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 derivative instruments are not qualified as accounting hedges; therefore the changes in fair value are recorded in the condensed consolidated statements of comprehensive income. 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 June 30, 2025 and December 31, 2024 were as follows (in thousands):


	June 30,				December 31,
	2025				2024
	U.S. Dollar Amount		SEK Amount		U.S. Dollar Amount		SEK Amount
May 2025		-		-		26,481		289,967
September 2025		62,550		679,418		62,550		679,418
		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):


(in thousands)		June 30, 2025		December 31, 2024
Derivatives not designated or not qualifying as hedging instruments	Balance Sheet Location
Foreign exchange forward contracts	Other current assets	$	—	$	287
Foreign exchange forward contracts	Accrued liabilities	$	9,187	$	—

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


		Three Months Ended June 30,					Six Months Ended June 30,
Amount of Loss Recognized on Derivatives		2025			2024		2025			2024
Derivatives not designated or not qualifying as hedging instruments	Location of loss recognized on derivatives
Foreign exchange forward contracts	Other expenses, net	$	(486	)	$	—	$	(8,709	)	$	—