The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the U.S. dollar to Swedish krona (SEK) exchange rates. The Company does not apply hedge accounting to these contracts because these are not qualified as accounting hedges; therefore the changes in fair value are recorded in the consolidated statements of operations and comprehensive income (loss). By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The credit or repayment risk is minimized by entering into transactions with high-quality counterparties.

The notional amounts of the outstanding contracts at December 31, 2024 were as follows (in thousands):


	U.S. Dollar Amount		SEK Amount
May 2025		26,481		289,967
September 2025		62,550		679,418
		89,031		969,385

The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheet were as follows (in thousands):

The effects of derivative instruments on the consolidated statements of operations and comprehensive income (loss) were as follows (in thousands):

(in thousands)

December 31, 2024

Derivatives not designated or not qualifying as hedging instruments

Balance Sheet Location

Foreign exchange forward contracts

Other current assets