What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2023-11-08 compared with 2023-08-10 · 36 added, 34 removed, 5 unchanged (93% of the section changed)

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

the six months ended June 30, 2023, our cash and cash equivalents were deposited in accounts at well capitalized financial institutions.

The fair value of our cash and cash equivalents at June 30, 2023 approximated its carrying value.

the nine months ended September 30, 2023, our cash and cash equivalents were deposited in accounts at well capitalized financial

institutions.

The fair value of our cash and cash equivalents at September 30, 2023 approximated its carrying value.

and Interest Rate Risk

are subject to financial market risks, including changes in interest rates.

Interest rate risk is defined as the sensitivity of our current

and future earnings to interest rate volatility, variability of spread relationships, the difference in re-pricing intervals between

our assets and liabilities and the effect that interest rates may have on our cash flow.

we seek to provide capital to a broad range of life science companies, institutions and investors with the majority of our finance receivables

portfolio paying interest based on floating interest rates with a reference rate floor, our net investment income is dependent, in part,

upon the difference between the rate at which we earn on our cash and cash equivalents and the rate at which we lend those funds to third

Interest rate risk is defined as the sensitivity of

our current and future earnings to interest rate volatility, variability of spread relationships, the difference in re-pricing

intervals between our assets and liabilities and the effect that interest rates may have on our cash flow.

we seek to provide capital to a broad range of life science companies, institutions and investors with the majority of our finance

receivables portfolio paying interest based on floating interest rates with a reference rate floor, our net investment income

is dependent, in part, upon the difference between the rate at which we earn on our cash and cash equivalents and the rate at

which we lend those funds to third parties.

As a result, we are subject to risks relating to changes in market interest rates.

We may use interest rate risk management

techniques in an effort to limit our exposure to interest rate fluctuations by providing capital at variable interest rates.

currently engage in any interest rate hedging activities.

We constantly monitor our portfolio and position our portfolio to respond appropriately

to a reduction in credit rating of any of our investments.

entered into a revolving credit facility.

As we borrow funds to make additional investments, our income will depend, in part, upon the

difference between the rate at which we borrow funds and the rate at which we invest those funds.

As a result, we are subject to risks

relating to changes in market interest rates.

In periods of rising interest rates when we have debt outstanding, our cost of funds would

increase, which could reduce our income, especially to the extent we continue to hold fixed rate investments.

We generally seek to mitigate

this risk by pricing our debt investments with floating interest rates to maintain the spread of our portfolio over the cost of leverage.

If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations,

which we have not done.

Adverse developments resulting from changes in interest rates or hedging transactions could have a materially

adverse effect on our business, financial condition and results of operations.

Accordingly, there can be no assurance that a significant

change in market interest rates will not have a material adverse effect on our investment income, net of borrowing expenses.

We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations by providing

capital at variable interest rates.

We do not currently engage in any interest rate hedging activities.

We constantly monitor

our portfolio and position our portfolio to respond appropriately to a reduction in credit rating of any of our investments.

maintain a revolving credit facility.

As we borrow funds to make additional investments, our income will depend, in part, upon

the difference between the rate at which we borrow funds and the rate at which we invest those funds.

As a result, we are subject

to risks relating to changes in market interest rates.

In periods of rising interest rates when we have debt outstanding, our

cost of funds would increase, which could reduce our income, especially to the extent we continue to hold fixed rate investments.

We generally seek to mitigate this risk by pricing our debt investments with floating interest rates to maintain the spread of

our portfolio over the cost of leverage.

If deemed prudent, we may use interest rate risk management techniques in an effort to

minimize our exposure to interest rate fluctuations, which we have not done.

Adverse developments resulting from changes in interest

rates or hedging transactions could have a materially adverse effect on our business, financial condition and results of operations.

Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect

on our investment income, net of borrowing expenses.

of our partner companies may be impacted by inflation.

If such partner companies are unable to pass any increases in their costs along

to their customers, it could adversely affect their results and impact their ability to pay interest and principal on our loans.

any projected future decreases in our partner companies’ operating results due to inflation could adversely impact the fair value

of those investments.

Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce

carrying value of our net assets.

If such partner companies are unable to pass any increases in their costs

along to their customers, it could adversely affect their results and impact their ability to pay interest and principal on our

In addition, any projected future decreases in our partner companies’ operating results due to inflation could adversely

impact the fair value of those investments.

Any decreases in the fair value of our investments could result in future unrealized

losses and therefore reduce carrying value of our net assets.

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.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk