Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk in that the interest payable on our credit facility is based on variable interest rates and therefore is affected by changes in market rates. We do not use interest rate derivative instruments to manage exposure to changes in market interest rates. For fiscal 2020, the weighted average borrowings outstanding were approximately $256,000. A 1% change in the weighted average interest rate charged under the credit facility would have increased interest expense by approximately $3,000.
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