Teamshares Inc 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk We are exposed to market risk in the ordinary course of business. Market risk represents the risk of economic losses due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of fluctuations in interest rates. Interest Rate Risk Borrowings under the i80 Facility as well as certain single company term loans bear interest at floating rates and are therefore subject to interest rate risk. As of June 30, 2026, the outstanding balance under the i80 Facility was $153.4 million. In addition, the Company had three single company term loans subject to variable rates with an aggregate principal balance of approximately $40.7 million as of June 30, 2026. Borrowings under these credit facilities and term loans accrue interest based on a floating benchmark rate plus an applicable spread. Based on the outstanding variable rate borrowings as of June 30, 2026, a hypothetical 1% increase or decrease in interest rates, with all other variables held constant, would result in a change in quarterly interest expense of approximately $0.5 million.