Quantitative and Qualitative Disclosures About Market Risk
−Removed: The Company is exposed to a variety of markets and other risks including the effects of change in interest rates, inflation and foreign currency translation and transaction risks as well as risks to the availability of funding sources, hazard events and specific asset risks.
+Added: The Company is exposed to a variety of markets and other risks including the effects of change in interest rates and foreign currency translation and transaction risks.
Interest Rate Risk
The market interest risk in our financial instruments and our financial positions represents the potential loss arising from adverse changes in interest rates.
−Removed: As of December 31, 2022, we had cash and cash equivalents of $106.6 million, primarily consisting of interest-bearing money market funds, and short-term investments of $283.5 million, consisting U.S treasury securities, respectively.
+Added: As of December 31, 2023, we had cash and cash equivalents of $85.7 million, primarily consisting of interest-bearing money market funds, and short-term investments of $246.8 million, consisting of U.S treasury securities, respectively.
A 100 basis point increase in the general level of U.S.
1 unchanged sentence
This estimate is based on a sensitivity model that measures market value changes when changes in interest rates occur.
−Removed: Such decrease in fair value would only be realized if we sold the investments prior to maturity.
+Added: Such a decrease in fair value would only be realized if we sold the investments prior to maturity.
Foreign Currency Risk
2 unchanged sentences
We expect to be exposed to both currency transaction remeasurement and translation risk.
−Removed: Net realized and unrealized gains (losses) from foreign currency transactions are included in other expense, net in the consolidated statement of operations and comprehensive loss and amounted to a gain of $0.1 million for the year ended December 31, 2022.
−Removed: This foreign transaction gain was primarily due to the strengthening of the U.S.
−Removed: dollar to the Chinese renminbi (RMB) and South Korean won (KRW).
+Added: Any fluctuations in exchange rates may adversely affect our financial position, results of operations and cash flows.
+Added: However, the Company engages in a minimal number of transactions outside of the functional currency of the reporting unit, resulting in a negligible exposure to foreign currency risk.
We have not hedged such exposure, although we may do so in the future.
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.