Spire Global, Inc. 10-Q/A

Item 3. Quantitative and Qualitative Disclosures about Market Risk Foreign currency exchange risk Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Euro, British Pound Sterling and Singapore Dollar, and may be adversely affected in the future due to changes in foreign currency exchange rates. We continue to experience foreign currency fluctuations primarily due to the periodic re-measurement of our foreign currency monetary account balances that are denominated in currencies other than the functional currency of the entities in which they are recorded. Changes in exchange rates may negatively affect our revenue and other operating results as expressed in U.S. dollars. We do not currently engage in foreign exchange hedging contracts. As we continue to expand our international presence, we will assess options for mitigating foreign exchange risk. We have experienced and will continue to experience fluctuations in our net loss as a result of gains or losses related to revaluing certain asset and current liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded. For the three months ended September 30, 2021, we had a realized and unrealized net loss of $0.5 million. For the three months ended September 30, 2020, we had a realized and unrealized net gain of $0.7 million. For the nine months ended September 30, 2021, we had a realized and unrealized net loss of $1.1 million. For the nine months ended September 30, 2020, we had an immaterial realized and unrealized net gain. A hypothetical 10% strengthening or weakening of the U.S. dollar relative to the currencies in which our revenue and expenses are denominated would have resulted in an increase or decrease, respectively, in our reported three months ended September 30, 2021, pre-tax loss of approximately $0.6 million and in our reported nine months ended September 30, 2021 pre-tax loss of approximately $1.4 million. Interest rate sensitivity We had cash and cash equivalents totaling $245.8 million as of the nine months ended September 30, 2021. This amount was held primarily in demand deposit accounts. The cash and cash equivalents are held for working capital purposes or strategic investment purposes. We do not enter into investments for trading or speculative purposes. As of the nine months ended September 30, 2021, the FP Term Loan had a fixed rate of 9.0% with no exposure to interest rate fluctuations.