Duolingo(US:DUOL)2022-11-13 16:00Financial Position - The company had $512.7 million in cash equivalents invested in money market funds as of September 30, 2022[203]. - A hypothetical 10% relative change in interest rates would not have a material impact on the company's financial statements[203]. Foreign Currency Risk - The company is exposed to foreign currency exchange risk, particularly as its international receipts could be reduced during periods of a strengthening US dollar[204]. - Operating expenses are primarily denominated in the currencies of the countries where operations are located, mainly the US and China[204]. - The company has not entered into any hedging arrangements for foreign currency risk but may consider doing so in the future[204]. Inflation Impact - Inflationary factors may adversely affect the company's results of operations, although inflation has not had a material effect to date[206]. - The company may not be able to fully offset higher costs through price increases if inflationary pressures become significant[206]. Industry Competition - The online language learning industry is highly competitive, with low switching costs and constant innovation from competitors[19]. Business Risks - The company relies on third-party platforms for product distribution and payment collection, which poses risks to its business[23]. - The dual class structure of the company's common stock concentrates voting control, limiting the influence of other stockholders[29].