a sensitivity analysis showing the impact that a hypothetical change in our market capitalization and common stock value would have had on our results for the year ended December 31, 2021.
+Added: Foreign currency sensitivity
+Added: We are not currently exposed to significant market risk related to changes in foreign currency exchange rates;
+Added: however, we do contract with vendors that are located outside of the United States and may be subject to fluctuations in foreign currency rates.
+Added: We may enter into additional contracts with vendors located outside of the United States in the future, which may increase our foreign currency exchange risk.
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.