Alphatec (US:ATEC)2021-03-04 16:00Financial Risks - As of December 31, 2020, the company's outstanding floating rate indebtedness totaled $49.3 million, with a potential pre-tax income decrease of approximately $0.5 million for a 100-basis point increase in interest rates [308]. - The company is exposed to market risks related to changes in interest rates due to its borrowings under the credit facility [308]. - A 10% change in commodity prices would not have had a material impact on the company's results of operations for the twelve months ended December 31, 2020 [309]. - The company has not experienced any material impact on its results of operations from changes in commodity prices due to the small portion of raw material prices in the cost of revenue [309]. Internal Controls - The company has identified deficiencies in internal controls over revenue and inventory cycles, which could lead to material misstatements in financial reporting [316]. - Remediation efforts for identified material weaknesses included improved documentation and review procedures, additional compensating controls, and enhanced training for personnel [318]. - The company maintained effective internal control over financial reporting as of December 31, 2020, according to the audit conducted based on COSO criteria [322]. - The company has developed a remediation plan to address material weaknesses associated with revenue and inventory controls [316]. - The company’s management has assessed the effectiveness of internal control over financial reporting, identifying deficiencies that were remediated during the fiscal year [318]. - The company’s disclosure controls and procedures were deemed effective as of December 31, 2020, allowing timely decisions regarding required financial disclosures [311].